TransUnion
TRU
$79.88
-5.93%
TransUnion is one of the three largest credit bureaus in the United States, providing consumer credit information, fraud detection, marketing, and analytical services to businesses and consumers. The company operates in over 30 countries, with about 20-25% of revenue from international markets, positioning it as a global player in the credit information industry. Currently, the stock is in focus due to its recent acquisition of a majority stake in Mexico's Buró de Crédito, which strengthens its Latin American presence, and its ongoing efforts to leverage AI and data analytics to drive growth. Investors are debating the sustainability of its growth trajectory amid a competitive landscape and macroeconomic uncertainties.…
TRU
TransUnion
$79.88
Related headlines
Investment Opinion: Should I buy TRU Today?
We rate TransUnion a Buy, supported by accelerating revenue growth (13.69% YoY in Q1 2026) and a forward PE of 15.29x, which is at a 30% discount to the industry average of 22x. The analyst consensus is Buy with an average target of $96.57, implying 12.7% upside. The PEG ratio of 0.61 indicates the stock is undervalued relative to its growth prospects, and the recent acquisition of Buró de Crédito expands international opportunities. However, the high debt load (D/E 1.16x) and cyclicality of the credit business are key risks.
Sign up to view all
TRU 12-Month Price Forecast
The AI model assesses TransUnion as a bullish opportunity due to its accelerating revenue growth, attractive forward valuation, and positive analyst sentiment. The main risks are the high debt load and cyclicality, but the current growth trajectory and valuation support a positive outlook. If the company can sustain double-digit growth and manage its debt, the stock is likely to appreciate. However, a downgrade would occur if revenue growth falls below 10% or if the forward PE exceeds 20x.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on TransUnion's 12-month outlook, with a consensus price target around $96.57 and implied upside of +20.9% versus the current price.
Average Target
$96.57
0 analysts
Implied Upside
+20.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$77 - $115
Analyst target range
Analyst coverage is robust with 21 analysts, and the consensus recommendation is 'Buy' with a mean rating of 1.77 (where 1 is Strong Buy and 5 is Sell). The average target price is $96.57, implying an upside of 12.7% from the current price of $85.67. The target range is $77.00 to $115.00, with the low target suggesting a 10.1% downside and the high target a 34.2% upside. The wide spread indicates uncertainty, but the recent ratings from major firms like JP Morgan (Overweight) and Morgan Stanley (Overweight) suggest a positive tilt, while some neutral stances from UBS and Goldman Sachs temper the bullishness.
Bulls vs Bears: TRU Investment Factors
TransUnion presents a mixed picture: strong revenue acceleration and operating leverage are offset by high leverage and a rich trailing valuation. The bull case is supported by accelerating growth, a favorable forward PE, and analyst optimism, while the bear case hinges on debt, cyclicality, and a premium trailing multiple. Currently, the bull case has stronger evidence due to the 13.69% revenue growth and 24.5% operating income growth, but the key tension is whether the one-time tax benefit masks underlying profitability. If growth continues and margins hold, the stock could re-rate higher; if not, the high debt and cyclicality could lead to de-rating.
Bullish
- Accelerating Revenue Growth: Q1 2026 revenue grew 13.69% YoY to $1.2457B, up from 8.5% growth in Q1 2025, indicating accelerating momentum. This acceleration is driven by strength in core credit and new AI-driven analytics products.
- Strong Operating Leverage: Operating income grew 24.5% YoY in Q1 2026, outpacing revenue growth, with operating margin expanding to 19.65% from 23.2% in Q1 2025 (though the latter was elevated). This shows the company's ability to convert revenue growth into profit.
- Attractive Forward Valuation: Forward PE of 15.29x is at a 30% discount to the industry average of 22x, while PEG ratio of 0.61 suggests undervaluation relative to growth. This implies the market is pricing in significant earnings growth, which is supported by analyst estimates.
- Analyst Consensus Buy: With 21 analysts, the consensus rating is 'Buy' (mean 1.77), and the average target price of $96.57 implies 12.7% upside. Recent upgrades from JP Morgan and Morgan Stanley (Overweight) indicate positive sentiment.
Bearish
- Elevated Trailing PE: Trailing PE of 36.65x is 67% above the industry average of 22x, indicating the stock is expensive on current earnings. This premium leaves little room for error if growth disappoints.
- High Debt Levels: Debt-to-equity ratio of 1.16x and interest expense of $62M in Q1 2026 (up from $56.1M a year ago) indicate significant leverage. Rising interest costs could pressure margins if rates stay high.
- Weak Relative Performance: Stock underperformed the S&P 500 over the past year (-3.38% vs +18.56%) and YTD (2.81% vs 12.82%). This suggests persistent negative sentiment and potential for continued underperformance.
- Dependence on Credit Cycle: Revenue is highly correlated with consumer credit activity, making it sensitive to economic downturns. A recession could reduce demand for credit reports, impacting growth.
TRU Technical Analysis
TransUnion's stock has been in a recovery phase over the past year, with a 1-year price change of -3.38%, but a strong 3-month gain of 19.72% indicates a recent uptrend. The current price of $85.67 is near the upper end of its 52-week range, sitting at approximately 89% of the range (calculated from 52-week low of $63.37 and high of $95.505). This positioning suggests momentum is building, though the stock is still below its 52-week high, leaving room for potential upside if it can break through resistance.
Beta
1.53
1.53x market volatility
Max Drawdown
-32.3%
Largest decline past year
52-Week Range
$63-$96
Price range past year
Annual Return
-10.3%
Cumulative gain past year
| Period | TRU Return | S&P 500 |
|---|---|---|
| 1m | -0.1% | +0.1% |
| 3m | +13.0% | +4.4% |
| 6m | +3.2% | +14.6% |
| 1y | -10.3% | +18.6% |
| ytd | -4.1% | +12.9% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
TRU Fundamental Analysis
TransUnion's revenue growth has been accelerating, with the most recent quarter (Q1 2026) showing revenue of $1.2457 billion, a 13.69% YoY increase, up from 8.5% growth in Q1 2025. The company's net income in Q1 2026 was $397.2 million, a significant jump from $148.1 million in the year-ago quarter, reflecting a net margin of 31.9% versus 13.5% previously. This improvement was driven by a one-time tax benefit, as the effective tax rate dropped to 6.4% from 21.2%, but even excluding that, operating income grew 24.5% YoY, indicating solid underlying profitability.
Quarterly Revenue
$1.2B
2026-03
Revenue YoY Growth
+13.7%
YoY Comparison
Gross Margin
58.3%
Latest Quarter
Free Cash Flow
$696500000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is TRU Overvalued?
Given that TransUnion is profitable, the PE ratio is the primary valuation metric. The trailing PE is 36.65x, while the forward PE is 15.29x, implying the market expects significant earnings growth, which is supported by the PEG ratio of 0.61. Compared to the industry average PE of 22x (based on available data), TransUnion trades at a 67% premium on a trailing basis, but on a forward basis, it is at a 30% discount, suggesting the market is pricing in robust future earnings. Historically, the stock's PE has ranged from 5.6x to 103x over the past five years, and the current trailing PE is near the lower end of that range, indicating potential undervaluation if growth materializes.
PE
36.6x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 6x~75x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
14.4x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are notable: TransUnion carries a debt-to-equity ratio of 1.16x, and interest expense rose to $62M in Q1 2026 from $56.1M a year ago, indicating rising leverage costs. The company's net margin of 31.9% in Q1 2026 was inflated by a one-time tax benefit (effective tax rate 6.4% vs 21.2% prior year), and excluding that, operating margin was 19.65%, which is still solid but not as spectacular. Free cash flow TTM is $696.5M, providing some cushion, but the high debt load increases vulnerability to rate hikes and economic downturns. Revenue concentration in credit services makes earnings sensitive to consumer credit cycles, and a slowdown could pressure both revenue and margins.