Transunion Stock Fair Value – TRANSUNION Reports Second Quarter Earnings Results for Fiscal Year 2023
August 3, 2023
🌥️Earnings Overview
On July 25 2023, TRANSUNION ($NYSE:TRU) reported its earnings results for the second quarter of fiscal year 2023 (ending June 30 2023). The company’s total revenue stood at USD 968.0 million, indicating a 2.1% year-over-year rise. However, net income for the quarter decreased by 43.6%, amounting to USD 53.9 million compared to the same period in the previous year.
Market Price
The stock opened at $79.6 and closed at $81.3, an impressive 2.9% increase from the last closing price of 79.0. This indicates that TRANSUNION is in a strong financial position as they continue to grow and expand their offerings. This was driven by an increase in customer demand for their services, as well as a successful launch of new products and services. Overall, TRANSUNION had a strong second quarter with solid financials and indications of continued growth.
These results are a testament to the strength of the company and its ability to remain competitive in the industry. Investors are encouraged by these results and are optimistic about the company’s future prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Transunion. More…
| Total Revenues | Net Income | Net Margin |
| 3.75k | 232.1 | 5.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Transunion. More…
| Operations | Investing | Financing |
| 705.1 | -233.1 | -552.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Transunion. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 11.63k | 7.16k | 22.56 |
Key Ratios Snapshot
Some of the financial key ratios for Transunion are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.6% | 1.7% | 16.2% |
| FCF Margin | ROE | ROA |
| 10.3% | 8.8% | 3.3% |
Analysis – Transunion Stock Fair Value
At GoodWhale, we offer comprehensive financial analysis and valuation services for businesses. With our expertise, we recently conducted a financial analysis of TRANSUNION. After an extensive review of the company’s balance sheet, income statement, cash flow statement, and other key metrics, our proprietary Valuation Line calculated the intrinsic value of TRANSUNION’s stock to be around $104.4. As of now, the stock is trading at $81.3, which is significantly lower than its estimated value. This is a great opportunity to capitalize on as the stock is currently undervalued by 22.1%. Our team is ready to help investors who are looking to benefit from this attractive investment opportunity. More…
Peers
The company was founded in 1968 and is headquartered in Chicago, Illinois.
– Experian PLC ($LSE:EXPN)
As of 2022, Experian PLC has a market cap of 24.81B and a Return on Equity of 34.45%. The company is a global information services company that provides data and analytical tools to clients in a variety of industries. Experian PLC has operations in 40 countries and employs approximately 17,000 people.
– Equifax Inc ($NYSE:EFX)
As of 2022, Equifax Inc has a market cap of 18.4B and a Return on Equity of 18.44%. The company is a consumer credit reporting agency, which means that it gathers and provides information on consumers’ borrowing and repayment history. This information is then used by businesses to assess creditworthiness and make lending decisions. Equifax is one of the three major credit reporting agencies in the United States, along with Experian and TransUnion.
– CRA International Inc ($NASDAQ:CRAI)
CRA International Inc is a global consulting firm with a market cap of 679.36M as of 2022. The company has a Return on Equity of 17.68%. CRA International Inc provides consulting services in the areas of antitrust and competition, economic, financial, and management consulting.
Summary
TransUnion reported their second quarter financials for the fiscal year 2023, with total revenue of USD 968.0 million, a modest 2.1% year-over-year increase. However, net income dropped significantly to USD 53.9 million, a 43.6% decline compared to the prior year. This paints an uncertain investing picture for TransUnion, as investors must carefully weigh the potential upside of the small revenue increase against the downside of the significant net income drop. Investors should consider carefully TransUnion’s long-term prospects, take into account any additional changes to their financials, and understand the risks associated with investing in TransUnion before making any decisions.
