TRU – Market expectations are for record-high Uniform ROA, but management appears concerned about growth, their public sector verticals, and fraud mitigation

• TransUnion (TRU:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 35.4x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management appears concerned about fintech revenue growth, public sector verticals, and fraud mitigation opportunities.
  
  
• Specifically, management may lack confidence in their ability to grow fintech revenues, continue outpacing the market recovery, and maintain an attractive market position in consumer credit data. In addition, they may be overstating the potential of their investments in TruValidate, their global competitiveness in the fraud mitigation market, and their innovation capabilities. Furthermore, management may lack confidence in their ability to execute strategies for the public sector vertical, further develop solutions for government agencies, and win more contracts from rental screening firms.