TRU – Markets expectations are for Uniform ROA to reach new highs, but management may have concerns about growth and their recent acquisitions

• TransUnion (TRU) currently trades above corporate and historical averages relative to Uniform earnings, with a 33.3x Uniform P/E (Fwd. V/E’).
• At these levels, markets are pricing in expectations for Uniform ROA to reach new peaks, accompanied by 7% Uniform asset growth.
• Meanwhile, analysts expect Uniform ROA to improve to 36% in 2022, accompanied by 6% Uniform asset growth.
• If sustained going forward, these levels would imply a stock price closer to $76, representing approximately 34% equity downside for the firm.
• Moreover, the firm’s most recent earnings call suggests management may have concerns about growth and their recent acquisitions.