THOMSON REUTERS CORP (TRI.CA) Stock Fundamental Analysis
Canada - TSX:TRI - CA8849038085 - Common Stock
224 CAD
+2.3 (+1.04%)
We assign a fundamental rating of 6 out of 10 to TRI. TRI was compared to 6 industry peers in the Professional Services industry. TRI scores excellent on profitability, but there are some minor concerns on its financial health. TRI is valied quite expensively at the moment, while it does show a decent growth rate. TRI also has an excellent dividend rating. These ratings would make TRI suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year TRI was profitable.
TRI had a positive operating cash flow in the past year.
TRI had positive earnings in each of the past 5 years.
TRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TRI has a Return On Assets of 9.08%. This is in the better half of the industry: TRI outperforms 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 12.93%, TRI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
TRI's Return On Invested Capital of 11.24% is fine compared to the rest of the industry. TRI outperforms 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRI is in line with the industry average of 10.87%.
The 3 year average ROIC (9.36%) for TRI is below the current ROIC(11.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.08% | ||
| ROE | 12.93% | ||
| ROIC | 11.24% |
ROA(3y)10.84%
ROA(5y)12.89%
ROE(3y)17.97%
ROE(5y)21.25%
ROIC(3y)9.36%
ROIC(5y)7.9%
1.3 Margins
TRI has a Profit Margin of 22.29%. This is amongst the best in the industry. TRI outperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of TRI has grown nicely.
TRI has a Operating Margin of 29.38%. This is amongst the best in the industry. TRI outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of TRI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.38% | ||
| PM (TTM) | 22.29% | ||
| GM | N/A |
OM growth 3Y14.62%
OM growth 5Y14.34%
PM growth 3Y-30.27%
PM growth 5Y2.82%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TRI is creating some value.
The number of shares outstanding for TRI has been reduced compared to 1 year ago.
TRI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TRI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.73 indicates that TRI is not in any danger for bankruptcy at the moment.
TRI has a Altman-Z score of 9.73. This is amongst the best in the industry. TRI outperforms 100.00% of its industry peers.
TRI has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
The Debt to FCF ratio of TRI (1.11) is better than 83.33% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that TRI is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.12, TRI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 9.73 |
ROIC/WACC1.41
WACC7.99%
2.3 Liquidity
TRI has a Current Ratio of 0.79. This is a bad value and indicates that TRI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.79, TRI is doing worse than 83.33% of the companies in the same industry.
A Quick Ratio of 0.79 indicates that TRI may have some problems paying its short term obligations.
The Quick ratio of TRI (0.79) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.06% over the past year.
TRI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.92% yearly.
Looking at the last year, TRI shows a small growth in Revenue. The Revenue has grown by 4.04% in the last year.
Measured over the past years, TRI shows a small growth in Revenue. The Revenue has been growing by 4.21% on average per year.
EPS 1Y (TTM)1.06%
EPS 3Y24.58%
EPS 5Y23.92%
EPS Q2Q%2.35%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%2.59%
3.2 Future
Based on estimates for the next years, TRI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.54% on average per year.
Based on estimates for the next years, TRI will show a small growth in Revenue. The Revenue will grow by 7.65% on average per year.
EPS Next Y4.28%
EPS Next 2Y8.51%
EPS Next 3Y10.01%
EPS Next 5Y10.54%
Revenue Next Year3.11%
Revenue Next 2Y5.41%
Revenue Next 3Y6.32%
Revenue Next 5Y7.65%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 42.67, TRI can be considered very expensive at the moment.
TRI's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.38. TRI is valued rather expensively when compared to this.
TRI is valuated quite expensively with a Price/Forward Earnings ratio of 36.53.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRI indicates a somewhat cheap valuation: TRI is cheaper than 66.67% of the companies listed in the same industry.
TRI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.67 | ||
| Fwd PE | 36.53 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than TRI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TRI is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.72 | ||
| EV/EBITDA | 24.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TRI does not grow enough to justify the current Price/Earnings ratio.
TRI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)9.98
PEG (5Y)1.78
EPS Next 2Y8.51%
EPS Next 3Y10.01%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 6.20%, which is a nice return.
TRI's Dividend Yield is rather good when compared to the industry average which is at 2.95. TRI pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, TRI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
5.2 History
On average, the dividend of TRI grows each year by 8.41%, which is quite nice.
TRI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)8.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TRI pays out 61.01% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TRI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP61.01%
EPS Next 2Y8.51%
EPS Next 3Y10.01%
TSX:TRI (9/19/2025, 7:00:00 PM)
224
+2.3 (+1.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners27.54%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap100.95B
Analysts69
Price Target193.37 (-13.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
Yearly Dividend2.9
Dividend Growth(5Y)8.41%
DP61.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.64%
Min EPS beat(2)5.25%
Max EPS beat(2)6.03%
EPS beat(4)4
Avg EPS beat(4)5%
Min EPS beat(4)4.26%
Max EPS beat(4)6.03%
EPS beat(8)8
Avg EPS beat(8)7.66%
EPS beat(12)12
Avg EPS beat(12)7.79%
EPS beat(16)15
Avg EPS beat(16)7.73%
Revenue beat(2)0
Avg Revenue beat(2)-2.02%
Min Revenue beat(2)-2.71%
Max Revenue beat(2)-1.33%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-0.35%
Revenue beat(8)1
Avg Revenue beat(8)-1.21%
Revenue beat(12)1
Avg Revenue beat(12)-1.22%
Revenue beat(16)3
Avg Revenue beat(16)-0.87%
PT rev (1m)0.26%
PT rev (3m)5.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.33%
EPS NY rev (1m)0.31%
EPS NY rev (3m)1.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.67 | ||
| Fwd PE | 36.53 | ||
| P/S | 9.99 | ||
| P/FCF | 38.72 | ||
| P/OCF | 29.1 | ||
| P/B | 5.79 | ||
| P/tB | 6642.98 | ||
| EV/EBITDA | 24.7 |
EPS(TTM)5.25
EY2.34%
EPS(NY)6.13
Fwd EY2.74%
FCF(TTM)5.78
FCFY2.58%
OCF(TTM)7.7
OCFY3.44%
SpS22.43
BVpS38.67
TBVpS0.03
PEG (NY)9.98
PEG (5Y)1.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.08% | ||
| ROE | 12.93% | ||
| ROCE | 14.23% | ||
| ROIC | 11.24% | ||
| ROICexc | 11.71% | ||
| ROICexgc | 89.28% | ||
| OM | 29.38% | ||
| PM (TTM) | 22.29% | ||
| GM | N/A | ||
| FCFM | 25.79% |
ROA(3y)10.84%
ROA(5y)12.89%
ROE(3y)17.97%
ROE(5y)21.25%
ROIC(3y)9.36%
ROIC(5y)7.9%
ROICexc(3y)10.43%
ROICexc(5y)8.83%
ROICexgc(3y)71.36%
ROICexgc(5y)52.66%
ROCE(3y)12.07%
ROCE(5y)10.13%
ROICexcg growth 3Y134.34%
ROICexcg growth 5Y38.62%
ROICexc growth 3Y35.26%
ROICexc growth 5Y18.64%
OM growth 3Y14.62%
OM growth 5Y14.34%
PM growth 3Y-30.27%
PM growth 5Y2.82%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 72.06% | ||
| Cap/Sales | 8.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.26% | ||
| Profit Quality | 115.7% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 9.73 |
F-Score5
WACC7.99%
ROIC/WACC1.41
Cap/Depr(3y)77.02%
Cap/Depr(5y)71.59%
Cap/Sales(3y)8.45%
Cap/Sales(5y)8.29%
Profit Quality(3y)83.19%
Profit Quality(5y)76.6%
High Growth Momentum
Growth
EPS 1Y (TTM)1.06%
EPS 3Y24.58%
EPS 5Y23.92%
EPS Q2Q%2.35%
EPS Next Y4.28%
EPS Next 2Y8.51%
EPS Next 3Y10.01%
EPS Next 5Y10.54%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%2.59%
Revenue Next Year3.11%
Revenue Next 2Y5.41%
Revenue Next 3Y6.32%
Revenue Next 5Y7.65%
EBIT growth 1Y10.48%
EBIT growth 3Y19.85%
EBIT growth 5Y19.16%
EBIT Next Year39.32%
EBIT Next 3Y19.09%
EBIT Next 5Y15.16%
FCF growth 1Y16.84%
FCF growth 3Y12.89%
FCF growth 5Y56.51%
OCF growth 1Y15.77%
OCF growth 3Y11.49%
OCF growth 5Y28.47%