THOMSON REUTERS CORP (TRI.CA) Stock Fundamental Analysis
TSX:TRI - Toronto Stock Exchange - CA8849038085 - Common Stock - Currency: CAD
Taking everything into account, TRI scores 5 out of 10 in our fundamental rating. 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. While showing a medium growth rate, TRI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
TRI had positive earnings in the past year.
In the past year TRI had a positive cash flow from operations.
Each year in the past 5 years TRI has been profitable.
TRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 11.68%, TRI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
TRI's Return On Equity of 17.55% is fine compared to the rest of the industry. TRI outperforms 66.67% of its industry peers.
With a decent Return On Invested Capital value of 10.92%, TRI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
TRI had an Average Return On Invested Capital over the past 3 years of 9.36%. This is in line with the industry average of 10.81%.
The last Return On Invested Capital (10.92%) for TRI is above the 3 year average (9.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.68% | ||
| ROE | 17.55% | ||
| ROIC | 10.92% |
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 better Profit Margin (29.67%) than 83.33% of its industry peers.
TRI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 29.09%, TRI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
TRI's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.09% | ||
| PM (TTM) | 29.67% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TRI is still creating some value.
Compared to 1 year ago, TRI has less shares outstanding
The number of shares outstanding for TRI has been reduced compared to 5 years ago.
TRI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.27 indicates that TRI is not in any danger for bankruptcy at the moment.
TRI has a better Altman-Z score (10.27) than 100.00% of its industry peers.
The Debt to FCF ratio of TRI is 1.65, which is an excellent value as it means it would take TRI, only 1.65 years of fcf income to pay off all of its debts.
TRI's Debt to FCF ratio of 1.65 is amongst the best of the industry. TRI outperforms 83.33% of its industry peers.
TRI has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.17, TRI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 10.27 |
ROIC/WACC1.41
WACC7.76%
2.3 Liquidity
A Current Ratio of 0.91 indicates that TRI may have some problems paying its short term obligations.
TRI has a worse Current ratio (0.91) than 83.33% of its industry peers.
TRI has a Quick Ratio of 0.91. 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 Quick ratio, with a value of 0.91, TRI is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
TRI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.80%.
Measured over the past years, TRI shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.92% on average per year.
TRI shows a small growth in Revenue. In the last year, the Revenue has grown by 4.78%.
The Revenue has been growing slightly by 4.21% on average over the past years.
EPS 1Y (TTM)0.8%
EPS 3Y24.58%
EPS 5Y23.92%
EPS Q2Q%0.9%
Revenue 1Y (TTM)4.78%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%0.8%
3.2 Future
TRI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.36% yearly.
TRI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.09% yearly.
EPS Next Y2.76%
EPS Next 2Y8.02%
EPS Next 3Y10.19%
EPS Next 5Y10.36%
Revenue Next Year3%
Revenue Next 2Y5.46%
Revenue Next 3Y6.29%
Revenue Next 5Y6.09%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 53.00, the valuation of TRI can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TRI is on the same level as its industry peers.
TRI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 45.58, the valuation of TRI can be described as expensive.
Based on the Price/Forward Earnings ratio, TRI is valued a bit cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. TRI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53 | ||
| Fwd PE | 45.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRI is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.64 | ||
| EV/EBITDA | 31.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TRI may justify a higher PE ratio.
PEG (NY)19.2
PEG (5Y)2.22
EPS Next 2Y8.02%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
TRI's Dividend Yield is rather good when compared to the industry average which is at 1.14. TRI pays more dividend than 83.33% of the companies in the same industry.
With a Dividend Yield of 1.09, TRI pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
The dividend of TRI is nicely growing with an annual growth rate of 8.41%!
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
45.00% of the earnings are spent on dividend by TRI. This is a bit on the high side, but may be sustainable.
The dividend of TRI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45%
EPS Next 2Y8.02%
EPS Next 3Y10.19%
TSX:TRI (7/3/2025, 7:00:00 PM)
272.44
+2.54 (+0.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners21.3%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap122.73B
Analysts64.76
Price Target185.82 (-31.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend2.87
Dividend Growth(5Y)8.41%
DP45%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.14%
Min EPS beat(2)4.26%
Max EPS beat(2)6.03%
EPS beat(4)4
Avg EPS beat(4)4.37%
Min EPS beat(4)2.73%
Max EPS beat(4)6.03%
EPS beat(8)8
Avg EPS beat(8)7.85%
EPS beat(12)12
Avg EPS beat(12)8.34%
EPS beat(16)15
Avg EPS beat(16)8.06%
Revenue beat(2)0
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-2.71%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-0.35%
Revenue beat(8)1
Avg Revenue beat(8)-1.24%
Revenue beat(12)1
Avg Revenue beat(12)-1.17%
Revenue beat(16)4
Avg Revenue beat(16)-0.72%
PT rev (1m)1.85%
PT rev (3m)5.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.67%
EPS NY rev (1m)0%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53 | ||
| Fwd PE | 45.58 | ||
| P/S | 12.42 | ||
| P/FCF | 48.64 | ||
| P/OCF | 36.57 | ||
| P/B | 7.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.08 |
EPS(TTM)5.14
EY1.89%
EPS(NY)5.98
Fwd EY2.19%
FCF(TTM)5.6
FCFY2.06%
OCF(TTM)7.45
OCFY2.73%
SpS21.94
BVpS37.09
TBVpS-0.65
PEG (NY)19.2
PEG (5Y)2.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.68% | ||
| ROE | 17.55% | ||
| ROCE | 13.81% | ||
| ROIC | 10.92% | ||
| ROICexc | 12.02% | ||
| ROICexgc | 119.27% | ||
| OM | 29.09% | ||
| PM (TTM) | 29.67% | ||
| GM | N/A | ||
| FCFM | 25.53% |
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-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.65 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 72.8% | ||
| Cap/Sales | 8.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.5% | ||
| Profit Quality | 86.05% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 10.27 |
F-Score6
WACC7.76%
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)0.8%
EPS 3Y24.58%
EPS 5Y23.92%
EPS Q2Q%0.9%
EPS Next Y2.76%
EPS Next 2Y8.02%
EPS Next 3Y10.19%
EPS Next 5Y10.36%
Revenue 1Y (TTM)4.78%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%0.8%
Revenue Next Year3%
Revenue Next 2Y5.46%
Revenue Next 3Y6.29%
Revenue Next 5Y6.09%
EBIT growth 1Y4.96%
EBIT growth 3Y19.85%
EBIT growth 5Y19.16%
EBIT Next Year39.18%
EBIT Next 3Y19.04%
EBIT Next 5Y14.92%
FCF growth 1Y38.27%
FCF growth 3Y12.89%
FCF growth 5Y56.51%
OCF growth 1Y29.52%
OCF growth 3Y11.49%
OCF growth 5Y28.47%