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 5 industry peers in the Professional Services industry. TRI has an average financial health and profitability rating. TRI is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Of the past 5 years TRI 4 years were profitable.
Of the past 5 years TRI 4 years had a positive operating cash flow.
1.2 Ratios
TRI has a Return On Assets (12.46%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 19.34%, TRI is doing good in the industry, outperforming 80.00% of the companies in the same industry.
TRI has a Return On Invested Capital of 10.79%. This is in the better half of the industry: TRI outperforms 80.00% of its industry peers.
TRI had an Average Return On Invested Capital over the past 3 years of 8.03%. This is in line with the industry average of 6.43%.
The 3 year average ROIC (8.03%) for TRI is below the current ROIC(10.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.46% | ||
| ROE | 19.34% | ||
| ROIC | 10.79% |
ROA(3y)15.41%
ROA(5y)12.3%
ROE(3y)25.55%
ROE(5y)20.84%
ROIC(3y)8.03%
ROIC(5y)7.22%
1.3 Margins
TRI has a better Profit Margin (32.05%) than 80.00% of its industry peers.
In the last couple of years the Profit Margin of TRI has declined.
TRI has a Operating Margin of 26.88%. This is in the better half of the industry: TRI outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of TRI has grown nicely.
TRI has a better Gross Margin (95.51%) than 80.00% of its industry peers.
In the last couple of years the Gross Margin of TRI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.88% | ||
| PM (TTM) | 32.05% | ||
| GM | 95.51% |
OM growth 3Y11.29%
OM growth 5Y12.69%
PM growth 3Y28.37%
PM growth 5Y-11.13%
GM growth 3Y0.35%
GM growth 5Y0.14%
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.
TRI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
TRI has an Altman-Z score of 8.77. This indicates that TRI is financially healthy and has little risk of bankruptcy at the moment.
TRI's Altman-Z score of 8.77 is amongst the best of the industry. TRI outperforms 100.00% of its industry peers.
The Debt to FCF ratio of TRI is 1.56, which is an excellent value as it means it would take TRI, only 1.56 years of fcf income to pay off all of its debts.
TRI has a better Debt to FCF ratio (1.56) than 80.00% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that TRI is not too dependend on debt financing.
TRI has a Debt to Equity ratio (0.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 8.77 |
ROIC/WACC1.38
WACC7.83%
2.3 Liquidity
A Current Ratio of 0.94 indicates that TRI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.94, TRI is doing worse than 60.00% of the companies in the same industry.
A Quick Ratio of 0.94 indicates that TRI may have some problems paying its short term obligations.
TRI's Quick ratio of 0.94 is on the low side compared to the rest of the industry. TRI is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.00% over the past year.
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.
EPS 1Y (TTM)8%
EPS 3Y24.58%
EPS 5Y23.92%
EPS Q2Q%3.06%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.18%
3.2 Future
The Earnings Per Share is expected to grow by 11.55% on average over the next years. This is quite good.
Based on estimates for the next years, TRI will show a small growth in Revenue. The Revenue will grow by 6.62% on average per year.
EPS Next Y7.36%
EPS Next 2Y10.04%
EPS Next 3Y11.83%
EPS Next 5Y11.55%
Revenue Next Year3.88%
Revenue Next 2Y5.85%
Revenue Next 3Y6.74%
Revenue Next 5Y6.62%
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.
4. Valuation
4.1 Price/Earnings Ratio
TRI is valuated quite expensively with a Price/Earnings ratio of 47.26.
Based on the Price/Earnings ratio, TRI is valued a bit more expensive than 60.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.39. TRI is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 44.02, which means the current valuation is very expensive for TRI.
TRI's Price/Forward Earnings is on the same level as the industry average.
TRI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.26 | ||
| Fwd PE | 44.02 |
4.2 Price Multiples
TRI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, TRI is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.68 | ||
| EV/EBITDA | 29.93 |
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)6.42
PEG (5Y)1.98
EPS Next 2Y10.04%
EPS Next 3Y11.83%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 1.16%.
Compared to an average industry Dividend Yield of 1.11, TRI pays a better dividend. On top of this TRI pays more dividend than 100.00% of the companies listed in the same industry.
With a Dividend Yield of 1.16, TRI pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
The dividend of TRI has a limited annual growth rate of 3.67%.
TRI has been paying a dividend for at least 10 years, so it has a reliable track record.
TRI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.67%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
40.42% of the earnings are spent on dividend by TRI. This is a bit on the high side, but may be sustainable.
TRI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.42%
EPS Next 2Y10.04%
EPS Next 3Y11.83%
THOMSON REUTERS CORP
TSX:TRI (2/11/2025, 7:00:00 PM)
255.22
-0.85 (-0.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners20.77%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap114.82B
Analysts66
Price Target171.07 (-32.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend1.92
Dividend Growth(5Y)3.67%
DP40.42%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.6%
Min EPS beat(2)2.73%
Max EPS beat(2)4.47%
EPS beat(4)4
Avg EPS beat(4)7.71%
Min EPS beat(4)2.73%
Max EPS beat(4)16.02%
EPS beat(8)8
Avg EPS beat(8)8.14%
EPS beat(12)11
Avg EPS beat(12)7.46%
EPS beat(16)15
Avg EPS beat(16)10.65%
Revenue beat(2)0
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)-0.35%
Revenue beat(4)1
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)0.59%
Revenue beat(8)1
Avg Revenue beat(8)-0.95%
Revenue beat(12)2
Avg Revenue beat(12)-0.82%
Revenue beat(16)5
Avg Revenue beat(16)-0.5%
PT rev (1m)0.04%
PT rev (3m)3.1%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)1.94%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.8%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.26 | ||
| Fwd PE | 44.02 | ||
| P/S | 11.19 | ||
| P/FCF | 39.68 | ||
| P/OCF | 30.85 | ||
| P/B | 6.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.93 |
EPS(TTM)5.4
EY2.12%
EPS(NY)5.8
Fwd EY2.27%
FCF(TTM)6.43
FCFY2.52%
OCF(TTM)8.27
OCFY3.24%
SpS22.81
BVpS37.8
TBVpS-0.2
PEG (NY)6.42
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.46% | ||
| ROE | 19.34% | ||
| ROCE | 12.95% | ||
| ROIC | 10.79% | ||
| ROICexc | 12.11% | ||
| ROICexgc | 122.83% | ||
| OM | 26.88% | ||
| PM (TTM) | 32.05% | ||
| GM | 95.51% | ||
| FCFM | 28.2% |
ROA(3y)15.41%
ROA(5y)12.3%
ROE(3y)25.55%
ROE(5y)20.84%
ROIC(3y)8.03%
ROIC(5y)7.22%
ROICexc(3y)8.67%
ROICexc(5y)7.97%
ROICexgc(3y)29.11%
ROICexgc(5y)31.43%
ROCE(3y)9.89%
ROCE(5y)8.82%
ROICexcg growth 3Y9.48%
ROICexcg growth 5Y10.17%
ROICexc growth 3Y12.2%
ROICexc growth 5Y12.76%
OM growth 3Y11.29%
OM growth 5Y12.69%
PM growth 3Y28.37%
PM growth 5Y-11.13%
GM growth 3Y0.35%
GM growth 5Y0.14%
F-Score8
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.56 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 71.98% | ||
| Cap/Sales | 8.07% | ||
| Interest Coverage | 11.01 | ||
| Cash Conversion | 95.2% | ||
| Profit Quality | 87.98% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 8.77 |
F-Score8
WACC7.83%
ROIC/WACC1.38
Cap/Depr(3y)73.49%
Cap/Depr(5y)70.91%
Cap/Sales(3y)8.22%
Cap/Sales(5y)8.33%
Profit Quality(3y)62.76%
Profit Quality(5y)62.34%
High Growth Momentum
Growth
EPS 1Y (TTM)8%
EPS 3Y24.58%
EPS 5Y23.92%
EPS Q2Q%3.06%
EPS Next Y7.36%
EPS Next 2Y10.04%
EPS Next 3Y11.83%
EPS Next 5Y11.55%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.18%
Revenue Next Year3.88%
Revenue Next 2Y5.85%
Revenue Next 3Y6.74%
Revenue Next 5Y6.62%
EBIT growth 1Y4.05%
EBIT growth 3Y16.1%
EBIT growth 5Y17.54%
EBIT Next Year30.19%
EBIT Next 3Y15.01%
EBIT Next 5Y12.84%
FCF growth 1Y91.83%
FCF growth 3Y13.13%
FCF growth 5Y3.87%
OCF growth 1Y58.8%
OCF growth 3Y10.29%
OCF growth 5Y2.57%