THOMSON REUTERS CORP (TRI.CA) Stock Fundamental Analysis
TSX:TRI - Toronto Stock Exchange - CA8849038085 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to TRI. TRI was compared to 5 industry peers in the Professional Services industry. TRI has only an average score on both its financial health and profitability. 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.
In the past 5 years TRI has always been profitable.
TRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TRI (9.08%) is comparable to the rest of the industry.
TRI's Return On Equity of 12.93% is in line compared to the rest of the industry. TRI outperforms 60.00% of its industry peers.
The Return On Invested Capital of TRI (11.24%) is comparable to the rest of the industry.
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 last Return On Invested Capital (11.24%) for TRI is above the 3 year average (9.36%), which is a sign of increasing profitability.
| 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
The Profit Margin of TRI (22.29%) is better than 80.00% 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 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.
| 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
TRI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TRI has less shares outstanding than it did 1 year ago.
TRI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TRI has an improved debt to assets ratio.
2.2 Solvency
TRI has an Altman-Z score of 10.29. This indicates that TRI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.29, TRI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of TRI is 1.11, which is an excellent value as it means it would take TRI, only 1.11 years of fcf income to pay off all of its debts.
TRI's Debt to FCF ratio of 1.11 is fine compared to the rest of the industry. TRI outperforms 80.00% of its industry peers.
TRI has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
TRI's Debt to Equity ratio of 0.12 is fine compared to the rest of the industry. TRI outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 10.29 |
ROIC/WACC1.41
WACC8%
2.3 Liquidity
A Current Ratio of 0.79 indicates that TRI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.79, TRI is doing worse than 80.00% 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.
Looking at the Quick ratio, with a value of 0.79, TRI is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
TRI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.06%.
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 4.04%.
TRI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.21% yearly.
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
TRI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.54% yearly.
TRI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.65% yearly.
EPS Next Y2.76%
EPS Next 2Y8.02%
EPS Next 3Y10.19%
EPS Next 5Y10.54%
Revenue Next Year3.07%
Revenue Next 2Y5.52%
Revenue Next 3Y6.46%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 45.56, which means the current valuation is very expensive for TRI.
Based on the Price/Earnings ratio, TRI is valued a bit more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.85, TRI is valued quite expensively.
TRI is valuated quite expensively with a Price/Forward Earnings ratio of 39.36.
TRI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, TRI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.56 | ||
| Fwd PE | 39.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.35 | ||
| EV/EBITDA | 26.34 |
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.
The decent profitability rating of TRI may justify a higher PE ratio.
PEG (NY)16.51
PEG (5Y)1.9
EPS Next 2Y8.02%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 1.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.30, TRI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, TRI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
On average, the dividend of TRI grows each year by 8.41%, which is quite nice.
TRI has paid a dividend for at least 10 years, which is 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 2Y8.02%
EPS Next 3Y10.19%
TSX:TRI (8/18/2025, 7:00:00 PM)
238.76
+2.09 (+0.88%)
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 Cap107.60B
Analysts65
Price Target192.87 (-19.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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)3.79%
PT rev (3m)5.71%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-2.82%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.56 | ||
| Fwd PE | 39.36 | ||
| P/S | 10.66 | ||
| P/FCF | 41.35 | ||
| P/OCF | 31.07 | ||
| P/B | 6.18 | ||
| P/tB | 7093.29 | ||
| EV/EBITDA | 26.34 |
EPS(TTM)5.24
EY2.19%
EPS(NY)6.07
Fwd EY2.54%
FCF(TTM)5.77
FCFY2.42%
OCF(TTM)7.68
OCFY3.22%
SpS22.39
BVpS38.6
TBVpS0.03
PEG (NY)16.51
PEG (5Y)1.9
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 | 10.29 |
F-Score5
WACC8%
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 Y2.76%
EPS Next 2Y8.02%
EPS Next 3Y10.19%
EPS Next 5Y10.54%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%2.59%
Revenue Next Year3.07%
Revenue Next 2Y5.52%
Revenue Next 3Y6.46%
Revenue Next 5Y7.65%
EBIT growth 1Y10.48%
EBIT growth 3Y19.85%
EBIT growth 5Y19.16%
EBIT Next Year39.18%
EBIT Next 3Y19.04%
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%