THOMSON REUTERS CORP (TRI.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TRI - CA8849038085 - Common Stock
173.66 CAD
-7.47 (-4.12%)
TRI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 6 industry peers in the Professional Services industry. TRI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TRI is quite expensive at the moment. It does show a decent growth rate. TRI also has an excellent dividend rating. These ratings would make TRI suitable for dividend and quality investing!
1. Profitability
1.1 Basic Checks
TRI had positive earnings in the past year.
TRI had a positive operating cash flow in the past year.
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
TRI's Return On Assets of 9.82% is amongst the best of the industry. TRI outperforms 83.33% of its industry peers.
With an excellent Return On Equity value of 14.91%, TRI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.73%, TRI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TRI is in line with the industry average of 8.00%.
The 3 year average ROIC (9.36%) for TRI is below the current ROIC(11.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.82% | ||
| ROE | 14.91% | ||
| ROIC | 11.73% |
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 23.77%. 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.
The Operating Margin of TRI (29.45%) is better than 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 | 29.45% | ||
| PM (TTM) | 23.77% | ||
| 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.
The number of shares outstanding for TRI has been reduced compared to 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 7.24 indicates that TRI is not in any danger for bankruptcy at the moment.
The Altman-Z score of TRI (7.24) is better than 100.00% of its industry peers.
TRI has a debt to FCF ratio of 1.33. This is a very positive value and a sign of high solvency as it would only need 1.33 years to pay back of all of its debts.
The Debt to FCF ratio of TRI (1.33) is better than 83.33% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that TRI is not too dependend on debt financing.
TRI has a Debt to Equity ratio of 0.16. This is comparable to the rest of the industry: TRI outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 7.24 |
ROIC/WACC1.53
WACC7.66%
2.3 Liquidity
A Current Ratio of 0.61 indicates that TRI may have some problems paying its short term obligations.
The Current ratio of TRI (0.61) is worse than 83.33% of its industry peers.
A Quick Ratio of 0.61 indicates that TRI may have some problems paying its short term obligations.
With a Quick ratio value of 0.61, TRI is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
The current and quick ratio evaluation for TRI is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
TRI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.94%.
Measured over the past years, TRI shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.02% on average per year.
Looking at the last year, TRI shows a small growth in Revenue. The Revenue has grown by 2.96% in the last year.
The Revenue has been growing slightly by 4.21% on average over the past years.
EPS 1Y (TTM)2.94%
EPS 3Y23.06%
EPS 5Y23.02%
EPS Q2Q%6.25%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%3.36%
3.2 Future
The Earnings Per Share is expected to grow by 10.21% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.25% on average over the next years.
EPS Next Y4.36%
EPS Next 2Y9.33%
EPS Next 3Y10.66%
EPS Next 5Y10.21%
Revenue Next Year2.96%
Revenue Next 2Y5.32%
Revenue Next 3Y6.35%
Revenue Next 5Y7.25%
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
The Price/Earnings ratio is 32.95, which means the current valuation is very expensive for TRI.
TRI's Price/Earnings is on the same level as the industry average.
TRI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.60.
With a Price/Forward Earnings ratio of 28.14, TRI can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TRI is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
TRI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.95 | ||
| Fwd PE | 28.14 |
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.
TRI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TRI is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.97 | ||
| EV/EBITDA | 19.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TRI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.56
PEG (5Y)1.43
EPS Next 2Y9.33%
EPS Next 3Y10.66%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 6.25%, which is a nice return.
TRI's Dividend Yield is rather good when compared to the industry average which is at 1.60. TRI pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.93, TRI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
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
58.13% 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.
DP58.13%
EPS Next 2Y9.33%
EPS Next 3Y10.66%
TSX:TRI (1/2/2026, 7:00:00 PM)
173.66
-7.47 (-4.12%)
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 Cap77.25B
Revenue(TTM)7.38B
Net Income(TTM)1.75B
Analysts76
Price Target185.71 (6.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
Yearly Dividend2.88
Dividend Growth(5Y)8.41%
DP58.13%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.61%
Min EPS beat(2)1.96%
Max EPS beat(2)5.25%
EPS beat(4)4
Avg EPS beat(4)4.37%
Min EPS beat(4)1.96%
Max EPS beat(4)6.03%
EPS beat(8)8
Avg EPS beat(8)6.04%
EPS beat(12)12
Avg EPS beat(12)6.89%
EPS beat(16)15
Avg EPS beat(16)6.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)-0.83%
Revenue beat(4)0
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-0.83%
Revenue beat(8)1
Avg Revenue beat(8)-1.06%
Revenue beat(12)1
Avg Revenue beat(12)-1.12%
Revenue beat(16)2
Avg Revenue beat(16)-0.97%
PT rev (1m)-0.35%
PT rev (3m)-3.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.57%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.95 | ||
| Fwd PE | 28.14 | ||
| P/S | 7.65 | ||
| P/FCF | 30.97 | ||
| P/OCF | 22.94 | ||
| P/B | 4.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.63 |
EPS(TTM)5.27
EY3.03%
EPS(NY)6.17
Fwd EY3.55%
FCF(TTM)5.61
FCFY3.23%
OCF(TTM)7.57
OCFY4.36%
SpS22.7
BVpS36.2
TBVpS-2.94
PEG (NY)7.56
PEG (5Y)1.43
Graham Number65.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.82% | ||
| ROE | 14.91% | ||
| ROCE | 15.2% | ||
| ROIC | 11.73% | ||
| ROICexc | 12.21% | ||
| ROICexgc | 127.52% | ||
| OM | 29.45% | ||
| PM (TTM) | 23.77% | ||
| GM | N/A | ||
| FCFM | 24.7% |
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%
ROICexgc growth 3Y134.34%
ROICexgc 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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.33 | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | 70.94% | ||
| Cap/Sales | 8.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.1% | ||
| Profit Quality | 103.94% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 7.24 |
F-Score6
WACC7.66%
ROIC/WACC1.53
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)2.94%
EPS 3Y23.06%
EPS 5Y23.02%
EPS Q2Q%6.25%
EPS Next Y4.36%
EPS Next 2Y9.33%
EPS Next 3Y10.66%
EPS Next 5Y10.21%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%3.36%
Revenue Next Year2.96%
Revenue Next 2Y5.32%
Revenue Next 3Y6.35%
Revenue Next 5Y7.25%
EBIT growth 1Y12.77%
EBIT growth 3Y19.85%
EBIT growth 5Y19.16%
EBIT Next Year40.64%
EBIT Next 3Y19.57%
EBIT Next 5Y15.35%
FCF growth 1Y3.23%
FCF growth 3Y12.89%
FCF growth 5Y56.51%
OCF growth 1Y6.36%
OCF growth 3Y11.49%
OCF growth 5Y28.47%
THOMSON REUTERS CORP / TRI.CA FAQ
What is the fundamental rating for TRI stock?
ChartMill assigns a fundamental rating of 6 / 10 to TRI.CA.
What is the valuation status for TRI stock?
ChartMill assigns a valuation rating of 3 / 10 to THOMSON REUTERS CORP (TRI.CA). This can be considered as Overvalued.
Can you provide the profitability details for THOMSON REUTERS CORP?
THOMSON REUTERS CORP (TRI.CA) has a profitability rating of 8 / 10.
How financially healthy is THOMSON REUTERS CORP?
The financial health rating of THOMSON REUTERS CORP (TRI.CA) is 7 / 10.
Is the dividend of THOMSON REUTERS CORP sustainable?
The dividend rating of THOMSON REUTERS CORP (TRI.CA) is 8 / 10 and the dividend payout ratio is 58.13%.