THOMSON REUTERS CORP (TRI.CA) Stock Fundamental Analysis
TSX:TRI - Toronto Stock Exchange - CA8849038085 - Common Stock - Currency: CAD
Overall TRI gets a fundamental rating of 5 out of 10. We evaluated TRI against 3 industry peers in the Professional Services industry. TRI has an excellent profitability rating, but there are some minor concerns on its financial health. TRI is quite expensive at the moment. It does show a decent growth rate.
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
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.
The Return On Equity of TRI (17.55%) is better than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.92%, TRI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRI is above the industry average of 4.82%.
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's Profit Margin of 29.67% is amongst the best of 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 better Operating Margin (29.09%) than 83.33% of its industry peers.
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
TRI has less shares outstanding than it did 5 years ago.
TRI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.10 indicates that TRI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.10, TRI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
TRI has a debt to FCF ratio of 1.65. This is a very positive value and a sign of high solvency as it would only need 1.65 years to pay back of all of its debts.
TRI has a better Debt to FCF ratio (1.65) than 83.33% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that TRI is not too dependend on debt financing.
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 | 10.1 |
ROIC/WACC1.43
WACC7.65%
2.3 Liquidity
TRI has a Current 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.
TRI has a worse Current ratio (0.91) than 83.33% of its industry peers.
A Quick Ratio of 0.91 indicates that TRI may have some problems paying 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
The Earnings Per Share has been growing slightly by 0.80% 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.
The Revenue has been growing slightly by 4.78% in the past year.
TRI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.21% yearly.
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
The Earnings Per Share is expected to grow by 10.36% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.09% on average over the next years.
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.
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
A Price/Earnings ratio of 51.45 indicates a quite expensive valuation of TRI.
TRI's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. TRI is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 44.19, TRI can be considered very expensive at the moment.
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.
When comparing the Price/Forward Earnings ratio of TRI to the average of the S&P500 Index (22.13), we can say TRI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.45 | ||
| Fwd PE | 44.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRI is valued a bit cheaper than 66.67% of the companies in the same industry.
TRI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.15 | ||
| EV/EBITDA | 30.51 |
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)18.64
PEG (5Y)2.15
EPS Next 2Y8.02%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, TRI has a reasonable but not impressive dividend return.
TRI's Dividend Yield is rather good when compared to the industry average which is at 1.87. TRI pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, TRI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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 45.00% of its income as dividend. 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.
DP45%
EPS Next 2Y8.02%
EPS Next 3Y10.19%
TSX:TRI (6/13/2025, 7:00:00 PM)
264.98
-3.22 (-1.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners22.13%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap119.37B
Analysts64.76
Price Target183.78 (-30.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend2.88
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)3.77%
PT rev (3m)4.43%
EPS NQ rev (1m)-5.82%
EPS NQ rev (3m)-8.16%
EPS NY rev (1m)0%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)-0.88%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.45 | ||
| Fwd PE | 44.19 | ||
| P/S | 12.04 | ||
| P/FCF | 47.15 | ||
| P/OCF | 35.45 | ||
| P/B | 7.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.51 |
EPS(TTM)5.15
EY1.94%
EPS(NY)6
Fwd EY2.26%
FCF(TTM)5.62
FCFY2.12%
OCF(TTM)7.48
OCFY2.82%
SpS22.01
BVpS37.21
TBVpS-0.65
PEG (NY)18.64
PEG (5Y)2.15
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 | 10.1 |
F-Score6
WACC7.65%
ROIC/WACC1.43
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%