THOMSON REUTERS CORP (TRI.CA) Stock Fundamental Analysis
Canada - TSX:TRI - CA8849038085 - Common Stock
239.5 CAD
-0.45 (-0.19%)
Taking everything into account, TRI scores 6 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.
TRI had a positive operating cash flow in the past year.
Each year in the past 5 years TRI has been profitable.
In the past 5 years TRI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 9.08%, TRI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
TRI has a Return On Equity of 12.93%. This is in the better half of the industry: TRI outperforms 66.67% of its industry peers.
With a decent Return On Invested Capital value of 11.24%, 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 10.87%.
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
TRI has a Profit Margin of 22.29%. This is amongst the best in the industry. TRI outperforms 83.33% of its industry peers.
TRI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.38%, TRI belongs to the top 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 | 29.38% | ||
| 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
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
Compared to 5 years ago, TRI has less shares outstanding
Compared to 1 year ago, TRI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.27 indicates that TRI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.27, TRI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
TRI has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
TRI has a better Debt to FCF ratio (1.11) than 83.33% 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.
With an excellent Debt to Equity ratio value of 0.12, TRI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 10.27 |
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.
The Current ratio of TRI (0.79) is worse than 83.33% of its industry peers.
A Quick Ratio of 0.79 indicates that TRI may have some problems paying its short term obligations.
The Quick ratio of TRI (0.79) is worse than 83.33% of its industry peers.
| 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.
The Revenue has been growing slightly by 4.04% 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)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
Based on estimates for the next years, TRI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.54% on average per year.
The Revenue is expected to grow by 7.65% on average over the next years.
EPS Next Y3.95%
EPS Next 2Y8.41%
EPS Next 3Y9.93%
EPS Next 5Y10.54%
Revenue Next Year3.09%
Revenue Next 2Y5.38%
Revenue Next 3Y6.27%
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.
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
With a Price/Earnings ratio of 45.36, TRI can be considered very expensive at the moment.
TRI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of TRI to the average of the S&P500 Index (27.30), we can say TRI is valued expensively.
The Price/Forward Earnings ratio is 38.93, which means the current valuation is very expensive for TRI.
66.67% of the companies in the same industry are more expensive than TRI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TRI to the average of the S&P500 Index (22.73), we can say TRI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.36 | ||
| Fwd PE | 38.93 |
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.
Based on the Price/Free Cash Flow ratio, TRI is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.2 | ||
| EV/EBITDA | 26.3 |
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)11.47
PEG (5Y)1.9
EPS Next 2Y8.41%
EPS Next 3Y9.93%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 1.18%.
Compared to an average industry Dividend Yield of 1.26, TRI pays a better dividend. On top of this TRI pays more dividend than 83.33% of the companies listed in the same industry.
With a Dividend Yield of 1.18, TRI pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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
61.01% of the earnings are spent on dividend by TRI. 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 2Y8.41%
EPS Next 3Y9.93%
TSX:TRI (9/12/2025, 7:00:00 PM)
239.5
-0.45 (-0.19%)
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 Cap107.94B
Analysts69
Price Target192.35 (-19.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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)0.67%
PT rev (3m)5.43%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)-2.33%
EPS NY rev (1m)1.16%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.36 | ||
| Fwd PE | 38.93 | ||
| P/S | 10.62 | ||
| P/FCF | 41.2 | ||
| P/OCF | 30.96 | ||
| P/B | 6.16 | ||
| P/tB | 7068.3 | ||
| EV/EBITDA | 26.3 |
EPS(TTM)5.28
EY2.2%
EPS(NY)6.15
Fwd EY2.57%
FCF(TTM)5.81
FCFY2.43%
OCF(TTM)7.73
OCFY3.23%
SpS22.54
BVpS38.86
TBVpS0.03
PEG (NY)11.47
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 | 10.27 |
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 Y3.95%
EPS Next 2Y8.41%
EPS Next 3Y9.93%
EPS Next 5Y10.54%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%2.59%
Revenue Next Year3.09%
Revenue Next 2Y5.38%
Revenue Next 3Y6.27%
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%