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 scores excellent on profitability, 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.
In the past year TRI had a positive cash flow from operations.
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
TRI has a Return On Assets (11.68%) which is comparable to the rest of the industry.
The Return On Equity of TRI (17.55%) is better than 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.88%, TRI is in the better half of the industry, outperforming 80.00% 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 6.40%.
The 3 year average ROIC (9.36%) for TRI is below the current ROIC(10.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.68% | ||
| ROE | 17.55% | ||
| ROIC | 10.88% |
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 (29.67%) is better than 80.00% of its industry peers.
In the last couple of years the Profit Margin of TRI has grown nicely.
With a decent Operating Margin value of 29.00%, TRI is doing good in the industry, outperforming 80.00% 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% | ||
| 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.
TRI has less shares outstanding than it did 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 9.69 indicates that TRI is not in any danger for bankruptcy at the moment.
TRI's Altman-Z score of 9.69 is amongst the best of the industry. TRI outperforms 100.00% of its industry peers.
TRI has a debt to FCF ratio of 1.51. This is a very positive value and a sign of high solvency as it would only need 1.51 years to pay back of all of its debts.
TRI has a Debt to FCF ratio of 1.51. This is in the better half of the industry: TRI outperforms 80.00% of its industry peers.
TRI has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
TRI has a Debt to Equity ratio (0.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 9.69 |
ROIC/WACC1.45
WACC7.52%
2.3 Liquidity
A Current Ratio of 0.91 indicates that TRI may have some problems paying its short term obligations.
TRI has a worse Current ratio (0.91) than 60.00% of its industry peers.
A Quick Ratio of 0.91 indicates that TRI may have some problems paying its short term obligations.
TRI has a worse Quick ratio (0.91) than 60.00% of its industry peers.
| 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.
Looking at the last year, TRI shows a small growth in Revenue. The Revenue has grown by 4.78% in the last 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.
TRI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.09% yearly.
EPS Next Y2.76%
EPS Next 2Y8.02%
EPS Next 3Y10.19%
EPS Next 5Y10.36%
Revenue Next Year3.54%
Revenue Next 2Y5.77%
Revenue Next 3Y6.58%
Revenue Next 5Y6.09%
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
TRI is valuated quite expensively with a Price/Earnings ratio of 49.59.
Based on the Price/Earnings ratio, TRI is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 24.12, TRI is valued quite expensively.
The Price/Forward Earnings ratio is 42.61, which means the current valuation is very expensive for TRI.
TRI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, TRI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.59 | ||
| Fwd PE | 42.61 |
4.2 Price Multiples
TRI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TRI is more expensive than 60.00% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.46 | ||
| EV/EBITDA | 29.07 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)17.96
PEG (5Y)2.07
EPS Next 2Y8.02%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.20, TRI pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.14, TRI pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
The dividend of TRI is nicely growing with an annual growth rate of 8.41%!
TRI has paid a dividend for at least 10 years, which is a reliable track record.
TRI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.41%
Div Incr Years4
Div Non Decr Years4
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 (5/8/2025, 7:00:00 PM)
260.34
-0.58 (-0.22%)
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 Cap117.27B
Analysts65.45
Price Target177.1 (-31.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend2.9
Dividend Growth(5Y)8.41%
DP45%
Div Incr Years4
Div Non Decr Years4
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)0.63%
PT rev (3m)3.52%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-3.08%
EPS NY rev (1m)0.41%
EPS NY rev (3m)-4.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.59 | ||
| Fwd PE | 42.61 | ||
| P/S | 11.61 | ||
| P/FCF | 45.46 | ||
| P/OCF | 34.18 | ||
| P/B | 6.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.07 |
EPS(TTM)5.25
EY2.02%
EPS(NY)6.11
Fwd EY2.35%
FCF(TTM)5.73
FCFY2.2%
OCF(TTM)7.62
OCFY2.93%
SpS22.43
BVpS37.92
TBVpS-0.66
PEG (NY)17.96
PEG (5Y)2.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.68% | ||
| ROE | 17.55% | ||
| ROCE | 13.77% | ||
| ROIC | 10.88% | ||
| ROICexc | 11.98% | ||
| ROICexgc | 118.87% | ||
| OM | 29% | ||
| 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 | 0.15 | ||
| Debt/FCF | 1.51 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 72.8% | ||
| Cap/Sales | 8.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.7% | ||
| Profit Quality | 86.05% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 9.69 |
F-Score6
WACC7.52%
ROIC/WACC1.45
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 Year3.54%
Revenue Next 2Y5.77%
Revenue Next 3Y6.58%
Revenue Next 5Y6.09%
EBIT growth 1Y4.61%
EBIT growth 3Y19.85%
EBIT growth 5Y19.16%
EBIT Next Year39.79%
EBIT Next 3Y19.35%
EBIT Next 5Y14.89%
FCF growth 1Y38.27%
FCF growth 3Y12.89%
FCF growth 5Y56.51%
OCF growth 1Y29.52%
OCF growth 3Y11.49%
OCF growth 5Y28.47%