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 6 industry peers in the Professional Services industry. While TRI belongs to the best of the industry regarding profitability, 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.
In the past 5 years TRI has always 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 of 11.68%. This is in the better half of the industry: TRI outperforms 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 17.55%, TRI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
TRI has a Return On Invested Capital of 10.92%. This is in the better half of the industry: TRI outperforms 66.67% of its industry peers.
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 10.66%.
The 3 year average ROIC (9.36%) for TRI is below the current ROIC(10.92%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 29.67%. 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.
TRI has a Operating Margin of 29.09%. This is amongst the best in the industry. TRI outperforms 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TRI is 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.
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.
TRI has a better Altman-Z score (10.29) than 100.00% of its industry peers.
The Debt to FCF ratio of TRI is 1.65, which is an excellent value as it means it would take TRI, only 1.65 years of fcf income to pay off all of its debts.
TRI has a Debt to FCF ratio of 1.65. This is amongst the best in the industry. TRI outperforms 83.33% of its industry peers.
TRI has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
TRI's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. TRI outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 10.29 |
ROIC/WACC1.39
WACC7.85%
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.
With a Current ratio value of 0.91, TRI is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
A Quick Ratio of 0.91 indicates that TRI may have some problems paying its short term obligations.
The Quick ratio of TRI (0.91) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
TRI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.80%.
TRI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.92% yearly.
TRI shows a small growth in Revenue. In the last year, the Revenue has grown by 4.78%.
Measured over the past years, TRI shows a small growth in Revenue. The Revenue has been growing by 4.21% on average per year.
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
Based on estimates for the next years, TRI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.36% on average per year.
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
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
A Price/Earnings ratio of 53.14 indicates a quite expensive valuation of TRI.
TRI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TRI to the average of the S&P500 Index (27.91), we can say TRI is valued expensively.
The Price/Forward Earnings ratio is 45.69, which means the current valuation is very expensive for TRI.
TRI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRI is cheaper than 66.67% of the companies in the same industry.
TRI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 37.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.14 | ||
| Fwd PE | 45.69 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than TRI, based on the Enterprise Value to EBITDA ratio.
TRI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.75 | ||
| EV/EBITDA | 31.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TRI may justify a higher PE ratio.
PEG (NY)19.25
PEG (5Y)2.22
EPS Next 2Y8.02%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
TRI's Dividend Yield is rather good when compared to the industry average which is at 1.14. TRI pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, TRI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
On average, the dividend of TRI grows each year by 8.41%, which is quite nice.
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
45.00% of the earnings are spent on dividend by TRI. 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 (7/29/2025, 7:00:00 PM)
275.78
+0.05 (+0.02%)
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 Cap124.23B
Analysts64.76
Price Target191.08 (-30.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend2.87
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)2.83%
PT rev (3m)7.89%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-5.79%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.14 | ||
| Fwd PE | 45.69 | ||
| P/S | 12.45 | ||
| P/FCF | 48.75 | ||
| P/OCF | 36.65 | ||
| P/B | 7.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.15 |
EPS(TTM)5.19
EY1.88%
EPS(NY)6.04
Fwd EY2.19%
FCF(TTM)5.66
FCFY2.05%
OCF(TTM)7.52
OCFY2.73%
SpS22.15
BVpS37.46
TBVpS-0.65
PEG (NY)19.25
PEG (5Y)2.22
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 | 10.29 |
F-Score6
WACC7.85%
ROIC/WACC1.39
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%