THOMSON REUTERS CORP (TRI) Stock Fundamental Analysis
NASDAQ:TRI - Nasdaq - CA8849038085 - Common Stock - Currency: USD
Taking everything into account, TRI scores 5 out of 10 in our fundamental rating. TRI was compared to 81 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
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 11.68% is amongst the best of the industry. TRI outperforms 83.95% 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 69.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRI is below the industry average of 12.78%.
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 has a better Profit Margin (29.67%) than 95.06% of its industry peers.
TRI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 29.09%, TRI belongs to the best of the industry, outperforming 95.06% of the companies in the same industry.
TRI's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.09% | ||
| 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.
TRI has less shares outstanding than it did 1 year ago.
TRI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TRI has been reduced compared to a year ago.
2.2 Solvency
TRI has an Altman-Z score of 10.04. This indicates that TRI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TRI (10.04) is better than 98.77% of its industry peers.
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.
With a decent Debt to FCF ratio value of 1.65, TRI is doing good in the industry, outperforming 74.07% of the companies in the same industry.
TRI has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TRI (0.17) is better than 64.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 10.04 |
ROIC/WACC1.43
WACC7.62%
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.
The Current ratio of TRI (0.91) is worse than 76.54% of its industry peers.
A Quick Ratio of 0.91 indicates that TRI may have some problems paying its short term obligations.
TRI's Quick ratio of 0.91 is on the low side compared to the rest of the industry. TRI is outperformed by 76.54% 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%.
The Earnings Per Share has been growing by 23.92% on average over the past years. This is a very strong growth
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
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.
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%
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
The Price/Earnings ratio is 51.89, which means the current valuation is very expensive for TRI.
Based on the Price/Earnings ratio, TRI is valued a bit more expensive than the industry average as 70.37% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.32, TRI is valued quite expensively.
With a Price/Forward Earnings ratio of 44.60, TRI can be considered very expensive at the moment.
66.67% of the companies in the same industry are cheaper than TRI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, TRI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.89 | ||
| Fwd PE | 44.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRI indicates a slightly more expensive valuation: TRI is more expensive than 66.67% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRI indicates a slightly more expensive valuation: TRI is more expensive than 62.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.59 | ||
| EV/EBITDA | 30.28 |
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.
The decent profitability rating of TRI may justify a higher PE ratio.
PEG (NY)18.8
PEG (5Y)2.17
EPS Next 2Y8.02%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, TRI has a reasonable but not impressive dividend return.
TRI's Dividend Yield is a higher than the industry average which is at 2.09.
Compared to an average S&P500 Dividend Yield of 2.40, TRI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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%
NASDAQ:TRI (6/16/2025, 3:59:01 PM)
196.16
+0.96 (+0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners21.3%
Inst Owner Change-4.69%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap88.37B
Analysts64.76
Price Target133.89 (-31.74%)
Short Float %1.34%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend2.1
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)1.39%
PT rev (3m)10.04%
EPS NQ rev (1m)-5.82%
EPS NQ rev (3m)-5.67%
EPS NY rev (1m)0%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)-0.88%
Revenue NQ rev (3m)-0.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.89 | ||
| Fwd PE | 44.6 | ||
| P/S | 12.15 | ||
| P/FCF | 47.59 | ||
| P/OCF | 35.78 | ||
| P/B | 7.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.28 |
EPS(TTM)3.78
EY1.93%
EPS(NY)4.4
Fwd EY2.24%
FCF(TTM)4.12
FCFY2.1%
OCF(TTM)5.48
OCFY2.8%
SpS16.15
BVpS27.3
TBVpS-0.48
PEG (NY)18.8
PEG (5Y)2.17
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 | 10.04 |
F-Score6
WACC7.62%
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%