THOMSON REUTERS CORP (TRI) Stock Fundamental Analysis
USA - NASDAQ:TRI - CA8849038085 - Common Stock
154.23 USD
+1.68 (+1.1%)
Taking everything into account, TRI scores 5 out of 10 in our fundamental rating. TRI was compared to 82 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. 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.
TRI had positive earnings in each of the past 5 years.
In the past 5 years TRI always reported a positive cash flow from operatings.
1.2 Ratios
TRI has a Return On Assets of 9.08%. This is in the better half of the industry: TRI outperforms 76.83% of its industry peers.
Looking at the Return On Equity, with a value of 12.93%, TRI is in line with its industry, outperforming 58.54% of the companies in the same industry.
TRI's Return On Invested Capital of 11.24% is fine compared to the rest of the industry. TRI outperforms 70.73% of its industry peers.
TRI had an Average Return On Invested Capital over the past 3 years of 9.36%. This is below the industry average of 13.40%.
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
With an excellent Profit Margin value of 22.29%, TRI belongs to the best of the industry, outperforming 93.90% of the companies in the same industry.
In the last couple of years the Profit Margin of TRI has grown nicely.
Looking at the Operating Margin, with a value of 29.38%, TRI belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
In the last couple of years the Operating Margin of TRI has grown nicely.
| 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
TRI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 9.25. This indicates that TRI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.25, TRI belongs to the best of the industry, outperforming 95.12% 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 75.61% 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.
The Debt to Equity ratio of TRI (0.12) is better than 67.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 9.25 |
ROIC/WACC1.43
WACC7.88%
2.3 Liquidity
A Current Ratio of 0.79 indicates that TRI may have some problems paying its short term obligations.
With a Current ratio value of 0.79, TRI is not doing good in the industry: 84.15% of the companies in the same industry are doing better.
A Quick Ratio of 0.79 indicates that TRI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.79, TRI is doing worse than 84.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.06% 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 4.04% in the past year.
The Revenue has been growing slightly by 4.21% on average over the past years.
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 Y4.28%
EPS Next 2Y8.51%
EPS Next 3Y10.01%
EPS Next 5Y10.54%
Revenue Next Year3.11%
Revenue Next 2Y5.41%
Revenue Next 3Y6.32%
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.
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 40.59 indicates a quite expensive valuation of TRI.
TRI's Price/Earnings ratio is a bit more expensive when compared to the industry. TRI is more expensive than 67.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.34. TRI is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 34.75, the valuation of TRI can be described as expensive.
Based on the Price/Forward Earnings ratio, TRI is valued a bit more expensive than 62.20% of the companies in the same industry.
TRI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.59 | ||
| Fwd PE | 34.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRI is valued a bit more expensive than the industry average as 62.20% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.84 | ||
| EV/EBITDA | 23.27 |
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)9.49
PEG (5Y)1.7
EPS Next 2Y8.51%
EPS Next 3Y10.01%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 1.39%.
The stock price of TRI dropped by -27.11% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.89, TRI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, TRI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
The dividend of TRI is nicely growing with an annual growth rate of 8.41%!
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
TRI pays out 61.01% of its income as dividend. 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 2Y8.51%
EPS Next 3Y10.01%
NASDAQ:TRI (10/14/2025, 10:52:51 AM)
154.23
+1.68 (+1.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners27.54%
Inst Owner Change0%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap69.51B
Analysts70
Price Target138.78 (-10.02%)
Short Float %4%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend2.1
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)0.32%
PT rev (3m)2.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.79%
EPS NY rev (1m)0.31%
EPS NY rev (3m)1.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.59 | ||
| Fwd PE | 34.75 | ||
| P/S | 9.5 | ||
| P/FCF | 36.84 | ||
| P/OCF | 27.68 | ||
| P/B | 5.51 | ||
| P/tB | 6319.09 | ||
| EV/EBITDA | 23.27 |
EPS(TTM)3.8
EY2.46%
EPS(NY)4.44
Fwd EY2.88%
FCF(TTM)4.19
FCFY2.71%
OCF(TTM)5.57
OCFY3.61%
SpS16.24
BVpS27.99
TBVpS0.02
PEG (NY)9.49
PEG (5Y)1.7
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 | 9.25 |
F-Score5
WACC7.88%
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)1.06%
EPS 3Y24.58%
EPS 5Y23.92%
EPS Q2Q%2.35%
EPS Next Y4.28%
EPS Next 2Y8.51%
EPS Next 3Y10.01%
EPS Next 5Y10.54%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%2.59%
Revenue Next Year3.11%
Revenue Next 2Y5.41%
Revenue Next 3Y6.32%
Revenue Next 5Y7.65%
EBIT growth 1Y10.48%
EBIT growth 3Y19.85%
EBIT growth 5Y19.16%
EBIT Next Year39.32%
EBIT Next 3Y19.09%
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%