THOMSON REUTERS CORP (TRI)
CA8849038085 - Common Stock
Taking everything into account, TRI scores 6 out of 10 in our fundamental rating. TRI was compared to 82 industry peers in the Professional Services industry. While TRI has a great profitability rating, 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.
TRI had a positive operating cash flow in the past year.
TRI had positive earnings in each of the past 5 years.
TRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.83%, TRI belongs to the best of the industry, outperforming 91.36% of the companies in the same industry.
The Return On Equity of TRI (21.88%) is better than 79.01% of its industry peers.
TRI has a better Return On Invested Capital (10.51%) than 70.37% of its industry peers.
TRI had an Average Return On Invested Capital over the past 3 years of 8.03%. This is below the industry average of 11.71%.
The 3 year average ROIC (8.03%) for TRI is below the current ROIC(10.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.83% | ||
| ROE | 21.88% | ||
| ROIC | 10.51% |
ROA(3y)15.41%
ROA(5y)12.3%
ROE(3y)25.55%
ROE(5y)20.84%
ROIC(3y)8.03%
ROIC(5y)7.22%
1.3 Margins
With an excellent Profit Margin value of 34.79%, TRI belongs to the best of the industry, outperforming 97.53% of the companies in the same industry.
TRI's Profit Margin has declined in the last couple of years.
The Operating Margin of TRI (29.04%) is better than 92.59% of its industry peers.
In the last couple of years the Operating Margin of TRI has grown nicely.
TRI has a better Gross Margin (95.61%) than 98.77% of its industry peers.
In the last couple of years the Gross Margin of TRI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.04% | ||
| PM (TTM) | 34.79% | ||
| GM | 95.61% |
OM growth 3Y11.29%
OM growth 5Y12.69%
PM growth 3Y28.37%
PM growth 5Y-11.13%
GM growth 3Y0.35%
GM growth 5Y0.14%
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.
The number of shares outstanding for TRI has been reduced compared to 1 year ago.
Compared to 5 years ago, TRI has less shares outstanding
TRI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.32 indicates that TRI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.32, TRI belongs to the top of the industry, outperforming 87.65% of the companies in the same industry.
The Debt to FCF ratio of TRI is 2.09, which is a good value as it means it would take TRI, 2.09 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.09, TRI is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
TRI has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
TRI has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: TRI outperforms 53.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 7.32 |
ROIC/WACC1.34
WACC7.87%
2.3 Liquidity
TRI has a Current Ratio of 0.97. This is a bad value and indicates that TRI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.97, TRI is doing worse than 81.48% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that TRI may have some problems paying its short term obligations.
TRI has a Quick ratio of 0.97. This is amonst the worse of the industry: TRI underperforms 80.25% of its industry peers.
The current and quick ratio evaluation for TRI is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.90% over the past year.
The Earnings Per Share has been growing by 33.75% on average over the past years. This is a very strong growth
TRI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.74%.
Measured over the past years, TRI shows a small growth in Revenue. The Revenue has been growing by 4.31% on average per year.
EPS 1Y (TTM)32.9%
EPS 3Y23.57%
EPS 5Y33.75%
EPS growth Q2Q30.49%
Revenue 1Y (TTM)3.74%
Revenue growth 3Y4.32%
Revenue growth 5Y4.31%
Revenue growth Q2Q8.46%
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 10.25% on average per year.
The Revenue is expected to grow by 6.27% on average over the next years.
EPS Next Y3.43%
EPS Next 2Y8.04%
EPS Next 3Y9.59%
EPS Next 5Y10.25%
Revenue Next Year6.57%
Revenue Next 2Y6.8%
Revenue Next 3Y6.99%
Revenue Next 5Y6.27%
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.
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 45.61, TRI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TRI is valued a bit more expensive than the industry average as 74.07% of the companies are valued more cheaply.
TRI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.15.
With a Price/Forward Earnings ratio of 41.97, TRI can be considered very expensive at the moment.
Based on the Price/Forward 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/Forward Earnings ratio of 20.20, TRI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.61 | ||
| Fwd PE | 41.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRI is valued a bit more expensive than 72.84% of the companies in the same industry.
TRI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.44 | ||
| EV/EBITDA | 28.39 |
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 excellent profitability rating of TRI may justify a higher PE ratio.
PEG (NY)13.29
PEG (5Y)1.35
EPS Next 2Y8.04%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.26%, TRI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.00, TRI pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.26, TRI pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
The dividend of TRI has a limited annual growth rate of 3.67%.
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)3.67%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
37.47% of the earnings are spent on dividend by TRI. This is a low number and sustainable payout ratio.
TRI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.47%
EPS Next 2Y8.04%
EPS Next 3Y9.59%
THOMSON REUTERS CORP
NYSE:TRI (5/17/2024, 7:04:00 PM)
After market: 171.02 0 (0%)171.02
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap77.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.61 | ||
| Fwd PE | 41.97 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)13.29
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.83% | ||
| ROE | 21.88% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.04% | ||
| PM (TTM) | 34.79% | ||
| GM | 95.61% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)32.9%
EPS 3Y23.57%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.74%
Revenue growth 3Y4.32%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
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OCF growth 5Y