123.4 USD
+1.55 (+1.27%)
123.4 USD
0 (0%)
TRI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 87 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
- 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.
- TRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 9.82%, TRI is doing good in the industry, outperforming 79.55% of the companies in the same industry.
- TRI has a better Return On Equity (14.91%) than 67.05% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 11.73%, TRI is in the better half of the industry, outperforming 76.14% of the companies in the same industry.
- TRI had an Average Return On Invested Capital over the past 3 years of 9.36%. This is below the industry average of 11.85%.
- The last Return On Invested Capital (11.73%) for TRI is above the 3 year average (9.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.82% | ||
| ROE | 14.91% | ||
| ROIC | 11.73% |
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 23.77%, TRI belongs to the best of the industry, outperforming 93.18% of the companies in the same industry.
- In the last couple of years the Profit Margin of TRI has grown nicely.
- TRI's Operating Margin of 29.45% is amongst the best of the industry. TRI outperforms 96.59% of its industry peers.
- In the last couple of years the Operating Margin of TRI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.45% | ||
| PM (TTM) | 23.77% | ||
| 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.
- Compared to 1 year ago, TRI has less shares outstanding
- Compared to 5 years ago, TRI has less shares outstanding
- TRI has a better debt/assets ratio than last year.
2.2 Solvency
- TRI has an Altman-Z score of 6.85. This indicates that TRI is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.85, TRI belongs to the top of the industry, outperforming 89.77% of the companies in the same industry.
- The Debt to FCF ratio of TRI is 1.33, which is an excellent value as it means it would take TRI, only 1.33 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.33, TRI is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
- TRI has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
- TRI's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. TRI outperforms 65.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 6.85 |
ROIC/WACC1.5
WACC7.8%
2.3 Liquidity
- A Current Ratio of 0.61 indicates that TRI may have some problems paying its short term obligations.
- TRI's Current ratio of 0.61 is on the low side compared to the rest of the industry. TRI is outperformed by 86.36% of its industry peers.
- A Quick Ratio of 0.61 indicates that TRI may have some problems paying its short term obligations.
- TRI's Quick ratio of 0.61 is on the low side compared to the rest of the industry. TRI is outperformed by 85.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
- TRI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.94%.
- The Earnings Per Share has been growing by 23.02% 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 2.96%.
- 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)2.94%
EPS 3Y23.06%
EPS 5Y23.02%
EPS Q2Q%6.25%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%3.36%
3.2 Future
- The Earnings Per Share is expected to grow by 10.21% 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 7.25% yearly.
EPS Next Y4.34%
EPS Next 2Y9.32%
EPS Next 3Y10.68%
EPS Next 5Y10.21%
Revenue Next Year2.96%
Revenue Next 2Y5.32%
Revenue Next 3Y6.35%
Revenue Next 5Y7.25%
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 32.05, TRI can be considered very expensive at the moment.
- TRI's Price/Earnings is on the same level as the industry average.
- TRI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 27.39, which means the current valuation is very expensive for TRI.
- The rest of the industry has a similar Price/Forward Earnings ratio as TRI.
- TRI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.05 | ||
| Fwd PE | 27.39 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRI.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.13 | ||
| EV/EBITDA | 18.34 |
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.
- TRI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)7.39
PEG (5Y)1.39
EPS Next 2Y9.32%
EPS Next 3Y10.68%
5. Dividend
5.1 Amount
- TRI has a Yearly Dividend Yield of 1.74%.
- In the last 3 months the price of TRI has falen by -24.11%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- TRI's Dividend Yield is rather good when compared to the industry average which is at 1.44. TRI pays more dividend than 81.82% of the companies in the same industry.
- TRI's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
- On average, the dividend of TRI grows each year by 8.41%, which is quite nice.
- TRI has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- TRI pays out 58.13% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of TRI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.13%
EPS Next 2Y9.32%
EPS Next 3Y10.68%
THOMSON REUTERS CORP / TRI FAQ
What is the fundamental rating for TRI stock?
ChartMill assigns a fundamental rating of 6 / 10 to TRI.
What is the valuation status for TRI stock?
ChartMill assigns a valuation rating of 2 / 10 to THOMSON REUTERS CORP (TRI). This can be considered as Overvalued.
Can you provide the profitability details for THOMSON REUTERS CORP?
THOMSON REUTERS CORP (TRI) has a profitability rating of 7 / 10.
How financially healthy is THOMSON REUTERS CORP?
The financial health rating of THOMSON REUTERS CORP (TRI) is 6 / 10.
Is the dividend of THOMSON REUTERS CORP sustainable?
The dividend rating of THOMSON REUTERS CORP (TRI) is 6 / 10 and the dividend payout ratio is 58.13%.