THOMSON REUTERS CORP (TRI) Stock Fundamental Analysis
USA - NASDAQ:TRI - CA8849038085 - Common Stock
163.09 USD
+0.58 (+0.36%)
163.09 USD
0 (0%)
Overall TRI gets a fundamental rating of 5 out of 10. We evaluated TRI against 81 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 valied quite expensively at the moment, while it does show a decent growth rate. TRI also has an excellent dividend rating. These ratings could make TRI a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
TRI had positive earnings in the past year.
In the past year TRI had a positive cash flow from operations.
Each year in the past 5 years TRI has been profitable.
Each year in the past 5 years TRI had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 9.08%, TRI is doing good in the industry, outperforming 77.78% of the companies in the same industry.
TRI has a Return On Equity (12.93%) which is in line with its industry peers.
The Return On Invested Capital of TRI (11.24%) is better than 71.60% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRI is below the industry average of 12.93%.
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
TRI's Profit Margin of 22.29% is amongst the best of the industry. TRI outperforms 93.83% of its industry peers.
In the last couple of years the Profit Margin of TRI has grown nicely.
TRI has a Operating Margin of 29.38%. This is amongst the best in the industry. TRI outperforms 95.06% of its industry peers.
TRI's Operating Margin has improved in the last couple of years.
| 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.
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 9.78. This indicates that TRI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.78, TRI belongs to the best of the industry, outperforming 96.30% 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.
With a decent Debt to FCF ratio value of 1.11, TRI is doing good in the industry, outperforming 75.31% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that TRI is not too dependend on debt financing.
TRI has a Debt to Equity ratio of 0.12. This is in the better half of the industry: TRI outperforms 67.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 9.78 |
ROIC/WACC1.42
WACC7.89%
2.3 Liquidity
TRI has a Current Ratio of 0.79. 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 0.79, TRI is not doing good in the industry: 82.72% 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.
TRI has a Quick ratio of 0.79. This is amonst the worse of the industry: TRI underperforms 82.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
TRI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.06%.
TRI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.92% yearly.
Looking at the last year, TRI shows a small growth in Revenue. The Revenue has grown by 4.04% in the last year.
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)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.
Based on estimates for the next years, TRI will show a small growth in Revenue. The Revenue will grow by 7.65% on average per year.
EPS Next Y3.95%
EPS Next 2Y8.41%
EPS Next 3Y9.93%
EPS Next 5Y10.54%
Revenue Next Year3.11%
Revenue Next 2Y5.41%
Revenue Next 3Y6.32%
Revenue Next 5Y7.65%
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
Based on the Price/Earnings ratio of 42.92, the valuation of TRI can be described as expensive.
Based on the Price/Earnings ratio, TRI is valued a bit more expensive than 66.67% of the companies in the same industry.
TRI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.41.
TRI is valuated quite expensively with a Price/Forward Earnings ratio of 36.81.
TRI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TRI is more expensive than 64.20% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. TRI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.92 | ||
| Fwd PE | 36.81 |
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 61.73% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.95 | ||
| EV/EBITDA | 24.84 |
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)10.85
PEG (5Y)1.79
EPS Next 2Y8.41%
EPS Next 3Y9.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.20%, TRI is a good candidate for dividend investing.
TRI's Dividend Yield is rather good when compared to the industry average which is at 3.09. TRI pays more dividend than 97.53% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, TRI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
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
61.01% of the earnings are spent on dividend by TRI. 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 2Y8.41%
EPS Next 3Y9.93%
163.09
+0.58 (+0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners21.3%
Inst Owner Change363.75%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap73.50B
Analysts69
Price Target139.83 (-14.26%)
Short Float %3.63%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.2% |
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)-1.31%
PT rev (3m)3.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.33%
EPS NY rev (1m)0%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.92 | ||
| Fwd PE | 36.81 | ||
| P/S | 10.04 | ||
| P/FCF | 38.95 | ||
| P/OCF | 29.27 | ||
| P/B | 5.83 | ||
| P/tB | 6682.1 | ||
| EV/EBITDA | 24.84 |
EPS(TTM)3.8
EY2.33%
EPS(NY)4.43
Fwd EY2.72%
FCF(TTM)4.19
FCFY2.57%
OCF(TTM)5.57
OCFY3.42%
SpS16.24
BVpS27.99
TBVpS0.02
PEG (NY)10.85
PEG (5Y)1.79
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 | 9.78 |
F-Score5
WACC7.89%
ROIC/WACC1.42
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 Y3.95%
EPS Next 2Y8.41%
EPS Next 3Y9.93%
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 Year39.18%
EBIT Next 3Y19.04%
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%