THOMSON REUTERS CORP (TRI) Stock Fundamental Analysis
NASDAQ:TRI - Nasdaq - CA8849038085 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to TRI. TRI was compared to 82 industry peers in the Professional Services industry. TRI scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, TRI is valued expensive at the moment.
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.
Each year in the past 5 years TRI has been profitable.
TRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.68%, TRI belongs to the top of the industry, outperforming 84.15% of the companies in the same industry.
The Return On Equity of TRI (17.55%) is better than 64.63% of its industry peers.
TRI's Return On Invested Capital of 10.92% is fine compared to the rest of the industry. TRI outperforms 69.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRI is below the industry average of 12.98%.
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 95.12% of its industry peers.
TRI's Profit Margin has improved in the last couple of years.
TRI has a better Operating Margin (29.09%) than 93.90% of its industry peers.
In the last couple of years the Operating Margin of TRI has grown nicely.
| 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
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.
Compared to 5 years ago, TRI has less shares outstanding
The debt/assets ratio for TRI has been reduced compared to a year ago.
2.2 Solvency
TRI has an Altman-Z score of 9.86. 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 9.86, TRI belongs to the top of the industry, outperforming 98.78% of the companies in the same industry.
The Debt to FCF ratio of TRI is 1.65, which is an excellent value as it means it would take TRI, only 1.65 years of fcf income to pay off all of its debts.
TRI has a Debt to FCF ratio of 1.65. This is in the better half of the industry: TRI outperforms 75.61% of its industry peers.
TRI has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
TRI has a Debt to Equity ratio of 0.17. This is in the better half of the industry: TRI outperforms 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 9.86 |
ROIC/WACC1.43
WACC7.61%
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.
TRI has a worse Current ratio (0.91) than 75.61% of its industry peers.
TRI has a Quick 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.
With a Quick ratio value of 0.91, TRI is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.80% over the past year.
TRI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.92% yearly.
The Revenue has been growing slightly by 4.78% in the past year.
The Revenue has been growing slightly by 4.21% on average over the past years.
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.
Based on estimates for the next years, TRI will show a small growth in Revenue. The Revenue will grow by 6.09% on average per year.
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.
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
A Price/Earnings ratio of 50.59 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 73.17% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.68, TRI is valued quite expensively.
A Price/Forward Earnings ratio of 43.48 indicates a quite expensive valuation of TRI.
67.07% of the companies in the same industry are cheaper than TRI, based on the Price/Forward Earnings ratio.
TRI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.59 | ||
| Fwd PE | 43.48 |
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 69.51% of the companies listed in the same industry.
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 | 46.39 | ||
| EV/EBITDA | 29.67 |
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)18.33
PEG (5Y)2.11
EPS Next 2Y8.02%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 1.11%.
TRI's Dividend Yield is a higher than the industry average which is at 1.98.
With a Dividend Yield of 1.11, TRI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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.
TRI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.41%
Div Incr Years4
Div Non Decr Years4
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%
191.23
+1.58 (+0.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners22.13%
Inst Owner Change-4.64%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap86.14B
Analysts65.45
Price Target132.06 (-30.94%)
Short Float %1.23%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend2.1
Dividend Growth(5Y)8.41%
DP45%
Div Incr Years4
Div Non Decr Years4
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)7.85%
PT rev (3m)10.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.59 | ||
| Fwd PE | 43.48 | ||
| P/S | 11.84 | ||
| P/FCF | 46.39 | ||
| P/OCF | 34.87 | ||
| P/B | 7.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.67 |
EPS(TTM)3.78
EY1.98%
EPS(NY)4.4
Fwd EY2.3%
FCF(TTM)4.12
FCFY2.16%
OCF(TTM)5.48
OCFY2.87%
SpS16.15
BVpS27.3
TBVpS-0.48
PEG (NY)18.33
PEG (5Y)2.11
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 | 9.86 |
F-Score6
WACC7.61%
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 Year39.79%
EBIT Next 3Y19.35%
EBIT Next 5Y14.89%
FCF growth 1Y38.27%
FCF growth 3Y12.89%
FCF growth 5Y56.51%
OCF growth 1Y29.52%
OCF growth 3Y11.49%
OCF growth 5Y28.47%