129.69 USD
-3.73 (-2.8%)
129.69 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TRI. TRI was compared to 87 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
In the past year TRI was profitable.
In the past year TRI had a positive cash flow from operations.
In the past 5 years TRI has always been profitable.
TRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TRI has a Return On Assets of 9.82%. This is in the better half of the industry: TRI outperforms 79.31% of its industry peers.
TRI has a Return On Equity of 14.91%. This is in the better half of the industry: TRI outperforms 66.67% of its industry peers.
The Return On Invested Capital of TRI (11.73%) is better than 74.71% 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 12.13%.
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
TRI's Profit Margin of 23.77% is amongst the best of the industry. TRI outperforms 93.10% of its industry peers.
In the last couple of years the Profit Margin of TRI has grown nicely.
TRI has a better Operating Margin (29.45%) than 96.55% 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
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.
TRI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.29 indicates that TRI is not in any danger for bankruptcy at the moment.
TRI's Altman-Z score of 7.29 is amongst the best of the industry. TRI outperforms 91.95% of its industry peers.
TRI has a debt to FCF ratio of 1.33. This is a very positive value and a sign of high solvency as it would only need 1.33 years to pay back of all of its debts.
The Debt to FCF ratio of TRI (1.33) is better than 74.71% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that TRI is not too dependend on debt financing.
TRI has a Debt to Equity ratio of 0.16. This is in the better half of the industry: TRI outperforms 63.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 7.29 |
ROIC/WACC1.55
WACC7.57%
2.3 Liquidity
A Current Ratio of 0.61 indicates that TRI may have some problems paying its short term obligations.
With a Current ratio value of 0.61, TRI is not doing good in the industry: 88.51% of the companies in the same industry are doing better.
TRI has a Quick Ratio of 0.61. 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 0.61, TRI is not doing good in the industry: 87.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.94% 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.
Looking at the last year, TRI shows a small growth in Revenue. The Revenue has grown by 2.96% in the last year.
The Revenue has been growing slightly by 4.21% on average over the past years.
EPS 1Y (TTM)2.94%
EPS 3Y24.58%
EPS 5Y23.92%
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.
The Revenue is expected to grow by 7.25% on average over the next years.
EPS Next Y4.36%
EPS Next 2Y9.33%
EPS Next 3Y10.66%
EPS Next 5Y10.21%
Revenue Next Year2.94%
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.
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
With a Price/Earnings ratio of 33.69, TRI can be considered very expensive at the moment.
TRI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.49. TRI is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 28.78, TRI can be considered very expensive at the moment.
TRI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TRI is more expensive than 60.92% of the companies in the same industry.
TRI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.69 | ||
| Fwd PE | 28.78 |
4.2 Price Multiples
TRI's Enterprise Value to EBITDA ratio is in line with the industry average.
TRI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.66 | ||
| EV/EBITDA | 19.8 |
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)7.73
PEG (5Y)1.41
EPS Next 2Y9.33%
EPS Next 3Y10.66%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 1.57%.
The stock price of TRI dropped by -23.60% 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.
TRI's Dividend Yield is a higher than the industry average which is at 4.12.
Compared to the average S&P500 Dividend Yield of 2.31, TRI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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
58.13% of the earnings are spent on dividend by TRI. 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 2Y9.33%
EPS Next 3Y10.66%
129.69
-3.73 (-2.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners27.54%
Inst Owner Change-0.71%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap57.69B
Revenue(TTM)7.38B
Net Income(TTM)1.75B
Analysts76
Price Target133.48 (2.92%)
Short Float %4.44%
Short Ratio4.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
Yearly Dividend2.1
Dividend Growth(5Y)8.41%
DP58.13%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.61%
Min EPS beat(2)1.96%
Max EPS beat(2)5.25%
EPS beat(4)4
Avg EPS beat(4)4.37%
Min EPS beat(4)1.96%
Max EPS beat(4)6.03%
EPS beat(8)8
Avg EPS beat(8)6.04%
EPS beat(12)12
Avg EPS beat(12)6.89%
EPS beat(16)15
Avg EPS beat(16)6.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)-0.83%
Revenue beat(4)0
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-0.83%
Revenue beat(8)1
Avg Revenue beat(8)-1.06%
Revenue beat(12)1
Avg Revenue beat(12)-1.12%
Revenue beat(16)2
Avg Revenue beat(16)-0.97%
PT rev (1m)-4.98%
PT rev (3m)-3.51%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-0.57%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.69 | ||
| Fwd PE | 28.78 | ||
| P/S | 7.82 | ||
| P/FCF | 31.66 | ||
| P/OCF | 23.46 | ||
| P/B | 4.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.8 |
EPS(TTM)3.85
EY2.97%
EPS(NY)4.51
Fwd EY3.47%
FCF(TTM)4.1
FCFY3.16%
OCF(TTM)5.53
OCFY4.26%
SpS16.58
BVpS26.44
TBVpS-2.15
PEG (NY)7.73
PEG (5Y)1.41
Graham Number47.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.82% | ||
| ROE | 14.91% | ||
| ROCE | 15.2% | ||
| ROIC | 11.73% | ||
| ROICexc | 12.21% | ||
| ROICexgc | 127.52% | ||
| OM | 29.45% | ||
| PM (TTM) | 23.77% | ||
| GM | N/A | ||
| FCFM | 24.7% |
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%
ROICexgc growth 3Y134.34%
ROICexgc 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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.33 | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | 70.94% | ||
| Cap/Sales | 8.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.1% | ||
| Profit Quality | 103.94% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 7.29 |
F-Score6
WACC7.57%
ROIC/WACC1.55
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)2.94%
EPS 3Y24.58%
EPS 5Y23.92%
EPS Q2Q%6.25%
EPS Next Y4.36%
EPS Next 2Y9.33%
EPS Next 3Y10.66%
EPS Next 5Y10.21%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%3.36%
Revenue Next Year2.94%
Revenue Next 2Y5.32%
Revenue Next 3Y6.35%
Revenue Next 5Y7.25%
EBIT growth 1Y12.77%
EBIT growth 3Y19.85%
EBIT growth 5Y19.16%
EBIT Next Year40.08%
EBIT Next 3Y19.48%
EBIT Next 5Y15.35%
FCF growth 1Y3.23%
FCF growth 3Y12.89%
FCF growth 5Y56.51%
OCF growth 1Y6.36%
OCF growth 3Y11.49%
OCF growth 5Y28.47%
THOMSON REUTERS CORP / TRI FAQ
What is the fundamental rating for TRI stock?
ChartMill assigns a fundamental rating of 5 / 10 to TRI.
Can you provide the valuation status for THOMSON REUTERS CORP?
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.
Can you provide the expected EPS growth for TRI stock?
The Earnings per Share (EPS) of THOMSON REUTERS CORP (TRI) is expected to grow by 4.36% in the next year.
How sustainable is the dividend of THOMSON REUTERS CORP (TRI) stock?
The dividend rating of THOMSON REUTERS CORP (TRI) is 5 / 10 and the dividend payout ratio is 58.13%.