THOMSON REUTERS CORP (TRI) Stock Fundamental Analysis
NASDAQ:TRI - Nasdaq - CA8849038085 - Common Stock - Currency: USD
Overall TRI gets a fundamental rating of 5 out of 10. We evaluated TRI against 82 industry peers in the Professional Services industry. TRI scores excellent on profitability, but 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.
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.
TRI had positive earnings in each of the past 5 years.
Each year in the past 5 years TRI had a positive operating cash flow.
1.2 Ratios
TRI has a Return On Assets of 11.68%. This is amongst the best in the industry. TRI outperforms 86.59% of its industry peers.
TRI has a Return On Equity of 17.55%. This is in the better half of the industry: TRI outperforms 69.51% of its industry peers.
With a decent Return On Invested Capital value of 10.92%, TRI is doing good in the industry, outperforming 67.07% 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 12.49%.
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 Profit Margin of 29.67%. This is amongst the best in the industry. TRI outperforms 95.12% of its industry peers.
TRI's Profit Margin has improved in the last couple of years.
TRI has a Operating Margin of 29.09%. This is amongst the best in the industry. TRI outperforms 95.12% 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
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.
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
TRI has an Altman-Z score of 9.44. This indicates that TRI is financially healthy and has little risk of bankruptcy at the moment.
TRI's Altman-Z score of 9.44 is amongst the best of the industry. TRI outperforms 95.12% of its industry peers.
TRI has a debt to FCF ratio of 1.65. This is a very positive value and a sign of high solvency as it would only need 1.65 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.65, TRI is doing good in the industry, outperforming 76.83% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that TRI is not too dependend on debt financing.
TRI has a better Debt to Equity ratio (0.17) than 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 9.44 |
ROIC/WACC1.4
WACC7.8%
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 78.05% 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.
Looking at the Quick ratio, with a value of 0.91, TRI is doing worse than 78.05% of the companies in the same industry.
| 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 1.06% over the past year.
The Earnings Per Share has been growing by 23.92% on average over the past years. This is a very strong growth
Looking at the last year, TRI shows a small growth in Revenue. The Revenue has grown by 6.83% 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)6.83%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%2.59%
3.2 Future
The Earnings Per Share is expected to grow by 10.36% 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 6.09% yearly.
EPS Next Y2.76%
EPS Next 2Y8.02%
EPS Next 3Y10.19%
EPS Next 5Y10.36%
Revenue Next Year3.07%
Revenue Next 2Y5.52%
Revenue Next 3Y6.46%
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
TRI is valuated quite expensively with a Price/Earnings ratio of 47.36.
TRI's Price/Earnings ratio is a bit more expensive when compared to the industry. TRI is more expensive than 70.73% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.48, TRI is valued quite expensively.
With a Price/Forward Earnings ratio of 40.91, 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 68.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.04. TRI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.36 | ||
| Fwd PE | 40.91 |
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 70.73% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TRI is valued a bit more expensive than the industry average as 60.98% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.66 | ||
| EV/EBITDA | 28.2 |
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)17.16
PEG (5Y)1.98
EPS Next 2Y8.02%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 1.17%.
TRI's Dividend Yield is a higher than the industry average which is at 2.29.
With a Dividend Yield of 1.17, TRI pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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
TRI pays out 45.00% of its income as dividend. 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%
179.96
-1.6 (-0.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners21.3%
Inst Owner Change0.27%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap81.07B
Analysts65
Price Target141.68 (-21.27%)
Short Float %2.09%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend2.1
Dividend Growth(5Y)8.41%
DP45%
Div Incr Years0
Div Non Decr Years0
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)2.7%
PT rev (3m)8.72%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-5.79%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.36 | ||
| Fwd PE | 40.91 | ||
| P/S | 11.15 | ||
| P/FCF | 43.66 | ||
| P/OCF | 32.82 | ||
| P/B | 6.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.2 |
EPS(TTM)3.8
EY2.11%
EPS(NY)4.4
Fwd EY2.44%
FCF(TTM)4.12
FCFY2.29%
OCF(TTM)5.48
OCFY3.05%
SpS16.15
BVpS27.3
TBVpS-0.48
PEG (NY)17.16
PEG (5Y)1.98
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 | 9.44 |
F-Score6
WACC7.8%
ROIC/WACC1.4
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 Y2.76%
EPS Next 2Y8.02%
EPS Next 3Y10.19%
EPS Next 5Y10.36%
Revenue 1Y (TTM)6.83%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%2.59%
Revenue Next Year3.07%
Revenue Next 2Y5.52%
Revenue Next 3Y6.46%
Revenue Next 5Y6.09%
EBIT growth 1Y4.96%
EBIT growth 3Y19.85%
EBIT growth 5Y19.16%
EBIT Next Year39.18%
EBIT Next 3Y19.04%
EBIT Next 5Y14.92%
FCF growth 1Y38.27%
FCF growth 3Y12.89%
FCF growth 5Y56.51%
OCF growth 1Y29.52%
OCF growth 3Y11.49%
OCF growth 5Y28.47%