THOMSON REUTERS CORP (TRI) Stock Fundamental Analysis
NASDAQ:TRI - CA8849038085 - Common Stock
177.61 USD
-0.65 (-0.36%)
177.61 USD
0 (0%)
Taking everything into account, TRI scores 5 out of 10 in our fundamental rating. TRI was compared to 83 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 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.
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
The Return On Assets of TRI (9.08%) is better than 78.31% of its industry peers.
TRI has a better Return On Equity (12.93%) than 60.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.24%, TRI is in the better half of the industry, outperforming 72.29% 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 12.57%.
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 93.98% of its industry peers.
In the last couple of years the Profit Margin of TRI has grown nicely.
Looking at the Operating Margin, with a value of 29.38%, TRI belongs to the top of the industry, outperforming 95.18% of the companies in the same industry.
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.
Compared to 1 year ago, TRI has less shares outstanding
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
An Altman-Z score of 10.51 indicates that TRI is not in any danger for bankruptcy at the moment.
TRI's Altman-Z score of 10.51 is amongst the best of the industry. TRI outperforms 98.80% of its industry peers.
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.
TRI has a better Debt to FCF ratio (1.11) than 74.70% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that TRI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.12, TRI is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 10.51 |
ROIC/WACC1.41
WACC7.96%
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.
TRI has a worse Current ratio (0.79) than 81.93% of its industry peers.
TRI has a Quick 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.
TRI's Quick ratio of 0.79 is on the low side compared to the rest of the industry. TRI is outperformed by 81.93% 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%.
The Earnings Per Share has been growing by 23.92% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 4.04% in the past year.
TRI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.21% yearly.
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
TRI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.54% yearly.
The Revenue is expected to grow by 7.65% on average over the next years.
EPS Next Y3.95%
EPS Next 2Y8.41%
EPS Next 3Y9.93%
EPS Next 5Y10.54%
Revenue Next Year3.09%
Revenue Next 2Y5.38%
Revenue Next 3Y6.27%
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 46.74, the valuation of TRI can be described as expensive.
71.08% of the companies in the same industry are cheaper than TRI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.13, TRI is valued quite expensively.
TRI is valuated quite expensively with a Price/Forward Earnings ratio of 40.08.
Based on the Price/Forward Earnings ratio, TRI is valued a bit more expensive than 67.47% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.76. TRI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.74 | ||
| Fwd PE | 40.08 |
4.2 Price Multiples
TRI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TRI is more expensive than 66.27% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRI indicates a slightly more expensive valuation: TRI is more expensive than 60.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.42 | ||
| EV/EBITDA | 27.01 |
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)11.82
PEG (5Y)1.95
EPS Next 2Y8.41%
EPS Next 3Y9.93%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 1.19%.
TRI's Dividend Yield is a higher than the industry average which is at 2.17.
With a Dividend Yield of 1.19, TRI pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
On average, the dividend of TRI grows each year by 8.41%, which is quite nice.
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 61.01% of its income as dividend. This is not a sustainable payout ratio.
TRI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP61.01%
EPS Next 2Y8.41%
EPS Next 3Y9.93%
177.61
-0.65 (-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 Cap80.05B
Analysts65
Price Target138.34 (-22.11%)
Short Float %3.46%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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)-0.72%
PT rev (3m)4.75%
EPS NQ rev (1m)0.64%
EPS NQ rev (3m)-2.33%
EPS NY rev (1m)1.16%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.74 | ||
| Fwd PE | 40.08 | ||
| P/S | 10.94 | ||
| P/FCF | 42.42 | ||
| P/OCF | 31.88 | ||
| P/B | 6.34 | ||
| P/tB | 7277.01 | ||
| EV/EBITDA | 27.01 |
EPS(TTM)3.8
EY2.14%
EPS(NY)4.43
Fwd EY2.49%
FCF(TTM)4.19
FCFY2.36%
OCF(TTM)5.57
OCFY3.14%
SpS16.24
BVpS27.99
TBVpS0.02
PEG (NY)11.82
PEG (5Y)1.95
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 | 10.51 |
F-Score5
WACC7.96%
ROIC/WACC1.41
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 Year3.09%
Revenue Next 2Y5.38%
Revenue Next 3Y6.27%
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%