THOMSON REUTERS CORP (TRI.CA) Stock Fundamental Analysis
TSX:TRI - Toronto Stock Exchange - CA8849038085 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to TRI. TRI was compared to 5 industry peers in the Professional Services industry. TRI has an excellent profitability rating, but 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
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.
In the past 5 years TRI always reported a positive cash flow from operatings.
1.2 Ratios
TRI has a Return On Assets (11.96%) which is in line with its industry peers.
TRI's Return On Equity of 18.37% is fine compared to the rest of the industry. TRI outperforms 80.00% of its industry peers.
With a decent Return On Invested Capital value of 11.07%, TRI is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRI is above the industry average of 6.40%.
The last Return On Invested Capital (11.07%) for TRI is above the 3 year average (9.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.96% | ||
| ROE | 18.37% | ||
| ROIC | 11.07% |
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
The Profit Margin of TRI (30.38%) is better than 80.00% of its industry peers.
In the last couple of years the Profit Margin of TRI has grown nicely.
The Operating Margin of TRI (28.95%) is better than 80.00% of its industry peers.
In the last couple of years the Operating Margin of TRI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.95% | ||
| PM (TTM) | 30.38% | ||
| 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
TRI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.92 indicates that TRI is not in any danger for bankruptcy at the moment.
The Altman-Z score of TRI (8.92) is better than 100.00% of its industry peers.
TRI has a debt to FCF ratio of 1.52. This is a very positive value and a sign of high solvency as it would only need 1.52 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.52, TRI is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that TRI is not too dependend on debt financing.
The Debt to Equity ratio of TRI (0.15) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 8.92 |
ROIC/WACC1.42
WACC7.8%
2.3 Liquidity
A Current Ratio of 1.02 indicates that TRI should not have too much problems paying its short term obligations.
TRI has a Current ratio of 1.02. This is in the lower half of the industry: TRI underperforms 60.00% of its industry peers.
TRI has a Quick Ratio of 1.02. This is a normal value and indicates that TRI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.02, TRI is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.00% 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.
TRI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.21% yearly.
EPS 1Y (TTM)8%
EPS 3Y24.58%
EPS 5Y23.92%
EPS Q2Q%3.06%
Revenue 1Y (TTM)6.83%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%5.18%
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 11.55% on average per year.
TRI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.63% yearly.
EPS Next Y2.07%
EPS Next 2Y7.93%
EPS Next 3Y10.23%
EPS Next 5Y11.55%
Revenue Next Year3.49%
Revenue Next 2Y5.85%
Revenue Next 3Y6.82%
Revenue Next 5Y6.63%
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
A Price/Earnings ratio of 46.84 indicates a quite expensive valuation of TRI.
Compared to the rest of the industry, the Price/Earnings ratio of TRI indicates a slightly more expensive valuation: TRI is more expensive than 60.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.62, TRI is valued quite expensively.
With a Price/Forward Earnings ratio of 45.87, TRI can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as TRI.
TRI is valuated expensively when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.84 | ||
| Fwd PE | 45.87 |
4.2 Price Multiples
TRI's Enterprise Value to EBITDA ratio is in line with the industry average.
TRI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.94 | ||
| EV/EBITDA | 27.44 |
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)22.61
PEG (5Y)1.96
EPS Next 2Y7.93%
EPS Next 3Y10.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, TRI has a reasonable but not impressive dividend return.
TRI's Dividend Yield is rather good when compared to the industry average which is at 1.11. TRI pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, TRI's dividend is way lower than the S&P500 average.
| 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.
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
43.04% 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.
DP43.04%
EPS Next 2Y7.93%
EPS Next 3Y10.23%
TSX:TRI (2/21/2025, 7:00:00 PM)
250.58
+0.26 (+0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners22.13%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap112.76B
Analysts66
Price Target175.99 (-29.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend2.1
Dividend Growth(5Y)8.41%
DP43.04%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.36%
Min EPS beat(2)4.26%
Max EPS beat(2)4.47%
EPS beat(4)4
Avg EPS beat(4)6.87%
Min EPS beat(4)2.73%
Max EPS beat(4)16.02%
EPS beat(8)8
Avg EPS beat(8)7.35%
EPS beat(12)12
Avg EPS beat(12)8.37%
EPS beat(16)15
Avg EPS beat(16)9.91%
Revenue beat(2)0
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)-0.35%
Revenue beat(4)1
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)0.59%
Revenue beat(8)1
Avg Revenue beat(8)-0.97%
Revenue beat(12)1
Avg Revenue beat(12)-0.97%
Revenue beat(16)5
Avg Revenue beat(16)-0.51%
PT rev (1m)2.91%
PT rev (3m)6.06%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)-5.45%
EPS NY rev (1m)-5.21%
EPS NY rev (3m)-9.15%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-4.32%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-3.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.84 | ||
| Fwd PE | 45.87 | ||
| P/S | 10.94 | ||
| P/FCF | 42.94 | ||
| P/OCF | 32.33 | ||
| P/B | 6.62 | ||
| P/tB | 505.95 | ||
| EV/EBITDA | 27.44 |
EPS(TTM)5.35
EY2.14%
EPS(NY)5.46
Fwd EY2.18%
FCF(TTM)5.84
FCFY2.33%
OCF(TTM)7.75
OCFY3.09%
SpS22.9
BVpS37.87
TBVpS0.5
PEG (NY)22.61
PEG (5Y)1.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.96% | ||
| ROE | 18.37% | ||
| ROCE | 14.01% | ||
| ROIC | 11.07% | ||
| ROICexc | 12.77% | ||
| ROICexgc | 144.5% | ||
| OM | 28.95% | ||
| PM (TTM) | 30.38% | ||
| GM | N/A | ||
| FCFM | 25.49% |
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-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.52 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 73.84% | ||
| Cap/Sales | 8.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.06% | ||
| Profit Quality | 83.9% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 8.92 |
F-Score7
WACC7.8%
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)8%
EPS 3Y24.58%
EPS 5Y23.92%
EPS Q2Q%3.06%
EPS Next Y2.07%
EPS Next 2Y7.93%
EPS Next 3Y10.23%
EPS Next 5Y11.55%
Revenue 1Y (TTM)6.83%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%5.18%
Revenue Next Year3.49%
Revenue Next 2Y5.85%
Revenue Next 3Y6.82%
Revenue Next 5Y6.63%
EBIT growth 1Y7.74%
EBIT growth 3Y19.85%
EBIT growth 5Y19.16%
EBIT Next Year41.88%
EBIT Next 3Y19.69%
EBIT Next 5Y14.87%
FCF growth 1Y2.95%
FCF growth 3Y12.89%
FCF growth 5Y56.51%
OCF growth 1Y4.96%
OCF growth 3Y11.49%
OCF growth 5Y28.47%