123.22 USD
+1.37 (+1.12%)
TRI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 88 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 valied quite expensively at the moment, while 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.
- 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
- TRI's Return On Assets of 9.82% is fine compared to the rest of the industry. TRI outperforms 79.55% of its industry peers.
- Looking at the Return On Equity, with a value of 14.91%, TRI is in the better half of the industry, outperforming 67.05% of the companies in the same industry.
- TRI has a Return On Invested Capital of 11.73%. This is in the better half of the industry: TRI outperforms 76.14% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TRI is below the industry average of 11.85%.
- The 3 year average ROIC (9.36%) for TRI is below the current ROIC(11.73%), indicating increased profibility in the last year.
| 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 93.18% of its industry peers.
- In the last couple of years the Profit Margin of TRI has grown nicely.
- TRI has a Operating Margin of 29.45%. This is amongst the best in the industry. TRI outperforms 96.59% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TRI is still creating some value.
- Compared to 1 year ago, TRI has less shares outstanding
- 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 6.78 indicates that TRI is not in any danger for bankruptcy at the moment.
- TRI has a Altman-Z score of 6.78. This is amongst the best in the industry. TRI outperforms 89.77% of its industry peers.
- The Debt to FCF ratio of TRI is 1.33, which is an excellent value as it means it would take TRI, only 1.33 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 1.33, TRI is doing good in the industry, outperforming 77.27% of the companies in the same industry.
- TRI has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
- TRI has a better Debt to Equity ratio (0.16) than 65.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 6.78 |
ROIC/WACC1.5
WACC7.8%
2.3 Liquidity
- TRI has a Current 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.
- TRI has a Current ratio of 0.61. This is amonst the worse of the industry: TRI underperforms 86.36% of its industry peers.
- A Quick Ratio of 0.61 indicates that TRI may have some problems paying its short term obligations.
- TRI's Quick ratio of 0.61 is on the low side compared to the rest of the industry. TRI is outperformed by 85.23% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 23.02% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 2.96% in the past 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)2.94%
EPS 3Y23.06%
EPS 5Y23.02%
EPS Q2Q%6.25%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%3.36%
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 10.21% yearly.
- Based on estimates for the next years, TRI will show a small growth in Revenue. The Revenue will grow by 7.25% on average per year.
EPS Next Y4.36%
EPS Next 2Y9.33%
EPS Next 3Y10.66%
EPS Next 5Y10.21%
Revenue Next Year2.96%
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
- A Price/Earnings ratio of 32.01 indicates a quite expensive valuation of TRI.
- Compared to the rest of the industry, the Price/Earnings ratio of TRI is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, TRI is valued at the same level.
- With a Price/Forward Earnings ratio of 27.34, TRI can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TRI is on the same level as its industry peers.
- TRI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.01 | ||
| Fwd PE | 27.34 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRI is on the same level as its industry peers.
- The rest of the industry has a similar Price/Free Cash Flow ratio as TRI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.08 | ||
| EV/EBITDA | 18.12 |
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)7.34
PEG (5Y)1.39
EPS Next 2Y9.33%
EPS Next 3Y10.66%
5. Dividend
5.1 Amount
- TRI has a Yearly Dividend Yield of 1.69%. Purely for dividend investing, there may be better candidates out there.
- The stock price of TRI dropped by -25.06% 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 rather good when compared to the industry average which is at 1.41. TRI pays more dividend than 80.68% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, TRI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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.
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%
THOMSON REUTERS CORP / TRI FAQ
What is the fundamental rating for TRI stock?
ChartMill assigns a fundamental rating of 6 / 10 to TRI.
What is the valuation status for TRI stock?
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.
How financially healthy is THOMSON REUTERS CORP?
The financial health rating of THOMSON REUTERS CORP (TRI) is 6 / 10.
Is the dividend of THOMSON REUTERS CORP sustainable?
The dividend rating of THOMSON REUTERS CORP (TRI) is 6 / 10 and the dividend payout ratio is 58.13%.