135.43 USD
+1.49 (+1.11%)
135.43 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 has a great profitability rating, 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.
TRI had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 9.82%, TRI is doing good in the industry, outperforming 79.31% of the companies in the same industry.
With a decent Return On Equity value of 14.91%, TRI is doing good in the industry, outperforming 66.67% 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 71.26% 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 12.15%.
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 93.10% 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.
TRI's Operating Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TRI is creating some value.
Compared to 1 year ago, TRI has less shares outstanding
The number of shares outstanding for TRI has been reduced compared to 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 7.39 indicates that TRI is not in any danger for bankruptcy at the moment.
TRI has a Altman-Z score of 7.39. This is amongst the best in the industry. TRI outperforms 90.80% 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 73.56% of its industry peers.
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 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 7.39 |
ROIC/WACC1.55
WACC7.58%
2.3 Liquidity
A Current Ratio of 0.61 indicates that TRI may have some problems paying its short term obligations.
TRI's Current ratio of 0.61 is on the low side compared to the rest of the industry. TRI is outperformed by 88.51% of its industry peers.
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.
The Earnings Per Share has been growing by 23.92% on average over the past years. This is a very strong growth
TRI shows a small growth in Revenue. In the last year, the Revenue has grown by 2.96%.
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
Based on estimates for the next years, TRI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.54% on average per year.
Based on estimates for the next years, TRI will show a small growth in Revenue. The Revenue will grow by 7.65% on average per year.
EPS Next Y4.05%
EPS Next 2Y8.58%
EPS Next 3Y10.11%
EPS Next 5Y10.54%
Revenue Next Year3.11%
Revenue Next 2Y5.41%
Revenue Next 3Y6.33%
Revenue Next 5Y7.65%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 35.18, the valuation of TRI can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TRI is on the same level as its industry peers.
TRI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.15.
TRI is valuated quite expensively with a Price/Forward Earnings ratio of 30.47.
Based on the Price/Forward Earnings ratio, TRI is valued a bit more expensive than the industry average as 60.92% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 36.12. TRI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.18 | ||
| Fwd PE | 30.47 |
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.
TRI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.5 | ||
| EV/EBITDA | 20.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TRI may justify a higher PE ratio.
PEG (NY)8.68
PEG (5Y)1.47
EPS Next 2Y8.58%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 1.58%.
The stock price of TRI dropped by -23.75% 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 4.43.
TRI's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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 58.13% of its income as dividend. 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 2Y8.58%
EPS Next 3Y10.11%
135.43
+1.49 (+1.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners27.54%
Inst Owner Change-0.72%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap61.04B
Revenue(TTM)7.38B
Net Income(TTM)1.75B
Analysts74
Price Target132.81 (-1.93%)
Short Float %3.97%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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)-4.3%
PT rev (3m)-4%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-0.57%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.18 | ||
| Fwd PE | 30.47 | ||
| P/S | 8.28 | ||
| P/FCF | 33.5 | ||
| P/OCF | 24.82 | ||
| P/B | 5.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.13 |
EPS(TTM)3.85
EY2.84%
EPS(NY)4.44
Fwd EY3.28%
FCF(TTM)4.04
FCFY2.99%
OCF(TTM)5.46
OCFY4.03%
SpS16.37
BVpS26.1
TBVpS-2.12
PEG (NY)8.68
PEG (5Y)1.47
Graham Number47.55
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 | 7.39 |
F-Score6
WACC7.58%
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 Y4.05%
EPS Next 2Y8.58%
EPS Next 3Y10.11%
EPS Next 5Y10.54%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%3.36%
Revenue Next Year3.11%
Revenue Next 2Y5.41%
Revenue Next 3Y6.33%
Revenue Next 5Y7.65%
EBIT growth 1Y12.77%
EBIT growth 3Y19.85%
EBIT growth 5Y19.16%
EBIT Next Year39.32%
EBIT Next 3Y19.09%
EBIT Next 5Y15.17%
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 4.05% 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%.