THOMSON REUTERS CORP (TRI) Stock Fundamental Analysis
USA - NASDAQ:TRI - CA8849038085 - Common Stock
152.84 USD
-9.04 (-5.58%)
152.84 USD
0 (0%)
TRI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 86 industry peers in the Professional Services industry. TRI has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, TRI is valued expensive at the moment.
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.
Each year in the past 5 years TRI has been profitable.
Each year in the past 5 years TRI had a positive operating cash flow.
1.2 Ratios
TRI has a Return On Assets of 9.08%. This is in the better half of the industry: TRI outperforms 79.07% of its industry peers.
Looking at the Return On Equity, with a value of 12.93%, TRI is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
With a decent Return On Invested Capital value of 11.24%, TRI is doing good in the industry, outperforming 73.26% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRI is below the industry average of 13.22%.
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
Looking at the Profit Margin, with a value of 22.29%, TRI belongs to the top of the industry, outperforming 94.19% of the companies in the same industry.
In the last couple of years the Profit Margin of TRI has grown nicely.
The Operating Margin of TRI (29.38%) is better than 96.51% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TRI is still 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
TRI has an Altman-Z score of 9.26. This indicates that TRI is financially healthy and has little risk of bankruptcy at the moment.
TRI's Altman-Z score of 9.26 is amongst the best of the industry. TRI outperforms 96.51% 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's Debt to FCF ratio of 1.11 is fine compared to the rest of the industry. TRI outperforms 75.58% of its industry peers.
TRI has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TRI (0.12) is better than 66.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 9.26 |
ROIC/WACC1.46
WACC7.69%
2.3 Liquidity
A Current Ratio of 0.79 indicates that TRI may have some problems paying its short term obligations.
TRI's Current ratio of 0.79 is on the low side compared to the rest of the industry. TRI is outperformed by 82.56% of its industry peers.
A Quick Ratio of 0.79 indicates that TRI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.79, TRI is doing worse than 82.56% of the companies in the same industry.
| 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.
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)4.04%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%2.59%
3.2 Future
The Earnings Per Share is expected to grow by 10.54% on average over the next years. This is quite good.
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 Y4.28%
EPS Next 2Y8.51%
EPS Next 3Y10.01%
EPS Next 5Y10.54%
Revenue Next Year3.11%
Revenue Next 2Y5.41%
Revenue Next 3Y6.32%
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.
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
With a Price/Earnings ratio of 40.22, TRI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TRI is valued a bit more expensive than the industry average as 62.79% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.76. TRI is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 34.43 indicates a quite expensive valuation of TRI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRI indicates a slightly more expensive valuation: TRI is more expensive than 62.79% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. TRI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.22 | ||
| Fwd PE | 34.43 |
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 61.63% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.5 | ||
| EV/EBITDA | 23.31 |
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)9.41
PEG (5Y)1.68
EPS Next 2Y8.51%
EPS Next 3Y10.01%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
The stock price of TRI dropped by -23.99% 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.
Compared to an average industry Dividend Yield of 3.93, TRI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, TRI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
The dividend of TRI is nicely growing with an annual growth rate of 8.41%!
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
TRI pays out 61.01% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TRI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP61.01%
EPS Next 2Y8.51%
EPS Next 3Y10.01%
152.84
-9.04 (-5.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners27.54%
Inst Owner Change0.03%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap68.88B
Revenue(TTM)7.32B
Net Income(TTM)1.63B
Analysts70
Price Target138.78 (-9.2%)
Short Float %4.31%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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)-0.75%
PT rev (3m)-0.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.64%
EPS NY rev (1m)0%
EPS NY rev (3m)1.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.22 | ||
| Fwd PE | 34.43 | ||
| P/S | 9.41 | ||
| P/FCF | 36.5 | ||
| P/OCF | 27.43 | ||
| P/B | 5.46 | ||
| P/tB | 6262.14 | ||
| EV/EBITDA | 23.31 |
EPS(TTM)3.8
EY2.49%
EPS(NY)4.44
Fwd EY2.9%
FCF(TTM)4.19
FCFY2.74%
OCF(TTM)5.57
OCFY3.65%
SpS16.24
BVpS27.99
TBVpS0.02
PEG (NY)9.41
PEG (5Y)1.68
Graham Number48.92
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%
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-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 | 9.26 |
F-Score5
WACC7.69%
ROIC/WACC1.46
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 Y4.28%
EPS Next 2Y8.51%
EPS Next 3Y10.01%
EPS Next 5Y10.54%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%2.59%
Revenue Next Year3.11%
Revenue Next 2Y5.41%
Revenue Next 3Y6.32%
Revenue Next 5Y7.65%
EBIT growth 1Y10.48%
EBIT growth 3Y19.85%
EBIT growth 5Y19.16%
EBIT Next Year39.32%
EBIT Next 3Y19.09%
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%
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 1 / 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 4.28% 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 61.01%.