THOMSON REUTERS CORP (TRI) Stock Fundamental Analysis
USA - NASDAQ:TRI - CA8849038085 - Common Stock
160.61 USD
-8.6 (-5.08%)
160.61 USD
0 (0%)
TRI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. While TRI belongs to the best of the industry regarding profitability, 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
In the past year TRI was profitable.
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 9.08%, TRI is doing good in the industry, outperforming 78.05% of the companies in the same industry.
TRI has a Return On Equity (12.93%) which is comparable to the rest of the industry.
The Return On Invested Capital of TRI (11.24%) is better than 71.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRI is below the industry average of 12.76%.
The 3 year average ROIC (9.36%) for TRI is below the current ROIC(11.24%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 22.29%. This is amongst the best in the industry. TRI outperforms 93.90% of its industry peers.
In the last couple of years the Profit Margin of TRI has grown nicely.
With an excellent Operating Margin value of 29.38%, TRI belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
In the last couple of years the Operating Margin of TRI has grown nicely.
| 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.
The number of shares outstanding for TRI has been reduced compared to 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 10.09. This indicates that TRI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 10.09, TRI belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
The Debt to FCF ratio of TRI is 1.11, which is an excellent value as it means it would take TRI, only 1.11 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.11, TRI is doing good in the industry, outperforming 74.39% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that TRI is not too dependend on debt financing.
TRI has a better Debt to Equity ratio (0.12) than 67.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 10.09 |
ROIC/WACC1.42
WACC7.94%
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.
The Current ratio of TRI (0.79) is worse than 82.93% of its industry peers.
A Quick Ratio of 0.79 indicates that TRI may have some problems paying its short term obligations.
With a Quick ratio value of 0.79, TRI is not doing good in the industry: 82.93% of the companies in the same industry are doing better.
| 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
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 Y3.95%
EPS Next 2Y8.41%
EPS Next 3Y9.93%
EPS Next 5Y10.54%
Revenue Next Year3.11%
Revenue Next 2Y5.41%
Revenue Next 3Y6.32%
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.
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 42.27, the valuation of TRI can be described as expensive.
Based on the Price/Earnings ratio, TRI is valued a bit more expensive than the industry average as 68.29% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.41, TRI is valued quite expensively.
TRI is valuated quite expensively with a Price/Forward Earnings ratio of 36.25.
Based on the Price/Forward Earnings ratio, TRI is valued a bit more expensive than 64.63% of the companies in the same industry.
TRI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.27 | ||
| Fwd PE | 36.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRI is valued a bit more expensive than the industry average as 64.63% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.36 | ||
| EV/EBITDA | 25.76 |
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)10.69
PEG (5Y)1.77
EPS Next 2Y8.41%
EPS Next 3Y9.93%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 1.22%.
Compared to an average industry Dividend Yield of 2.07, TRI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, TRI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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
61.01% of the earnings are spent on dividend by TRI. 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 2Y8.41%
EPS Next 3Y9.93%
160.61
-8.6 (-5.08%)
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 Cap72.39B
Analysts69
Price Target139.83 (-12.94%)
Short Float %3.63%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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)-1.31%
PT rev (3m)4.43%
EPS NQ rev (1m)0.51%
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)0.04%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.27 | ||
| Fwd PE | 36.25 | ||
| P/S | 9.89 | ||
| P/FCF | 38.36 | ||
| P/OCF | 28.83 | ||
| P/B | 5.74 | ||
| P/tB | 6580.49 | ||
| EV/EBITDA | 25.76 |
EPS(TTM)3.8
EY2.37%
EPS(NY)4.43
Fwd EY2.76%
FCF(TTM)4.19
FCFY2.61%
OCF(TTM)5.57
OCFY3.47%
SpS16.24
BVpS27.99
TBVpS0.02
PEG (NY)10.69
PEG (5Y)1.77
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 | 10.09 |
F-Score5
WACC7.94%
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)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 Year3.11%
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 Year39.18%
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%