THOMSON REUTERS CORP (TRI) Fundamental Analysis & Valuation

NASDAQ:TRI • CA8849038085

Current stock price

89.43 USD
-0.95 (-1.05%)
At close:
89.37 USD
-0.06 (-0.07%)
After Hours:

This TRI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. TRI Profitability Analysis

1.1 Basic Checks

  • TRI had positive earnings in the past year.
  • TRI had a positive operating cash flow in the past year.
  • In the past 5 years TRI has always been profitable.
  • In the past 5 years TRI always reported a positive cash flow from operatings.
TRI Yearly Net Income VS EBIT VS OCF VS FCFTRI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

1.2 Ratios

  • With a decent Return On Assets value of 8.35%, TRI is doing good in the industry, outperforming 74.71% of the companies in the same industry.
  • With a decent Return On Equity value of 12.57%, TRI is doing good in the industry, outperforming 60.92% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 10.52%, TRI is doing good in the industry, outperforming 71.26% 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 12.57%.
  • The 3 year average ROIC (10.43%) for TRI is below the current ROIC(10.52%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.35%
ROE 12.57%
ROIC 10.52%
ROA(3y)11.57%
ROA(5y)13.31%
ROE(3y)18.42%
ROE(5y)21.52%
ROIC(3y)10.43%
ROIC(5y)8.64%
TRI Yearly ROA, ROE, ROICTRI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • The Profit Margin of TRI (20.04%) is better than 88.51% of its industry peers.
  • TRI's Profit Margin has been stable in the last couple of years.
  • TRI's Operating Margin of 26.61% is amongst the best of the industry. TRI outperforms 91.95% of its industry peers.
  • TRI's Operating Margin has improved in the last couple of years.
  • TRI has a better Gross Margin (95.43%) than 100.00% of its industry peers.
  • TRI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 26.61%
PM (TTM) 20.04%
GM 95.43%
OM growth 3Y3.2%
OM growth 5Y5.02%
PM growth 3Y-0.18%
PM growth 5Y1.37%
GM growth 3Y0.01%
GM growth 5Y0.19%
TRI Yearly Profit, Operating, Gross MarginsTRI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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7

2. TRI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TRI is creating some value.
  • TRI has less shares outstanding than it did 1 year ago.
  • TRI has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, TRI has an improved debt to assets ratio.
TRI Yearly Shares OutstandingTRI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
TRI Yearly Total Debt VS Total AssetsTRI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • An Altman-Z score of 5.42 indicates that TRI is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of TRI (5.42) is better than 86.21% of its industry peers.
  • TRI has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
  • TRI has a Debt to FCF ratio of 1.18. This is in the better half of the industry: TRI outperforms 74.71% of its industry peers.
  • TRI has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
  • With a decent Debt to Equity ratio value of 0.15, TRI is doing good in the industry, outperforming 63.22% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.15
Debt/FCF 1.18
Altman-Z 5.42
ROIC/WACC1.37
WACC7.7%
TRI Yearly LT Debt VS Equity VS FCFTRI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 0.64 indicates that TRI may have some problems paying its short term obligations.
  • TRI has a Current ratio of 0.64. This is amonst the worse of the industry: TRI underperforms 88.51% of its industry peers.
  • A Quick Ratio of 0.64 indicates that TRI may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.64, TRI is doing worse than 87.36% of the companies in the same industry.
  • The current and quick ratio evaluation for TRI is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 0.64
Quick Ratio 0.64
TRI Yearly Current Assets VS Current LiabilitesTRI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. TRI Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 3.71% over the past year.
  • Measured over the past years, TRI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.30% on average per year.
  • TRI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.00%.
  • TRI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.55% yearly.
EPS 1Y (TTM)3.71%
EPS 3Y13.76%
EPS 5Y15.3%
EPS Q2Q%5.94%
Revenue 1Y (TTM)3%
Revenue growth 3Y4.1%
Revenue growth 5Y4.55%
Sales Q2Q%5.24%

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 11.90% on average per year.
  • Based on estimates for the next years, TRI will show a quite strong growth in Revenue. The Revenue will grow by 8.36% on average per year.
EPS Next Y14.05%
EPS Next 2Y14.45%
EPS Next 3Y14.69%
EPS Next 5Y11.9%
Revenue Next Year7.79%
Revenue Next 2Y7.82%
Revenue Next 3Y7.99%
Revenue Next 5Y8.36%

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.
TRI Yearly Revenue VS EstimatesTRI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B 10B
TRI Yearly EPS VS EstimatesTRI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

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3

4. TRI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 22.87, which indicates a rather expensive current 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.
  • The average S&P500 Price/Earnings ratio is at 25.23. TRI is around the same levels.
  • Based on the Price/Forward Earnings ratio of 20.05, the valuation of TRI can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TRI is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of TRI to the average of the S&P500 Index (22.51), we can say TRI is valued inline with the index average.
Industry RankSector Rank
PE 22.87
Fwd PE 20.05
TRI Price Earnings VS Forward Price EarningsTRI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • TRI's Enterprise Value to EBITDA is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as TRI.
Industry RankSector Rank
P/FCF 19.73
EV/EBITDA 14.25
TRI Per share dataTRI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20 25

4.3 Compensation for Growth

  • TRI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of TRI may justify a higher PE ratio.
  • A more expensive valuation may be justified as TRI's earnings are expected to grow with 14.69% in the coming years.
PEG (NY)1.63
PEG (5Y)1.5
EPS Next 2Y14.45%
EPS Next 3Y14.69%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. TRI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.28%, TRI has a reasonable but not impressive dividend return.
  • In the last 3 months the price of TRI has falen by -32.87%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • TRI's Dividend Yield is a higher than the industry average which is at 1.79.
  • Compared to an average S&P500 Dividend Yield of 1.90, TRI pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.28%

5.2 History

  • The dividend of TRI is nicely growing with an annual growth rate of 9.54%!
  • TRI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)9.54%
Div Incr Years0
Div Non Decr Years0
TRI Yearly Dividends per shareTRI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • TRI pays out 69.36% 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.
DP69.36%
EPS Next 2Y14.45%
EPS Next 3Y14.69%
TRI Yearly Income VS Free CF VS DividendTRI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B
TRI Dividend Payout.TRI Dividend Payout, showing the Payout Ratio.TRI Dividend Payout.PayoutRetained Earnings

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TRI Fundamentals: All Metrics, Ratios and Statistics

THOMSON REUTERS CORP

NASDAQ:TRI (3/27/2026, 4:54:59 PM)

After market: 89.37 -0.06 (-0.07%)

89.43

-0.95 (-1.05%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-05
Earnings (Next)04-29
Inst Owners27.36%
Inst Owner Change1.13%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap39.80B
Revenue(TTM)7.48B
Net Income(TTM)1.50B
Analysts77.14
Price Target98.59 (10.24%)
Short Float %10.04%
Short Ratio4.66
Dividend
Industry RankSector Rank
Dividend Yield 2.28%
Yearly Dividend2.32
Dividend Growth(5Y)9.54%
DP69.36%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-17
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.1%
Min EPS beat(2)0.24%
Max EPS beat(2)1.96%
EPS beat(4)4
Avg EPS beat(4)3.37%
Min EPS beat(4)0.24%
Max EPS beat(4)6.03%
EPS beat(8)8
Avg EPS beat(8)5.12%
EPS beat(12)12
Avg EPS beat(12)6.03%
EPS beat(16)16
Avg EPS beat(16)7.12%
Revenue beat(2)0
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-0.83%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-0.59%
Revenue beat(8)1
Avg Revenue beat(8)-0.96%
Revenue beat(12)1
Avg Revenue beat(12)-1.11%
Revenue beat(16)1
Avg Revenue beat(16)-1.07%
PT rev (1m)-22.88%
PT rev (3m)-26.14%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-5.34%
EPS NY rev (1m)-1.01%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.01%
Valuation
Industry RankSector Rank
PE 22.87
Fwd PE 20.05
P/S 5.32
P/FCF 19.73
P/OCF 15.01
P/B 3.34
P/tB N/A
EV/EBITDA 14.25
EPS(TTM)3.91
EY4.37%
EPS(NY)4.46
Fwd EY4.99%
FCF(TTM)4.53
FCFY5.07%
OCF(TTM)5.96
OCFY6.66%
SpS16.8
BVpS26.77
TBVpS-1.68
PEG (NY)1.63
PEG (5Y)1.5
Graham Number48.53
Profitability
Industry RankSector Rank
ROA 8.35%
ROE 12.57%
ROCE 13.74%
ROIC 10.52%
ROICexc 10.97%
ROICexgc 103.46%
OM 26.61%
PM (TTM) 20.04%
GM 95.43%
FCFM 26.98%
ROA(3y)11.57%
ROA(5y)13.31%
ROE(3y)18.42%
ROE(5y)21.52%
ROIC(3y)10.43%
ROIC(5y)8.64%
ROICexc(3y)11.46%
ROICexc(5y)9.41%
ROICexgc(3y)98.69%
ROICexgc(5y)65.25%
ROCE(3y)13.47%
ROCE(5y)11.24%
ROICexgc growth 3Y75.72%
ROICexgc growth 5Y22.51%
ROICexc growth 3Y13.26%
ROICexc growth 5Y7.66%
OM growth 3Y3.2%
OM growth 5Y5.02%
PM growth 3Y-0.18%
PM growth 5Y1.37%
GM growth 3Y0.01%
GM growth 5Y0.19%
F-Score6
Asset Turnover0.42
Health
Industry RankSector Rank
Debt/Equity 0.15
Debt/FCF 1.18
Debt/EBITDA 0.62
Cap/Depr 68.17%
Cap/Sales 8.48%
Interest Coverage 14.41
Cash Conversion 90.82%
Profit Quality 134.65%
Current Ratio 0.64
Quick Ratio 0.64
Altman-Z 5.42
F-Score6
WACC7.7%
ROIC/WACC1.37
Cap/Depr(3y)72.35%
Cap/Depr(5y)72.5%
Cap/Sales(3y)8.28%
Cap/Sales(5y)8.3%
Profit Quality(3y)95.12%
Profit Quality(5y)81.37%
High Growth Momentum
Growth
EPS 1Y (TTM)3.71%
EPS 3Y13.76%
EPS 5Y15.3%
EPS Q2Q%5.94%
EPS Next Y14.05%
EPS Next 2Y14.45%
EPS Next 3Y14.69%
EPS Next 5Y11.9%
Revenue 1Y (TTM)3%
Revenue growth 3Y4.1%
Revenue growth 5Y4.55%
Sales Q2Q%5.24%
Revenue Next Year7.79%
Revenue Next 2Y7.82%
Revenue Next 3Y7.99%
Revenue Next 5Y8.36%
EBIT growth 1Y-5.33%
EBIT growth 3Y7.43%
EBIT growth 5Y9.81%
EBIT Next Year43.35%
EBIT Next 3Y20.42%
EBIT Next 5Y16.07%
FCF growth 1Y9.03%
FCF growth 3Y15.18%
FCF growth 5Y10.2%
OCF growth 1Y7.9%
OCF growth 3Y11.45%
OCF growth 5Y8.72%

THOMSON REUTERS CORP / TRI Fundamental Analysis 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 3 / 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 8 / 10.


How financially healthy is THOMSON REUTERS CORP?

The financial health rating of THOMSON REUTERS CORP (TRI) is 7 / 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 69.36%.