123.4 USD
+1.55 (+1.27%)
123.4 USD
0 (0%)
Overall TRI gets a fundamental rating of 6 out of 10. We evaluated TRI against 87 industry peers in the Professional Services industry. While TRI has a great profitability rating, 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.
- In the past 5 years TRI has always been profitable.
- Each year in the past 5 years TRI had a positive operating cash flow.
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.
- TRI's Return On Equity of 14.91% is fine compared to the rest of the industry. TRI outperforms 67.05% of its industry peers.
- With a decent Return On Invested Capital value of 11.73%, TRI is doing good in the industry, outperforming 76.14% of the companies in the same industry.
- TRI had an Average Return On Invested Capital over the past 3 years of 9.36%. This 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 has a better Profit Margin (23.77%) than 93.18% 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 29.45%, TRI belongs to the best of the industry, outperforming 96.59% of the companies in the same industry.
- 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
- TRI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 6.85 indicates that TRI is not in any danger for bankruptcy at the moment.
- TRI has a better Altman-Z score (6.85) than 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.
- Looking at the Debt to FCF ratio, with a value of 1.33, TRI is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
- A Debt/Equity ratio of 0.16 indicates that TRI is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.16, TRI is doing good in the industry, outperforming 65.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 6.85 |
ROIC/WACC1.5
WACC7.8%
2.3 Liquidity
- A Current Ratio of 0.61 indicates that TRI may have some problems paying its short term obligations.
- With a Current ratio value of 0.61, TRI is not doing good in the industry: 86.36% of the companies in the same industry are doing better.
- 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.
- The Quick ratio of TRI (0.61) is worse than 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.
- TRI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.02% yearly.
- TRI shows a small growth in Revenue. In the last year, the Revenue has grown by 2.96%.
- 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 Y4.34%
EPS Next 2Y9.32%
EPS Next 3Y10.68%
EPS Next 5Y10.21%
Revenue Next Year2.96%
Revenue Next 2Y5.32%
Revenue Next 3Y6.35%
Revenue Next 5Y7.25%
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
- Based on the Price/Earnings ratio of 32.05, 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.
- The average S&P500 Price/Earnings ratio is at 27.21. TRI is around the same levels.
- With a Price/Forward Earnings ratio of 27.39, TRI can be considered very expensive at the moment.
- TRI's Price/Forward Earnings ratio is in line with the industry average.
- TRI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.05 | ||
| Fwd PE | 27.39 |
4.2 Price Multiples
- TRI's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.13 | ||
| EV/EBITDA | 18.34 |
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.
- TRI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)7.39
PEG (5Y)1.39
EPS Next 2Y9.32%
EPS Next 3Y10.68%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.74%, TRI has a reasonable but not impressive dividend return.
- In the last 3 months the price of TRI has falen by -24.11%. 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 rather good when compared to the industry average which is at 1.44. TRI pays more dividend than 81.82% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, TRI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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
- 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 2Y9.32%
EPS Next 3Y10.68%
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%.