133.42 USD
-0.26 (-0.19%)
133.57 USD
+0.15 (+0.11%)
Taking everything into account, TRI scores 5 out of 10 in our fundamental rating. TRI was compared to 87 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
TRI had positive earnings in the past year.
In the past year TRI had a positive cash flow from operations.
TRI had positive earnings in each of the past 5 years.
In the past 5 years TRI always reported a positive cash flow from operatings.
1.2 Ratios
TRI's Return On Assets of 9.82% is fine compared to the rest of the industry. TRI outperforms 79.31% of its industry peers.
TRI has a Return On Equity of 14.91%. This is in the better half of the industry: TRI outperforms 66.67% of its industry peers.
TRI has a better Return On Invested Capital (11.73%) than 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 12.17%.
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
Looking at the Profit Margin, with a value of 23.77%, TRI belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
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 96.55% 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 | 29.45% | ||
| 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
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
Compared to 1 year ago, TRI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.30 indicates that TRI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.30, TRI belongs to the top of the industry, outperforming 91.95% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 1.33, TRI is doing good in the industry, outperforming 73.56% of the companies in the same industry.
TRI has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
TRI's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. TRI outperforms 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 7.3 |
ROIC/WACC1.55
WACC7.57%
2.3 Liquidity
TRI has a Current 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 Current ratio of TRI (0.61) is worse than 88.51% of its industry peers.
A Quick Ratio of 0.61 indicates that TRI may have some problems paying its short term obligations.
TRI has a Quick ratio of 0.61. This is amonst the worse of the industry: TRI underperforms 87.36% 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 23.92% yearly.
Looking at the last year, TRI shows a small growth in Revenue. The Revenue has grown by 2.96% in the last 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)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
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 Y4.05%
EPS Next 2Y8.58%
EPS Next 3Y10.11%
EPS Next 5Y10.21%
Revenue Next Year3.11%
Revenue Next 2Y5.41%
Revenue Next 3Y6.33%
Revenue Next 5Y7.25%
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
TRI is valuated quite expensively with a Price/Earnings ratio of 34.65.
The rest of the industry has a similar Price/Earnings ratio as TRI.
TRI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.46.
With a Price/Forward Earnings ratio of 30.02, TRI can be considered very expensive at the moment.
TRI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TRI is more expensive than 60.92% of the companies in the same industry.
TRI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.65 | ||
| Fwd PE | 30.02 |
4.2 Price Multiples
TRI's Enterprise Value to EBITDA is on the same level as 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 | 32.57 | ||
| EV/EBITDA | 19.83 |
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)8.56
PEG (5Y)1.45
EPS Next 2Y8.58%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.55%, TRI has a reasonable but not impressive dividend return.
The stock price of TRI dropped by -23.60% 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 4.07.
Compared to the average S&P500 Dividend Yield of 2.32, TRI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
On average, the dividend of TRI grows each year by 8.41%, which is quite nice.
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 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%
133.42
-0.26 (-0.19%)
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 Cap59.35B
Revenue(TTM)7.38B
Net Income(TTM)1.75B
Analysts74
Price Target132.81 (-0.46%)
Short Float %4.44%
Short Ratio4.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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)-0.65%
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 | 34.65 | ||
| Fwd PE | 30.02 | ||
| P/S | 8.05 | ||
| P/FCF | 32.57 | ||
| P/OCF | 24.14 | ||
| P/B | 5.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.83 |
EPS(TTM)3.85
EY2.89%
EPS(NY)4.44
Fwd EY3.33%
FCF(TTM)4.1
FCFY3.07%
OCF(TTM)5.53
OCFY4.14%
SpS16.58
BVpS26.44
TBVpS-2.15
PEG (NY)8.56
PEG (5Y)1.45
Graham Number47.86
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 | 7.3 |
F-Score6
WACC7.57%
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 5Y10.21%
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 5Y7.25%
EBIT growth 1Y12.77%
EBIT growth 3Y19.85%
EBIT growth 5Y19.16%
EBIT Next Year39.32%
EBIT Next 3Y19.09%
EBIT Next 5Y15.35%
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%.