THOMSON REUTERS CORP (TRI) Stock Fundamental Analysis
NYSE:TRI - New York Stock Exchange, Inc. - CA8849038085 - Common Stock
TRI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. TRI gets an excellent profitability rating and is at the same time showing great financial health properties. TRI is quite expensive at the moment. It does show a decent growth rate. These ratings would make TRI suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year TRI was profitable.
In the past year TRI had a positive cash flow from operations.
Each year in the past 5 years TRI has been profitable.
In the past 5 years TRI always reported a positive cash flow from operatings.
1.2 Ratios
TRI's Return On Assets of 12.46% is amongst the best of the industry. TRI outperforms 86.08% of its industry peers.
With a decent Return On Equity value of 19.34%, TRI is doing good in the industry, outperforming 68.35% of the companies in the same industry.
TRI has a better Return On Invested Capital (10.79%) than 68.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRI is significantly below the industry average of 13.48%.
The 3 year average ROIC (8.03%) for TRI is below the current ROIC(10.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.46% | ||
| ROE | 19.34% | ||
| ROIC | 10.79% |
ROA(3y)15.41%
ROA(5y)12.3%
ROE(3y)25.55%
ROE(5y)20.84%
ROIC(3y)8.03%
ROIC(5y)7.22%
1.3 Margins
TRI has a Profit Margin of 32.05%. This is amongst the best in the industry. TRI outperforms 97.47% of its industry peers.
TRI's Profit Margin has declined in the last couple of years.
TRI has a Operating Margin of 26.88%. This is amongst the best in the industry. TRI outperforms 92.41% of its industry peers.
TRI's Operating Margin has improved in the last couple of years.
TRI's Gross Margin of 95.51% is amongst the best of the industry. TRI outperforms 98.73% of its industry peers.
In the last couple of years the Gross Margin of TRI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.88% | ||
| PM (TTM) | 32.05% | ||
| GM | 95.51% |
OM growth 3Y11.29%
OM growth 5Y12.69%
PM growth 3Y28.37%
PM growth 5Y-11.13%
GM growth 3Y0.35%
GM growth 5Y0.14%
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
TRI has an Altman-Z score of 7.99. This indicates that TRI is financially healthy and has little risk of bankruptcy at the moment.
TRI has a Altman-Z score of 7.99. This is amongst the best in the industry. TRI outperforms 92.41% of its industry peers.
The Debt to FCF ratio of TRI is 1.56, which is an excellent value as it means it would take TRI, only 1.56 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.56, TRI is in the better half of the industry, outperforming 75.95% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that TRI is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.17, TRI is doing good in the industry, outperforming 63.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 7.99 |
ROIC/WACC1.37
WACC7.86%
2.3 Liquidity
TRI has a Current Ratio of 0.94. This is a bad value and indicates that TRI is not financially healthy enough and could expect problems in meeting its short term obligations.
TRI has a worse Current ratio (0.94) than 77.22% of its industry peers.
A Quick Ratio of 0.94 indicates that TRI may have some problems paying its short term obligations.
TRI's Quick ratio of 0.94 is on the low side compared to the rest of the industry. TRI is outperformed by 75.95% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
TRI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.44%, which is quite good.
Measured over the past years, TRI shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.75% on average per year.
TRI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.23%.
The Revenue has been growing slightly by 4.31% on average over the past years.
EPS 1Y (TTM)14.44%
EPS 3Y23.57%
EPS 5Y33.75%
EPS Q2Q%-2.44%
Revenue 1Y (TTM)6.23%
Revenue growth 3Y4.32%
Revenue growth 5Y4.31%
Sales Q2Q%8.16%
3.2 Future
The Earnings Per Share is expected to grow by 10.83% 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 6.63% on average per year.
EPS Next Y7.46%
EPS Next 2Y7.84%
EPS Next 3Y9.45%
EPS Next 5Y10.83%
Revenue Next Year6.69%
Revenue Next 2Y5.29%
Revenue Next 3Y6.12%
Revenue Next 5Y6.63%
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 42.58, the valuation of TRI can be described as expensive.
Based on the Price/Earnings ratio, TRI is valued a bit more expensive than 72.15% of the companies in the same industry.
TRI is valuated expensively when we compare the Price/Earnings ratio to 27.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 39.23, TRI can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TRI is valued a bit more expensive than the industry average as 69.62% of the companies are valued more cheaply.
TRI is valuated expensively when we compare the Price/Forward Earnings ratio to 24.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.58 | ||
| Fwd PE | 39.23 |
4.2 Price Multiples
68.35% of the companies in the same industry are cheaper than TRI, based on the Enterprise Value to EBITDA ratio.
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 | 35.47 | ||
| EV/EBITDA | 26.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TRI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.71
PEG (5Y)1.26
EPS Next 2Y7.84%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
TRI has a Yearly Dividend Yield of 1.29%.
Compared to an average industry Dividend Yield of 1.82, TRI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, TRI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
The dividend of TRI has a limited annual growth rate of 3.67%.
TRI has paid a dividend for at least 10 years, which is a reliable track record.
TRI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.67%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
TRI pays out 40.42% of its income as dividend. This is a bit on the high side, but may be sustainable.
TRI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.42%
EPS Next 2Y7.84%
EPS Next 3Y9.45%
THOMSON REUTERS CORP
NYSE:TRI (1/17/2025, 8:04:00 PM)
After market: 158.75 -0.5 (-0.31%)159.25
+1.1 (+0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners20.77%
Inst Owner Change-0.2%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap71.65B
Analysts66
Price Target118.96 (-25.3%)
Short Float %0.69%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend1.92
Dividend Growth(5Y)3.67%
DP40.42%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.6%
Min EPS beat(2)2.73%
Max EPS beat(2)4.47%
EPS beat(4)4
Avg EPS beat(4)7.71%
Min EPS beat(4)2.73%
Max EPS beat(4)16.02%
EPS beat(8)8
Avg EPS beat(8)8.14%
EPS beat(12)11
Avg EPS beat(12)7.46%
EPS beat(16)15
Avg EPS beat(16)10.65%
Revenue beat(2)0
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)-0.35%
Revenue beat(4)1
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)0.59%
Revenue beat(8)1
Avg Revenue beat(8)-0.95%
Revenue beat(12)2
Avg Revenue beat(12)-0.82%
Revenue beat(16)5
Avg Revenue beat(16)-0.5%
PT rev (1m)-2.28%
PT rev (3m)-3.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.58 | ||
| Fwd PE | 39.23 | ||
| P/S | 10 | ||
| P/FCF | 35.47 | ||
| P/OCF | 27.58 | ||
| P/B | 6.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.81 |
EPS(TTM)3.74
EY2.35%
EPS(NY)4.06
Fwd EY2.55%
FCF(TTM)4.49
FCFY2.82%
OCF(TTM)5.77
OCFY3.63%
SpS15.92
BVpS26.39
TBVpS-0.14
PEG (NY)5.71
PEG (5Y)1.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.46% | ||
| ROE | 19.34% | ||
| ROCE | 12.95% | ||
| ROIC | 10.79% | ||
| ROICexc | 12.11% | ||
| ROICexgc | 122.83% | ||
| OM | 26.88% | ||
| PM (TTM) | 32.05% | ||
| GM | 95.51% | ||
| FCFM | 28.2% |
ROA(3y)15.41%
ROA(5y)12.3%
ROE(3y)25.55%
ROE(5y)20.84%
ROIC(3y)8.03%
ROIC(5y)7.22%
ROICexc(3y)8.67%
ROICexc(5y)7.97%
ROICexgc(3y)29.11%
ROICexgc(5y)31.43%
ROCE(3y)9.89%
ROCE(5y)8.82%
ROICexcg growth 3Y9.48%
ROICexcg growth 5Y10.17%
ROICexc growth 3Y12.2%
ROICexc growth 5Y12.76%
OM growth 3Y11.29%
OM growth 5Y12.69%
PM growth 3Y28.37%
PM growth 5Y-11.13%
GM growth 3Y0.35%
GM growth 5Y0.14%
F-Score8
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.56 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 71.98% | ||
| Cap/Sales | 8.07% | ||
| Interest Coverage | 11.01 | ||
| Cash Conversion | 95.2% | ||
| Profit Quality | 87.98% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 7.99 |
F-Score8
WACC7.86%
ROIC/WACC1.37
Cap/Depr(3y)73.49%
Cap/Depr(5y)70.91%
Cap/Sales(3y)8.22%
Cap/Sales(5y)8.33%
Profit Quality(3y)62.76%
Profit Quality(5y)62.34%
High Growth Momentum
Growth
EPS 1Y (TTM)14.44%
EPS 3Y23.57%
EPS 5Y33.75%
EPS Q2Q%-2.44%
EPS Next Y7.46%
EPS Next 2Y7.84%
EPS Next 3Y9.45%
EPS Next 5Y10.83%
Revenue 1Y (TTM)6.23%
Revenue growth 3Y4.32%
Revenue growth 5Y4.31%
Sales Q2Q%8.16%
Revenue Next Year6.69%
Revenue Next 2Y5.29%
Revenue Next 3Y6.12%
Revenue Next 5Y6.63%
EBIT growth 1Y4.05%
EBIT growth 3Y16.1%
EBIT growth 5Y17.54%
EBIT Next Year30.19%
EBIT Next 3Y15.01%
EBIT Next 5Y12.79%
FCF growth 1Y91.83%
FCF growth 3Y13.13%
FCF growth 5Y3.87%
OCF growth 1Y58.8%
OCF growth 3Y10.29%
OCF growth 5Y2.57%