THOMSON REUTERS CORP (TRI) Stock Fundamental Analysis
NYSE:TRI - New York Stock Exchange, Inc. - CA8849038085 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to TRI. TRI was compared to 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 valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, TRI could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
TRI had positive earnings in the past year.
TRI had a positive operating cash flow in the past year.
Each year in the past 5 years TRI has been profitable.
Each year in the past 5 years TRI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.96%, TRI belongs to the top of the industry, outperforming 84.81% of the companies in the same industry.
TRI has a Return On Equity of 18.37%. This is in the better half of the industry: TRI outperforms 64.56% of its industry peers.
TRI's Return On Invested Capital of 11.07% is fine compared to the rest of the industry. TRI outperforms 69.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRI is below the industry average of 13.65%.
The 3 year average ROIC (9.36%) for TRI is below the current ROIC(11.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.96% | ||
| ROE | 18.37% | ||
| ROIC | 11.07% |
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 (30.38%) than 96.20% of its industry peers.
TRI's Profit Margin has improved in the last couple of years.
TRI has a Operating Margin of 28.95%. 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.95% | ||
| PM (TTM) | 30.38% | ||
| 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.
The number of shares outstanding for TRI has been reduced compared to 1 year ago.
The number of shares outstanding for TRI has been reduced compared to 5 years ago.
TRI has a better debt/assets ratio than last year.
2.2 Solvency
TRI has an Altman-Z score of 8.93. This indicates that TRI is financially healthy and has little risk of bankruptcy at the moment.
TRI has a Altman-Z score of 8.93. This is amongst the best in the industry. TRI outperforms 94.94% of its industry peers.
The Debt to FCF ratio of TRI is 1.52, which is an excellent value as it means it would take TRI, only 1.52 years of fcf income to pay off all of its debts.
TRI has a Debt to FCF ratio of 1.52. This is in the better half of the industry: TRI outperforms 73.42% 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 64.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 8.93 |
ROIC/WACC1.42
WACC7.8%
2.3 Liquidity
A Current Ratio of 1.02 indicates that TRI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.02, TRI is not doing good in the industry: 73.42% of the companies in the same industry are doing better.
A Quick Ratio of 1.02 indicates that TRI should not have too much problems paying its short term obligations.
TRI's Quick ratio of 1.02 is on the low side compared to the rest of the industry. TRI is outperformed by 73.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.00% over the past year.
The Earnings Per Share has been growing by 23.92% on average over the past years. This is a very strong growth
TRI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.83%.
TRI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.21% yearly.
EPS 1Y (TTM)8%
EPS 3Y24.58%
EPS 5Y23.92%
EPS Q2Q%3.06%
Revenue 1Y (TTM)6.83%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%5.18%
3.2 Future
The Earnings Per Share is expected to grow by 11.55% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.62% on average over the next years.
EPS Next Y7.36%
EPS Next 2Y10.04%
EPS Next 3Y11.83%
EPS Next 5Y11.55%
Revenue Next Year3.88%
Revenue Next 2Y5.85%
Revenue Next 3Y6.74%
Revenue Next 5Y6.62%
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
The Price/Earnings ratio is 46.76, which means the current valuation is very expensive for TRI.
Based on the Price/Earnings ratio, TRI is valued a bit more expensive than the industry average as 74.68% of the companies are valued more cheaply.
TRI is valuated expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
TRI is valuated quite expensively with a Price/Forward Earnings ratio of 43.55.
70.89% of the companies in the same industry are cheaper than TRI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, TRI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.76 | ||
| Fwd PE | 43.55 |
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.
Based on the Price/Free Cash Flow ratio, TRI is valued a bit more expensive than 60.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.88 | ||
| EV/EBITDA | 27.49 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.35
PEG (5Y)1.95
EPS Next 2Y10.04%
EPS Next 3Y11.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.15%, TRI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.93, 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 | 1.15% |
5.2 History
The dividend of TRI is nicely growing with an annual growth rate of 8.41%!
TRI has been paying a dividend for at least 10 years, so it has a reliable track record.
TRI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.41%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
43.04% 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.
DP43.04%
EPS Next 2Y10.04%
EPS Next 3Y11.83%
176.28
-0.52 (-0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners20.77%
Inst Owner Change6.05%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap79.33B
Analysts66
Price Target119.16 (-32.4%)
Short Float %0.79%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend2.1
Dividend Growth(5Y)8.41%
DP43.04%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.36%
Min EPS beat(2)4.26%
Max EPS beat(2)4.47%
EPS beat(4)4
Avg EPS beat(4)6.87%
Min EPS beat(4)2.73%
Max EPS beat(4)16.02%
EPS beat(8)8
Avg EPS beat(8)7.35%
EPS beat(12)12
Avg EPS beat(12)8.37%
EPS beat(16)15
Avg EPS beat(16)9.91%
Revenue beat(2)0
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)-0.35%
Revenue beat(4)1
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)0.59%
Revenue beat(8)1
Avg Revenue beat(8)-0.97%
Revenue beat(12)1
Avg Revenue beat(12)-0.97%
Revenue beat(16)5
Avg Revenue beat(16)-0.51%
PT rev (1m)0.16%
PT rev (3m)-0.86%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)-5.45%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-4.44%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-4.32%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.76 | ||
| Fwd PE | 43.55 | ||
| P/S | 10.93 | ||
| P/FCF | 42.88 | ||
| P/OCF | 32.29 | ||
| P/B | 6.61 | ||
| P/tB | 505.27 | ||
| EV/EBITDA | 27.49 |
EPS(TTM)3.77
EY2.14%
EPS(NY)4.05
Fwd EY2.3%
FCF(TTM)4.11
FCFY2.33%
OCF(TTM)5.46
OCFY3.1%
SpS16.13
BVpS26.68
TBVpS0.35
PEG (NY)6.35
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.96% | ||
| ROE | 18.37% | ||
| ROCE | 14.01% | ||
| ROIC | 11.07% | ||
| ROICexc | 12.77% | ||
| ROICexgc | 144.5% | ||
| OM | 28.95% | ||
| PM (TTM) | 30.38% | ||
| GM | N/A | ||
| FCFM | 25.49% |
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-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.52 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 73.84% | ||
| Cap/Sales | 8.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.06% | ||
| Profit Quality | 83.9% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 8.93 |
F-Score7
WACC7.8%
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)8%
EPS 3Y24.58%
EPS 5Y23.92%
EPS Q2Q%3.06%
EPS Next Y7.36%
EPS Next 2Y10.04%
EPS Next 3Y11.83%
EPS Next 5Y11.55%
Revenue 1Y (TTM)6.83%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%5.18%
Revenue Next Year3.88%
Revenue Next 2Y5.85%
Revenue Next 3Y6.74%
Revenue Next 5Y6.62%
EBIT growth 1Y7.74%
EBIT growth 3Y19.85%
EBIT growth 5Y19.16%
EBIT Next Year41.88%
EBIT Next 3Y19.69%
EBIT Next 5Y14.87%
FCF growth 1Y2.95%
FCF growth 3Y12.89%
FCF growth 5Y56.51%
OCF growth 1Y4.96%
OCF growth 3Y11.49%
OCF growth 5Y28.47%