THOMSON REUTERS CORP (TRI) Fundamental Analysis & Valuation
NASDAQ:TRI • CA8849038085
Current stock price
88.45 USD
-2.17 (-2.39%)
At close:
90.6 USD
+2.15 (+2.43%)
After Hours:
This TRI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. TRI Profitability Analysis
1.1 Basic Checks
- TRI had positive earnings in the past year.
- 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
- Looking at the Return On Assets, with a value of 8.35%, TRI is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 12.57%, TRI is in the better half of the industry, outperforming 60.47% 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 69.77% of the companies in the same industry.
- TRI had an Average Return On Invested Capital over the past 3 years of 10.43%. This is below the industry average of 13.10%.
- The last Return On Invested Capital (10.52%) for TRI is above the 3 year average (10.43%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
- With an excellent Profit Margin value of 20.04%, TRI belongs to the best of the industry, outperforming 88.37% of the companies in the same industry.
- TRI's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 26.61%, TRI belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.
- TRI's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 95.43%, TRI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- TRI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. TRI Health Analysis
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 5.34 indicates that TRI is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.34, TRI belongs to the best of the industry, outperforming 83.72% of the companies in the same industry.
- 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 better Debt to FCF ratio (1.18) than 74.42% of its industry peers.
- A Debt/Equity ratio of 0.15 indicates that TRI is not too dependend on debt financing.
- TRI has a Debt to Equity ratio of 0.15. This is in the better half of the industry: TRI outperforms 61.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 5.34 |
ROIC/WACC1.37
WACC7.7%
2.3 Liquidity
- TRI has a Current Ratio of 0.64. This is a bad value and indicates that TRI is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.64, TRI is doing worse than 88.37% of the companies in the same industry.
- TRI has a Quick Ratio of 0.64. This is a bad value and indicates that TRI is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.64, TRI is not doing good in the industry: 87.21% of the companies in the same industry are doing better.
- 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 | 0.64 | ||
| Quick Ratio | 0.64 |
3. TRI Growth Analysis
3.1 Past
- TRI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.71%.
- The Earnings Per Share has been growing by 15.30% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 3.00% in the past year.
- Measured over the past years, TRI shows a small growth in Revenue. The Revenue has been growing by 4.55% on average per year.
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
- The Earnings Per Share is expected to grow by 11.90% on average over the next years. This is quite good.
- TRI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.36% yearly.
EPS Next Y14.05%
EPS Next 2Y14.45%
EPS Next 3Y14.69%
EPS Next 5Y11.9%
Revenue Next Year7.8%
Revenue Next 2Y7.84%
Revenue Next 3Y8.04%
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.
4. TRI Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 22.62, the valuation of TRI can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as TRI.
- TRI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 19.83 indicates a rather expensive valuation of TRI.
- TRI's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 23.10. TRI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 19.83 |
4.2 Price Multiples
- TRI's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as TRI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.51 | ||
| EV/EBITDA | 13.96 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- TRI has an outstanding profitability rating, which 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)1.61
PEG (5Y)1.48
EPS Next 2Y14.45%
EPS Next 3Y14.69%
5. TRI Dividend Analysis
5.1 Amount
- TRI has a Yearly Dividend Yield of 2.36%. Purely for dividend investing, there may be better candidates out there.
- In the last 3 months the price of TRI has falen by -31.56%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 1.86, TRI pays a better dividend. On top of this TRI pays more dividend than 80.23% of the companies listed in the same industry.
- TRI's Dividend Yield is a higher than the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
5.2 History
- On average, the dividend of TRI grows each year by 9.54%, which is quite nice.
- TRI has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of TRI decreased recently.
Dividend Growth(5Y)9.54%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 69.36% of the earnings are spent on dividend by TRI. This is not a sustainable payout ratio.
- TRI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP69.36%
EPS Next 2Y14.45%
EPS Next 3Y14.69%
TRI Fundamentals: All Metrics, Ratios and Statistics
88.45
-2.17 (-2.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)04-29 2026-04-29
Inst Owners27.36%
Inst Owner Change0%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap39.36B
Revenue(TTM)7.48B
Net Income(TTM)1.50B
Analysts76.19
Price Target98.59 (11.46%)
Short Float %8.47%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend2.32
Dividend Growth(5Y)9.54%
DP69.36%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-17 2026-02-17 (0.655)
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)0%
PT rev (3m)-26.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 19.83 | ||
| P/S | 5.26 | ||
| P/FCF | 19.51 | ||
| P/OCF | 14.85 | ||
| P/B | 3.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.96 |
EPS(TTM)3.91
EY4.42%
EPS(NY)4.46
Fwd EY5.04%
FCF(TTM)4.53
FCFY5.12%
OCF(TTM)5.96
OCFY6.74%
SpS16.8
BVpS26.77
TBVpS-1.68
PEG (NY)1.61
PEG (5Y)1.48
Graham Number48.53
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.34 |
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 Year7.8%
Revenue Next 2Y7.84%
Revenue Next 3Y8.04%
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.
What is the profitability of TRI stock?
THOMSON REUTERS CORP (TRI) has a profitability rating of 8 / 10.
What is the financial health of THOMSON REUTERS CORP (TRI) stock?
The financial health rating of THOMSON REUTERS CORP (TRI) is 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 14.05% in the next year.