THOMSON REUTERS CORP (TRI) Stock Fundamental Analysis
USA - NASDAQ:TRI - CA8849038085 - Common Stock
132 USD
-2.31 (-1.72%)
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. TRI scores excellent on profitability, but 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.
In the past year TRI had a positive cash flow from operations.
In the past 5 years TRI has always been profitable.
In the past 5 years TRI always reported a positive cash flow from operatings.
1.2 Ratios
TRI has a Return On Assets of 9.82%. This is in the better half of the industry: TRI outperforms 79.31% of its industry peers.
Looking at the Return On Equity, with a value of 14.91%, TRI is in the better half of the industry, outperforming 64.37% of the companies in the same industry.
The Return On Invested Capital of TRI (11.73%) is better than 70.11% 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 22.56%.
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.
TRI's Profit Margin has improved in the last couple of years.
TRI has a better Operating Margin (29.45%) than 96.55% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TRI is creating some value.
The number of shares outstanding for TRI has been reduced compared to 1 year ago.
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 7.40. This indicates that TRI is financially healthy and has little risk of bankruptcy at the moment.
TRI has a better Altman-Z score (7.40) than 89.66% of its industry peers.
TRI has a debt to FCF ratio of 1.33. This is a very positive value and a sign of high solvency as it would only need 1.33 years to pay back of all of its debts.
TRI has a better Debt to FCF ratio (1.33) than 71.26% of its industry peers.
TRI has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
TRI has a better Debt to Equity ratio (0.16) than 60.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 7.4 |
ROIC/WACC1.53
WACC7.67%
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.
Looking at the Current ratio, with a value of 0.61, TRI is doing worse than 88.51% of the companies in the same industry.
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.
TRI's Quick ratio of 0.61 is on the low side compared to the rest of the industry. TRI is outperformed by 87.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
TRI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.00%, which is quite good.
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 2.96%.
The Revenue has been growing slightly by 4.21% on average over the past years.
EPS 1Y (TTM)8%
EPS 3Y24.58%
EPS 5Y23.92%
EPS Q2Q%43.68%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y4.57%
Revenue growth 5Y4.21%
Sales Q2Q%3.36%
3.2 Future
The Earnings Per Share is expected to grow by 10.54% on average over the next years. This is quite good.
TRI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.65% yearly.
EPS Next Y4.05%
EPS Next 2Y8.58%
EPS Next 3Y10.11%
EPS Next 5Y10.54%
Revenue Next Year3.11%
Revenue Next 2Y5.41%
Revenue Next 3Y6.33%
Revenue Next 5Y7.65%
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
A Price/Earnings ratio of 35.01 indicates a quite expensive valuation of TRI.
Compared to the rest of the industry, the Price/Earnings ratio of TRI indicates a slightly more expensive valuation: TRI is more expensive than 62.07% of the companies listed in the same industry.
TRI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.47.
With a Price/Forward Earnings ratio of 29.70, TRI can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TRI is valued a bit more expensive than 62.07% 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 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.01 | ||
| Fwd PE | 29.7 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRI.
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 | 32.65 | ||
| EV/EBITDA | 20.18 |
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.
The decent profitability rating of TRI may justify a higher PE ratio.
PEG (NY)8.64
PEG (5Y)1.46
EPS Next 2Y8.58%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.49%, TRI has a reasonable but not impressive dividend return.
The stock price of TRI dropped by -24.78% 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 4.28.
Compared to the average S&P500 Dividend Yield of 2.44, TRI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
On average, the dividend of TRI grows each year by 8.41%, which is quite nice.
TRI has been paying a dividend for at least 10 years, so it has 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%
NASDAQ:TRI (11/20/2025, 2:55:42 PM)
132
-2.31 (-1.72%)
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 Cap59.49B
Revenue(TTM)7.38B
Net Income(TTM)1.75B
Analysts74
Price Target139.48 (5.67%)
Short Float %3.97%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend2.1
Dividend Growth(5Y)8.41%
DP58.13%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)0.5%
PT rev (3m)-1.56%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)0.07%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.01 | ||
| Fwd PE | 29.7 | ||
| P/S | 8.07 | ||
| P/FCF | 32.65 | ||
| P/OCF | 24.19 | ||
| P/B | 5.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.18 |
EPS(TTM)3.77
EY2.86%
EPS(NY)4.44
Fwd EY3.37%
FCF(TTM)4.04
FCFY3.06%
OCF(TTM)5.46
OCFY4.13%
SpS16.37
BVpS26.1
TBVpS-2.12
PEG (NY)8.64
PEG (5Y)1.46
Graham Number47.05
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 | 7.4 |
F-Score6
WACC7.67%
ROIC/WACC1.53
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%43.68%
EPS Next Y4.05%
EPS Next 2Y8.58%
EPS Next 3Y10.11%
EPS Next 5Y10.54%
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 5Y7.65%
EBIT growth 1Y12.77%
EBIT growth 3Y19.85%
EBIT growth 5Y19.16%
EBIT Next Year39.32%
EBIT Next 3Y19.09%
EBIT Next 5Y15.17%
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%.