Thomson Reuters (TSE:TRI) Strong Profits May Be Masking Some Underlying Issues
Nov 13
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Canadian (TSX) Professional Services Industry Analysis
UpdatedNov 21, 2024
DataAggregated Company Financials
Companies7
- 7D-4.8%
- 3M-0.5%
- 1Y18.4%
- YTD16.9%
Over the last 7 days, the Professional Services industry has dropped 5.1%, driven by Thomson Reuters declining 4.8%. Meanwhile, Caldwell Partners International actually outperformed within the industry, gaining 6.7% in the last week. Over the past 12 months, the industry was up 18%. Looking forward, earnings are expected to remain mostly flat in the next few years.
Industry Valuation and Performance
Has the Canadian Professional Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 21 Nov 2024 | CA$101.1b | CA$10.1b | CA$3.1b | 7.9x | 32.7x | 10x |
| Sat, 19 Oct 2024 | CA$104.6b | CA$9.8b | CA$3.2b | 18.2x | 33x | 10.6x |
| Mon, 16 Sep 2024 | CA$105.7b | CA$9.7b | CA$3.1b | 19.1x | 33.8x | 10.9x |
| Wed, 14 Aug 2024 | CA$99.4b | CA$9.8b | CA$3.2b | 18.1x | 31.5x | 10.2x |
| Fri, 12 Jul 2024 | CA$102.8b | CA$9.6b | CA$3.2b | 18.7x | 32.1x | 10.7x |
| Sun, 09 Jun 2024 | CA$106.0b | CA$9.7b | CA$3.2b | 19.1x | 32.8x | 10.9x |
| Tue, 07 May 2024 | CA$103.0b | CA$9.6b | CA$3.2b | 19.4x | 32.1x | 10.7x |
| Thu, 04 Apr 2024 | CA$93.6b | CA$9.3b | CA$3.5b | 16.3x | 26.5x | 10x |
| Sat, 02 Mar 2024 | CA$97.1b | CA$9.3b | CA$3.5b | 17x | 27.4x | 10.4x |
| Mon, 29 Jan 2024 | CA$94.5b | CA$10.8b | CA$2.9b | 27.9x | 32.2x | 8.7x |
| Wed, 27 Dec 2023 | CA$89.4b | CA$10.7b | CA$2.9b | 27.3x | 31x | 8.4x |
| Fri, 24 Nov 2023 | CA$89.4b | CA$11.0b | CA$3.0b | 26.8x | 29.9x | 8.1x |
| Sun, 22 Oct 2023 | CA$79.1b | CA$11.0b | CA$2.9b | 25.7x | 27.6x | 7.2x |
| Tue, 19 Sep 2023 | CA$83.1b | CA$10.8b | CA$2.8b | 26.6x | 29.5x | 7.7x |
| Thu, 17 Aug 2023 | CA$83.2b | CA$10.9b | CA$2.8b | 26.6x | 29.4x | 7.7x |
| Sat, 15 Jul 2023 | CA$79.9b | CA$10.6b | CA$1.5b | 52.4x | 53.7x | 7.5x |
| Mon, 12 Jun 2023 | CA$80.4b | CA$10.7b | CA$1.5b | 52.3x | 53.5x | 7.5x |
| Wed, 10 May 2023 | CA$80.9b | CA$10.7b | CA$1.5b | 52.5x | 54x | 7.5x |
| Fri, 07 Apr 2023 | CA$86.7b | CA$10.7b | CA$1.9b | 34.6x | 46x | 8.1x |
| Sun, 05 Mar 2023 | CA$81.2b | CA$10.8b | CA$2.0b | 32.1x | 40.9x | 7.5x |
| Tue, 31 Jan 2023 | CA$78.9b | CA$10.6b | CA$1.4b | 39.7x | 57x | 7.5x |
| Thu, 29 Dec 2022 | CA$76.7b | CA$10.7b | CA$1.4b | 38.4x | 54.3x | 7.1x |
| Sat, 26 Nov 2022 | CA$77.9b | CA$10.6b | CA$1.4b | 39.3x | 56.2x | 7.4x |
| Mon, 24 Oct 2022 | CA$70.7b | CA$10.8b | CA$728.6m | 55.9x | 97.1x | 6.6x |
| Wed, 21 Sep 2022 | CA$80.6b | CA$14.5b | CA$901.2m | 35.8x | 89.5x | 5.6x |
| Fri, 19 Aug 2022 | CA$83.0b | CA$14.3b | CA$878.6m | 38.1x | 94.4x | 5.8x |
| Sun, 17 Jul 2022 | CA$76.5b | CA$14.0b | CA$2.3b | 25.2x | 32.8x | 5.5x |
| Tue, 14 Jun 2022 | CA$68.7b | CA$13.9b | CA$2.3b | 22.6x | 29.7x | 4.9x |
| Thu, 12 May 2022 | CA$66.6b | CA$13.8b | CA$2.3b | 22.9x | 28.5x | 4.8x |
| Sat, 09 Apr 2022 | CA$75.9b | CA$13.5b | CA$7.3b | 18x | 10.4x | 5.6x |
| Mon, 07 Mar 2022 | CA$75.4b | CA$13.6b | CA$7.4b | 21.3x | 10.2x | 5.5x |
| Wed, 02 Feb 2022 | CA$77.0b | CA$13.4b | CA$8.3b | 20.7x | 9.2x | 5.8x |
| Fri, 31 Dec 2021 | CA$84.6b | CA$13.4b | CA$8.4b | 21.2x | 10.1x | 6.3x |
| Sun, 28 Nov 2021 | CA$86.1b | CA$13.4b | CA$8.4b | 30.1x | 10.2x | 6.4x |
Price to Earnings Ratio
10.2x
Current Industry PE
- Investors are pessimistic on the Canadian Professional Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 33.0x which is lower than its 3-year average PE of 37.9x.
- The 3-year average PS ratio of 7.8x is lower than the industry's current PS ratio of 10.0x.
Past Earnings Growth
- The earnings for companies in the Professional Services industry have declined 28% per year over the last three years,
- Revenues have also declined 8.8% per year.
- This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the Canadian Industrials industry?
| CA Market | 0.67% | |
| Industrials | -2.20% | |
| Professional Services | -4.76% | |
| HR Services | -1.75% | |
| Research and Consulting Services | -4.76% | |
Industry PE
- Investors are most optimistic about the Research and Consulting Services industry even though it's trading below its 3-year average PE ratio of 37.6x.
- Analysts are expecting annual earnings decline of 0.2%, which is lower than the prior year's growth of 2.9% per year.
Forecasted Growth
- Despite it being negative, analysts are least pessimistic on the Research and Consulting Services industry since they expect its earnings to decline by only 0.2% per year over the next 5 years, which isn't as bad as the other industries.
- This is a reversal from its past annual earnings growth rate of 2.9% per year.
- In contrast, the Research and Consulting Services industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| MYID Reklaim | CA$0.085 | 13.3% +CA$1.2m | 70.0% | PE40.2x |