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Thomson Reuters

TSX:TRI
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TRI
TSX
CA$39B
Market Cap
  1. Home
  2. CA
  3. Commercial Services
Company description

Thomson Reuters Corporation provides news and information-based tools to professionals worldwide. The last earnings update was 9 days ago. More info.


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TRI Share Price and Events
7 Day Returns
3.2%
TSX:TRI
1.4%
CA Professional Services
0.5%
CA Market
1 Year Returns
40.4%
TSX:TRI
27.6%
CA Professional Services
0.9%
CA Market
TRI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Thomson Reuters (TRI) 3.2% 12% 21% 40.4% 35.3% 87.5%
CA Professional Services 1.4% 5.8% 13.6% 27.6% 28.8% 67.3%
CA Market 0.5% 1.7% 14.2% 0.9% 17.2% 6.3%
1 Year Return vs Industry and Market
  • TRI outperformed the Professional Services industry which returned 27.6% over the past year.
  • TRI outperformed the Market in Canada which returned 0.9% over the past year.
Price Volatility
TRI
Industry
5yr Volatility vs Market

Value

 Is Thomson Reuters undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Thomson Reuters to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Thomson Reuters.

TSX:TRI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:TRI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.41
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.415 (1 + (1- 26.5%) (11.33%))
0.631
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.8 * 5.96%)
6.72%

Discounted Cash Flow Calculation for TSX:TRI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Thomson Reuters is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:TRI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.72%)
2019 347.34 Analyst x8 325.48
2020 1,135.86 Analyst x5 997.41
2021 973.19 Est @ -14.32% 800.79
2022 881.31 Est @ -9.44% 679.56
2023 828.21 Est @ -6.02% 598.43
2024 798.12 Est @ -3.63% 540.40
2025 782.49 Est @ -1.96% 496.48
2026 776.33 Est @ -0.79% 461.57
2027 776.58 Est @ 0.03% 432.67
2028 781.30 Est @ 0.61% 407.91
Present value of next 10 years cash flows $5,740.71
TSX:TRI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $781.30 × (1 + 1.95%) ÷ (6.72% – 1.95%)
$16,705.38
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $16,705.38 ÷ (1 + 6.72%)10
$8,721.71
TSX:TRI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,740.71 + $8,721.71
$14,462.42
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $14,462.42 / 501.17
$28.86
TSX:TRI Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:TRI)
1.341
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $28.86 x 1.341
CA$38.69
Value per share (CAD) From above. CA$38.69
Current discount Discount to share price of CA$77.69
= -1 x (CA$77.69 - CA$38.69) / CA$38.69
-100.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Thomson Reuters is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Thomson Reuters's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Thomson Reuters's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:TRI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.13
TSX:TRI Share Price ** TSX (2019-03-22) in CAD CA$77.69
TSX:TRI Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.746 $57.95
Canada Professional Services Industry PE Ratio Median Figure of 5 Publicly-Listed Professional Services Companies 20.74x
Canada Market PE Ratio Median Figure of 543 Publicly-Listed Companies 15.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Thomson Reuters.

TSX:TRI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:TRI Share Price ÷ EPS (both in USD)

= 57.95 ÷ 0.13

444.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Thomson Reuters is overvalued based on earnings compared to the CA Professional Services industry average.
  • Thomson Reuters is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Thomson Reuters's expected growth come at a high price?
Raw Data
TSX:TRI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 444.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
51.7%per year
North America Professional Services Industry PEG Ratio Median Figure of 36 Publicly-Listed Professional Services Companies 1.61x
Canada Market PEG Ratio Median Figure of 253 Publicly-Listed Companies 1.23x

*Line of best fit is calculated by linear regression .

TSX:TRI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 444.67x ÷ 51.7%

8.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Thomson Reuters is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Thomson Reuters's assets?
Raw Data
TSX:TRI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $18.18
TSX:TRI Share Price * TSX (2019-03-22) in CAD CA$77.69
TSX:TRI Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.746 $57.95
Canada Professional Services Industry PB Ratio Median Figure of 8 Publicly-Listed Professional Services Companies 2.33x
Canada Market PB Ratio Median Figure of 2,348 Publicly-Listed Companies 1.58x
TSX:TRI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:TRI Share Price ÷ Book Value per Share (both in USD)

= 57.95 ÷ 18.18

3.19x

* Primary Listing of Thomson Reuters.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Thomson Reuters is overvalued based on assets compared to the CA Professional Services industry average.
X
Value checks
We assess Thomson Reuters's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. Thomson Reuters has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Thomson Reuters expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
51.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Thomson Reuters expected to grow at an attractive rate?
  • Thomson Reuters's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Thomson Reuters's earnings growth is expected to exceed the Canada market average.
  • Thomson Reuters's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:TRI Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:TRI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 51.7%
TSX:TRI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 5.5%
Canada Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 48.9%
Canada Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 5.7%
Canada Market Earnings Growth Rate Market Cap Weighted Average 17.9%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:TRI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:TRI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 6,441 1,345 3
2020-12-31 6,195 1,598 1,066 16
2019-12-31 5,941 1,107 788 16
TSX:TRI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 5,501 2,062 87
2018-09-30 11,432 2,827 1,276
2018-06-30 11,412 2,785 1,489
2018-03-31 11,381 2,816 1,412
2017-12-31 5,297 2,029 571
2017-09-30 6,743 2,272 543
2017-06-30 8,215 2,222 673
2017-03-31 9,704 2,158 931
2016-12-31 11,166 2,984 1,003
2016-09-30 11,193 2,949 1,093
2016-06-30 11,196 2,871 1,088
2016-03-31 11,229 3,052 1,004

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Thomson Reuters's earnings are expected to grow significantly at over 20% yearly.
  • Thomson Reuters's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:TRI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Thomson Reuters Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:TRI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.87 2.87 2.87 1.00
2020-12-31 2.23 2.67 1.79 2.00
2019-12-31 1.62 1.83 1.41 2.00
TSX:TRI Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.13
2018-09-30 1.98
2018-06-30 2.30
2018-03-31 2.18
2017-12-31 0.88
2017-09-30 0.83
2017-06-30 1.01
2017-03-31 1.39
2016-12-31 1.48
2016-09-30 1.59
2016-06-30 1.57
2016-03-31 1.43

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Thomson Reuters is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Thomson Reuters's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Thomson Reuters has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Thomson Reuters performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Thomson Reuters's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Thomson Reuters's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Thomson Reuters's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Thomson Reuters's 1-year earnings growth is negative, it can't be compared to the CA Professional Services industry average.
Earnings and Revenue History
Thomson Reuters's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Thomson Reuters Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:TRI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 5,501.00 87.00 27.00
2018-09-30 11,432.00 1,276.00 31.00
2018-06-30 11,412.00 1,489.00 32.00
2018-03-31 11,381.00 1,412.00 33.00
2017-12-31 5,297.00 571.00 29.00
2017-09-30 6,743.00 543.00 34.00
2017-06-30 8,215.00 673.00 41.00
2017-03-31 9,704.00 931.00 46.00
2016-12-31 11,166.00 1,003.00 52.00
2016-09-30 11,193.00 1,093.00 53.00
2016-06-30 11,196.00 1,088.00 52.00
2016-03-31 11,229.00 1,004.00 52.00
2015-12-31 11,257.00 1,069.00 52.00
2015-09-30 11,581.00 1,866.00 48.00
2015-06-30 11,941.00 1,847.00 45.00
2015-03-31 12,298.00 1,889.00 42.00
2014-12-31 12,607.00 1,906.00 39.00
2014-09-30 12,674.00 404.00 44.00
2014-06-30 12,653.00 445.00 50.00
2014-03-31 12,657.00 437.00 56.00
2013-12-31 12,702.00 124.00 62.00
2013-09-30 12,788.00 828.00 64.00
2013-06-30 12,883.00 996.00 95.00
2013-03-31 12,992.00 1,657.00 64.00
2012-12-31 13,132.00 1,984.00 63.00
2012-09-30 13,345.00 -939.00 47.00
2012-06-30 13,617.00 -1,009.00
2012-03-31 13,792.00 -1,349.00 15.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Thomson Reuters has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Thomson Reuters used its assets less efficiently than the CA Professional Services industry average last year based on Return on Assets.
  • Thomson Reuters's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Thomson Reuters's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Thomson Reuters has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Thomson Reuters's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Thomson Reuters's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Thomson Reuters is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Thomson Reuters's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Thomson Reuters's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Thomson Reuters Company Filings, last reported 2 months ago.

TSX:TRI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 9,226.00 3,292.00 2,782.00
2018-09-30 12,550.00 7,367.00 549.00
2018-06-30 12,163.00 7,836.00 927.00
2018-03-31 13,384.00 7,380.00 555.00
2017-12-31 13,575.00 7,272.00 972.00
2017-09-30 13,238.00 7,359.00 1,004.00
2017-06-30 13,133.00 7,339.00 857.00
2017-03-31 13,235.00 7,432.00 943.00
2016-12-31 13,256.00 7,716.00 2,556.00
2016-09-30 11,830.00 9,476.00 956.00
2016-06-30 12,313.00 9,085.00 801.00
2016-03-31 12,836.00 9,212.00 979.00
2015-12-31 13,100.00 8,794.00 1,142.00
2015-09-30 13,271.00 8,844.00 869.00
2015-06-30 14,085.00 8,870.00 1,299.00
2015-03-31 13,894.00 8,712.00 1,032.00
2014-12-31 14,659.00 8,317.00 1,179.00
2014-09-30 15,499.00 9,000.00 1,837.00
2014-06-30 16,117.00 8,120.00 847.00
2014-03-31 16,167.00 8,086.00 800.00
2013-12-31 16,430.00 8,139.00 1,499.00
2013-09-30 17,277.00 7,031.00 672.00
2013-06-30 17,047.00 7,997.00 1,708.00
2013-03-31 17,078.00 7,532.00 527.00
2012-12-31 17,498.00 7,246.00 1,355.00
2012-09-30 17,362.00 7,270.00 850.00
2012-06-30 17,051.00 7,198.00 1,892.00
2012-03-31 16,828.00 7,527.00 531.00
  • Thomson Reuters's level of debt (35.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (49.5% vs 35.7% today).
  • Debt is well covered by operating cash flow (62.6%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Thomson Reuters's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Thomson Reuters has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Thomson Reuters's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.48%
Current annual income from Thomson Reuters dividends. Estimated to be 2.48% next year.
If you bought CA$2,000 of Thomson Reuters shares you are expected to receive CA$50 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Thomson Reuters's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.05%).
  • Thomson Reuters's dividend is below the markets top 25% of dividend payers in Canada (5.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:TRI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
North America Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.8%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:TRI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.45 2.00
2020-12-31 1.44 6.00
2019-12-31 1.43 6.00
TSX:TRI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-26 1.440 2.613
2018-10-09 1.400 2.746
2018-08-08 1.520 3.105
2018-01-30 1.520 3.441
2017-11-01 1.520 3.135
2017-04-28 1.520 3.026
2017-03-09 1.520 3.190
2017-02-09 1.520 3.175
2016-11-01 1.498 3.116
2016-07-28 1.498 3.316
2016-04-26 1.498 3.274
2016-03-08 1.498 3.420
2016-02-11 1.498 3.739
2015-10-27 1.476 3.514
2015-10-23 1.476 3.265
2015-07-31 1.476 3.336
2015-07-29 1.476 3.329
2015-05-01 1.476 3.414
2015-04-29 1.476 3.253
2015-03-13 1.476 3.270
2015-02-11 1.476 3.396
2014-07-30 1.454 3.460
2014-04-30 1.454 3.674
2014-03-12 1.454 3.834
2014-02-12 1.454 3.847
2013-10-29 1.432 3.491
2013-07-30 1.432 3.764
2013-04-30 1.432 3.847
2013-03-11 1.432 4.025
2013-02-13 1.432 4.272
2012-11-02 1.410 4.423
2012-07-31 1.410 4.446
2012-05-01 1.410 4.501
2012-02-09 1.410 4.462
2011-11-01 1.366 4.525
2011-07-28 1.366 4.206
2011-04-28 1.366 3.307
2011-02-10 1.366 3.145
2010-10-28 1.278 3.054
2010-07-29 1.278 3.131
2010-05-04 1.278 3.150
2010-02-24 1.278 3.206
2009-11-05 1.234 3.415
2009-08-06 1.234 3.418
2009-05-07 1.234 3.697
2009-03-23 1.234 4.098

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Thomson Reuters's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess Thomson Reuters's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Thomson Reuters afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Thomson Reuters has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Thomson Reuters's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Smith
COMPENSATION $10,034,979
AGE 58
TENURE AS CEO 7.2 years
CEO Bio

Mr. James C. Smith, also known as Jim, has been the Chief Executive Officer and President of Thomson Corporation (Now Thomson Reuters Corporation) since January 2012. Mr. Smith served as chief operating officer of Thomson Corporation from September 28, 2011 to December 2011 and previously since January 1, 2007. He served as Chief Executive Officer of Professional Division of Thomson Corporation form April 2008 to September 2009 and served as its President of Professional division. He served as Chief Executive Officer of Professional Division at Thomson Reuters UK Limited. He served as Executive Vice President of Thomson Corporation. Mr. Smith served as President and Chief Executive Officer of Thomson Learning’s Academic and Reference/International Group of Thomson Corporation since April 2005. Following the sale of the Newspaper Group in 2000, he joined the Thomson Corporate Office and served as an Executive Vice President of Human Resources and Administration of Thomson Corporation since December 2001. He served as an Executive Vice President of Development and Corporate Affairs of Thomson Corporation since January 2002. He was responsible for Human Resources, Succession Planning, Training and Development, Organizational Development and various administrative activities for Thomson Corporation. He oversaw the Thomson's professional business information segments, including North American legal, tax and accounting, international legal and regulatory, healthcare and scientific. Mr. Smith joined Thomson Newspaper Group in 1987. He has worked for Thomson Corporation for 15 years, primarily in Newspaper Group that sold and held a number of operating positions. He began his career as a Journalist and held several Editorial and General Management positions prior to joining Thomson. He led a number of professional publishing businesses serving the legal, regulatory and academic markets. He has been a Non-Independent Director at Thomson Corporation since January 2012. He has been an Independent Director at Pfizer Inc. since June 26, 2014. Mr. Smith is a member of the International Business Council of the World Economic Forum and the Board of Directors of the Brazil-U.S. Business Council. He also serves on the board of the World Economic Forum’s Partnering Against Corruption Initiative He serves on the International Advisory Boards of British American Business and the Atlantic Council. Mr. Smith holds a BA from Marshall University.

CEO Compensation
  • Jim's compensation has been consistent with company performance over the past year.
  • Jim's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Thomson Reuters management team in years:

7.2
Average Tenure
54
Average Age
  • The average tenure for the Thomson Reuters management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jim Smith

TITLE
President
COMPENSATION
$10M
AGE
58
TENURE
7.2 yrs

Stephane Bello

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
58
TENURE
7.2 yrs

Deirdre Stanley

TITLE
Executive VP
COMPENSATION
$2M
AGE
54
TENURE
17.2 yrs

Mary-Alice Vuicic

TITLE
Executive VP & Chief People Officer
COMPENSATION
$463K
AGE
50
TENURE
1.3 yrs

David W. Craig

TITLE
President of Financial & Risk
COMPENSATION
$2M
AGE
48
TENURE
7.2 yrs

Neil Masterson

TITLE
Chief Operating Officer of Operations & Enablement
COMPENSATION
$4M
AGE
49
TENURE
0.8 yrs

Linda Walker

TITLE
Chief Accounting Officer

Stewart Beaumont

TITLE
Chief Technology Officer

Frank Golden

TITLE
Senior Vice President of Investor Relations
AGE
60

Andrew Perrin

TITLE
Vice President of Corporate Development
TENURE
4.2 yrs
Board of Directors Tenure

Average tenure and age of the Thomson Reuters board of directors in years:

5.5
Average Tenure
63.5
Average Age
  • The tenure for the Thomson Reuters board of directors is about average.
Board of Directors

David Kenneth Thomson

TITLE
Chairman of the Board
COMPENSATION
$600K
AGE
61
TENURE
16.8 yrs

Jim Smith

TITLE
President
COMPENSATION
$10M
AGE
58
TENURE
7.2 yrs

David Binet

TITLE
Deputy Chairman of the Board
COMPENSATION
$350K
AGE
60
TENURE
4.8 yrs

Sheila Bair

TITLE
Corporate Director
COMPENSATION
$200K
AGE
64
TENURE
4.8 yrs

Mike Daniels

TITLE
Corporate Director
COMPENSATION
$200K
AGE
63
TENURE
4.8 yrs

Ed Clark

TITLE
Corporate Director
COMPENSATION
$250K
AGE
70
TENURE
3.5 yrs

Barry Salzberg

TITLE
Corporate Director
COMPENSATION
$233K
AGE
64
TENURE
3.5 yrs

Vance Opperman

TITLE
Lead Independent Director
COMPENSATION
$367K
AGE
75
TENURE
6.2 yrs

Peter Thomson

TITLE
Director
COMPENSATION
$200K
AGE
53
TENURE
24.2 yrs

Wulf von Schimmelmann

TITLE
Corporate Director
COMPENSATION
$200K
AGE
71
TENURE
7.7 yrs
Who owns this company?
Recent Insider Trading
  • Thomson Reuters insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
19. Mar 19 Sell Sean Cannizzaro Individual 18. Mar 19 18. Mar 19 -380 CA$75.05 CA$-28,519
19. Mar 19 Sell Linda Walker Individual 19. Mar 19 19. Mar 19 -11,832 CA$75.49 CA$-893,235
18. Mar 19 Sell Neil Masterson Individual 14. Mar 19 14. Mar 19 -31,854 CA$74.37 CA$-2,369,074
18. Mar 19 Sell Brian Scanlon Individual 18. Mar 19 18. Mar 19 -4,567 CA$75.17 CA$-343,302
11. Mar 19 Sell Brian Scanlon Individual 07. Mar 19 07. Mar 19 -37,654 CA$73.15 CA$-2,754,463
11. Mar 19 Buy Brian Scanlon Individual 07. Mar 19 07. Mar 19 20,894 CA$49.21 CA$1,028,221
01. Mar 19 Sell Brian Peccarelli Individual 27. Feb 19 27. Feb 19 -29,419 CA$70.93 CA$-2,086,794
11. Dec 18 Sell Stuart Corbin Individual 07. Dec 18 07. Dec 18 -1,916 CA$67.48 CA$-129,296
11. Dec 18 Sell Marc Gold Individual 06. Dec 18 06. Dec 18 -12,336 CA$68.00 CA$-838,235
11. Dec 18 Buy The Woodbridge Company Limited Company 06. Dec 18 07. Dec 18 123,700 CA$67.47 CA$8,324,302
07. Dec 18 Sell Stewart Beaumont Individual 07. Dec 18 07. Dec 18 -9,900 CA$67.84 CA$-671,623
07. Dec 18 Sell Brian Peccarelli Individual 06. Dec 18 06. Dec 18 -2 CA$67.87 CA$-136
06. Dec 18 Buy David Binet Individual 05. Dec 18 05. Dec 18 22,775 CA$67.94 CA$1,547,334
05. Dec 18 Sell Ruth Clamp-Held Individual 04. Dec 18 04. Dec 18 -2,592 CA$67.88 CA$-175,933
13. Nov 18 Sell The Woodbridge Company Limited Company 09. Nov 18 09. Nov 18 -789,455 CA$69.94 CA$-55,215,789
12. Nov 18 Sell Vance Sider Individual 08. Nov 18 08. Nov 18 -434 CA$68.98 CA$-29,936
14. Sep 18 Sell Vance Sider Individual 12. Sep 18 13. Sep 18 -81,477 CA$65.41 CA$-5,318,784
09. Aug 18 Sell Sean Cannizzaro Individual 09. Aug 18 09. Aug 18 -484 CA$60.70 CA$-29,373
22. Jun 18 Sell David W. Craig Individual 21. Jun 18 21. Jun 18 -8,479 CA$59.08 CA$-500,919
15. Jun 18 Sell Deirdre Stanley Individual 15. Jun 18 15. Jun 18 -4,725 CA$59.60 CA$-281,588
13. Jun 18 Sell Deirdre Stanley Individual 12. Jun 18 12. Jun 18 -6,624 CA$58.02 CA$-384,347
08. Jun 18 Sell Marc Gold Individual 08. Jun 18 08. Jun 18 -14,526 CA$58.03 CA$-843,022
29. May 18 Buy The Woodbridge Company Limited Company 25. May 18 25. May 18 2,017 CA$55.28 CA$111,522
17. May 18 Sell Stewart Beaumont Individual 17. May 18 17. May 18 -3,178 CA$55.18 CA$-175,331
X
Management checks
We assess Thomson Reuters's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Thomson Reuters has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why Thomson Reuters Corporation's (TSE:TRI) CEO Pay Matters To You

In 2012 Jim Smith was appointed CEO of Thomson Reuters Corporation (TSE:TRI). … This analysis aims first to contrast CEO compensation with other large companies. … At the time of writing our data says that Thomson Reuters Corporation has a market cap of CA$36b, and is paying total annual CEO compensation of US$10m.

Simply Wall St -

What Thomson Reuters Corporation's (TSE:TRI) ROE Can Tell Us

Over the last twelve months Thomson Reuters has recorded a ROE of 11%. … That means that for every CA$1 worth of shareholders' equity, it generated CA$0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Should Investors Feel About Thomson Reuters Corporation's (TSE:TRI) CEO Pay?

First, this article will compare CEO compensation with compensation at other large companies. … How Does Jim Smith's Compensation Compare With Similar Sized Companies. … According to our data, Thomson Reuters Corporation has a market capitalization of CA$33.0b, and pays its CEO total annual compensation worth US$10m.

Simply Wall St -

Thomson Reuters Corporation (TSE:TRI): What You Have To Know Before Buying For The Upcoming Dividend

To qualify for the dividend check of US$0.34 per share, investors must have owned the shares prior to 15 August 2018, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … Is its earnings sufficient to payout dividend at the current rate

Simply Wall St -

Should You Be Tempted To Sell Thomson Reuters Corporation (TSE:TRI) Because Of Its PE Ratio?

Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio … Check out our latest analysis for Thomson Reuters

Simply Wall St -

How Does Thomson Reuters Corporation (TSE:TRI) Fare As A Dividend Stock?

In the past 10 years Thomson Reuters Corporation (TSE:TRI) has returned an average of 4.00% per year to investors in the form of dividend payouts. … Does Thomson Reuters tick all the boxes of a great dividend stock? … View our latest analysis for Thomson Reuters

Simply Wall St -

Has Thomson Reuters Corporation (TSE:TRI) Improved Earnings Growth In Recent Times?

Understanding Thomson Reuters Corporation's (TSE:TRI) performance as a company requires examining more than earnings from one point in time. … Today I will take you through a basic sense check to gain perspective on how Thomson Reuters is doing by evaluating its latest earnings with its longer term trend as well as its industry peers' performance over the same period. … View out our latest analysis for Thomson Reuters?

Simply Wall St -

Should You Buy Thomson Reuters Corporation (TSE:TRI) Now?

Let's talk about the popular Thomson Reuters Corporation (TSE:TRI). … Let’s take a look at Thomson Reuters’s outlook and value based on the most recent financial data to see if the opportunity still exists … Check out our latest analysis for Thomson Reuters

Simply Wall St -

Was Thomson Reuters Corporation's (TSE:TRI) Earnings Growth Better Than The Industry's?

After reading Thomson Reuters Corporation's (TSX:TRI) most recent earnings announcement (31 March 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … Check out our latest analysis for Thomson Reuters Were TRI's earnings stronger than its past performances and the industry? … Since these figures are fairly nearsighted, I have determined an annualized five-year figure for Thomson Reuters's earnings, which stands at US$843.75M This suggests that, generally, Thomson Reuters has been able to steadily raise its net income over the last couple of years as well.

Simply Wall St -

What Does Thomson Reuters Corporation's (TSE:TRI) Share Price Indicate?

Let’s take a look at Thomson Reuters’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … This means that the opportunity to buy Thomson Reuters at a good price has disappeared! … In addition to this, it seems like Thomson Reuters’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value.

Simply Wall St -

Company Info

Description

Thomson Reuters Corporation provides news and information-based tools to professionals worldwide. It operates through five segments: Legal Professionals, Corporates, Tax Professionals, Reuters News, and Global Print. The Legal Professionals segment offers research and workflow products focusing on legal research and integrated legal workflow solutions that combine content, tools, and analytics. It serves law firms and governments. The Corporates segment provides a suite of services across legal, tax, regulatory, and compliance functions to corporate customers, including accounting firms. The Tax Professionals segment offers research and workflow products focusing on tax offerings and automating tax workflows to tax, accounting, and audit professionals in accounting firms, as well as governmental taxing authorities. The Reuters News segment provides trusted business, financial, and national and international news to professionals through desktop terminals and media organizations, as well as directly to consumers through reuters.com and Reuters TV. The Global Print segment offers legal and tax information primarily in print format to legal and tax professionals, governments, law schools, and corporations. The company was formerly known as The Thomson Corporation and changed its name to Thomson Reuters Corporation in April 2008. Thomson Reuters Corporation was founded in 1799 and is headquartered in Toronto, Canada. Thomson Reuters Corporation is a subsidiary of The Woodbridge Company Limited.

Details
Name: Thomson Reuters Corporation
TRI
Exchange: TSX
Founded: 1799
CA$38,936,192,910
501,173,805
Website: http://www.thomsonreuters.com
Address: Thomson Reuters Corporation
333 Bay Street,
Suite 400,
Toronto,
Ontario, M5H 2R2,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX TRI Corporation Common Shares The Toronto Stock Exchange CA CAD 06. Jun 1989
NYSE TRI Corporation Common Shares New York Stock Exchange US USD 06. Jun 1989
DB TOCB Corporation Common Shares Deutsche Boerse AG DE EUR 06. Jun 1989
BST TOCB Corporation Common Shares Boerse-Stuttgart DE EUR 06. Jun 1989
LSE 0VKQ Corporation Common Shares London Stock Exchange GB CAD 06. Jun 1989
Number of employees
Current staff
Staff numbers
25,800
Thomson Reuters employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/22 23:43
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/03/19
Last earnings filing: 2019/03/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.