TSX:TRI

Stock Analysis Report

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Market Cap

CA$64.8b

Last Updated

2021/07/29 22:36 UTC

Data Sources

Company Financials +

Executive Summary

Thomson Reuters Corporation provides business information services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. More Details


Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

How has Thomson Reuters's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRI is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: TRI's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

TRI

0.4%

CA Professional Services

0.8%

CA Market


1 Year Return

40.4%

TRI

38.6%

CA Professional Services

27.5%

CA Market

Return vs Industry: TRI exceeded the Canadian Professional Services industry which returned 38.6% over the past year.

Return vs Market: TRI exceeded the Canadian Market which returned 27.5% over the past year.


Shareholder returns

TRIIndustryMarket
7 Day0.9%0.4%0.8%
30 Day7.4%7.4%-0.5%
90 Day15.3%12.7%3.0%
1 Year43.0%40.4%41.1%38.6%31.4%27.5%
3 Year162.1%122.8%141.5%109.3%30.8%18.2%
5 Year177.5%121.2%161.4%112.9%52.0%29.7%

Long-Term Price Volatility Vs. Market

How volatile is Thomson Reuters's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Thomson Reuters undervalued compared to its fair value and its price relative to the market?

8.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRI (CA$131.44) is trading above our estimate of fair value (CA$123.89)

Significantly Below Fair Value: TRI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TRI is good value based on its PE Ratio (8.8x) compared to the Canadian Professional Services industry average (23.5x).

PE vs Market: TRI is good value based on its PE Ratio (8.8x) compared to the Canadian market (13.9x).


Price to Earnings Growth Ratio

PEG Ratio: TRI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TRI's PB Ratio (3.5x) is in line with the CA Professional Services industry average.


Future Growth

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

-40.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRI's earnings are forecast to decline over the next 3 years (-40.9% per year).

Earnings vs Market: TRI's earnings are forecast to decline over the next 3 years (-40.9% per year).

High Growth Earnings: TRI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TRI's revenue (4.1% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: TRI's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRI's Return on Equity is forecast to be low in 3 years time (11.5%).


Past Performance

How has Thomson Reuters performed over the past 5 years?

31.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRI has a high level of non-cash earnings.

Growing Profit Margin: TRI's current net profit margins (99.1%) are higher than last year (27.7%).


Past Earnings Growth Analysis

Earnings Trend: TRI's earnings have grown significantly by 31% per year over the past 5 years.

Accelerating Growth: TRI's earnings growth over the past year (264.3%) exceeds its 5-year average (31% per year).

Earnings vs Industry: TRI earnings growth over the past year (264.3%) exceeded the Professional Services industry -18.3%.


Return on Equity

High ROE: TRI's Return on Equity (40.4%) is considered outstanding.


Financial Health

How is Thomson Reuters's financial position?


Financial Position Analysis

Short Term Liabilities: TRI's short term assets ($4.2B) exceed its short term liabilities ($3.2B).

Long Term Liabilities: TRI's short term assets ($4.2B) do not cover its long term liabilities ($5.8B).


Debt to Equity History and Analysis

Debt Level: TRI's debt to equity ratio (25.6%) is considered satisfactory.

Reducing Debt: TRI's debt to equity ratio has reduced from 71.8% to 25.6% over the past 5 years.

Debt Coverage: TRI's debt is well covered by operating cash flow (51.5%).

Interest Coverage: TRI's interest payments on its debt are well covered by EBIT (18.5x coverage).


Balance Sheet


Dividend

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

1.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TRI's dividend (1.53%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.6%).

High Dividend: TRI's dividend (1.53%) is low compared to the top 25% of dividend payers in the Canadian market (4.57%).


Stability and Growth of Payments

Stable Dividend: TRI's dividend payments have been volatile in the past 10 years.

Growing Dividend: TRI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.8%), TRI's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TRI's dividends in 3 years are forecast to be covered by earnings (57.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Steve Hasker (51 yo)

1.33yrs

Tenure

US$11,322,410

Compensation

Mr. Stephen John Hasker, BCom, MBA, MIA, ACAA also known as Steve, serves as President, Chief Executive Officer and Director at Thomson Reuters Corporation since March 15, 2020. He served as Lead Independe...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD11.32M) is above average for companies of similar size in the Canadian market ($USD6.20M).

Compensation vs Earnings: Insufficient data to compare Steve's compensation with company performance.


Leadership Team

Experienced Management: TRI's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: TRI's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TRI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Thomson Reuters Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Thomson Reuters Corporation
  • Ticker: TRI
  • Exchange: TSX
  • Founded: 1851
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: CA$64.825b
  • Shares outstanding: 495.76m
  • Website: https://www.thomsonreuters.com

Number of Employees


Location

  • Thomson Reuters Corporation
  • 333 Bay Street
  • Suite 300
  • Toronto
  • Ontario
  • M5H 2R2
  • Canada

Listings


Biography

Thomson Reuters Corporation provides business information services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in five segments: Legal Professionals, Corporates, Tax...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/29 22:36
End of Day Share Price2021/07/29 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.