TSX:TRI

Stock Analysis Report

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Executive Summary

Thomson Reuters Corporation provides news and business information services to professionals in the United States, Other Americas, Europe, the Middle East, Africa, and the Asia- Pacific.


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.5%

TRI

3.1%

CA Professional Services

4.1%

CA Market


1 Year Return

7.5%

TRI

9.2%

CA Professional Services

-8.6%

CA Market

Return vs Industry: TRI matched the Canadian Professional Services industry which returned 7.8% over the past year.

Return vs Market: TRI exceeded the Canadian Market which returned -10.1% over the past year.


Shareholder returns

TRIIndustryMarket
7 Day3.5%3.1%4.1%
30 Day-0.3%-0.1%7.9%
90 Day-4.9%-4.0%-3.4%
1 Year9.7%7.5%11.5%9.2%-5.5%-8.6%
3 Year58.8%46.4%56.6%45.0%3.6%-6.1%
5 Year109.5%80.8%99.6%73.9%21.4%3.5%

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?

21.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRI (CA$95.43) is trading above our estimate of fair value (CA$73.3)

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 (21.6x) compared to the Professional Services industry average (23.4x).

PE vs Market: TRI is poor value based on its PE Ratio (21.6x) compared to the Canadian market (13.2x).


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 is overvalued based on its PB Ratio (3.8x) compared to the CA Professional Services industry average (2.6x).


Next Steps

Future Growth

How is Thomson Reuters forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-5.7%

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 (-5.7% per year).

Earnings vs Market: TRI's earnings are forecast to decline over the next 3 years (-5.7% per year).

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

Revenue vs Market: TRI's revenue (3.9% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: TRI's revenue (3.9% 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 (10.9%).


Next Steps

Past Performance

How has Thomson Reuters performed over the past 5 years?

-23.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRI has a large one-off gain of $192.0M impacting its March 31 2020 financial results.

Growing Profit Margin: TRI's current net profit margins (27.7%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: TRI's earnings have declined by -23.5% per year over the past 5 years.

Accelerating Growth: TRI's earnings growth over the past year (3821.5%) exceeds its 5-year average (-23.5% per year).

Earnings vs Industry: TRI earnings growth over the past year (3821.5%) exceeded the Professional Services industry 31.1%.


Return on Equity

High ROE: TRI's Return on Equity (17.8%) is considered low.


Next Steps

Financial Health

How is Thomson Reuters's financial position?


Financial Position Analysis

Short Term Liabilities: TRI's short term assets ($2.9B) do not cover its short term liabilities ($3.2B).

Long Term Liabilities: TRI's short term assets ($2.9B) do not cover its long term liabilities ($4.5B).


Debt to Equity History and Analysis

Debt Level: TRI's debt to equity ratio (41.1%) is considered high.

Reducing Debt: TRI's debt to equity ratio has reduced from 62.7% to 41.1% over the past 5 years.

Debt Coverage: TRI's debt is well covered by operating cash flow (23.9%).

Interest Coverage: TRI's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet


Next Steps

Dividend

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

2.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TRI's dividend (2.14%) is higher than the bottom 25% of dividend payers in the Canadian market (1.94%).

High Dividend: TRI's dividend (2.14%) is low compared to the top 25% of dividend payers in the Canadian market (6.08%).


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 reasonably low payout ratio (44.4%), TRI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TRI's dividends in 3 years are forecast to be covered by earnings (79.4% payout ratio).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Steve Hasker (49yo)

0.25

Tenure

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


Leadership Team

NamePositionTenureCompensationOwnership
Neil Masterson
Executive VP and Co-COO2yrsUS$3.10m0.0021% $1.0m
Stephane Bello
Vie Chairman & President of Enterprise Centre0.25yrUS$4.73m0.029% $13.7m
Brian Peccarelli
Executive VP & COO of Customer Markets9.33yrsUS$3.11m0.0069% $3.3m
Michael Friedenberg
President of Reuters News1.5yrsUS$3.24m0.0028% $1.3m
Stephen Hasker
President0.25yrno datano data
Michael Eastwood
Chief Financial Officer0.25yrno data0.0011% $520.4k
Linda Walker
Chief Accounting Officerno datano data0.0047% $2.2m
Stewart Beaumont
Chief Technology Officerno datano datano data
Frank Golden
Head of Investor Relationsno datano datano data
Thomas Kim
Chief Legal Officer & Company Secretary0.67yrno data0.00067% $317.0k

0.7yrs

Average Tenure

52yo

Average Age

Experienced Management: TRI's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Hasker
President0.25yrno datano data
William Clark
Corporate Director4.75yrsUS$250.00k0.0073% $3.5m
David Kenneth Thomson
Chairman of the Board18.08yrsUS$600.00k0.010% $4.8m
Vance Opperman
Lead Independent Directorno dataUS$350.00k0.010% $4.8m
Peter Thomson
Director25.42yrsUS$200.00kno data
Wulf von Schimmelmann
Independent Corporate Director8.92yrsUS$200.00kno data
Barry Salzberg
Independent Director4.75yrsUS$250.00kno data
David Binet
Deputy Chairman of the Board6.08yrsUS$350.00k0.053% $24.9m
Kirk Arnold
Independent Director0.42yrno datano data
Michael Daniels
Independent Corporate Director6.08yrsUS$250.00k0.00059% $279.1k

6.1yrs

Average Tenure

63yo

Average Age

Experienced Board: TRI's board of directors are considered experienced (6.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TRI insiders have bought more shares than they have sold 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: 1799
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: CA$47.311b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRINYSE (New York Stock Exchange)YesCorporation Common SharesUSUSDJun 1989
TRITSX (The Toronto Stock Exchange)YesCorporation Common SharesCACADJun 1989
TOCBDB (Deutsche Boerse AG)YesCorporation Common SharesDEEURJun 1989
0Q89LSE (London Stock Exchange)YesCorporation Common SharesGBCADJun 1989
TOCBBST (Boerse-Stuttgart)YesCorporation Common SharesDEEURJun 1989
TOCBDUSE (Dusseldorf Stock Exchange)YesCorporation Common SharesDEEURJun 1989

Biography

Thomson Reuters Corporation provides news and business information services to professionals in the United States, Other Americas, Europe, the Middle East, Africa, and the Asia- Pacific. It operates through five segments: Legal Professionals, Corporates, Tax & Accounting 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 to 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 & Accounting Professionals segment offers research and workflow products focusing on tax offerings and automating tax workflows to tax, accounting, and audit professionals in accounting firms. The Reuters News segment provides business, financial, national, and international news to professionals through desktop terminals, media organizations, and industry events, as well as directly to consumers. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 02:46
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.