Loading...

Thomson Reuters

TSX:TRI
Snowflake Description

Solid track record with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TRI
TSX
CA$42B
Market Cap
  1. Home
  2. CA
  3. Diversified Financials
Company description

Thomson Reuters Corporation provides news and information for professional markets worldwide. The last earnings update was 186 days ago. More info.


Add to Portfolio Compare Print Invest
TRI Share Price and Events
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 Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $3.68 * 8.6%
$0.32
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $3.68
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year CA Government Bond Rate 2.3%

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 2.3%
Equity Risk Premium S&P Global 7.7%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.54
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.545 (1 + (1- 26.5%) (24.53%))
0.643
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)
= 2.34% + (0.8 * 7.66%)
8.47%

Discounted Cash Flow Calculation for TSX:TRI using Excess Returns Model Model

The calculations below outline how an intrinsic value for Thomson Reuters is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

TSX:TRI Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (8.6% – 8.47%) * $3.68)
$0.00
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.00 / (8.47% - 2.34%)
$0.06
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $3.68 + $0.06
$3.74
TSX:TRI Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:TRI)
1.299
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $3.74 x 1.299
CA$4.86
Value per share (CAD) From above. CA$4.86
Current discount Discount to share price of CA$59.21
= -1 x (CA$59.21 - CA$4.86) / CA$4.86
-1118%

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 (2018-06-30) in USD $2.09
TSX:TRI Share Price ** TSX (2018-09-18) in CAD CA$59.21
TSX:TRI Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.77 $45.57
Canada Capital Markets Industry PE Ratio Median Figure of 21 Publicly-Listed Capital Markets Companies 12.4x
Canada Market PE Ratio Median Figure of 591 Publicly-Listed Companies 15.6x

* 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)

= 45.57 ÷ 2.09

21.78x

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 Capital Markets 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 21.78x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
-3.9%per year
North America Capital Markets Industry PEG Ratio Median Figure of 50 Publicly-Listed Capital Markets Companies 1.51x
Canada Market PEG Ratio Median Figure of 280 Publicly-Listed Companies 1.04x

*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

= 21.78x ÷ -3.9%

-5.66x

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

  • Thomson Reuters earnings are not expected to grow next year, we can't assess if its growth is good value.
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 (2018-06-30) in USD $16.63
TSX:TRI Share Price * TSX (2018-09-18) in CAD CA$59.21
TSX:TRI Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.77 $45.57
Canada Capital Markets Industry PB Ratio Median Figure of 113 Publicly-Listed Capital Markets Companies 1.99x
Canada Market PB Ratio Median Figure of 2,403 Publicly-Listed Companies 1.63x
TSX:TRI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 45.57 ÷ 16.63

2.74x

* 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 Capital Markets 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 Capital Markets 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 Capital Markets 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 14 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
-3.9%
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 are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Thomson Reuters's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • Thomson Reuters's revenues are expected to decrease over the next 1-3 years, this is below 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 14 Analysts -3.9%
TSX:TRI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts -0.3%
Canada Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average -0.5%
Canada Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 0.8%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.9%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*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 14 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
2020-12-31 6,124 1,748 1,131 10
2019-12-31 5,885 1,271 716 14
2018-12-31 5,504 533 352 13
TSX:TRI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-06-30 11,412 2,785 1,489
2018-03-31 11,381 2,816 1,412
2017-12-31 11,333 2,029 1,396
2017-09-30 8,263 2,272 749
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
2015-12-31 11,257 2,838 1,069
2015-09-30 11,581 2,715 1,866

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Thomson Reuters's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Thomson Reuters's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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 14 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
2020-12-31 2.13 2.25 2.01 2.00
2019-12-31 1.45 1.54 1.36 2.00
2018-12-31 0.50 0.55 0.45 2.00
TSX:TRI Past Financials Data
Date (Data in USD Millions) EPS *
2018-06-30 2.09
2018-03-31 1.98
2017-12-31 1.94
2017-09-30 1.03
2017-06-30 0.92
2017-03-31 1.26
2016-12-31 1.34
2016-09-30 1.45
2016-06-30 1.42
2016-03-31 1.30
2015-12-31 1.37
2015-09-30 2.36

*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.
  • Unable to establish if Thomson Reuters will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
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 0/6, 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?

  • Thomson Reuters's last earnings update was 186 days ago.
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 (Capital Markets).
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.
  • Thomson Reuters's 1-year earnings growth exceeds its 5-year average (121.2% vs 8.7%)
  • Thomson Reuters's earnings growth has exceeded the CA Capital Markets industry average in the past year (121.2% vs 26.7%).
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
2018-06-30 11,412.00 1,489.00 32.00
2018-03-31 11,381.00 1,412.00 33.00
2017-12-31 11,333.00 1,396.00 33.00
2017-09-30 8,263.00 749.00 35.00
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
2011-12-31 13,807.00 -1,397.00
2011-09-30 13,688.00 1,401.00

*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 more efficiently than the CA Capital Markets industry average last year based on Return on Assets.
  • Thomson Reuters has significantly improved its use of capital 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 Capital Markets 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 5/6, 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 cash and other short term assets cover its long term commitments.
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 2.1x 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
2018-06-30 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
2011-12-31 16,750.00 7,621.00 522.00
2011-09-30 19,715.00 7,897.00 645.00
  • Thomson Reuters's level of debt (64.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (46.8% vs 64.4% today).
  • Debt is well covered by operating cash flow (35.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.1x 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
3.01%
Current annual income from Thomson Reuters dividends. Estimated to be 3.14% next year.
If you bought CA$2,000 of Thomson Reuters shares you are expected to receive CA$60 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 (1.99%).
  • Thomson Reuters's dividend is below the markets top 25% of dividend payers in Canada (5.82%).
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 14 Analyst Estimates (S&P Global) See Below
Canada Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 3.5%
Canada Market Average Dividend Yield Market Cap Weighted Average of 346 Stocks 3.4%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

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
2020-12-31 1.43 3.00
2019-12-31 1.41 5.00
2018-12-31 1.44 7.00
TSX:TRI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-08-08 1.782 3.154
2018-01-30 1.696 3.441
2017-11-01 1.698 3.135
2017-04-28 1.674 3.026
2017-03-09 1.830 3.189
2017-02-09 1.801 3.175
2016-11-01 1.768 3.116
2016-07-28 1.737 3.316
2016-04-26 1.704 3.274
2016-03-08 1.715 3.420
2016-02-11 1.810 3.739
2015-10-27 1.753 3.514
2015-10-23 1.760 3.265
2015-07-31 1.728 3.336
2015-07-29 1.727 3.329
2015-05-01 1.603 3.414
2015-04-29 1.603 3.253
2015-03-13 1.603 3.270
2015-02-11 1.663 3.396
2014-07-30 1.431 3.460
2014-04-30 1.404 3.674
2014-03-12 1.439 3.834
2014-02-12 1.445 3.847
2013-10-29 1.354 3.491
2013-07-30 1.330 3.764
2013-04-30 1.303 3.847
2013-03-11 1.309 4.025
2013-02-13 1.301 4.272
2012-11-02 1.260 4.424
2012-07-31 1.240 4.446
2012-05-01 1.259 4.501
2012-02-09 1.256 4.462
2011-11-01 1.233 4.524
2011-07-28 1.176 4.206
2011-04-28 1.170 3.307
2011-02-10 1.177 3.145
2010-10-28 1.144 3.054
2010-07-29 1.163 3.131
2010-05-04 1.177 3.150
2010-02-24 1.155 3.206
2009-11-05 1.149 3.415
2009-08-06 1.152 3.418
2009-05-07 1.196 3.697
2009-02-24 1.313 4.293
2008-09-19 1.116 4.344

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 covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.1x 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 4/6, 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, image provided by Google.
Jim Smith
COMPENSATION $10,034,980
AGE 58
TENURE AS CEO 6.7 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 compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

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

4
Average Tenure
55.5
Average Age
  • The tenure for the Thomson Reuters management team is about average.
Management Team

Jim Smith

TITLE
President
COMPENSATION
$10M
AGE
58
TENURE
6.7 yrs

Stephane Bello

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

Deirdre Stanley

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

Mary-Alice Vuicic

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

David W. Craig

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

Brian Peccarelli

TITLE
Co-Chief Operating Officer
AGE
57
TENURE
0.2 yrs

Rick King

TITLE
Executive Vice President of Operations
AGE
62
TENURE
1.3 yrs

Neil Masterson

TITLE
Co-Chief Operating Officer
COMPENSATION
$4M
AGE
49
TENURE
0.2 yrs

Linda Walker

TITLE
Chief Accounting Officer

Stewart Beaumont

TITLE
Chief Technology Officer
Board of Directors Tenure

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

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
16.3 yrs

Jim Smith

TITLE
President
COMPENSATION
$10M
AGE
58
TENURE
6.7 yrs

David Binet

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

Sheila Bair

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

Mike Daniels

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

Ed Clark

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

Barry Salzberg

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

Vance Opperman

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

Peter Thomson

TITLE
Director
COMPENSATION
$200K
AGE
53
TENURE
23.7 yrs

Wulf von Schimmelmann

TITLE
Corporate Director
COMPENSATION
$200K
AGE
71
TENURE
7.2 yrs
Recent Insider Trading
  • Thomson Reuters insiders have only sold shares in the past 3 months.
Who owns this company?
X
Management checks
We assess Thomson Reuters's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of 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

External News
Loading...
Simply Wall St News

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 -

Is Thomson Reuters Corporation (TSE:TRI) Worth $50.85 Based On Intrinsic Value?

Focusing on data points such as book values, along with the return and cost of equity, is practical for estimating TRI’s value. … The returns above the cost of equity is known as excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (10.9% – 8.43%) * $18.59 = $0.46 We use this value to calculate the terminal value of the company, which is how much we expect the company to continue to earn every year, forever. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = $0.46 / (8.43% – 2.13%) = $7.3 Putting this all together, we get the value of TRI’s share: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = $18.59 + $7.3 = CA$33.13 Given TRI's current share price of $50.85, TRI is , at this time, priced higher than its intrinsic value.

Simply Wall St -

Is Thomson Reuters Corporation (TSE:TRI) A Sell At Its Current PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for TRI Price per share = $40.07 Earnings per share = $1.942 ∴ Price-Earnings Ratio = $40.07 ÷ $1.942 = 20.6x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you accidentally compared lower growth firms with TRI, then TRI’s P/E would naturally be higher since investors would reward TRI’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with TRI, TRI’s P/E would again be higher since investors would reward TRI’s lower risk with a higher price as well.

Simply Wall St -

Want To Invest In Thomson Reuters Corporation (TSE:TRI)? Here's How It Performed Lately

View our latest analysis for Thomson Reuters Despite a decline, did TRI underperform the long-term trend and the industry? … This shows that, on average, Thomson Reuters has been able to improve its earnings over the past few years. … Let's take a look at if it is only due to industry tailwinds, or if Thomson Reuters has seen some company-specific growth.

Simply Wall St -

Company Info

Map
Description

Thomson Reuters Corporation provides news and information for professional markets worldwide. The company operates through three segments: Financial & Risk, Legal, and Tax & Accounting. It sells electronic content and services to professionals primarily on a subscription basis. The Financial & Risk segment offers critical news, information, and analytics enabling transactions and connecting communities of trading, investment, financial, and corporate professionals. This segment also provides regulatory and operational risk management solutions. The Legal segment offers critical online and print information, decision tools, and software and services to support legal, investigation, business, and government professionals. The Tax & Accounting segment provides integrated tax compliance and accounting information, software, and services for professionals in accounting firms, corporations, law firms, and government. Thomson Reuters Corporation also operates Reuters, which provides real-time multimedia news and information services to newspapers, television and cable networks, radio stations, and Websites. 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 based in Toronto, Canada.

Details
Name: Thomson Reuters Corporation
TRI
Exchange: TSX
Founded: 1799
CA$41,509,812,967
699,996,846
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 TOC Corporation Common Shares Deutsche Boerse AG 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
46,100
Thomson Reuters employees.
Industry
Financial Exchanges and Data
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/09/18 21:08
End of day share price update: 2018/09/18 00:00
Last estimates confirmation: 2018/09/13
Last earnings update: 2018/06/30
Last annual earnings update: 2017/12/31


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.