NYSE: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. More Details


Snowflake Analysis

Excellent balance sheet average dividend payer.


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 US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TRI's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.6%

TRI

0.3%

US Professional Services

-0.4%

US Market


1 Year Return

15.4%

TRI

21.4%

US Professional Services

36.2%

US Market

Return vs Industry: TRI underperformed the US Professional Services industry which returned 21.4% over the past year.

Return vs Market: TRI underperformed the US Market which returned 36.2% over the past year.


Shareholder returns

TRIIndustryMarket
7 Day-0.6%0.3%-0.4%
30 Day3.0%-5.0%-2.3%
90 Day6.0%-2.2%5.0%
1 Year17.7%15.4%22.2%21.4%39.1%36.2%
3 Year129.5%94.1%48.8%44.8%48.4%39.0%
5 Year160.5%106.7%119.0%107.1%116.6%92.4%

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?

37.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRI ($86.39) is trading above our estimate of fair value ($80.79)

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


Price To Earnings Ratio

PE vs Industry: TRI is poor value based on its PE Ratio (37.4x) compared to the US Professional Services industry average (28x).

PE vs Market: TRI is poor value based on its PE Ratio (37.4x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: TRI is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: TRI is overvalued based on its PB Ratio (4.3x) compared to the US Professional Services industry average (3.2x).


Next Steps

Future Growth

How is Thomson Reuters forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRI's forecast earnings growth (8.5% per year) is above the savings rate (2%).

Earnings vs Market: TRI's earnings (8.5% per year) are forecast to grow slower than the US market (19.2% per year).

High Growth Earnings: TRI's earnings are forecast to grow, but not significantly.

Revenue vs Market: TRI's revenue (4.2% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: TRI's revenue (4.2% 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 (13.8%).


Next Steps

Past Performance

How has Thomson Reuters performed over the past 5 years?

6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRI has a large one-off gain of $736.0M impacting its December 31 2020 financial results.

Growing Profit Margin: TRI's current net profit margins (19.2%) are lower than last year (26.5%).


Past Earnings Growth Analysis

Earnings Trend: TRI's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: TRI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TRI had negative earnings growth (-26.8%) over the past year, making it difficult to compare to the Professional Services industry average (1.4%).


Return on Equity

High ROE: TRI's Return on Equity (11.5%) 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 ($4.0B) exceed its short term liabilities ($2.7B).

Long Term Liabilities: TRI's short term assets ($4.0B) do not cover its long term liabilities ($5.2B).


Debt to Equity History and Analysis

Debt Level: TRI's debt to equity ratio (37%) is considered satisfactory.

Reducing Debt: TRI's debt to equity ratio has reduced from 67.2% to 37% over the past 5 years.

Debt Coverage: TRI's debt is well covered by operating cash flow (47.3%).

Interest Coverage: TRI's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Next Steps

Dividend

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

1.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TRI's dividend (1.88%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: TRI's dividend (1.88%) is low compared to the top 25% of dividend payers in the US market (3.64%).


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 reasonable payout ratio (65.8%), TRI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TRI's dividends in 3 years are forecast to be covered by earnings (57.5% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Steve Hasker (50 yo)

1

Tenure

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...


Leadership Team

NamePositionTenureCompensationOwnership
Stephane Bello
Vie Chairman & President of Enterprise Centre1yrUS$4.73m0.029%
$ 12.4m
Brian Peccarelli
Executive VP & COO of Customer Markets10.08yrsUS$3.11m0.0034%
$ 1.4m
Michael Friedenberg
President of Reuters News2.25yrsUS$3.24m0.0063%
$ 2.7m
Stephen Hasker
President1yrno datano data
Michael Eastwood
Chief Financial Officer1yrno data0.0011%
$ 470.4k
Kirsty Roth
Chief Operations & Technology Officer0.67yrno datano data
Linda Walker
Chief Accounting Officerno datano data0.0047%
$ 2.0m
Frank Golden
Head of Investor Relationsno datano datano data
Thomas Kim
Chief Legal Officer & Company Secretary1.42yrsno data0.00067%
$ 286.5k
Alex Thompson
Chief Communications Officerno datano datano data
Andrew Perrin
Vice President of Corporate Development6.17yrsno datano data
Christopher Barlow
Senior Director of Marketingno datano datano data

1.2yrs

Average Tenure

53yo

Average Age

Experienced Management: TRI's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Hasker
President1yrno datano data
William Clark
Corporate Director5.5yrsUS$250.00k0.0073%
$ 3.1m
David Kenneth Thomson
Chairman of the Board18.83yrsUS$600.00k0.010%
$ 4.3m
Vance Opperman
Lead Independent Directorno dataUS$350.00k0.010%
$ 4.3m
Peter Thomson
Director26.17yrsUS$200.00kno data
Wulf von Schimmelmann
Independent Corporate Director9.67yrsUS$200.00kno data
Barry Salzberg
Independent Director5.5yrsUS$250.00kno data
David Binet
Deputy Chairman of the Board6.83yrsUS$350.00k0.053%
$ 22.6m
Kirk Arnold
Independent Director1.17yrsno datano data
Michael Daniels
Independent Corporate Director6.83yrsUS$250.00k0.00059%
$ 252.3k
Kim Rivera
Independent Director1.33yrsUS$30.14kno data
Kirk Koenigsbauer
Independent Director1yrno datano data

5.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: TRI's board of directors are considered experienced (5.5 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: NYSE
  • Founded: 1799
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: CA$54.141b
  • Listing Market Cap: CA$42.763b
  • Shares outstanding: 495.26m
  • 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 throug...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 23:07
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
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.