Thomson Reuters Corporation Fundamental Analysis (NASDAQ: TRI)
Thomson Reuters Corporation Fundamental Analysis (NASDAQ: TRI)
Thomson Reuters Corporation (NASDAQ: TRI) shows moderate financial fundamentals with a PE ratio of 27.50, profit margin of 21.22%, and ROE of 14.26%. The company generates $7.7B in annual revenue with moderate year-over-year growth of 3.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TRI's fundamental strength across five key dimensions:
Efficiency Score
WeakTRI struggles to generate sufficient returns from assets.
Valuation Score
WeakTRI trades at a premium to fair value.
Growth Score
WeakTRI faces weak or negative growth trends.
Financial Health Score
ModerateTRI shows balanced financial health with some risks.
Profitability Score
ModerateTRI maintains healthy but balanced margins.
Key Financial Metrics
Is TRI Expensive or Cheap?
P/E Ratio
TRI trades at 27.50 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TRI's PEG of 6.17 indicates potential overvaluation.
Price to Book
The market values Thomson Reuters Corporation at 4.12 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.85 times EBITDA. This signals the market has high growth expectations.
How Well Does TRI Make Money?
Net Profit Margin
For every $100 in sales, Thomson Reuters Corporation keeps $21.22 as profit after all expenses.
Operating Margin
Core operations generate 27.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.26 in profit for every $100 of shareholder equity.
ROA
Thomson Reuters Corporation generates $9.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Thomson Reuters Corporation generates strong operating cash flow of $2.82B, reflecting robust business health.
Free Cash Flow
Thomson Reuters Corporation generates strong free cash flow of $2.18B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.99 in free cash annually.
FCF Yield
TRI converts 4.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How TRI Stacks Against Its Sector Peers
| Metric | TRI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.50 | 30.97 | Better (Cheaper) |
| ROE | 14.26% | 1108.00% | Weak |
| Net Margin | 21.22% | -21241.00% (disorted) | Strong |
| Debt/Equity | 0.29 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 0.51 | 21.73 | Weak Liquidity |
| ROA | 9.20% | -1325740.00% (disorted) | Weak |
TRI outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Thomson Reuters Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.22%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
48.11%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
62.44%
Industry Style: Cyclical, Value, Infrastructure
High Growth