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Thomson Reuters Corp TRI

Morningstar Rating
$158.29 +0.16 (0.10%)
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Company Report

Thomson Reuters Earnings: Mostly Steady and Solid Outlook

Thomson Reuters finished 2023 with a decent quarter. Revenue of $1.82 billion was virtually in line with the FactSet consensus estimate of $1.83 billion while adjusted EBITDA and adjusted EPS edged out the consensus estimate by 1% and 8%, respectively. The firm’s 2024 revenue outlook aligned with consensus expectations but adjusted EBITDA was about 3% lighter. We will maintain our narrow moat rating but are tweaking our fair value estimate to $120 from $112 as higher revenue, particularly in 2025 and 2026, is partially offset by investment spending. While we see many positive aspects to Thomson Reuters’ business model, we view shares as pricey.

Price vs Fair Value

TRI is trading at a 32% premium.
Price
$158.29
Fair Value
$613.00
Uncertainty
Low
1-Star Price
$748.00
5-Star Price
$26.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

A renewed focus and new management following the Refinitiv divestment could see margins improve, driving profitability.

Bears

Since divesting Refinitiv and instituting its expense reduction programs, the firm's valuation has risen, which could limit upside given that the firm's efforts are already appreciated by the market.

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News

Trading Information

Previous Close Price
$158.13
Day Range
$157.90159.14
52-Week Range
$117.46161.58
Bid/Ask
$139.46 / $253.18
Market Cap
$71.60 Bil
Volume/Avg
296,776 / 322,331

Key Statistics

Price/Earnings (Normalized)
47.98
Price/Sales
10.72
Dividend Yield (Trailing)
1.28%
Dividend Yield (Forward)
1.36%
Total Yield
5.64%

Company Profile

Thomson Reuters is the result of the $17.6 billion megamerger of Canada’s Thomson and the United Kingdom’s Reuters Group in 2008. In 2021, Thomson Reuters completed the sale of Refinitiv to LSE Group. Thomson Reuters' three largest segments are its legal professionals, Tax and accounting, and corporates segments. Legal professionals is about 42% of the firm's revenue and 47% of the firm's adjusted EBITDA. Tax and accounting makes up about 20%-25% of the firm's revenue and EBITDA. Corporates, which consists of legal professionals and tax and accounting products sold to corporations, also makes up about 20%-25% of the firm's revenue and EBITDA. Thomson Reuters' smaller segments include its Reuters news business and global print business.
Sector
Industrials
Industry
Specialty Business Services
Stock Style Box
Large Growth
Total Number of Employees
25,200

Competitors

Valuation

Metric
TRI
INTU
Price/Earnings (Normalized)
47.9843.15
Price/Book Value
6.4610.83
Price/Sales
10.7212.60
Price/Cash Flow
38.9440.30
Price/Earnings
TRI
INTU

Financial Strength

Metric
TRI
INTU
Quick Ratio
0.910.57
Current Ratio
1.051.17
Interest Coverage
8.1413.53
Quick Ratio
TRI
INTU

Profitability

Metric
TRI
INTU
Return on Assets (Normalized)
7.42%15.60%
Return on Equity (Normalized)
13.11%26.20%
Return on Invested Capital (Normalized)
10.14%19.07%
Return on Assets
TRI
INTU
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