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Thomson Reuters Corp TRI

Morningstar Rating
CAD 240.37 +3.18 (1.34%)
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Company Report

Thomson Reuters Earnings: Strong Underlying Revenue Trends Across the Firm's Segments

Thomson Reuters reported a very good start to 2024. First-quarter organic revenue growth accelerated to 9% from 7% in the fourth quarter with organic growth particularly strong in corporate and tax and accounting professionals segments. While there were some one-time and seasonal items impacting growth that likely won’t occur in the rest of 2024, underlying trends were still strong, in our view. As we take up our revenue estimates, we are increasing our fair value estimate to $137 from $128 but still regard shares as pricey.

Price vs Fair Value

TRI is trading at a 674% premium.
Price
CAD 240.37
Fair Value
CAD 357.00
Uncertainty
Low
1-Star Price
CAD 647.00
5-Star Price
CAD 422.80
Economic Moat
Mmhbrt
Capital Allocation
Ttxhrlb

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
CAD 237.19
Day Range
CAD 237.01240.50
52-Week Range
CAD 163.01240.50
Bid/Ask
CAD 232.00 / CAD 244.95
Market Cap
CAD 108.29 Bil
Volume/Avg
235,290 / 262,799

Key Statistics

Price/Earnings (Normalized)
46.68
Price/Sales
11.57
Dividend Yield (Trailing)
1.16%
Dividend Yield (Forward)
1.68%
Total Yield
4.60%

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
25,600

Competitors

Valuation

Metric
TRI
INTU
RELX
Price/Earnings (Normalized)
46.6836.5231.03
Price/Book Value
7.159.0519.08
Price/Sales
11.5710.897.47
Price/Cash Flow
38.2132.4626.60
Price/Earnings
TRI
INTU
RELX

Financial Strength

Metric
TRI
INTU
RELX
Quick Ratio
0.841.000.45
Current Ratio
0.971.500.52
Interest Coverage
10.5114.098.62
Quick Ratio
TRI
INTU
RELX

Profitability

Metric
TRI
INTU
RELX
Return on Assets (Normalized)
8.80%15.81%14.24%
Return on Equity (Normalized)
15.29%26.45%61.55%
Return on Invested Capital (Normalized)
11.81%19.62%23.47%
Return on Assets
TRI
INTU
RELX
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