Thomson Reuters Corp. (TRI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Yellow Pages Ltd.

RB Global, Inc.

Q4, Inc.

Thomson Reuters Corp.

Rivalry Corp.

Metaguest.AI, Inc.

XTM, Inc.

Illumin Holdings, Inc.

Enthusiast Gaming Holdings, Inc.

LifeSpeak, Inc.

Totally Hip Technologies, Inc.

Why is Thomson Reuters Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 9.31

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CAD 3,758.42 MM
INTEREST COVERAGE RATIO(Q) Highest at 2,318.42
DIVIDEND PAYOUT RATIO(Y) Highest at 63.42%

With ROE of 12.62%, it has a very expensive valuation with a 3.02 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -58.00%, its profits have fallen by -32.1%

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -1.1% over the previous quarter and currently hold 0% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

Below par performance in long term as well as near term

Along with generating -58.00% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Thomson Reuters Corp. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Thomson Reuters Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Thomson Reuters Corp.

-58.0%

1.61

42.47%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.83%

EBIT Growth (5y)

11.56%

EBIT to Interest (avg)

9.31

Debt to EBITDA (avg)

0.92

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

0.50

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

71.52%

Pledged Shares

Institutional Holding

22.06%

ROCE (avg)

11.01%

ROE (avg)

19.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.02

EV to EBIT

18.63

EV to EBITDA

12.73

EV to Capital Employed

2.72

EV to Sales

4.98

PEG Ratio

Dividend Yield

ROCE (Latest)

14.57%

ROE (Latest)

12.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Bullish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 3,758.42 MM

INTEREST COVERAGE RATIO(Q)

Highest at 2,318.42

DIVIDEND PAYOUT RATIO(Y)

Highest at 63.42%

RAW MATERIAL COST(Y)

Fallen by -1.06% (YoY

DIVIDEND PER SHARE(HY)

Highest at CAD 6.68

NET SALES(Q)

Highest at CAD 2,862.75 MM

OPERATING PROFIT(Q)

Highest at CAD 1,208.47 MM

OPERATING PROFIT MARGIN(Q)

Highest at 42.21 %

PRE-TAX PROFIT(Q)

Highest at CAD 835.37 MM

NET PROFIT(Q)

Highest at CAD 654.3 MM

EPS(Q)

Highest at CAD 1.44

-6What is not working for the Company

NET PROFIT(HY)

At CAD 1,118.63 MM has Grown at -27.15%

ROCE(HY)

Lowest at 12.4%

CASH AND EQV(HY)

Lowest at CAD 1,268.27 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.68 times

Here's what is working for Thomson Reuters Corp.

Operating Cash Flow

Highest at CAD 3,758.42 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Interest Coverage Ratio

Highest at 2,318.42

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at CAD 2,862.75 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 1,208.47 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 42.21 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 835.37 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 654.3 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 1.44

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Dividend per share

Highest at CAD 6.68

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 63.42%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -1.06% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 336.07 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Thomson Reuters Corp.

Cash and Eqv

Lowest at CAD 1,268.27 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 6.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio