Thomson Reuters Corp
Find Ratings ReportsTHOMSON-REUTERS CORP's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the subsector average, its revenue growth has not. THOMSON-REUTERS CORP has weak liquidity. Currently, the Quick Ratio is 0.75 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 6.90% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 1815.0 | 1765.0 |
EBITDA ($mil) | 703.0 | 690.0 |
EBIT ($mil) | 514.0 | 506.0 |
Net Income ($mil) | 678.0 | 218.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 1298.0 | 1069.0 |
Total Assets ($mil) | 18684.0 | 21711.0 |
Total Debt ($mil) | 3277.0 | 4996.0 |
Equity ($mil) | 11064.0 | 11885.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 38.73 | 39.09 |
EBITDA Margin | 38.73 | 39.09 |
Operating Margin | 28.32 | 28.67 |
Sales Turnover | 0.36 | 0.31 |
Return on Assets | 14.42 | 6.16 |
Return on Equity | 23.87 | 11.68 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.9 | 0.57 |
Debt/Capital | 0.23 | 0.3 |
Interest Expense | 0.0 | 51.0 |
Interest Coverage | 0.0 | 9.92 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 455.49 | 458.9 |
Div / share | 0.49 | 0.46 |
EPS | 1.43 | 0.38 |
Book value / share | 24.29 | 25.9 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 294152.0 | 357967.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 76.09 for the Web Search, Libraries, Archives, and Other Infor S subsector and a value on par with the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 6.47 indicates a significant premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 17.67. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, THOMSON-REUTERS CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
TRI 27.40 | Peers 76.09 | TRI 30.59 | Peers 32.96 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. TRI is trading at a significant discount to its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. TRI is trading at a valuation on par to its peers. |
|||||||||||||||||||||||
Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
TRI NA | Peers 26.19 | TRI NA | Peers 0.62 | |||||||||||||||||||||
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
|||||||||||||||||||||||
Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
TRI 6.47 | Peers 17.67 | TRI 93.40 | Peers 89.51 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. TRI is trading at a significant discount to its peers. |
Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. TRI is expected to keep pace with its peers on the basis of earnings growth. |
|||||||||||||||||||||||
Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
TRI 10.54 | Peers 8.21 | TRI 2.51 | Peers 15.59 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. TRI is trading at a significant premium to its subsector. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. TRI significantly trails its peers on the basis of sales growth. |
|||||||||||||||||||||||