NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally poor debt management and poor profit margins.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 94.1% when compared to the same quarter one year prior, rising from $290.00 million to $563.00 million.
- TRI's revenue growth trails the industry average of 19.1%. Since the same quarter one year prior, revenues slightly increased by 7.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has slightly increased to $955.00 million or 7.54% when compared to the same quarter last year. Despite an increase in cash flow, THOMSON-REUTERS CORP's cash flow growth rate is still lower than the industry average growth rate of 31.75%.
- Despite currently having a low debt-to-equity ratio of 0.38, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that TRI's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.50 is low and demonstrates weak liquidity.
- TRI has underperformed the S&P 500 Index, declining 12.88% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
Thomson Reuters Corporation provides intelligent information for businesses and professionals in the financial, legal, tax and accounting, healthcare, science, and media markets worldwide. The company operates in two divisions, Markets and Professional. The company has a P/E ratio of 19.6, equal to the average computer software & services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Thomson Reuters has a market cap of $25.5 billion and is part of the
industry. Shares are down 20.1% year to date as of the close of trading on Friday.
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