Thomson Reuters Corp

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TRI : NYSE : Financial
$45.92 | %
Today's Range: 45.68 - 46.02
Avg. Daily Volume: 1068500.0
09/22/17 - 4:02 PM ET

Financial Analysis


THOMSON-REUTERS CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. THOMSON-REUTERS CORP has weak liquidity. Currently, the Quick Ratio is 0.58 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 increased by 6.82% 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.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)2782.02769.0
EBITDA ($mil)777.0765.0
EBIT ($mil)412.0381.0
Net Income ($mil)192.0337.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)771.0686.0
Total Assets ($mil)26517.028609.0
Total Debt ($mil)7044.08774.0
Equity ($mil)12639.011831.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin27.9327.63
EBITDA Margin27.9227.62
Operating Margin14.8113.76
Sales Turnover0.420.39
Return on Assets11.264.49
Return on Equity7.99.19
Debt Q2 FY17 Q2 FY16
Current Ratio0.790.82
Debt/Capital0.360.43
Interest Expense88.091.0
Interest Coverage4.684.19


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)714.7745.61
Div / share0.350.34
EPS0.260.39
Book value / share17.6815.87
Institutional Own % n/a n/a
Avg Daily Volume1410427.01126607.0

Valuation


BUY. The current P/E ratio indicates a significant premium compared to an average of 21.01 for the Capital Markets industry and a premium compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 2.57 indicates a discount versus the S&P 500 average of 3.10 and a discount versus the industry average of 3.76. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TRI 33.40 Peers 21.01   TRI 14.62 Peers 20.56

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

TRI is trading at a significant premium to its peers.

 

Discount. 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 significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TRI NA Peers 18.04   TRI NA Peers 2.22

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
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TRI 2.57 Peers 3.76   TRI -4.23 Peers 55.04

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.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, TRI is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TRI 2.90 Peers 4.09   TRI 0.04 Peers 19.17

Discount. 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 discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

TRI significantly trails its peers on the basis of sales growth

 

 

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