Thomson Reuters Corp

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TRI : NYSE : Services
$41.55 up 0.09 | 0.22%
Today's Range: 41.36 - 41.64
Avg. Daily Volume: 816,300
08/29/16 - 10:50 AM ET

Financial Analysis


THOMSON-REUTERS CORP's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. THOMSON-REUTERS CORP has very weak liquidity. Currently, the Quick Ratio is 0.38 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 12.98% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)2769.02802.0
EBITDA ($mil)765.0698.0
EBIT ($mil)381.0297.0
Net Income ($mil)337.0262.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)686.01127.0
Total Assets ($mil)28609.030017.0
Total Debt ($mil)8774.08535.0
Equity ($mil)11831.013596.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin27.6324.91
EBITDA Margin27.6224.91
Operating Margin13.7610.6
Sales Turnover0.410.4
Return on Assets4.496.47
Return on Equity9.9413.58
Debt Q2 FY16 Q2 FY15
Current Ratio0.820.71
Debt/Capital0.430.39
Interest Expense91.095.0
Interest Coverage4.193.13


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)745.61780.36
Div / share0.340.34
EPS0.390.26
Book value / share15.8717.42
Institutional Own % n/a n/a
Avg Daily Volume813055.0864604.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 22.64 for the Media industry and a value on par with the S&P 500 average of 25.13. To use another comparison, its price-to-book ratio of 2.62 indicates valuation on par with the S&P 500 average of 2.82 and a discount versus the industry average of 3.22. 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 27.02 Peers 22.64   TRI 10.77 Peers 11.61

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

TRI is trading at a premium 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
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TRI NA Peers 65.58   TRI NA Peers 1.13

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 2.62 Peers 3.22   TRI -33.05 Peers 8.13

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 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 2.65 Peers 6.22   TRI -2.12 Peers 11.32

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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