Thomson Reuters Corp

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TRI : NYSE : Services
$43.33 up 0.15 | 0.35%
Today's Range: 43.22 - 43.53
Avg. Daily Volume: 858600.0
12/02/16 - 3:43 PM ET

Financial Analysis


THOMSON-REUTERS CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. THOMSON-REUTERS CORP has very weak liquidity. Currently, the Quick Ratio is 0.34 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 11.21% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)2744.02747.0
EBITDA ($mil)766.0776.0
EBIT ($mil)383.0383.0
Net Income ($mil)273.0280.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)831.0710.0
Total Assets ($mil)28413.029048.0
Total Debt ($mil)9162.08493.0
Equity ($mil)11348.012782.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin27.9228.25
EBITDA Margin27.9128.24
Operating Margin13.9613.94
Sales Turnover0.40.4
Return on Assets4.56.86
Return on Equity10.1514.59
Debt Q3 FY16 Q3 FY15
Current Ratio0.720.65
Debt/Capital0.450.4
Interest Expense95.089.0
Interest Coverage4.034.3


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)734.73767.73
Div / share0.340.34
EPS0.340.32
Book value / share15.4516.65
Institutional Own % n/a n/a
Avg Daily Volume859976.0826314.0

Valuation


HOLD. THOMSON-REUTERS CORP's P/E ratio indicates a premium compared to an average of 20.86 for the Capital Markets industry and a premium compared to the S&P 500 average of 25.29. To use another comparison, its price-to-book ratio of 2.75 indicates valuation on par with the S&P 500 average of 2.80 and a significant discount versus the industry average of 4.41. 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 27.93 Peers 20.86   TRI 10.54 Peers 16.90

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 20.08   TRI NA Peers 2.09

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 2.75 Peers 4.41   TRI -35.05 Peers 53.80

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 2.72 Peers 4.75   TRI -1.10 Peers 1.17

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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