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Thomson Reuters

TSX:TRI
Snowflake Description

Adequate balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TRI
TSX
CA$54B
Market Cap
  1. Home
  2. CA
  3. Commercial Services
Company description

Thomson Reuters Corporation provides news and information-based tools to professionals worldwide. The last earnings update was 108 days ago. More info.


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TRI Share Price and Events
7 Day Returns
0.1%
TSX:TRI
0.1%
CA Professional Services
0.7%
CA Market
1 Year Returns
54.8%
TSX:TRI
50.8%
CA Professional Services
5.4%
CA Market
TRI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Thomson Reuters (TRI) 0.1% 5.1% 14.4% 54.8% 74.6% 98.3%
CA Professional Services 0.1% 5.1% 14.5% 50.8% 69% 92.1%
CA Market 0.7% 1.1% 4.4% 5.4% 6.2% 15.1%
1 Year Return vs Industry and Market
  • TRI outperformed the Professional Services industry which returned 50.8% over the past year.
  • TRI outperformed the Market in Canada which returned 5.4% over the past year.
Price Volatility
TRI
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Thomson Reuters undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Thomson Reuters to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Thomson Reuters.

TSX:TRI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:TRI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.84
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.838 (1 + (1- 26.5%) (8.82%))
0.928
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (0.928 * 5.44%)
6.49%

Discounted Cash Flow Calculation for TSX:TRI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Thomson Reuters is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:TRI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.49%)
2020 1,135.43 Analyst x7 1,066.27
2021 1,251.50 Analyst x4 1,103.68
2022 1,335.34 Est @ 6.7% 1,105.89
2023 1,403.72 Est @ 5.12% 1,091.71
2024 1,460.11 Est @ 4.02% 1,066.39
2025 1,507.47 Est @ 3.24% 1,033.92
2026 1,548.22 Est @ 2.7% 997.19
2027 1,584.20 Est @ 2.32% 958.21
2028 1,616.81 Est @ 2.06% 918.37
2029 1,647.09 Est @ 1.87% 878.58
Present value of next 10 years cash flows $10,220.00
TSX:TRI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,647.09 × (1 + 1.44%) ÷ (6.49% – 1.44%)
$33,109.74
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $33,109.74 ÷ (1 + 6.49%)10
$17,661.15
TSX:TRI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $10,220.00 + $17,661.15
$27,881.15
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $27,881.15 / 495.60
$56.26
TSX:TRI Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:TRI)
1.326
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $56.26 x 1.326
CA$74.61
Value per share (CAD) From above. CA$74.61
Current discount Discount to share price of CA$108.36
= -1 x (CA$108.36 - CA$74.61) / CA$74.61
-45.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Thomson Reuters is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Thomson Reuters's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Thomson Reuters's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:TRI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $0.28
TSX:TRI Share Price ** TSX (2020-02-20) in CAD CA$108.36
TSX:TRI Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.754 $81.71
Canada Professional Services Industry PE Ratio Median Figure of 5 Publicly-Listed Professional Services Companies 43.93x
Canada Market PE Ratio Median Figure of 511 Publicly-Listed Companies 15.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Thomson Reuters.

TSX:TRI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:TRI Share Price ÷ EPS (both in USD)

= 81.71 ÷ 0.28

288.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Thomson Reuters is overvalued based on earnings compared to the CA Professional Services industry average.
  • Thomson Reuters is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Thomson Reuters's expected growth come at a high price?
Raw Data
TSX:TRI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 288.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
19.1%per year
North America Professional Services Industry PEG Ratio Median Figure of 35 Publicly-Listed Professional Services Companies 1.93x
Canada Market PEG Ratio Median Figure of 250 Publicly-Listed Companies 1.11x

*Line of best fit is calculated by linear regression .

TSX:TRI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 288.87x ÷ 19.1%

15.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Thomson Reuters is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Thomson Reuters's assets?
Raw Data
TSX:TRI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $17.18
TSX:TRI Share Price * TSX (2020-02-20) in CAD CA$108.36
TSX:TRI Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.754 $81.71
Canada Professional Services Industry PB Ratio Median Figure of 9 Publicly-Listed Professional Services Companies 3.72x
Canada Market PB Ratio Median Figure of 2,337 Publicly-Listed Companies 1.4x
TSX:TRI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:TRI Share Price ÷ Book Value per Share (both in USD)

= 81.71 ÷ 17.18

4.76x

* Primary Listing of Thomson Reuters.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Thomson Reuters is overvalued based on assets compared to the CA Professional Services industry average.
X
Value checks
We assess Thomson Reuters's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. Thomson Reuters has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Thomson Reuters expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Thomson Reuters expected to grow at an attractive rate?
  • Thomson Reuters's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Thomson Reuters's earnings growth is expected to exceed the Canada market average.
  • Thomson Reuters's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:TRI Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:TRI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 19.1%
TSX:TRI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 4.6%
Canada Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 21.7%
Canada Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 4.9%
Canada Market Earnings Growth Rate Market Cap Weighted Average 10.8%
Canada Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:TRI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:TRI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31
2021-12-31 6,477 1,806 1,032 9
2020-12-31 6,210 1,595 1,335 14
2020-02-20
2019-12-31 5,917 811 1,599 13
TSX:TRI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 5,850 337 159
2019-06-30 5,721 923 153
2019-03-31 5,609 1,585 69
2018-12-31 5,501 2,062 87
2018-09-30 5,388 2,827 462
2018-06-30 5,376 2,785 664
2018-03-31 5,345 2,816 587
2017-12-31 5,297 2,029 571
2017-09-30 6,743 2,272 543
2017-06-30 8,215 2,222 673
2017-03-31 9,704 2,158 931
2016-12-31 11,166 2,984 1,003

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Thomson Reuters's earnings are expected to grow by 19.1% yearly, however this is not considered high growth (20% yearly).
  • Thomson Reuters's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:TRI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Thomson Reuters Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:TRI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31
2021-12-31 1.46 1.46 1.46 1.00
2020-12-31 1.88 2.22 1.36 4.00
2020-02-20
2019-12-31 0.80 0.92 0.64 3.00
TSX:TRI Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 0.28
2019-06-30 0.26
2019-03-31 0.11
2018-12-31 0.13
2018-09-30 0.72
2018-06-30 1.03
2018-03-31 0.90
2017-12-31 0.88
2017-09-30 0.83
2017-06-30 1.01
2017-03-31 1.39
2016-12-31 1.48

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Thomson Reuters is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Thomson Reuters's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Thomson Reuters has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Thomson Reuters performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Thomson Reuters's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Thomson Reuters's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Thomson Reuters's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Thomson Reuters's 1-year earnings growth is negative, it can't be compared to the CA Professional Services industry average.
Earnings and Revenue History
Thomson Reuters's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Thomson Reuters Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:TRI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 5,850.00 159.00 26.00
2019-06-30 5,721.00 153.00 26.00
2019-03-31 5,609.00 69.00 26.00
2018-12-31 5,501.00 87.00 27.00
2018-09-30 5,388.00 462.00 27.00
2018-06-30 5,376.00 664.00 28.00
2018-03-31 5,345.00 587.00 29.00
2017-12-31 5,297.00 571.00 29.00
2017-09-30 6,743.00 543.00 34.00
2017-06-30 8,215.00 673.00 41.00
2017-03-31 9,704.00 931.00 46.00
2016-12-31 11,166.00 1,003.00 52.00
2016-09-30 11,193.00 1,093.00 53.00
2016-06-30 11,196.00 1,088.00 52.00
2016-03-31 11,229.00 1,004.00 52.00
2015-12-31 11,257.00 1,069.00 52.00
2015-09-30 11,581.00 1,866.00 48.00
2015-06-30 11,941.00 1,847.00 45.00
2015-03-31 12,298.00 1,889.00 42.00
2014-12-31 12,607.00 1,906.00 39.00
2014-09-30 12,674.00 404.00 44.00
2014-06-30 12,653.00 445.00 50.00
2014-03-31 12,657.00 437.00 56.00
2013-12-31 12,702.00 124.00 62.00
2013-09-30 12,788.00 828.00 64.00
2013-06-30 12,883.00 996.00 95.00
2013-03-31 12,992.00 1,657.00 64.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Thomson Reuters has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Thomson Reuters used its assets less efficiently than the CA Professional Services industry average last year based on Return on Assets.
  • Thomson Reuters's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Thomson Reuters's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Thomson Reuters has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Thomson Reuters's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Thomson Reuters's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Thomson Reuters is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Thomson Reuters's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Thomson Reuters's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Thomson Reuters Company Filings, last reported 4 months ago.

TSX:TRI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 8,589.00 3,300.00 1,201.00
2019-06-30 9,098.00 3,295.00 2,156.00
2019-03-31 8,968.00 3,290.00 2,306.00
2018-12-31 9,226.00 3,292.00 2,782.00
2018-09-30 12,550.00 7,367.00 549.00
2018-06-30 12,163.00 7,836.00 927.00
2018-03-31 13,384.00 7,380.00 555.00
2017-12-31 13,575.00 7,272.00 972.00
2017-09-30 13,238.00 7,359.00 1,004.00
2017-06-30 13,133.00 7,339.00 857.00
2017-03-31 13,235.00 7,432.00 943.00
2016-12-31 13,256.00 7,716.00 2,556.00
2016-09-30 11,830.00 9,476.00 956.00
2016-06-30 12,313.00 9,085.00 801.00
2016-03-31 12,836.00 9,212.00 979.00
2015-12-31 13,100.00 8,794.00 1,142.00
2015-09-30 13,271.00 8,844.00 869.00
2015-06-30 14,085.00 8,870.00 1,299.00
2015-03-31 13,894.00 8,712.00 1,032.00
2014-12-31 14,659.00 8,317.00 1,179.00
2014-09-30 15,499.00 9,000.00 1,837.00
2014-06-30 16,117.00 8,120.00 847.00
2014-03-31 16,167.00 8,086.00 800.00
2013-12-31 16,430.00 8,139.00 1,499.00
2013-09-30 17,277.00 7,031.00 672.00
2013-06-30 17,047.00 7,997.00 1,708.00
2013-03-31 17,078.00 7,532.00 527.00
  • Thomson Reuters's level of debt (38.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (58.1% vs 38.4% today).
  • Debt is not well covered by operating cash flow (10.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.9x coverage).
X
Financial health checks
We assess Thomson Reuters's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Thomson Reuters has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Thomson Reuters's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.76%
Current annual income from Thomson Reuters dividends. Estimated to be 2.01% next year.
If you bought CA$2,000 of Thomson Reuters shares you are expected to receive CA$35 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Thomson Reuters's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (1.89%).
  • Thomson Reuters's dividend is below the markets top 25% of dividend payers in Canada (5.29%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:TRI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
North America Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.1%
Canada Market Average Dividend Yield Market Cap Weighted Average of 336 Stocks 3.4%
Canada Minimum Threshold Dividend Yield 10th Percentile 1%
Canada Bottom 25% Dividend Yield 25th Percentile 1.9%
Canada Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:TRI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31
2021-12-31 1.80 3.00
2020-12-31 1.55 5.00
2020-02-20
2019-12-31 1.43 5.00
TSX:TRI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-10-31 1.440 1.949
2019-05-08 1.440 2.166
2019-02-26 1.440 2.481
2018-10-09 1.400 2.746
2018-08-08 1.520 3.105
2018-01-30 1.520 3.441
2017-11-01 1.520 3.135
2017-04-28 1.520 3.026
2017-03-09 1.520 3.190
2017-02-09 1.520 3.175
2016-11-01 1.498 3.116
2016-07-28 1.498 3.316
2016-04-26 1.498 3.274
2016-03-08 1.498 3.420
2016-02-11 1.498 3.739
2015-10-27 1.476 3.514
2015-10-23 1.476 3.265
2015-07-31 1.476 3.336
2015-07-29 1.476 3.329
2015-05-01 1.476 3.414
2015-04-29 1.476 3.253
2015-03-13 1.476 3.270
2015-02-11 1.476 3.396
2014-07-30 1.454 3.460
2014-04-30 1.454 3.674
2014-03-12 1.454 3.834
2014-02-12 1.454 3.847
2013-10-29 1.432 3.491
2013-07-30 1.432 3.764
2013-04-30 1.432 3.847
2013-03-11 1.432 4.025
2013-02-13 1.432 4.272
2012-11-02 1.410 4.423
2012-07-31 1.410 4.446
2012-05-01 1.410 4.501
2012-02-09 1.410 4.462
2011-11-01 1.366 4.525
2011-07-28 1.366 4.206
2011-04-28 1.366 3.307
2011-02-10 1.366 3.145
2010-10-28 1.278 3.054
2010-07-29 1.278 3.131
2010-05-04 1.278 3.150
2010-02-24 1.278 3.206
2009-11-05 1.234 3.415
2009-08-06 1.234 3.418
2009-05-07 1.234 3.697
2009-02-24 1.234 4.293

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Thomson Reuters's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Thomson Reuters's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Thomson Reuters afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Thomson Reuters has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Thomson Reuters's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Smith
COMPENSATION $14,485,109
AGE 59
TENURE AS CEO 8.1 years
CEO Bio

Mr. James C. Smith, also known as Jim, has been the Chief Executive Officer and President of Thomson Corporation (Now Thomson Reuters Corporation) since January 2012. Mr. Smith served as chief operating officer of Thomson Corporation from September 28, 2011 to December 2011 and previously since January 1, 2007. He served as Chief Executive Officer of Professional Division of Thomson Corporation form April 2008 to September 2009 and served as its President of Professional division. He served as Chief Executive Officer of Professional Division at Thomson Reuters UK Limited. He served as Executive Vice President of Thomson Corporation. Mr. Smith served as President and Chief Executive Officer of Thomson Learning’s Academic and Reference/International Group of Thomson Corporation since April 2005. Following the sale of the Newspaper Group in 2000, he joined the Thomson Corporate Office and served as an Executive Vice President of Human Resources and Administration of Thomson Corporation since December 2001. He served as an Executive Vice President of Development and Corporate Affairs of Thomson Corporation since January 2002. He was responsible for Human Resources, Succession Planning, Training and Development, Organizational Development and various administrative activities for Thomson Corporation. He oversaw the Thomson's professional business information segments, including North American legal, tax and accounting, international legal and regulatory, healthcare and scientific. Mr. Smith joined Thomson Newspaper Group in 1987. He has worked for Thomson Corporation for 15 years, primarily in Newspaper Group that sold and held a number of operating positions. He began his career as a Journalist and held several Editorial and General Management positions prior to joining Thomson. He led a number of professional publishing businesses serving the legal, regulatory and academic markets. He has been a Non-Independent Director at Thomson Corporation since January 2012. He has been an Independent Director at Pfizer Inc. since June 26, 2014. Mr. Smith is a member of the International Business Council of the World Economic Forum and the Board of Directors of the Brazil-U.S. Business Council. He also serves on the board of the World Economic Forum’s Partnering Against Corruption Initiative He serves on the International Advisory Boards of British American Business and the Atlantic Council. Mr. Smith holds a BA from Marshall University.

CEO Compensation
  • Jim's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jim's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Thomson Reuters management team in years:

6.6
Average Tenure
58.5
Average Age
  • The average tenure for the Thomson Reuters management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jim Smith

TITLE
President
COMPENSATION
$14M
AGE
59
TENURE
8.1 yrs

Stephane Bello

TITLE
Executive VP & CFO
COMPENSATION
$5M
AGE
59
TENURE
8.1 yrs

Brian Peccarelli

TITLE
Executive VP & COO of Customer Markets
COMPENSATION
$7M
AGE
58
TENURE
9 yrs

Neil Masterson

TITLE
Executive VP and COO of Operations & Enablement
COMPENSATION
$7M
AGE
50

Mike Friedenberg

TITLE
President of Reuters News
COMPENSATION
$6M
AGE
52
TENURE
1.2 yrs

Linda Walker

TITLE
Chief Accounting Officer

Stewart Beaumont

TITLE
Chief Technology Officer

Frank Golden

TITLE
Senior Vice President of Investor Relations
AGE
61

Thomas Kim

TITLE
Chief Legal Officer & Company Secretary
TENURE
0.3 yrs

Andrew Perrin

TITLE
Vice President of Corporate Development
TENURE
5.1 yrs
Board of Directors Tenure

Average tenure and age of the Thomson Reuters board of directors in years:

6.9
Average Tenure
64.5
Average Age
  • The tenure for the Thomson Reuters board of directors is about average.
Board of Directors

David Kenneth Thomson

TITLE
Chairman of the Board
COMPENSATION
$600K
AGE
62
TENURE
17.8 yrs

Jim Smith

TITLE
President
COMPENSATION
$14M
AGE
59
TENURE
8.1 yrs

David Binet

TITLE
Deputy Chairman of the Board
COMPENSATION
$350K
AGE
61
TENURE
5.8 yrs

Sheila Colleen Bair

TITLE
Corporate Director
COMPENSATION
$228K
AGE
65
TENURE
5.8 yrs

Mike Daniels

TITLE
Corporate Director
COMPENSATION
$228K
AGE
64
TENURE
5.8 yrs

Barry Salzberg

TITLE
Lead Director
COMPENSATION
$250K
AGE
65
TENURE
0.1 yrs

Vance Opperman

TITLE
Director
COMPENSATION
$350K
AGE
76
TENURE
24.1 yrs

Peter Thomson

TITLE
Director
COMPENSATION
$200K
AGE
54
TENURE
25.1 yrs

Wulf von Schimmelmann

TITLE
Corporate Director
COMPENSATION
$200K
AGE
72
TENURE
8.6 yrs

Ed Clark

TITLE
Corporate Director
COMPENSATION
$250K
AGE
71
TENURE
4.4 yrs
Who owns this company?
Recent Insider Trading
  • Thomson Reuters individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
17. Dec 19 Sell Ruth Clamp-Held Individual 17. Dec 19 17. Dec 19 -1,932 CA$95.95 CA$-185,373
16. Dec 19 Sell Anthony Kinnear Individual 16. Dec 19 16. Dec 19 -8,500 CA$95.22 CA$-809,343
06. Dec 19 Sell The Woodbridge Company Limited Company 04. Dec 19 04. Dec 19 -468,340 CA$91.65 CA$-42,923,361
07. Nov 19 Sell Stephane Bello Individual 05. Nov 19 06. Nov 19 -114,317 CA$88.15 CA$-10,073,174
28. Aug 19 Sell The Woodbridge Company Limited Company 26. Aug 19 27. Aug 19 -500,000 CA$88.83 CA$-44,222,729
17. May 19 Sell Marc Gold Individual 17. May 19 17. May 19 -3,548 CA$87.89 CA$-311,774
22. Mar 19 Sell Stewart Beaumont Individual 18. Mar 19 18. Mar 19 -5,212 CA$74.98 CA$-390,831
22. Mar 19 Sell Charlotte Rushton Individual 21. Mar 19 21. Mar 19 -2,145 CA$76.85 CA$-164,851
20. Mar 19 Sell Brian Peccarelli Individual 19. Mar 19 19. Mar 19 -19,579 CA$75.61 CA$-1,480,435
19. Mar 19 Sell Sean Cannizzaro Individual 18. Mar 19 18. Mar 19 -380 CA$75.05 CA$-28,519
19. Mar 19 Sell Linda Walker Individual 19. Mar 19 19. Mar 19 -11,832 CA$75.49 CA$-893,235
18. Mar 19 Sell Neil Masterson Individual 14. Mar 19 14. Mar 19 -31,854 CA$74.37 CA$-2,369,074
18. Mar 19 Sell Brian Scanlon Individual 18. Mar 19 18. Mar 19 -4,567 CA$75.17 CA$-343,302
11. Mar 19 Sell Brian Scanlon Individual 07. Mar 19 07. Mar 19 -37,654 CA$73.15 CA$-2,754,463
11. Mar 19 Buy Brian Scanlon Individual 07. Mar 19 07. Mar 19 20,894 CA$49.21 CA$1,028,221
01. Mar 19 Sell Brian Peccarelli Individual 27. Feb 19 27. Feb 19 -29,419 CA$70.93 CA$-2,086,794
X
Management checks
We assess Thomson Reuters's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Thomson Reuters has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Here's Why Thomson Reuters (TSE:TRI) Can Manage Its Debt Responsibly

We can see that Thomson Reuters Corporation (TSE:TRI) does use debt in its business. … Over the last three years, Thomson Reuters actually produced more free cash flow than EBIT. … Our View When it comes to the balance sheet, the standout positive for Thomson Reuters was the fact that it seems able to convert EBIT to free cash flow confidently.

Simply Wall St -

Could Thomson Reuters Corporation's (TSE:TRI) Investor Composition Influence The Stock Price?

The big shareholder groups in Thomson Reuters Corporation (TSE:TRI) have power over the company. … Insider Ownership Of Thomson Reuters While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. … Private Company Ownership Our data indicates that Private Companies hold 66%, of the company's shares.

Simply Wall St -

Should You Worry About Thomson Reuters Corporation’s (TSE:TRI) ROCE?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Thomson Reuters: 0.057 = US$820m ÷ (US$16b - US$2.2b) (Based on the trailing twelve months to March 2019.) Therefore, Thomson Reuters has an ROCE of 5.7%. … What Are Current Liabilities, And How Do They Affect Thomson Reuters's ROCE? … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Thomson Reuters (TSE:TRI) Shareholders Booked A 96% Gain In The Last Five Years

For example, the Thomson Reuters Corporation (TSE:TRI) share price is up 96% in the last 5 years, clearly besting than the market return of around 0.6% (ignoring dividends). … During five years of share price growth, Thomson Reuters actually saw its EPS drop 28% per year. … We note that for Thomson Reuters the TSR over the last 5 years was 131%, which is better than the share price return mentioned above.

Simply Wall St -

Our Take On Thomson Reuters Corporation's (TSE:TRI) CEO Salary

Our data indicates that Thomson Reuters Corporation is worth CA$44b, and total annual CEO compensation is US$14m. … When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$6.6m. … Thus we can conclude that Jim Smith receives more in total compensation than the median of a group of large companies in the same market as Thomson Reuters Corporation.

Simply Wall St -

Investors In Thomson Reuters Corporation (TSE:TRI) Should Consider This, First

Dividend paying stocks like Thomson Reuters Corporation (TSE:TRI) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. A slim 2.2% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Thomson Reuters could have potential. The company also bought back stock equivalent to around 24% of market capitalisation this year. Some simple research can reduce the risk of buying Thomson Reuters for its dividend - read on to learn more. Click the interactive chart for our full dividend analysis TSX:TRI Historical Dividend Yield, May 29th 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. So we need to be form a view on if a company's dividend is sustainable, relative to its net profit after tax. Looking at the data, we can see that 1250% of Thomson Reuters's profits were paid out as dividends in the last 12 months. A payout ratio above 100% is definitely an item of concern, unless there are some other circumstances that would justify it. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Thomson Reuters paid out 84% of its cash flow last year. This may be sustainable but it does not leave much of a buffer for unexpected circumstances. It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and Thomson Reuters fortunately did generate enough cash to fund its dividend. If executives were to continue paying more in dividends than the company reported in profits, we'd view this as a warning sign. Very few companies are able to sustainably pay dividends larger than their reported earnings. Is Thomson Reuters's Balance Sheet Risky? As Thomson Reuters's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … For the purpose of this article, we only scrutinise the last decade of Thomson Reuters's dividend payments. … Conclusion To summarise, shareholders should always check that Thomson Reuters's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

What Kind Of Shareholder Appears On The Thomson Reuters Corporation's (TSE:TRI) Shareholder Register?

Check out our latest analysis for Thomson Reuters TSX:TRI Ownership Summary, May 16th 2019 What Does The Institutional Ownership Tell Us About Thomson Reuters? … As you can see, institutional investors own 24% of Thomson Reuters. … Insider Ownership Of Thomson Reuters While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Is Thomson Reuters Corporation (TSE:TRI) As Strong As Its Balance Sheet Indicates?

Investors looking for stocks with high market liquidity and little debt on the balance sheet should consider Thomson Reuters Corporation (TSE:TRI). … With a market valuation of CA$41b, TRI is a safe haven in times of market uncertainty due to its strong balance sheet. … In times of low liquidity in the market, these firms won’t be left high and dry.

Simply Wall St -

Based On Its ROE, Is Thomson Reuters Corporation (TSE:TRI) A High Quality Stock?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Thomson Reuters has a return on equity of 2.0% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Thomson Reuters Corporation (TSE:TRI) Might Not Be A Great Investment

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Company Info

Description

Thomson Reuters Corporation provides news and information-based tools to professionals worldwide. It operates through five segments: Legal Professionals, Corporates, Tax Professionals, Reuters News, and Global Print. The Legal Professionals segment offers research and workflow products focusing on legal research and integrated legal workflow solutions that combine content, tools, and analytics. It serves law firms and governments. The Corporates segment provides a suite of services across legal, tax, regulatory, and compliance functions to corporate customers, including accounting firms. The Tax Professionals segment offers research and workflow products focusing on tax offerings and automating tax workflows to tax, accounting, and audit professionals in accounting firms, as well as governmental taxing authorities. The Reuters News segment provides trusted business, financial, and national and international news to professionals through desktop terminals and media organizations, as well as directly to consumers through reuters.com and Reuters TV. The Global Print segment offers legal and tax information primarily in print format to legal and tax professionals, governments, law schools, and corporations. The company was formerly known as The Thomson Corporation and changed its name to Thomson Reuters Corporation in April 2008. Thomson Reuters Corporation was founded in 1799 and is headquartered in Toronto, Canada. Thomson Reuters Corporation is a subsidiary of The Woodbridge Company Limited.

Details
Name: Thomson Reuters Corporation
TRI
Exchange: TSX
Founded: 1799
CA$53,767,812,267
495,601,551
Website: http://www.thomsonreuters.com
Address: Thomson Reuters Corporation
333 Bay Street,
Suite 400,
Toronto,
Ontario, M5H 2R2,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX TRI Corporation Common Shares The Toronto Stock Exchange CA CAD 06. Jun 1989
NYSE TRI Corporation Common Shares New York Stock Exchange US USD 06. Jun 1989
DB TOCB Corporation Common Shares Deutsche Boerse AG DE EUR 06. Jun 1989
BST TOCB Corporation Common Shares Boerse-Stuttgart DE EUR 06. Jun 1989
DUSE TOCB Corporation Common Shares Dusseldorf Stock Exchange DE EUR 06. Jun 1989
LSE 0Q89 Corporation Common Shares London Stock Exchange GB CAD 06. Jun 1989
Number of employees
Current staff
Staff numbers
25,800
Thomson Reuters employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/02/20 23:57
End of day share price update: 2020/02/20 00:00
Last estimates confirmation: 2020/02/20
Last earnings filing: 2019/11/04
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.