Access comprehensive financial analyses and make smarter investments - get the Manual of Investments on Amazon!

TRI

Analysts' Dim View on Thomson Reuters Corp (TRI)

Thomson Reuters Corp may be undervalued with mixed growth prospects, but the 13 analysts following the company give it an rating of hold. Their target prices range from $146.0 to $225.0 per share, for an average of $185.15. At today's price of $215.24, Thomson Reuters Corp is trading 16.25% away from its average target price, suggesting there is an analyst belief that shares are overpriced for the stock.

Thomson Reuters Corporation operates as a content and technology company in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Based in Toronto, Canada, the Large-Cap Consumer Discretionary company has 26,400 full time employees. Thomson Reuters Corp has offered a 1.1% dividend yield over the last 12 months.

Thomson Reuters Corp has a trailing twelve month P/E ratio of 45.2, compared to an average of 20.93 for the Consumer Discretionary sector. Considering its EPS guidance of $4.02, the company has a forward P/E ratio of 53.5.

Furthermore, Thomson Reuters Corp is overpriced compared to its book value, since its P/B ratio of 7.89 is higher than the sector average of 2.93.

2019 2020 2021 2022 2023 2024
Revenue (M) $5,906 $5,984 $6,348 $6,627 $6,794 $7,258
Operating Margins 20% 32% 20% 28% 34% 28%
Net Margins 26% 19% 90% 20% 40% 30%
Net Income (M) $1,564 $1,122 $5,689 $1,338 $2,695 $2,207
Earnings Per Share $3.11 $2.25 $11.5 $2.75 $5.8 $4.89
EPS Growth n/a -27.65% 411.11% -76.09% 110.91% -15.69%
Free Cash Flow (M) -$1,106 $1,042 $1,137 $1,915 $2,341 $2,457
Total Debt (M) $2,676 $3,772 $3,786 $3,114 $2,905 $1,847
Current Ratio 0.95 1.5 0.95 0.57 0.9 1.02
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS