Thomson Reuters (TRI) AI Stock Analysis

• Market Cap: $109.93B
• Dividend Yield: 1.33%
• Average Volume (3M): 446.33K
• Price to Earnings (P/E): 48.1
• Beta (1Y): 0.51
• Revenue Growth: 7.18%
• EPS Growth: -28.51%
• Country: CA
• Employees: 26,400
• Sector: Industrials
• Sector Strength: 79
• Industry: Specialty Business Services
• EPS (TTM): 1.20
• Shares Outstanding: 450,700,000
• 10 Day Avg. Volume: 450,065
• 30 Day Avg. Volume: 446,329
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 17.26
• Enterprise Value/Gross Profit: 26.88
• Enterprise Value/Ebitda: 41.59
• 1Y Price Target: $286.60
• Price Target Upside: 17.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 70 Outperform
• Price Target: C$267.00 ▲(9.47% Upside)

Thomson Reuters' strong financial performance and positive earnings call are significant strengths, supporting a robust outlook. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. These factors collectively result in a moderate overall stock score.

Positive Factors

Market Growth

Legal Professionals is seen as an area of high growth, with potential acceleration in market growth due to an evident inflection point in the profession's workflow.

Product Innovation

New product innovation is picking up pace, with several new product launches including CoCounsel for tax, audit and accounting, which are expected to automate complex tasks and eliminate manual work.

Stock Performance

TRI stock is up on a potential Nasdaq 100 inclusion which highlights investor interest in the company.

Negative Factors

Competition

Harvey's partnership with LexisNexis and Clio's acquisition of vLex create stronger competitors to TRI's Westlaw/CoCounsel.

Stock Movement

A surprising 10% downswing in the stock was observed, attributed to the moderation in the revisions to estimates and guidance.

Stock Valuation

Valuations are reaching levels ahead of its peer groups, leading to a HOLD rating despite the company's growth and defensive credentials.

Thomson Reuters Business Overview & Revenue Model

Company Description

Thomson Reuters Corporation provides business information services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in five segments: Legal Professionals, Corporates, Tax & Accounting 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 to law firms and governments. The Corporates segment provides a suite of content-enabled technology solutions for legal, tax, regulatory, compliance, and IT professionals. The Tax & Accounting Professionals segment offers research and workflow products focusing on tax offerings and automating tax workflows to tax, accounting, and audit professionals in accounting firms. The Reuters News segment provides business, financial, and international news to media organizations, professional, and news consumers through news agency and industry events. 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. The company was founded in 1851 and is headquartered in Toronto, Canada. Thomson Reuters Corporation is a subsidiary of The Woodbridge Company Limited.

How the Company Makes Money

Thomson Reuters generates revenue primarily through subscription-based services, which provide access to its extensive databases, tools, and platforms. The Legal segment, for instance, offers products like Westlaw, a leading legal research service, which is sold on a subscription basis. The Tax & Accounting segment provides software solutions and compliance services that are also delivered through subscription models. Additionally, the company earns revenue from its Corporates segment through the sale of risk management and compliance solutions. Key revenue streams include recurring subscriptions, transactional services, and professional services. Significant partnerships with various legal and financial institutions enhance its offerings and market reach, contributing to its overall earnings. Furthermore, the Reuters News segment generates revenue from licensing content to media outlets and businesses, providing another important source of income.

Thomson Reuters Financial Statement Overview

Summary

Thomson Reuters demonstrates strong financial performance with a solid gross profit margin of 64.2% and a net profit margin of 29.7%. The company shows consistent revenue growth and robust EBIT and EBITDA margins, indicating excellent operational efficiency and profitability. However, there is a slight decline in gross profit margin, suggesting room for improvement in cost management.

Income Statement

Thomson Reuters shows a solid financial performance as evidenced by a strong gross profit margin of 64.2% and a net profit margin of 29.7% for TTM (Trailing-Twelve-Months). The company has demonstrated consistent revenue growth with a 1.0% increase from the previous annual report and a robust EBIT margin of 29.1%. The EBITDA margin also remains healthy at 41.5%. This reflects both excellent operational efficiency and profitability. However, a minor decline in gross profit margin from the annual report suggests room for improvement in cost management.

Balance Sheet

The balance sheet of Thomson Reuters reflects a strong equity position with an equity ratio of 66.5% and a reasonable debt-to-equity ratio of 0.23. The return on equity stands impressively at 17.6%, indicating effective use of shareholder funds to generate income. However, the overall leverage could be a concern if debt levels rise, as indicated by total debt still being significant despite a decrease from the previous year.

Cash Flow

Thomson Reuters exhibits strong cash flow generation capabilities with a stable free cash flow to net income ratio of 0.86 and an operating cash flow to net income ratio of 1.14 for TTM (Trailing-Twelve-Months). The free cash flow growth rate remains flat, suggesting stable but not improved cash flow generation. This consistent cash flow supports ongoing investments and shareholder returns, though growth opportunities may require further improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.27B	7.26B	6.79B	6.63B	6.35B	5.98B
Gross Profit	4.67B	5.76B	2.70B	4.22B	3.87B	3.71B
EBITDA	3.02B	3.05B	2.95B	3.01B	2.02B	2.76B
Net Income	2.16B	2.21B	2.69B	1.89B	-553.00M	1.69B
Balance Sheet
Total Assets	18.48B	18.44B	18.68B	21.71B	22.15B	17.88B
Cash, Cash Equivalents and Short-Term Investments	1.41B	1.89B	1.36B	1.27B	886.00M	2.40B
Total Debt	2.81B	3.08B	3.54B	4.76B	3.79B	3.77B
Total Liabilities	6.18B	6.43B	7.62B	9.76B	8.31B	7.90B
Stockholders Equity	12.30B	12.01B	11.06B	11.95B	13.83B	9.98B
Cash Flow
Free Cash Flow	1.86B	1.85B	1.80B	1.32B	1.29B	1.24B
Operating Cash Flow	2.47B	2.46B	2.34B	1.92B	1.77B	1.75B
Investing Cash Flow	-707.00M	680.00M	3.51B	-462.00M	-504.00M	-138.00M
Financing Cash Flow	-2.28B	-2.46B	-5.63B	-1.16B	-2.27B	-644.00M

Thomson Reuters Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 243.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TRI, the sentiment is Negative. The current price of 243.91 is below the 20-day moving average (MA) of 244.97, below the 50-day MA of 263.04, and below the 200-day MA of 249.15, indicating a bearish trend. The MACD of -6.07 indicates Negative momentum. The RSI at 41.14 is Neutral, neither overbought nor oversold. The STOCH value of 61.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TRI.

Thomson Reuters Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRI	70 Outperform	$109.93B	48.10	13.26%	1.33%	7.18%	-28.51%
Sector *	64 Neutral	$10.86B	16.10	7.81%	1.99%	2.67%	-15.47%
RBA	―	$21.24B	56.55	7.88%	1.28%	―	―
TCL.B	74 Outperform	C$1.70B	9.43	9.65%	9.43%	-2.58%	100.21%
TCL.A	68 Neutral	C$1.70B	9.53	9.65%	9.33%	-2.58%	100.21%

Thomson Reuters Corporate Events

Thomson Reuters Sees Revenue Growth and Launches New AI Solutions in Q2 2025

Thomson Reuters reported a 3% increase in total revenues for the second quarter of 2025, with organic revenues rising by 7%, driven by strong performance in its ‘Big 3’ segments: Legal Professionals, Corporates, and Tax & Accounting Professionals. The company maintained its full-year outlook for organic revenue growth and launched new AI solutions to further leverage its content and expertise. Despite a decline in diluted EPS due to currency losses and other factors, adjusted EPS saw a slight increase, reflecting higher adjusted EBITDA and operating leverage.

The most recent analyst rating on (TSE:TRI) stock is a Buy with a C$260.00 price target. To see the full list of analyst forecasts on Thomson Reuters stock, see the TSE:TRI Stock Forecast page.