Thomson Reuters (TRI) AI Stock Analysis

• Market Cap: C$123.90B
• Dividend Yield: 1.15%
• Average Volume (3M): 333.59K
• Price to Earnings (P/E): 41.2
• Beta (1Y): 0.63
• Revenue Growth: 7.18%
• EPS Growth: -28.47%
• Country: CA
• Employees: 26,400
• Sector: Industrials
• Sector Strength: 84
• Industry: Specialty Business Services
• EPS (TTM): 1.20
• Shares Outstanding: 450,478,420
• 10 Day Avg. Volume: 317,696
• 30 Day Avg. Volume: 333,593
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$299.12
• Price Target Upside: 7.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 74 Outperform
• Price Target: C$277.00 ▼(-0.16% Downside)

Thomson Reuters' overall stock score reflects its strong financial performance and positive earnings call, which highlight robust growth and strategic investments. However, technical indicators suggest potential bearish momentum, and the high P/E ratio indicates overvaluation concerns. The company's strategic focus on high-growth areas like AI and international expansion supports a positive outlook despite some challenges.

Positive Factors

AI Strategy

Increased confidence in TRI's AI strategy and its ability to benefit from greater AI adoption.

Financial Performance

The company's big three segments showed strong 9% organic growth, which was a highlight in their financial performance.

Nasdaq 100 Inclusion

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

Negative Factors

Competition

Harvey and LexisNexis together create a stronger competitor to TRI, which has both a law library (Westlaw) and AI drafting tool (CoCounsel).

Growth Headwinds

The strength and stability of the core business is offset by near term growth headwinds.

Revenue Decline

Reuters News experienced a 6.7% decline in revenue year-over-year, with a significant drop in segment EBITDA.

Thomson Reuters Business Overview & Revenue Model

Company Description

Thomson Reuters Corporation (TRI) is a multinational conglomerate that provides professionals with the intelligence, technology, and human expertise they need to find trusted answers. Operating primarily in the media, legal, tax, accounting, and financial markets, the company offers a range of products and services, including legal research and software tools, tax and accounting solutions, and financial data and news services. The company's offerings are designed to enhance productivity, improve decision-making, and streamline compliance for businesses and professionals globally.

How the Company Makes Money

Thomson Reuters makes money primarily through a subscription-based revenue model, selling access to its extensive portfolio of information services and software solutions. The company generates revenue through key segments such as Legal Professionals, Corporates, Tax & Accounting Professionals, and Reuters News. Legal and regulatory solutions, including Westlaw and Practical Law, contribute significantly to earnings by providing legal research and workflow solutions. The Tax & Accounting segment provides software and services that help professionals manage tax compliance and reporting. The Corporates segment offers solutions for corporate customers to manage risk, compliance, and performance. Additionally, Reuters News delivers real-time, high-quality news and information to media organizations and professionals. The company's strategic partnerships, such as those with software and technology providers, enhance its offerings and expand its reach, further driving revenue growth.

Thomson Reuters Financial Statement Overview

Summary

Thomson Reuters presents a robust financial profile characterized by solid profitability, efficient balance sheet management, and strong cash flow generation. The company shows consistent revenue and profit growth, supported by effective cost control and a healthy equity position. While leverage is manageable, further improvements in cash flow growth and cost management could bolster financial stability and support future growth.

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: Neutral
• Last Price: 277.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 277.45 is below the 20-day moving average (MA) of 279.47, above the 50-day MA of 273.09, and above the 200-day MA of 248.87, indicating a neutral trend. The MACD of 1.01 indicates Positive momentum. The RSI at 47.78 is Neutral, neither overbought nor oversold. The STOCH value of 26.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TRI.

Thomson Reuters Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RBA	74 Outperform	C$27.97B	53.18	7.74%	1.08%	5.58%	27.23%
TRI	74 Outperform	C$123.90B	41.25	13.26%	1.15%	7.18%	-28.47%
TCL.B	69 Neutral	C$1.63B	8.90	9.65%	9.99%	-2.58%	100.21%
TCL.A	69 Neutral	C$1.63B	8.99	9.65%	9.89%	-2.58%	100.21%
Sector *	58 Neutral	HK$13.20B	4.34	-2.94%	5.79%	3.03%	-49.30%

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.