Thomson Reuters (TRI) AI Stock Analysis

• Market Cap: $102.55B
• Dividend Yield: 1.43%
• Average Volume (3M): 550.83K
• Price to Earnings (P/E): 44.9
• Beta (1Y): 0.43
• Revenue Growth: 7.18%
• EPS Growth: -28.51%
• Country: CA
• Employees: 26,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 1.20
• Shares Outstanding: 450,680,700
• 10 Day Avg. Volume: 416,446
• 30 Day Avg. Volume: 550,833
• 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: 1.22
• Enterprise Value/Revenue: 17.15
• Enterprise Value/Gross Profit: 21.65
• Enterprise Value/Ebitda: 41.66
• 1Y Price Target: $288.52
• Price Target Upside: 26.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 70 Outperform
• Price Target: C$267.00 ▲(17.34% 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

Negative Factors

Thomson Reuters Business Overview & Revenue Model

Company Description

Thomson Reuters Corporation (TRI) is a global information and technology company that serves professionals in the legal, tax, accounting, finance, and media sectors. The company operates through several segments, including Legal, Tax & Accounting, Corporates, and Reuters News. Thomson Reuters provides a wide array of products and services, such as legal research tools, regulatory compliance solutions, financial data analytics, and news reporting, aimed at enhancing decision-making and operational efficiency for its clients.

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 health with impressive revenue growth and profitability. The company maintains a low leverage position and generates substantial cash flows, supporting its operational and strategic initiatives. While the gross profit margin has seen some decline, the overall financial trajectory remains positive.

Income Statement

Thomson Reuters shows strong profitability with a consistent increase in revenue, highlighted by a TTM revenue growth rate of 61.9%. The company maintains healthy margins, with a TTM EBIT margin of 28.9% and a net profit margin of 22.3%. However, the gross profit margin has decreased from previous years, indicating potential cost pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.146 in TTM, indicating low leverage. The return on equity is strong at 13.3%, though it has decreased from previous years. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals robust free cash flow growth of 161.6% in TTM, supporting operational sustainability. The operating cash flow to net income ratio is healthy at 0.88, indicating efficient cash conversion. The free cash flow to net income ratio remains stable, reflecting consistent cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.32B	7.26B	6.79B	6.63B	6.35B	5.98B
Gross Profit	5.80B	5.76B	2.70B	4.22B	3.87B	3.71B
EBITDA	3.01B	3.05B	2.95B	3.01B	2.02B	2.76B
Net Income	1.64B	2.21B	2.69B	1.89B	-553.00M	1.69B
Balance Sheet
Total Assets	17.97B	18.44B	18.68B	21.71B	22.15B	17.88B
Cash, Cash Equivalents and Short-Term Investments	727.00M	1.89B	1.36B	1.27B	886.00M	2.40B
Total Debt	1.84B	3.08B	3.54B	4.76B	3.79B	3.77B
Total Liabilities	5.35B	6.43B	7.62B	9.76B	8.31B	7.90B
Stockholders Equity	12.62B	12.01B	11.06B	11.95B	13.83B	9.98B
Cash Flow
Free Cash Flow	1.89B	1.85B	1.80B	1.32B	1.29B	1.24B
Operating Cash Flow	2.51B	2.46B	2.34B	1.92B	1.77B	1.75B
Investing Cash Flow	-1.21B	680.00M	3.51B	-462.00M	-504.00M	-138.00M
Financing Cash Flow	-2.31B	-2.46B	-5.63B	-1.16B	-2.27B	-644.00M

Thomson Reuters Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 227.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 227.55 is above the 20-day moving average (MA) of 218.34, below the 50-day MA of 229.60, and below the 200-day MA of 248.34, indicating a neutral trend. The MACD of -0.55 indicates Negative momentum. The RSI at 55.83 is Neutral, neither overbought nor oversold. The STOCH value of 94.08 is Negative, 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	$102.55B	44.87	13.26%	1.43%	7.18%	-28.51%
TCL.B	70 Neutral	C$1.63B	9.42	9.36%	9.55%	-2.90%	57.43%
RBA	66 Neutral	$26.43B	50.27	7.88%	1.16%	7.80%	17.65%
TCL.A	66 Neutral	C$1.58B	9.02	9.36%	9.70%	-2.90%	57.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.