One-glance verdict
Undervalued
$135.22 our estimate vs market $109.01
Wall Street consensus: $121.79 (-9.9% lower than our fair-value estimate)
19% below our estimate, below the bear case
Fundamentals snapshot
Thomson Reuters Corporation
TRI · NMS · Industrials · Specialty Business Services
Current price
$109.01
52-week range
$76.28 - $164.30
Market cap
$47.23B
Balance sheet
Healthy
10.87x Adequate
Net debt $2.51B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 3.0% last year.
- Reward Free cash flow was positive in 4/10 years.
- Reward Dividend yield is 2.4% with 25-year payout history.
What this company does
Thomson Reuters Corporation
Thomson Reuters Corporation provides essential information and technology solutions to legal, tax, accounting, and news professionals. Their business largely comes from recurring revenue (money customers pay regularly, like a subscription) from their software and data services for these professionals. This is important because it means they have a steady stream of income, making their business predictable.
How the company got here
Thomson Reuters has a long history, tracing its roots back to 1799. It was formerly known as The Thomson Corporation before officially changing its name in April 2008. The company is a subsidiary of The Woodbridge Company Limited. Over time, it has evolved into a global information and technology provider, shifting its focus from traditional print media to digital solutions and data analytics.
What it actually does
At its core, Thomson Reuters is a company that provides essential information and technology solutions to professionals across various industries. Think of it as a super-powered library and toolkit for people who need accurate data and efficient ways to do their jobs. They offer news, legal research, tax information, and compliance tools, helping businesses and individuals navigate complex information landscapes and make informed decisions.
Legal Professionals
This segment is a major part of Thomson Reuters, serving law firms and government bodies. It provides sophisticated tools for legal research, helping lawyers find relevant case law and statutes quickly. It also offers integrated workflow solutions that streamline how legal professionals manage their cases and client work, essentially making their day-to-day tasks more efficient and effective. This is a significant revenue generator for the company.
Corporates
Thomson Reuters supports businesses, from small companies to large multinational organizations, through its 'Corporates' segment. This part of the business offers technology solutions focused on compliance and risk management. They provide tools that help companies stay on the right side of regulations, manage their legal obligations, and even leverage new technologies like generative AI to improve their operations. This segment is crucial for businesses needing to navigate an increasingly complex regulatory environment.
Tax, Audit & Accounting Professionals
This segment is dedicated to serving tax, audit, and accounting firms. It provides them with the necessary research tools and software to perform their jobs accurately and efficiently. This includes access to tax laws, regulations, and accounting standards, along with workflow solutions that help these professionals manage client accounts and filings. It's a vital resource for the financial backbone of many businesses.
Reuters News
You might recognize the Reuters name from its news services. This segment provides timely and accurate business, financial, and international news to media organizations, professionals, and the general public. It operates through various platforms, including the Reuters news agency and Reuters.com, delivering critical information that influences markets and global understanding. This segment is known for its journalistic integrity and speed.
Global Print
While Thomson Reuters is increasingly digital, it still maintains a 'Global Print' segment. This part of the business primarily offers legal and tax information in a traditional print format. Although a smaller piece of the overall business compared to its digital offerings, it continues to serve customers who prefer or require physical copies of essential legal and tax publications.
What management is betting on now
Thomson Reuters is heavily focused on integrating advanced technology, including generative AI, into its core offerings. Management is betting that these innovations will enhance the value of their information and workflow solutions for legal, corporate, and tax professionals. The strategy involves making their products smarter and more efficient, helping clients navigate complex data and regulations with greater ease. This push towards technology aims to solidify their position as a leader in professional information services.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $135.22 vs current price $109.01
Wall Street consensus is the average analyst price target: $121.79 (-9.9% lower than our fair-value estimate).
Our most-likely fair value is $135.22 a share — about 24.0% above today's price of $109.01, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $2.5B. Interest coverage 10.9x.
Net debt
$2.51B
Interest coverage
10.87x
Thomson Reuters Corporation's profit covers its interest bill about 10.9 times over. which is weaker than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
TRI
BASELINE
Thomson Reuters Corporation
Total debt $3.20B Interest coverage 10.87x This is the baseline the peer rows are being compared against.
Total debt $11.86B Interest coverage 10.93x +1% vs TRI Has roughly the same debt cushion as TRI.
Total debt $5.55B Interest coverage 14.42x +33% vs TRI Carries about 1.3x more debt cushion than TRI.
What you should know
The case for and against TRI
3 Rewards
0 Risks
Rewards
-
Revenue grew 3.0% last year.
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 2.4% with 25-year payout history.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
28.61x
Forward P/E
21.51x
P/B
4.24x
P/S
6.03x
EV/EBITDA
21.69x
PEG ratio
1.22x
Profitability
How much profit each dollar creates
Gross margin
39.7%
Operating margin
28.3%
Net margin
21.2%
ROE
14.2%
ROA
7.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.29x
Current ratio
0.51x
Quick ratio
0.41x
Total debt
$3.20B
Total cash
$693.00M
Growth
How the business has been compounding
Revenue TTM
$7.83B
Revenue 5Y CAGR
4.1%
EPS TTM
3.81
EPS 5Y CAGR
3.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.65B
Free CF TTM
$2.02B
FCF margin
25.8%
Dividend
Shareholder payout
Yield
2.4%
Payout ratio
66.4%
Last ex-div date
2026-08-19