Thomson Reuters Stock Price and Research (NYSE: TRI)
Thomson Reuters (NYSE: TRI) is a $29 billion company today. Investors that bought shares one year ago are sitting on a -6.15% total return. That's below the S&P 500's return of 13.35%.
Thomson Reuters stock is underperforming the market. It's beaten down, but it reports earnings soon. So is it a good time to buy? To answer this question we've turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
✓ Earnings-per-Share (EPS) Growth: Thomson Reuters reported a recent EPS growth rate of 131.43%. That's above the capital markets industry average of 39.97%. That's a great sign. Thomson Reuters’ earnings growth is outpacing competitors.
✗ Price-to-Earnings (P/E): The average price-to-earnings ratio of the capital markets industry is 20.25. And Thomson Reuters’ ratio comes in at 23.12. Its valuation looks expensive compared to many of its competitors.
✓ Debt-to-Equity : The debt-to-equity ratio for Thomson Reuters stock is 51.76%. That's below the capital markets industry average of 229.26%. That's a good sign. Thomson Reuters’ debt levels are not out of control.
✗ Free Cash Flow per Share Growth : Thomson Reuters has decreased its FCF per share over the last year. That's not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.
✗ Profit Margins : The profit margin of Thomson Reuters comes in at 19.57% today. And generally, the higher, the better. We also like to see this ratio above competitors. Thomson Reuters’ profit margin is below the capital markets average of 29.87%. So that's a negative indicator for investors.
✗ Return on Equity : Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for Thomson Reuters is 10.87% and that's below its industry average ROE of 25.28%.
Thomson Reuters stock passes two of our six key metrics today. That's why our Investment U Stock Grader gives it a Hold with Caution.
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That's why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.
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