Thomson Reuters (TRI) - Dividend Idea of the Week with 4.4% Dividend-Yield and 31.76% Upside

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Oct 07, 2012
Our Dividend Idea of the Day is the financial information provider, Thomson Reuters (NYSE:TRI). The stock price closed at $28.84 and the fair value is expected by Morningstar at $38.00, which represents an upside of 31.76%.


Thomson Reuters(TRI)is a provider of information for the world’s businesses and professionals. As of January 1, 2012, the Company was organized into four business units: Financial & Risk, Legal, Tax & Accounting and Intellectual Property & Science. See the full 10-page financial report of TRI for more details.


Thomson Reuters hasa market capitalization of $23.81 billion. The company generates revenue of $13.8 billion and has a net income of -$1.3 billion. The firm’s EBITDA amounts to $855 million. The EBITDA margin is 6.19% (with an operating margin of -5.11% and a net profit margin of -10.11%).


The total debt represents 23.38% of the company’s assets and the total debt in relation to the equity amounts to 46.29%. Last fiscal year, a return on equity of -7.87% was realized. Twelve trailing months earnings per share reached a value of $-1.18. Last fiscal year, the company paid $1.24 in the form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 1.72 and the P/B ratio is 1.47. The Dividend Yield is 4.44% and the beta ratio is 0.95.


TRI raised dividend for 19 consecutive years. The biggest risks come from the financial sector, a major customer group of Thomson Reuters.


Here are the competitors of Thomson Reuters (NYSE:TRI):



News Corp (NWSA) has a market capitalization of $59.63 billion. The company generates revenue of $33.7 billion and has a net income of $1.4 billion. The firm’s EBITDA amounts to $3.68 billion. The EBITDA margin is 10.93% (with an operating margin of 6.56% and a net profit margin of 4.17%).


The total debt represents 27.28% of the company’s assets and the total debt in relation to the equity amounts to 62.61%. Last fiscal year, a return on equity of 4.31% was realized. Twelve trailing months earnings per share reached a value of $0.44. Last fiscal year, the company paid $0.18 in the form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 57.29, the P/S ratio is 1.77 and the P/B ratio 2.43. The Dividend Yield is 0.67% and the beta ratio is 1.49.


McGraw-Hill (MHP) has a market capitalization of $15.64 billion. The company generates revenue of $6.2 billion and has a net income of $858 million. The firm’s EBITDA amounts to $1.8 billion. The EBITDA margin is 28.93% (with an operating margin of 22.77% and a net profit margin 13.74%).


The total debt represents 18.64% of the company’s assets and the total debt in relation to the equity amounts to 79.44%. Last fiscal year, a return on equity of 44.9% was realized. Twelve trailing months earnings per share reached a value of $2.87. Last fiscal year, the company paid $1.00 in the form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 19.48, P/S ratio is 2.5 and the P/B ratio is 10.22. The Dividend Yield is 1.83% and the beta ratio is 1.09.


Reed Elsevier (RUK) has a market capitalization of $11.87 billion. The company generates revenue of $5.1 billion and has a net income of $654 million. The firm’s EBITDA amounts to $1.4 billion. The EBITDA margin is 28.94% (with an operating margin of 19.58% and a net profit margin 12.78%).


The total debt represents 0% of the company’s assets and the total debt in relation to the equity amounts to 0%. Last fiscal year, a return on equity of 36.94% was realized. Twelve trailing months earnings per share reached a value of $2.69. Last fiscal year, the company paid $1.39 in the form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 14.56, P/S ratios 4.27 and P/B ratio 6.33. The Dividend Yield is 3.53% and the beta ratio is 0.74.


IHS (IHS) has a market capitalization of $6.21 billion. The company generates revenue of $1.3 billion and has a net income of $135 million. The firm’s EBITDA amounts to $260 million. The EBITDA margin is 19.65% (with an operating margin of 13.01% and a net profit margin of 10.21%).


The total debt represents 26.15% of the company’s assets and the total debt in relation to the equity amounts to 58.02%. Last fiscal year, a return on equity of 10.57% was realized. Twelve trailing months earnings per share reached a value of $2.03. Last fiscal year, the company paid $0 in the form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 46.50, P/S ratio is 4.68 and the P/B ratio is 4.43. It has no Dividend Yield and its beta ratio is 0.51.


FactSet Research (FDS) has a market capitalization of $4.21 billion. The company generates revenue of $805 million and has a net income of $188 million. The firm’s EBITDA amounts to $306 million. The EBITDA margin is 38.07% (with an operating margin of 33.88% and a net profit margin of 23.43%).


Twelve trailing months earnings per share reached a value of $4.13. Last fiscal year, the company paid $1.16 in the form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 22.99, the P/S ratio is 5.25 and the P/B ratio is 7.63. The Dividend Yield is 1.3% and the beta ratio is 1.18.


Broadridge Financial (BR) has a market capitalization of $2.92 billion. The company generates revenue of $2.3 billion and has a net income of $125 million. The firm’s EBITDA amounts to $286 million. The EBITDA margin is 12.42% (with an operating margin of 8.72% and a net profit margin of 5.43%).


The total debt represents 26.38% of the company’s assets and the total debt in relation to the equity amounts to 61.66%. Last fiscal year, a return on equity of 15.17% was realized. Twelve trailing months earnings per share reached a value of $0.98. Last fiscal year, the company paid $0.64 in the form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 23.89, P/S ratio is 1.27 and P/B ratio 3.44. The Dividend Yield is 3.08% and the beta ratio is 0.75.


Dun & Bradstreet (DNB) has a market capitalization of $3.72 billion. The company generates revenue of $1.7 billion and has a net income of $258 million. The firm’s EBITDA amounts to $498 million. The EBITDA margin is 28.37% (with an operating margin of 23.75% and a net profit margin of 14.72%).


The total debt represents 48.81% of the company’s assets. Twelve trailing months earnings per share reached a value of $5.64. Last fiscal year, the company paid $1.44 in the form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 14.70, the P/S 2.12 and Price/Book ratio is not calculable. The Dividend Yield is 1.83% and the beta ratio is 0.65.


Morningstar (MORN) has a market capitalization of $3.09 billion. The company generates revenue of $631 million and has a net income of $96 million. The firm’s EBITDA amounts to $181 million. The EBITDA margin is 28.72% (with an operating margin of 21.92% and a net profit margin of 15.28%).


The total debt represents 0% of the company’s assets and the total debt in relation to the equity amounts to 0%. Last fiscal year, a return on equity of 11.99% was realized. Twelve trailing months earnings per share reached a value of $1.92. Last fiscal year, the company paid $0.25 in the form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 33.26, P/S ratio is 4.90 and P/B ratio is 3.74. The Dividend Yield is 0.63% and the beta ratio is 1.12.


Nielsen Hldg (NLSN) has a market capitalization of $11.12 billion. The company generates revenue of $5.5 billion and has a net income of $82 million. The firm’s EBITDA amounts to $1.2 billion. The EBITDA margin is 23.21% (with an operating margin of 14.35% and a net profit margin of 1.48%).


The total debt represents 46.63% of the company’s assets and the total debt in relation to the equity amounts to 145.97%. Last fiscal year, a return on equity of 2.21% was realized. Twelve trailing months earnings per share reached a value of $0.88. Last fiscal year, the company paid $0 in the form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 34.81, the P/S ratio is 2.01 and the P/B ratio is 2.39. Both The Dividend Yield and the beta ratio are not calculable.