GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

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

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.

About the author:

Dividend
I am a private full time investor searching for investments and investment ideas.

Visit Dividend's Website


Rating: 2.8/5 (11 votes)

Comments

supratik
Supratik - 1 year ago
Thomson-Reuter's biggest competitor is Bloomberg. It may be difficult to benchmark the two since Bloomberg in privately held. You should probably look into how TRI's new products are doing in the market in terms of adoption vis-a-vis competitors.
jayb718
Jayb718 premium member - 1 year ago
"_News Corp (NWSA) has a market capitalization of $59.63 billion. The company generates revenue of $33.7 million and has a net income of $1.4 million. The firm’s EBITDA amounts to $3.68 million. "

I think you mean $33.7 billion and $1.4 billion. Not million. The mistake is throughout the article.

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide