THOMSON REUTERS TSE-TRI.

TO RECENT
PRICE 139.63 P/ERATIONMF(Trailing:
Median: 25.0) P/E RATIO NMF YLD 1.2%
70.2 RELATIVE DIV’D VALUE
LINE 448
TIMELINESS 3 Lowered 1/8/21 High:
Low:
44.4
36.7
45.8
28.7
33.3
29.2
44.8
31.7
52.8
40.6
61.5
49.9
66.1
52.4
69.3
59.8
71.5
51.4
96.3
62.8
116.1
75.2
141.2
99.2
Target Price Range
2024 2025 2026
SAFETY 2 Raised 12/8/06 LEGENDS
32.0 x ″Cash Flow″ p sh
TECHNICAL 4 Lowered 7/16/21 . . . . Relative Price Strength
91% Rev split 11/18
200
160
BETA .80 (1.00 = Market) Options: No
Shaded area indicates recession
18-Month Target Price Range 100
Low-High Midpoint (% to Mid) 80
$94-$180 $137 (0%) 60
50
2024-26 PROJECTIONS 40
Ann’l Total 30
Price Gain Return
High 185 (+30%) 8%
Low 135 (-5%) 1% 20
% TOT. RETURN 7/21
Institutional Decisions THIS VL ARITH.*
3Q2020 4Q2020 1Q2021 STOCK INDEX
Percent 9 1 yr. 43.5 55.5
to Buy 126 158 164 shares 6
to Sell 155 139 148 3 yr. 158.2 48.6
traded 3
Hld’s(000) 101926 94848 106097 5 yr. 170.3 95.5
2005 2006 2007 2008E 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 © VALUE LINE PUB. LLC 24-26
.86 .86 1.02 .82 .95 1.00 .98 1.00 .94 .86 .72 .74 .80 .73 .77 .78 .80 .80 Trans. Rate (Cdn.$/US$) A .90
14.77 11.42 12.58 15.59 17.25 17.32 18.25 17.67 16.89 17.20 17.23 16.91 17.60 10.97 11.87 12.04 12.80 13.35 Sales per sh 16.25
3.15 2.68 3.04 3.60 2.62 2.58 2.84 2.91 2.26 2.58 2.85 2.50 3.27 1.21 1.60 2.22 3.15 3.65 ‘‘Cash Flow’’ per sh 4.40
1.55 1.86 1.95 2.08 2.04 1.93 2.26 2.32 1.70 2.04 2.35 1.97 2.76 .75 1.29 1.85 1.95 2.40 Earnings per sh B 3.15
.79 .88 .98 1.08 1.12 1.16 1.24 1.28 1.30 1.32 1.34 1.36 1.38 1.39 1.44 1.52 1.64 1.74 Div’ds Decl’d per sh C 1.90
1.09 .78 1.05 1.21 1.46 1.45 1.38 1.30 1.25 1.25 1.39 1.37 1.48 1.15 1.02 1.01 1.00 1.00 Cap’l Spending per sh 1.15
16.72 17.84 23.21 26.65 25.52 25.92 21.99 23.14 21.70 19.85 18.33 19.11 20.07 16.48 19.22 20.08 20.65 21.25 Book Value per sh 24.90
589.18 581.45 579.86 751.08 753.34 754.83 756.70 751.41 751.96 732.95 708.76 660.45 643.98 501.49 497.46 497.12 490.00 490.00 Common Shs Outst’g D 480.00
34.5 30.7 24.8 21.7 19.1 21.4 16.8 13.5 24.1 25.3 33.2 40.4 29.0 NMF NMF NMF Bold figures are Avg Ann’l P/E Ratio 50.5
1.84 1.66 1.32 1.31 1.27 1.36 1.06 .86 1.36 1.33 1.67 2.12 1.46 NMF NMF NMF Value Line Relative P/E Ratio 2.8
estimates
1.5% 1.5% 2.0% 2.4% 2.9% 2.8% 3.3% 4.1% 3.2% 2.5% 1.7% 1.7% 1.7% 1.7% 1.3% 1.2% Avg Ann’l Div’d Yield 1.2%
CAPITAL STRUCTURE as of 6/30/21 13807 13278 12702 12607 12209 11166 11333 5501.0 5906.0 5984.0 6280 6550 Sales ($mill) 7800
Total Debt $3806 mill. Due in 5 Yrs $1931 mill. 27.6% 26.5% 24.8% 26.3% 27.8% 26.3% 30.3% 24.8% 28.9% 31.5% 31.0% 33.0% Operating Margin 33.0%
LT Debt $3806 mill. LT Interest $195 mill. 438.0 429.0 416.0 397.0 347.0 313.0 296.0 110.0 154.0 184.0 600 620 Depreciation ($mill) 620
(Total interest coverage: 8.7x) (19% of Cap’l)
Leases, Uncapitalized Nil 1717.0 1758.8 1286.0 1497.0 1672.0 1341.0 1811.0 501.0 646.0 921.0 950 1180 Net Profit ($mill) 1500
Pension Assets-12/20 $3.9 bill. Oblig. $4.3 bill. 10.1% 7.9% 40.1% 3.9% 3.3% -- 1.6% 14.9% 5.9% 4.6% 20.0% 20.0% Income Tax Rate 20.0%
Pfd Stock $1 mill. 12.4% 13.2% 10.1% 11.9% 13.7% 12.0% 16.0% 9.1% 10.9% 15.4% 15.1% 18.0% Net Profit Margin 19.2%
6.1 mill. Series II shs. non-voting, redeemable for d1422 d1111 d861.0 d951.0 d1850 72.0 d1819 2067.0 d148.0 1323.0 1200 1300 Working Cap’l ($mill) 1950
Cdn $25.00, together with accrued div’d. Div’d pay- 7160.0 6223.0 7470.0 7576.0 6829.0 6278.0 5382.0 3213.0 2676.0 3772.0 3850 3750 Long-Term Debt ($mill) 3225
able quarterly at 70% of the Can. bank prime rate. 16750 17498 16430 14659 13100 12773 13077 9226.0 9560.0 9980.0 10120 10420 Shr. Equity ($mill) 11950
Common Stock 497,259,072 shs.
8.0% 8.2% 6.3% 7.7% 9.4% 8.1% 10.8% 5.1% 5.9% 7.4% 7.5% 9.0% Return on Total Cap’l 10.5%
MARKET CAP: $69.4 billion (Large Cap) 10.3% 10.1% 7.8% 10.2% 12.8% 10.5% 13.8% 5.4% 6.8% 9.2% 9.5% 11.5% Return on Shr. Equity 12.5%
CURRENT POSITION 2019 2020 6/30/21 4.5% 4.2% 1.5% 3.2% 5.1% 2.8% 6.6% NMF NMF 1.9% 1.5% 3.0% Retained to Com Eq 5.0%
($MILL.) 56% 58% 81% 69% 61% 73% 53% NMF 109% 79% 84% 75% All Div’ds to Net Prof 61%
Cash Assets 825 1787 2342
Receivables 1167 1151 1041 BUSINESS: Thomson Reuters is a global e-information and solu- der, 3/07; Solucient, LLC, 9/06; Quantitative Analytics, 1/06; Global
Inventory -- -- -- tions provider for businesses and professionals in the financial, Securities Information, 7/05; Information Holdings 11/04. Has about
Other 1079 1037 502 legal, tax and accounting, healthcare, science, and media markets. 30,600 employees. Woodbridge controls 66% of common; Off. and
Current Assets 3071 3975 3885 The Legal Professionals segment accounted for 40% of ’20 sales; dir. own less than 1% (3/21 proxy). President & CEO: Steve Has-
Accts Payable 1373 1410 1023 Corporates 21%; Tax Professionals, 18%, and Global Print & ker. Inc.: NY. Addr.: 3 Times Square, New York, NY 10036. Tele-
Debt Due 579 -- -- Reuters News, 21%. Acquired Reuters Group Plc., 4/08; CrossBor- phone: 646-223-4000. Internet: www.thomsonreuters.com.
Other 1267 1242 1744
Current Liab. 3219 2652 2767 Thomson Reuters continues to ex- acclaim as volumes continue to rise across
ANNUAL RATES Past Past Est’d ’18-’20 perience strong demand across its the sector. This is being accompanied by
of change (per ADR) 10 Yrs. 5 Yrs. to ’24-’26 product portfolio. Organic revenues in- growth in practical law solutions, while
Sales -3.5% -7.5% 5.5% creased 7% in the June period, fueled by the Tax & Accounting business is seeing
‘‘Cash Flow’’ -5.5% -8.0% 17.5%
Earnings -4.5% -8.5% 16.0% expansion of the ‘‘Big Three’’ Legal Profes- its ONESOURCE tax compliance software
Dividends 2.5% 2.0% 4.5% sionals, Corporates, and Tax & Accounting drive more recurring revenue.
Book Value -3.5% -1.5% 5.0% divisions. Management sighted consumer The company plans to continue reduc-
Cal- QUARTERLY SALES ($ mill.) A Full confidence regarding the current economic ing its ownership interest in the
endar Mar.31 Jun.30 Sep.30 Dec.31 Year climate and their own future prospects as London Stock Exchange Group. Thom-
2018 1379 1311 1292 1519 5501 drivers of the performance. son offloaded 10.1 million shares of LSEG
2019 1487 1423 1413 1583 5906 The 2021 outlook continues to im- earlier this year, following that company’s
2020 1520 1405 1443 1616 5984 prove. For the second-consecutive earn- equity purchase of Refinitiv. It plans to
2021 1580 1532 1520 1648 6280 ings period, Thomson Reuters raised use $225 million in proceeds to pay down a
2022 1625 1600 1650 1675 6550 guidance for organic revenues and the ad- portion of the taxes owed due to the sale.
Cal- EARNINGS PER SHARE AB Full justed operating margin. Compared to the As it becomes permitted, the company
endar Mar.31 Jun.30 Sep.30 Dec.31 Year start of the year, it is now calling for these plans to continue divesting its position
2018 .28 .17 .11 .20 .75 figures to check in at about 4.25% and there, generating capital with which it can
2019 .36 .29 .27 .37 1.29 31.5%, representing increases of 125 basis advance its core competencies.
2020 .48 .44 .39 .54 1.85 points and 100 basis points, respectively. Momentum has slowed for neutrally
2021 .58 .48 .42 .47 1.95 These estimates include costs related to ranked Thomson Reuters’ stock. That
2022 .50 .60 .65 .65 2.40 the company’s Change Program, invest- said, shares of the company still seem rel-
Cal- QUARTERLY DIVIDENDS PAID AC Full ments in which are expected to increase in atively overvalued, despite the prospects of
endar Mar.31 Jun.30 Sep.30 Dec.31 Year the second half. That said, savings related the ‘‘Big Three.’’ Long-term investors are
2017 .35 .35 .35 .35 1.38 to the program ought to offset the impact encouraged to note these shares’ Above-
2018 .35 .35 .35 .35 1.39 between 100 and 150 basis points. Average rank for Safety (2) and top score
2019 .36 .36 .36 .36 1.44 New products are achieving solid for Stock Price Stability (100) when con-
2020 .38 .38 .38 .38 1.52 market penetration. Legal offerings like sidering a position here.
2021 .405 .405 Westlaw Edge, in particular, are gaining Robert J. Scrudato August 20, 2021
(A) At yearend in U.S. dollars except share (8¢); ’09, (84¢); ’10, (67¢); ’11, ($3.73); ’12, Excl. 15% Can. non-res. tax. Div’d historically Company’s Financial Strength B++
prices, which are in Canadian dollars. (B) 38¢; ’13, ($1.38); ’14, 51¢; ’15, (53¢); ’16, paid in mid-Mar., Jun., Sept., and Dec. Special Stock’s Price Stability 100
Based on dil. weighted avg. shrs. Excl. nonrec. $2.34; ’17, (57¢); ’18, $5.16; ’19, $1.82; ’20, div’d paid 3/03: 43¢. (D) In mill. (E) Pro-forma Price Growth Persistence NMF
gains/losses: ’05, 1¢; ’06, 37¢; ’07, $4.59; ’08; 45¢. Next egs. report due early November. (C) reflecting acquisition of Reuters in April, 2008. Earnings Predictability 50
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