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Thomson Reuters Corp TRI

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

No Big Surprises in Thomson Reuters’ Third Quarter

Rajiv Bhatia, CFA Equity Analyst

Analyst Note

| Rajiv Bhatia, CFA |

Thomson Reuters reported a decent quarter with operating results a touch above the consensus, reflecting the firm's continued progress on becoming a content-driven technology company. Revenue came in at $1.53 billion during the quarter, slightly ahead of the FactSet consensus of $1.52 billion. On this revenue, Thomson Reuters generated $458 million of adjusted EBITDA, which was 2% ahead of consensus expectations. While a solid quarter, there was little in the firm’s third-quarter earnings release that would alter our long-term view, and we will maintain our narrow moat rating and CAD 128 fair value estimate.

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Company Profile

Business Description

Thomson Reuters is the result of the $17.6 billion megamerger of Canada's Thomson and the United Kingdom's Reuters Group in 2008 and the 2018 carve-out of its finance and risk business, Refinitiv, in which it holds a 45% stake. In 2019, the company agreed to exchange its 45% stake in Refinitiv for a 15% stake in LSE, which closed in early 2021. Since the divestiture, the company is more concentrated on selling its flagship legal data and software, Westlaw, and its tax accounting software, Onesource. Reuters sees roughly 80% of revenue and 70% of expenses attributed to the United States, while the remainder (largely through the global print and Reuters News segments) is distributed across Latin America, Europe, the Middle East, Africa, and Asia-Pacific.

Contact
333 Bay Street, Suite 300
Toronto, ON, M5H 2R2, Canada
T +1 416 687-7500
Sector Industrials
Industry Specialty Business Services
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 24,000

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