TRI Shares Sink 5.1% In A Day, Now Is Not The Time To Buy The Stock

We believe there is a near-equal mix of good and bad in TRI stock given its overall Moderate operating performance and financial condition. But keeping in mind its Very High valuation, we think that the stock is Unattractive. Here is our multi-factor assessment.

But no matter how attractive, investing in a single stock carries high risk. Trefis High Quality Portfolio and is designed to reduce stock-specific risk while giving upside exposure

Let’s get into details of each of the assessed factors but before that, for quick background: With $72 Bil in market cap, Thomson Reuters provides business information services worldwide across Legal, Corporate, Tax & Accounting, and Reuters News segments, delivering news and insights to professionals, media, and organizations.

[1] Valuation Looks Very High

This table highlights how TRI is valued vs broader market. For more details see: TRI Valuation Ratios

[2] Growth Is Weak

• Thomson Reuters has seen its top line grow at an average rate of 3.9% over the last 3 years
• Its revenues have grown 4.0% from $7.0 Bil to $7.3 Bil in the last 12 months
• Also, its quarterly revenues grew 2.6% to $1.8 Bil in the most recent quarter from $1.7 Bil a year ago.

This table highlights how TRI is growing vs broader market. For more details see: TRI Revenue Comparison

[3] Profitability Appears Very Strong

• TRI last 12 month operating income was $1.9 Bil representing operating margin of 26.5%
• With cash flow margin of 34.3%, it generated nearly $2.5 Bil in operating cash flow over this period
• For the same period, TRI generated nearly $1.6 Bil in net income, suggesting net margin of about 22.3%

This table highlights how TRI profitability vs broader market. For more details see: TRI Operating Income Comparison

[4] Financial Stability Looks Strong

• TRI Debt was $1.8 Bil at the end of the most recent quarter, while its current Market Cap is $72 Bil. This implies Debt-to-Equity Ratio of 2.5%
• TRI Cash (including cash equivalents) makes up $727 Mil of $18 Bil in total Assets. This yields a Cash-to-Assets Ratio of 4.0%

[4] Downturn Resilience Is Moderate

TRI saw an impact slightly worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• TRI stock fell 24.9% from a high of $127.96 on 19 November 2021 to $96.04 on 11 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 14 February 2023
• Since then, the stock increased to a high of $214.21 on 14 July 2025 , and currently trades at $160.61

 
2020 Covid Pandemic

• TRI stock fell 35.7% from a high of $85.09 on 19 February 2020 to $54.72 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 9 October 2020

 
2008 Global Financial Crisis

• TRI stock fell 57.7% from a high of $54.00 on 31 October 2007 to $22.85 on 24 October 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 1 August 2017

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read TRI Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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