Is it a good company at a reasonable price? The insight to the sell recommendations seems to be that the stock is expensive. I do not sell good stocks because they are overpriced. I do plan to keep this stock. If you own a stock for a long period of time it is sometimes going to be overpriced and sometimes underpriced. This is a dividend growth stock and therefore the sort I like.
I own this stock of Thomson Reuters Corp (TSX-TRI, NASDAQ-TRI). I bought this stock in 1985 so I have had it for a very long time, almost 30 years. I bought stock to give portfolio some balance as I had too many financial stocks. Performance has often been mediocre.
When I was updating my spreadsheet, I noticed I have had this stock for 38 years and I have made a total return of 9.67% per year with 7.68% from capital gains and 1.99% from dividends.
If you had invested in this company in December 2014, for $1,1031.14 you would have bought 22 shares at $46.87 per share. In December 2024, after 10 years you would have received $652.82 in dividends. The stock would be worth $5,078.04. Your total return would have been $5,730.86. This would be a total return of 20.05% per year with 17.28% from capital gain and 2.77% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $46.87 | $1,031.14 | 22 | 10 | $652.82 | $5,078.04 | $5,730.86 |
The current dividend yield is low with dividend growth moderate. The current dividend yield is low (below 2%) at 1.26%. The 5 year median dividend yield is also low at 1.35%. The 10 year and historical median dividend yields are moderate (2% to 4% ranges) at 2.29% and 2.62%. The dividend growth is moderate (8% to 14% ranges) at 8.5% per year over the past 5 years. The last dividend increase was in 2025 and it was for 10.2%. (Note: dividend increases have been lower for years 10 to 39. See chart on total return below.)
The DPR for 2024 for Earnings per Share (EPS) is good at 44% with 5 year coverage a little high at 50%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is fine but a bit high at 57% with 5 year coverage too high at 70%. The DPR for 2024 for Cash Flow per Share (CFPS) is a bit high at 43% with 5 year coverage too high at 74%. The DPR for 2024 for Free Cash Flow (FCF) is fine at 52% with 5 year coverage at 55%. (There is no agreement on FCF, but they are not that far apart in value.)
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 44.17% | 50.42% |
| AEPS | 57.29% | 69.58% |
| CFPS | 42.61% | 74.21% |
| FCF | 51.64% | 54.66% |
Debt Ratios are generally good, but the Liquidity Ratio is low. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.03 and currently at 0.02. The Liquidity Ratio for 2024 is low at 1.02 and 0.91currently. If you added in Cash Flow after dividends, the ratios are still low at 1.45 and currently at 1.38. I prefer the Liquidity ratio to be at 1.50 or higher. The Debt Ratio for 2024 is good at 2.87 and 2.99 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.54 and 0.54 and currently at 1.50 and 0.50.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.03 | 0.02 |
| Intang/GW | 0.14 | 0.13 |
| Liquidity | 1.02 | 0.91 |
| Liq. + CF | 1.45 | 1.38 |
| Liq. + CF+D | 1.73 | 1.66 |
| Debt Ratio | 2.87 | 2.99 |
| Leverage | 1.54 | 1.50 |
| D/E Ratio | 0.54 | 0.50 |
The Total Return per year is shown below for years of 5 to 39 to the end of 2024 CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 9.84% | 22.82% | 19.97% | 2.85% |
| 2014 | 10 | 7.62% | 20.05% | 17.28% | 2.77% |
| 2009 | 15 | 6.10% | 16.18% | 13.63% | 2.55% |
| 2004 | 20 | 5.75% | 10.75% | 8.86% | 1.89% |
| 1999 | 25 | 4.63% | 9.23% | 7.37% | 1.86% |
| 1994 | 30 | 5.33% | 11.78% | 9.03% | 2.75% |
| 1989 | 35 | 5.57% | 10.90% | 8.30% | 2.60% |
| 1985 | 39 | 6.22% | 9.59% | 7.41% | 2.19% |
The Total Return per year is shown below for years of 5 to 34 to the end of 2024 US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 8.45% | 20.12% | 17.50% | 2.62% |
| 2014 | 10 | 5.05% | 17.34% | 14.78% | 2.55% |
| 2009 | 15 | 4.48% | 13.76% | 11.24% | 2.52% |
| 2004 | 20 | 5.40% | 10.64% | 7.87% | 2.77% |
| 1999 | 25 | 4.87% | 10.02% | 7.47% | 2.55% |
| 1994 | 30 | 5.26% | 12.29% | 8.90% | 3.39% |
| 1990 | 34 | 4.85% | 9.99% | 7.29% | 2.69% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 26.69, 30.68 and 34.16. The corresponding 10 year ratios are 20.14, 22.45 and 24.75. The corresponding historical ratios are 19.67, 20.89 and 24.28. The current P/E Ratio is 56.20 based on a stock price of $261.51 and EPS estimate for 2025 of $4.65 ($3.37 US$). This ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. This testing is done in CDN$.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 36.16, 41.10 and 46.63. The corresponding 10 year ratios 34.87, 39.42, 46.33. The corresponding historical ratios are 19.56, 22.34 and 25.01. The current P/AEPS is 49.07 based on AEPS estimate for 2025 of $3.84 and a stock price of $188.44. This stock price testing suggests that the stock price is relatively expensive. This testing is done in US$. You will get a similar result in CDN$.
I get a Graham Price of $67.45. The 10-year low, median, and high median Price/Graham Price Ratios are 2.15, 2.61 and 3.10. The current P/GP Ratio is 3.87 based on a stock price of $261.51. This ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. This testing is done in CDN$.
I get a 10-year median Price/Book Value per Share Ratio of 3.33. The current P/B Ratio is 6.90 based on a stock price of $188.44, Book Value of $12,296M, and Book Value per Share of $27.32. The current ratio is 107% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is done in US$. You will get a similar result in CDN$.
I also have a Book Value per Share estimate for 2025 of $27.36. This implies a ratio of 6.89 based on a stock price of $188.44 and Book Value of $12,312M. The current ratio is 107% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is done in US$. You will get a similar result in CDN$.
I get a 10-year median Price/Cash Flow per Share Ratio of 22.72. The current ratio is 35.54 based on Cash Flow per Share estimate for 2025 of $5.62, Cash Flow of $2,528M and a stock price of $188.14. The current ratio is 48% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is done in US$. You will get a similar result in CDN$.
I get an historical median dividend yield of 2.62%. The current dividend yield is 1.26% based on dividends of $2.38 and a stock price of $188.44. The current dividend yield is 52% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is done in US$. You will get a similar result in CDN$.
I get a 10 median dividend yield of 2.29%. The current dividend yield is 1.26% based on dividends of $2.38 and a stock price of $188.44. The current dividend yield is 45% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is done in US$. You will get a similar result in CDN$.
The 10-year median Price/Sales (Revenue) Ratio is 5.42. The current P/S Ratio is 11.32 based on Revenue estimate of $7,490M, Revenue per Share of $16.64 and a stock price of $188.44. The current ratio is 109% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is done in US$. You will get a similar result in CDN$.
Results of stock price testing is that the stock price is that the stock price is relatively expensive. I did most of the testing in US$ because the financial statements are in US$ as are the estimates. The 10 year median dividend yield test says this stock is expensive as does the P/S Ratio test. All the tests say the same thing. The stock price is also at an all time high. It is never a good idea to buy at an all time high.
When I look at analysts’ recommendations, I find Strong Buy (1), Buy (3), Hold (11) and Sell (3). The consensus would be a hold. The 12 month stock price is $259.19 ($187.87) with a high of 289.72 ($210.00) and low of $209.33 ($151.73). The consensus stock price of $259.19 implies a total return of 0.37% with a capital loss of 0.89% and dividends of 1.26%.
There is only one entry on Stock Chase for 2025 and it is a buy but feels you should buy in the $245 range. There was lots of entry for 2024 both Buy and Do Not Buy. Mainly some thought the stock is overpriced. Daniel Da Costa on Motley Fool thought this was a top media company to buy. Aditya Raghunath on Motley Fool thinks this is a top blue chip stock to buy. The company put out a Press Release about their fourth quarter of 2024. The company put out a Press Release on their first quarter of 2025.
Simply Wall Street via Yahoo Finance reviews this stock. They have one warning of significant insider selling over the past 3 months. (I wonder if they are not confusing insiders not taking up options with actual selling.) The officers I follow all increased their shares over the past year. For Directors they either had no change or an increase in shares.
Thomson Reuters is the result of the megamerger of Canada’s Thomson and the United Kingdom’s Reuters Group in 2008. Thomson Reuters’ three largest segments are its legal professionals, Tax and accounting, and corporates segments. Thomson Reuters’ smaller segments include its Reuters news business and global print business. Its web site is here Thomson Reuters Corp .
The last stock I wrote about was about was Algoma Central Corporation (TSX-ALC, OTC-AGMJF) … learn more. The next stock I will write about will be McCoy Global Inc (TSX-MCB, OTC-MCCRF) … learn more on Monday, May 12, 2025 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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