Growth For The Year Ended 2019-12-31
The company shows a vast amount of sales growth of 7% y/y with a gross margin of 62%. Last year, annual sales were equal to $5984. 0 million.
TRI does not report huge EBITDA growth. Nevertheless the company’s EBITDA ratio is equal to 45%. I believe that considering the quality of the business, I see room for TRI to grow into its valuation over time. The EBITDA growth is negative because the sales expenditure increased a 30%. Administrative expenses increased a 1%, which reduces TRI’s EBITDA. Moreover, operating income is another valuable feature of TRI. The operating income grows at 56% y/y.
Balance Sheet Statement As Of 2020-12-31
With an A/L ratio of more than 2x, TRI’s balance sheet seems very solid. In Q4, Thomson Reuters Corp reported $17881 million in assets, with total liabilities of $7901 million.
As for me, I think that Thomson Reuters Corp shows a large amount of goodwill. It is equal to $5976 million. It is difficult to know the real value of intangibles and goodwill. To sum up, there is a potential goodwill impairment risk. Thomson Reuters Corp could review and impair intangible assets, which will most likely lead to a decline in the share price. The balance sheet shows deferred revenue of $866 million, which I like. Deferred revenue represents a prepayment by TRI’s clients that have yet to be delivered. Hence, Thomson Reuters Corp receives money in advance of it being earned. Moreover, Thomson Reuters Corp has positive working capital, which market participants will like. It means that TRI can cover its short-term liabilities when they come due.
TRI’s short term debt is less significant than the company’s cash. In my view, Thomson Reuters Corp may not have to worry about any liquidity risk. TRI’s debt to equity ratio is below 2x. All in all, the debt level appears to be under control. Note that Thomson Reuters Corp reports cash and cash equivalents of $1787 million, and net debt of $2105 million. TRI trades at 42x EBITDA, which may not seem cheap. However, with the company’s EBITDA margin of 45% the EV/EBITDA ratio makes sense. null
Quarterly Figures For The Quarter Ended 2020-12-31
In Q4 TRI reported quarterly sales of $1616 million, and gross profit of $1146 million. The gross profit margin was equal to 70%. Moreover, TRI is profitable, which is useful. Thomson Reuters Corp released positive quarterly EBITDA of $1003. 0 million. The numbers seem useful. TRI also released positive net income of $562. 0 million. The numbers seem useful.
Institutional traders Gilbert & Cook, Inc. , First American Bank, and AdvisorNet Financial, Inc are Thomson Reuters Corp investors.
About Thomson Reuters Corp
Thomson Reuters Corporation provides news and business information services to professionals in the United States, Other Americas, Europe, the Middle East, Africa, and the Asia- Pacific. It operates through five segments: Legal Professionals, Corporates, Tax & Accounting Professionals, Reuters News, and Global Print. The Legal Professionals segment offers research and workflow products focusing on legal research and integrated legal workflow solutions that combine content, tools, and analytics to law firms and governments.