Is it a good company at a reasonable price? It is cheap compared to where is has been, but I do wonder if it is really cheap. There are fears about AI and this company. It probably went too high in mid-2025. The company does seem optimistic with its recent dividend raises in the 10% range. In any event, I plan to hold on to the shares I have in this company. I bought it for diversification and this reason still holds.
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, over 40 years. I bought this stock to give my portfolio some balance as I had too many financial stocks. Performance has often been mediocre.
When I was updating my spreadsheet, I noticed that this company has done fine for me. It has not been an exciting stock, but it has taken off since 2014. I have made several purchases since 1985 (just over 40 years ago) and my total return is 8.43% with 5.67% from capital gains and 2.76% in dividends. This is a good stock for diversification.
If you had invested in this company in December 2015, for $1,1048.20 you would have bought 20 shares at $52.41 per share. In December 2025, after 10 years you would have received $623.84 in dividends. The stock would be worth $3,679.40. Your total return would have been $4,303.24. This would be a total return of 16.47% per year with 13.38% from capital gain and 3.09% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $52.41 | $1,048.20 | 20 | 10 | $623.84 | $3,679.40 | $4,303.24 |
The current dividend yield is moderate with dividend growth moderate. The current dividend yield is moderate (2% to 4% ranges0 at 3.03%. The 5 and 10 year median dividend yields are low (below 2%) at 1.48% and 1.93%. The historical median dividend yield is moderate at 2.57%. The dividend growth is moderate (8% to 14% ranges) at 9.4% per year over the past 5 years. The last dividend increase was in 2026 and it was for 10%.
The Dividend Payout Ratios (DPR) are too high. The DPR for 2025 for Earnings per Share (EPS) is too high at 71% with 5 year coverage at 52%. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is too high at 61% with 5 year coverage at 65%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 41% with 5 year coverage too high at 69%. The DPR for 2025 for Free Cash Flow (FCF) is too high at 53% with 5 year coverage at 54%.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 71.47% | 51.54% |
| AEPS | 60.71% | 65.29% |
| CFPS | 40.61% | 69.28% |
| FCF | 53.08% | 54.25% |
Debt Ratios are mostly fine, but I would like to see the Liquidity Ratio improved. The Long Term Debt/Market Cap Ratio for 2025 is good at 0.02 and currently at 0.04. The Liquidity Ratio for 2025 is too low at 0.64 and 0.60 currently. If you added in Cash Flow after dividends, the ratios are still too low at 1.10 and currently at 1.17. I like to see these ratios at 1.50 or higher. The Debt Ratio for 2025 is good at 2.98 and 2.96 currently. The Leverage and Debt/Equity Ratios for 2025 are good at 1.51 and 0.51 and currently at 1.52 and 0.52.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.02 | 0.04 |
| Intang/GW | 0.21 | 0.34 |
| Liquidity | 0.64 | 0.60 |
| Liq. + CF | 1.10 | 0.88 |
| Liq. + CF+D | 1.53 | 1.17 |
| Debt Ratio | 2.98 | 2.93 |
| Leverage | 1.51 | 1.52 |
| D/E Ratio | 0.51 | 0.52 |
The Total Return per year is shown below for years of 5 to 40 to the end of 2025 in CDN$. 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. |
|---|---|---|---|---|---|
| 2020 | 5 | 9.94% | 14.02% | 12.03% | 1.99% |
| 2015 | 10 | 6.52% | 16.47% | 13.38% | 3.09% |
| 2010 | 15 | 7.05% | 14.11% | 11.24% | 2.87% |
| 2005 | 20 | 6.35% | 10.28% | 7.97% | 2.31% |
| 2000 | 25 | 4.75% | 6.82% | 5.03% | 1.79% |
| 1995 | 30 | 5.19% | 10.81% | 7.86% | 2.95% |
| 1990 | 35 | 5.41% | 9.69% | 7.04% | 2.65% |
| 1985 | 40 | 6.25% | 9.05% | 6.61% | 2.44% |
The Total Return per year is shown below for years of 5 to 35 to the end of 2025 in 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. |
|---|---|---|---|---|---|
| 2020 | 5 | 9.38% | 13.33% | 10.42% | 2.91% |
| 2015 | 10 | 5.91% | 16.52% | 13.47% | 3.05% |
| 2010 | 15 | 4.91% | 11.49% | 8.87% | 2.62% |
| 2005 | 20 | 5.67% | 10.32% | 7.08% | 3.24% |
| 2000 | 25 | 5.11% | 7.88% | 5.46% | 2.42% |
| 1995 | 30 | 5.25% | 11.43% | 7.85% | 3.58% |
| 1990 | 35 | 4.93% | 9.47% | 6.53% | 2.94% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 29.33, 32.64 and 35.95. The corresponding 10 year ratios are 21.06, 23.03 and 24.99. The corresponding historical ratios are 20.01, 22.38 and 25.05. The current ratio is 21.58 based on a stock price of $83.97 and EPS estimate for 2026 of $3.89. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$. You will get a similar result 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 38.04, 42.33, 46.63. The corresponding 10 year ratios are 36.25, 41.72 and 46.81. The corresponding historical ratios are 19.68, 22.36 and 25.17. The current ratio is 18.95 based on a stock price of $83.97 and AEPS estimate for 2026 of $4.43. The current ratio is below the low median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar result in CDN$.
I get a Graham Price of $71.28. The 10-year low, median, and high median Price/Graham Price Ratios are 2.24, 2.67 and 3.10. The current ratio is 1.60 based on a stock price of $114.26. The current ratio is below the low ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$$.
I get a 10-year median Price/Book Value per Share Ratio of 3.55. The current ratio is 3.10 based on a Book Value of $11,812M, Book Value per Share of $27.06 and a stock price of $83.97. The current ratio is 13% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$. You will get a similar result in CDN$.
I also have a Book Value per Shar estimate for 2026 of $26.05. This implies a ratio of 3.22 based on a Book Value per Share of $26.05, Book Value of $11,372M and a stock price of $83.97. This ratio is 9% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$. You will get a similar result in CDN$.
I get a 10-year median Price/Cash Flow per Share Ratio of 25.85. The current ratio is 13.39 based on Cash Flow per Share estimate for 2026 of $6.27, Cash Flow of $2,738M and a stock price of $83.97. The current ratio is 48% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar result in CDN$.
I get an historical median dividend yield of 2.57%. The current ratio is 3.12% based on dividends of $2.62 and a stock price of $83.97. The current dividend yield is 21% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar result in CDN$.
I get a 10 year median dividend yield of 1.93%. The current ratio is 3.12% based on dividends of $2.62 and a stock price of $83.97. The current dividend yield is 61% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar result in CDN$.
The 10-year median Price/Sales (Revenue) Ratio is 6.68. The current ratio is 4.53 based on Revenue estimate for 2026 of $8,086M, Revenue per Share of $18.52 and a stock price of $83.97. The current ratio is 32% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar result in CDN$.
Results of stock price testing is that the stock price is probably cheap. The dividend yield testing is saying that the stock price is relatively cheap. It is confirmed by the P/S Ratio test. Other testing is saying that the stock price is relatively reasonable and below the median or relatively cheap. I did most of this testing in US$ as the financials are reported in US$.
When I look at analysts’ recommendations, I find Strong Buy (9), Buy (3) and Hold (5). The 12 month stock price consensus is $175.73 CDN$ ($128.18 US$), with a high of $194.24 CDN$ ($141.68 US$) and low of $156.49 CDN$ ($114.14 US$). The 12 month consensus stock price of $175.73 implies a total return of 56.92% with 53.80% from capital gains and 3.12% from dividends.
Analysts on Stock Chase talk about its big rally and then collapse. Some think it is a Buy and others say Do Not Buy. Some think AI will be a problem, others do not. Adam Othman on Motley Fool likes their foraying into AL-powered solutions. Aditya Raghunath on Motley Fool says they are down from their peak, but the company is growing faster than ever. The company put out a Press Release about their results for 2025. The company put out a Press Release for their first quarter of 2026.
Simply Wall Street via Yahoo Finance reviews this stock. They talk about how AI has fueled recent good results. Some analysts are very cautious about AI and this company. Some think the company is undervalued.
Thomson Reuters is a leading global provider of business information services, delivering trusted data, technology, and expertise to professionals across legal, tax, accounting, risk, compliance, and the news and media sectors. Thomson Reuters serves legal and accounting/tax professionals, corporations, and governments worldwide, but around 75% of revenue is generated in the US. 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 WSP Global Inc (TSX-WSP, OTC-WSPOF) ... learn more on Friday, May 15, 2026 around 5 pm. Tomorrow on my other blog I will write about Long Term Mindset by Brian.... learn more on Thursday, May 14, 2026 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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