Section1: Company Overview and Fundamental Insights

1.1 Company Overview:

Thomson Reuters Corp. (TSX: TRI) is a leading provider of business information services. Its product portfolio includes highly specialized information-enabled software and tools for legal, tax, accounting, and compliance professionals combined with the world's most global news service – Reuters.

 

 

 

 

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 5 Shareholders:

The top 5 shareholders together form ~73.43% of the total shareholding. Woodbridge Co., Ltd. and RBC Dominion Securities, Inc., hold a maximum stake in the company at ~­­­67.80% and ~1.52%, respectively.

1.4 Key Metrics:

The company reported decent growth in the revenues and flipped its net earnings in Q3 2022 from net losses in pcp, on the back of bounce in revenues from Big 3 segment, comprising of Legal Professionals, Corporates and Tax & Accounting Professionals. Furthermore, its operating margin figures are growing sequentially and beating the industry median numbers, another significant plus. These increasing numbers aided the company in generating stable free cash flows, proving its resilience and agility.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates: The below picture gives an overview of its recent activities, such as optimization of portfolio, entering foreign exchange contracts and dividend distribution:

2.2 Insights of Q3 2022 Financial Performance:

Section 3: Key Risks, Company Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is Nov 2, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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Disclaimer

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