Stock Analysis & Valuation Thomson Reuters Corporation (TRI)

• Previous Close: $110.63
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	117.83	7
Intrinsic value (DCF)	76.56	-31
Graham-Dodd Method	4.98	-96
Graham Formula	71.78	-35

Strategic Investment Analysis

Company Overview

Thomson Reuters Corporation (NYSE: TRI) is a global leader in providing business information services, serving professionals across legal, tax, accounting, corporate, and news sectors. Headquartered in Toronto, Canada, the company operates through five key segments: Legal Professionals, Corporates, Tax & Accounting Professionals, Reuters News, and Global Print. Thomson Reuters delivers critical research, workflow solutions, and analytics to law firms, governments, corporations, and media organizations. With a legacy dating back to 1851, the company has evolved into a trusted provider of integrated content and technology solutions, helping professionals navigate complex regulatory and compliance landscapes. Its Reuters News division remains a cornerstone of global financial and business journalism. As a subsidiary of The Woodbridge Company Limited, Thomson Reuters maintains a strong balance sheet and steady cash flow, reinforcing its position in the specialty business services industry.

Investment Summary

Thomson Reuters presents a compelling investment case due to its stable revenue streams, diversified business segments, and strong market positioning in professional information services. The company benefits from recurring revenue models in its Legal and Tax segments, supported by high customer retention. With a market cap of ~$87.9B, a low beta (0.39), and solid profitability (net income of $2.21B in FY 2023), TRI offers defensive characteristics suitable for risk-averse investors. However, risks include exposure to print media decline (Global Print segment) and competitive pressures from tech-driven disruptors in legal and tax software. The company’s ability to integrate AI and analytics into its workflow solutions will be critical for long-term growth.

Competitive Analysis

Thomson Reuters holds a competitive advantage through its entrenched relationships with legal, tax, and corporate professionals, supported by high switching costs due to workflow integration. Its Reuters News division provides a unique differentiator, offering proprietary content that enhances its data-driven solutions. The company’s scale allows for continuous R&D investment in AI and automation (e.g., CoCounsel in legal AI). However, it faces intensifying competition from SaaS-based providers like RELX (LexisNexis) in legal research and Wolters Kluwer in tax & accounting. While TRI’s diversified segments mitigate sector-specific risks, its Global Print business remains a declining segment. The company’s focus on transitioning to cloud-based solutions and leveraging its content moat positions it well against pure-play tech competitors, but execution risks remain in maintaining innovation pace.

Major Competitors

• RELX Group (RELX): RELX (via LexisNexis) is TRI’s primary competitor in legal research and analytics, with a stronghold in academic and government markets. Its Elsevier segment adds scientific research depth, but TRI’s Reuters News content provides a counterbalance. RELX’s margins are higher, but TRI has better growth in corporate solutions.
• Wolters Kluwer (WKL): Wolters Kluwer competes closely in tax, accounting, and regulatory solutions, with a stronger European presence. Its CCH Tagetik platform rivals TRI’s ONESOURCE, but TRI’s integration with Reuters data offers broader corporate insights. WKL’s profitability is robust, but TRI has greater scale in legal workflows.
• BlackLine (BL): BlackLine focuses on cloud-based accounting automation, competing with TRI’s Tax & Accounting segment. BL’s modern UI appeals to SMBs, but TRI’s enterprise relationships and compliance depth give it an edge in regulated industries. BL grows faster but lacks TRI’s diversified revenue base.
• Moody’s Corporation (MCO): Moody’s overlaps with TRI in regulatory and compliance data, especially for corporates. MCO’s credit ratings dominance is unmatched, but TRI’s legal and tax integration provides a more holistic workflow. Moody’s has higher margins, while TRI offers better diversification.