I am reviewing this stock (TSX-TRI, NYSE-TRI) today as I have not yet reviewed it and the 2008 year end annual statement has came in. I also own this stock. I bought this stock in 1985. I have made a return of 7.4% per year, including dividends. I usually consider 8% return to be the appropriate long term return on a stock. This stock is close and it usually does show this sort of return. However, we are in a recession, or a bear market, or whatever, so this is not surprising that the long term return is currently a bit low. This stock has gone though a lot of changes since I first bought it.
If you look at the growth figures for this stock, they are mostly in the not bad area for the last 5 and 10 year periods. The worst is the increase in stock price. However, the cash flow is nothing to write home about neither. It has not done much in the last 5 years. The dividend yield is good and generally runs around 3%. The average increase in dividends over the last 10 years is much better in US$ terms than in CDN$ terms. They report in US$. From a Canadian perspective, the dividend increases have just kept pace with inflation, nothing more.
On my spreadsheet, I am showing mostly CDN$ figures. More and more Canadian companies are reporting in US$, and this is especially true of ones who do a lot of business in the US. When it comes to such things as Asset/Liability Ratios and Accrual Ratios, these are the same no matter what currency you look at. For other ratios and growth figures, the values between CDN$ and US$ figures can vary greatly.
The liquidity ratio on this stock often runs just below 1.00. From the end of 2008 to the present time, it has improved from 0.80 to 0.93. The Asset/Liability ratio has always been good and is usually over 2.00. I prefer to see these ratios at 1.50 or better. 1.00 to 1.50 is acceptable. The accrual ratio was very high at 22% at the end of 2008. However, it has since become negative and this is a good sign.
I do not think that this stock has really recovered from the last bear market. However, the amalgamated with Reuters is generally thought of as a good move, and many analysts think is will be a good long-term buy for stock gains and rising dividends. I intend to hold on to my shares at the present time. However, I keep an eye on this stock.
Thomson Reuters Corp is the leading source of intelligent information for businesses and professionals. They combine industry expertise with innovative technology to deliver critical information to leading decision-makers. Through more than 50,000 people in over 100 countries, they deliver this must-have insight to the financial, legal, tax and accounting, healthcare and science and media markets, powered by the world’s most trusted news organization. They derive the majority of our revenues from selling electronic content and services to professionals, primarily on a subscription basis. Thomson and Reuters amalgamated in 2008. Its web site is www.thomsonreuters.com . See my spreadsheet at www.spbrunner.com/stocks/tri.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
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