Thomson continues to unlock value

Article Excerpt

Thomson Reuters has held up well during the current downturn—the stock is up 10% in the past year compared to the 8% decline for the S&P/TSX Composite Index. That’s partly because it’s using the proceeds from the sale of its financial information business (Refinitiv) to raise its dividend and buy back shares. A new plan to upgrade its computer systems is also cutting costs. THOMSON REUTERS CORP. $137 is a buy. The company (Toronto symbol TRI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 485.8 million; Market cap: $66.6 billion; Price-to-sales ratio: 8.0; Dividend yield: 1.7%; TSINetwork Rating: Above Average; sells specialized information (mainly through electronic channels) to professionals in the legal, and tax and accounting fields. It also owns the Reuters news service. The Thomson family holds 67% of the outstanding shares. Information products sold to law firms (mainly under the Westlaw and Practical Law brands) represent Thomson’s biggest division, accounting for 42% of its revenue in the latest quarter. It gets…

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