Market dominance a plus for Thomson

Article Excerpt

THOMSON REUTERS CORP. $40 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 827.2 million; Market cap: $33.1 billion; Price-to-sales ratio: 2.5; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.thomsonreuters.com) gets 55% of its revenue by selling news and information to professionals in the banking industry. The remaining 45% comes from providing specialized information products to clients in the legal, accounting and scientific research fields. Big merger boosted revenue Thanks to its merger with the Reuters news agency in 2008, the combined company’s revenue rose 17.9%, from $11.7 billion in 2008 to $13.8 billion in 2011 (all amounts except share price and market cap in U.S. dollars). Thomson continues to sell some of its slower-growing businesses. As a result, its revenue slipped to $13.3 billion in 2012. Many banks cut their spending on information products in the wake of the 2008 financial crisis. In response, Thomson restructured its Financial & Risk division while it was integrating Reuters. Exclude one-time…