Industrials
AI-hype is aboard the TRI express with the shares recently hitting an all-time high. The stock sells at 23.5x 2025E EBITDA, 40x 2025E Earnings and 37x FCF. This is higher than any other Information Services company Huber Research tracks apart from MSCI (rated OW), but MSCI has a huge moat around its business and 60% EBITDA margins. That is not to say CEO Steve Hasker has not been masterful in re-positioning TRI into growth opportunities and raising the margin profile of the company’s three key segments, but at the end of the day, this is a 6-7% organic growth story, with EBITDA margins in the mid-40% range. Douglas Arthur now estimates 2024 adj. EPS of $3.54 per share (prior $3.80).
Edition: 180
- 23 February, 2024