TMX GROUP LTD (X.CA) Stock Fundamental Analysis
TSX:X - Toronto Stock Exchange - CA87262K1057 - Common Stock - Currency: CAD
Taking everything into account, X scores 5 out of 10 in our fundamental rating. X was compared to 83 industry peers in the Capital Markets industry. Both the profitability and the financial health of X get a neutral evaluation. Nothing too spectacular is happening here. X is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
X had positive earnings in the past year.
In the past year X had a positive cash flow from operations.
In the past 5 years X has always been profitable.
X had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
X has a better Return On Assets (0.83%) than 61.45% of its industry peers.
With a decent Return On Equity value of 9.59%, X is doing good in the industry, outperforming 74.70% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.70%, X is doing good in the industry, outperforming 77.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for X is in line with the industry average of 7.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 9.59% | ||
| ROIC | 6.7% |
ROA(3y)0.91%
ROA(5y)0.81%
ROE(3y)10.93%
ROE(5y)9.94%
ROIC(3y)6.82%
ROIC(5y)6.67%
1.3 Margins
With a decent Profit Margin value of 15.40%, X is doing good in the industry, outperforming 66.27% of the companies in the same industry.
X's Profit Margin has declined in the last couple of years.
X has a Operating Margin (23.45%) which is comparable to the rest of the industry.
X's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 52.73%, X is doing good in the industry, outperforming 69.88% of the companies in the same industry.
In the last couple of years the Gross Margin of X has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.45% | ||
| PM (TTM) | 15.4% | ||
| GM | 52.73% |
OM growth 3Y-23.88%
OM growth 5Y-8.28%
PM growth 3Y-20.89%
PM growth 5Y-5.37%
GM growth 3Y-19.68%
GM growth 5Y-6.72%
2. Health
2.1 Basic Checks
The number of shares outstanding for X has been increased compared to 1 year ago.
X has less shares outstanding than it did 5 years ago.
The debt/assets ratio for X is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.34, we must say that X is in the distress zone and has some risk of bankruptcy.
X has a Altman-Z score of 0.34. This is comparable to the rest of the industry: X outperforms 55.42% of its industry peers.
X has a debt to FCF ratio of 3.59. This is a good value and a sign of high solvency as X would need 3.59 years to pay back of all of its debts.
X's Debt to FCF ratio of 3.59 is fine compared to the rest of the industry. X outperforms 69.88% of its industry peers.
X has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
X's Debt to Equity ratio of 0.42 is in line compared to the rest of the industry. X outperforms 57.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.59 | ||
| Altman-Z | 0.34 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
X has a Current Ratio of 1.01. This is a normal value and indicates that X is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.01, X is not doing good in the industry: 69.88% of the companies in the same industry are doing better.
A Quick Ratio of 1.01 indicates that X should not have too much problems paying its short term obligations.
X has a Quick ratio (1.01) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.62% over the past year.
X shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.37% yearly.
X shows a decrease in Revenue. In the last year, the revenue decreased by -2.24%.
X shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.71% yearly.
EPS 1Y (TTM)21.62%
EPS 3Y-37.96%
EPS 5Y-20.37%
EPS Q2Q%26.32%
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y42.16%
Revenue growth 5Y20.71%
Sales Q2Q%21.16%
3.2 Future
X is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.45% yearly.
X is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.44% yearly.
EPS Next Y16.43%
EPS Next 2Y13.9%
EPS Next 3Y12.45%
EPS Next 5YN/A
Revenue Next Year14.69%
Revenue Next 2Y10.29%
Revenue Next 3Y9.44%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.03 indicates a quite expensive valuation of X.
X's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.28, X is valued at the same level.
X is valuated quite expensively with a Price/Forward Earnings ratio of 25.32.
X's Price/Forward Earnings is on the same level as the industry average.
X is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.03 | ||
| Fwd PE | 25.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of X is on the same level as its industry peers.
X's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. X is cheaper than 67.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.06 | ||
| EV/EBITDA | 20.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates X does not grow enough to justify the current Price/Earnings ratio.
X's earnings are expected to grow with 12.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.89
PEG (5Y)N/A
EPS Next 2Y13.9%
EPS Next 3Y12.45%
5. Dividend
5.1 Amount
X has a Yearly Dividend Yield of 1.41%. Purely for dividend investing, there may be better candidates out there.
X's Dividend Yield is comparable with the industry average which is at 4.61.
Compared to an average S&P500 Dividend Yield of 2.42, X's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
On average, the dividend of X grows each year by 8.27%, which is quite nice.
X has been paying a dividend for at least 10 years, so it has a reliable track record.
X has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.27%
Div Incr Years9
Div Non Decr Years21
5.3 Sustainability
X pays out 47.76% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of X is growing, but earnings are growing more, so the dividend growth is sustainable.
DP47.76%
EPS Next 2Y13.9%
EPS Next 3Y12.45%
TSX:X (7/2/2025, 7:00:00 PM)
55.85
-1.87 (-3.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners55.62%
Inst Owner ChangeN/A
Ins Owners1.15%
Ins Owner ChangeN/A
Market Cap15.53B
Analysts72.86
Price Target57.38 (2.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend0.75
Dividend Growth(5Y)8.27%
DP47.76%
Div Incr Years9
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.32%
Min EPS beat(2)-1.64%
Max EPS beat(2)8.27%
EPS beat(4)3
Avg EPS beat(4)2.5%
Min EPS beat(4)-1.64%
Max EPS beat(4)8.27%
EPS beat(8)4
Avg EPS beat(8)0.56%
EPS beat(12)6
Avg EPS beat(12)0.62%
EPS beat(16)9
Avg EPS beat(16)1.01%
Revenue beat(2)2
Avg Revenue beat(2)1.83%
Min Revenue beat(2)1.2%
Max Revenue beat(2)2.45%
Revenue beat(4)3
Avg Revenue beat(4)0.65%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)2.45%
Revenue beat(8)4
Avg Revenue beat(8)-0.2%
Revenue beat(12)8
Avg Revenue beat(12)32.15%
Revenue beat(16)12
Avg Revenue beat(16)26.11%
PT rev (1m)3.45%
PT rev (3m)7.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.78%
EPS NY rev (1m)0%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.03 | ||
| Fwd PE | 25.32 | ||
| P/S | 5.34 | ||
| P/FCF | 26.06 | ||
| P/OCF | 22.82 | ||
| P/B | 3.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.19 |
EPS(TTM)1.8
EY3.22%
EPS(NY)2.21
Fwd EY3.95%
FCF(TTM)2.14
FCFY3.84%
OCF(TTM)2.45
OCFY4.38%
SpS10.46
BVpS16.8
TBVpS-9.61
PEG (NY)1.89
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 9.59% | ||
| ROCE | 8.71% | ||
| ROIC | 6.7% | ||
| ROICexc | 7.02% | ||
| ROICexgc | 418% | ||
| OM | 23.45% | ||
| PM (TTM) | 15.4% | ||
| GM | 52.73% | ||
| FCFM | 20.49% |
ROA(3y)0.91%
ROA(5y)0.81%
ROE(3y)10.93%
ROE(5y)9.94%
ROIC(3y)6.82%
ROIC(5y)6.67%
ROICexc(3y)7.34%
ROICexc(5y)7.13%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)8.89%
ROCE(5y)8.74%
ROICexcg growth 3Y238.12%
ROICexcg growth 5Y119.32%
ROICexc growth 3Y-2.59%
ROICexc growth 5Y3.49%
OM growth 3Y-23.88%
OM growth 5Y-8.28%
PM growth 3Y-20.89%
PM growth 5Y-5.37%
GM growth 3Y-19.68%
GM growth 5Y-6.72%
F-Score7
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.59 | ||
| Debt/EBITDA | 2.28 | ||
| Cap/Depr | 50.12% | ||
| Cap/Sales | 2.91% | ||
| Interest Coverage | 6.56 | ||
| Cash Conversion | 79.98% | ||
| Profit Quality | 133.04% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 0.34 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)49.36%
Cap/Depr(5y)58.08%
Cap/Sales(3y)2.5%
Cap/Sales(5y)3.8%
Profit Quality(3y)105.19%
Profit Quality(5y)110.84%
High Growth Momentum
Growth
EPS 1Y (TTM)21.62%
EPS 3Y-37.96%
EPS 5Y-20.37%
EPS Q2Q%26.32%
EPS Next Y16.43%
EPS Next 2Y13.9%
EPS Next 3Y12.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.24%
Revenue growth 3Y42.16%
Revenue growth 5Y20.71%
Sales Q2Q%21.16%
Revenue Next Year14.69%
Revenue Next 2Y10.29%
Revenue Next 3Y9.44%
Revenue Next 5YN/A
EBIT growth 1Y25.53%
EBIT growth 3Y8.22%
EBIT growth 5Y10.72%
EBIT Next Year34.67%
EBIT Next 3Y16.5%
EBIT Next 5YN/A
FCF growth 1Y47.1%
FCF growth 3Y12.1%
FCF growth 5Y13.93%
OCF growth 1Y47.32%
OCF growth 3Y12.2%
OCF growth 5Y12.63%