TMX GROUP LTD (X.CA) Stock Fundamental Analysis
TSX:X - Toronto Stock Exchange - CA87262K1057 - Common Stock - Currency: CAD
Taking everything into account, X scores 4 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.
X had positive earnings in each of the past 5 years.
Each year in the past 5 years X had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.20%, X is doing good in the industry, outperforming 67.57% of the companies in the same industry.
X has a Return On Equity of 10.52%. This is in the better half of the industry: X outperforms 78.38% of its industry peers.
X has a Return On Invested Capital of 6.37%. This is amongst the best in the industry. X outperforms 82.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for X is below the industry average of 8.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.2% | ||
| ROE | 10.52% | ||
| ROIC | 6.37% |
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
Looking at the Profit Margin, with a value of 16.20%, X is in the better half of the industry, outperforming 70.27% of the companies in the same industry.
X's Profit Margin has declined in the last couple of years.
X has a Operating Margin of 21.61%. This is comparable to the rest of the industry: X outperforms 47.30% of its industry peers.
In the last couple of years the Operating Margin of X has declined.
X has a better Gross Margin (49.12%) than 68.92% of its industry peers.
X's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.61% | ||
| PM (TTM) | 16.2% | ||
| GM | 49.12% |
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
X has more shares outstanding than it did 1 year ago.
The number of shares outstanding for X has been reduced compared to 5 years ago.
The debt/assets ratio for X is higher compared to a year ago.
2.2 Solvency
X has an Altman-Z score of 0.42. This is a bad value and indicates that X is not financially healthy and even has some risk of bankruptcy.
X has a Altman-Z score (0.42) which is in line with its industry peers.
X has a debt to FCF ratio of 3.94. This is a good value and a sign of high solvency as X would need 3.94 years to pay back of all of its debts.
X has a Debt to FCF ratio of 3.94. This is in the better half of the industry: X outperforms 72.97% 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.
Looking at the Debt to Equity ratio, with a value of 0.42, X is in line with its industry, outperforming 54.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 0.42 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.01 indicates that X should not have too much problems paying its short term obligations.
X has a Current ratio (1.01) which is in line with its industry peers.
X has a Quick 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.
X has a Quick ratio (1.01) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
X shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.65%, which is quite good.
The earnings per share for X have been decreasing by -20.37% on average. This is quite bad
X shows a small growth in Revenue. In the last year, the Revenue has grown by 2.56%.
X shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.71% yearly.
EPS 1Y (TTM)15.65%
EPS 3Y-37.96%
EPS 5Y-20.37%
EPS Q2Q%29.73%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y42.16%
Revenue growth 5Y20.71%
Sales Q2Q%30.45%
3.2 Future
The Earnings Per Share is expected to grow by 10.77% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.73% on average over the next years.
EPS Next Y14.97%
EPS Next 2Y12.89%
EPS Next 3Y10.77%
EPS Next 5YN/A
Revenue Next Year11.16%
Revenue Next 2Y8.64%
Revenue Next 3Y7.73%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.58 indicates a quite expensive valuation of X.
X's Price/Earnings ratio is a bit more expensive when compared to the industry. X is more expensive than 60.81% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.62. X is around the same levels.
With a Price/Forward Earnings ratio of 25.73, X can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of X is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, X is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.58 | ||
| Fwd PE | 25.73 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as X.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of X indicates a somewhat cheap valuation: X is cheaper than 74.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.42 | ||
| EV/EBITDA | 19.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.98
PEG (5Y)N/A
EPS Next 2Y12.89%
EPS Next 3Y10.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, X has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.58, X pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.27, X is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
On average, the dividend of X grows each year by 8.27%, which is quite nice.
X has paid a dividend for at least 10 years, which is 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 43.22% of its income as dividend. This is a bit on the high side, but may be sustainable.
X's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP43.22%
EPS Next 2Y12.89%
EPS Next 3Y10.77%
TSX:X (2/21/2025, 7:00:00 PM)
50.29
+0.12 (+0.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners55.78%
Inst Owner ChangeN/A
Ins Owners1.15%
Ins Owner ChangeN/A
Market Cap13.97B
Analysts72.86
Price Target53.3 (5.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend0.75
Dividend Growth(5Y)8.27%
DP43.22%
Div Incr Years9
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.77%
Min EPS beat(2)3.27%
Max EPS beat(2)8.27%
EPS beat(4)3
Avg EPS beat(4)2.24%
Min EPS beat(4)-2.67%
Max EPS beat(4)8.27%
EPS beat(8)5
Avg EPS beat(8)1.11%
EPS beat(12)7
Avg EPS beat(12)1.02%
EPS beat(16)10
Avg EPS beat(16)1.33%
Revenue beat(2)1
Avg Revenue beat(2)0.63%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)2.45%
Revenue beat(4)2
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)2.45%
Revenue beat(8)4
Avg Revenue beat(8)17.56%
Revenue beat(12)8
Avg Revenue beat(12)33.51%
Revenue beat(16)12
Avg Revenue beat(16)26.4%
PT rev (1m)10%
PT rev (3m)18.92%
EPS NQ rev (1m)1.14%
EPS NQ rev (3m)5.09%
EPS NY rev (1m)3.43%
EPS NY rev (3m)3.83%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.64%
Revenue NY rev (3m)4.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.58 | ||
| Fwd PE | 25.73 | ||
| P/S | 4.7 | ||
| P/FCF | 25.42 | ||
| P/OCF | 22.41 | ||
| P/B | 3.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.3 |
EPS(TTM)1.7
EY3.38%
EPS(NY)1.95
Fwd EY3.89%
FCF(TTM)1.98
FCFY3.93%
OCF(TTM)2.24
OCFY4.46%
SpS10.7
BVpS16.47
TBVpS-9.85
PEG (NY)1.98
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.2% | ||
| ROE | 10.52% | ||
| ROCE | 8.28% | ||
| ROIC | 6.37% | ||
| ROICexc | 6.74% | ||
| ROICexgc | 8227.74% | ||
| OM | 21.61% | ||
| PM (TTM) | 16.2% | ||
| GM | 49.12% | ||
| FCFM | 18.49% |
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 Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.94 | ||
| Debt/EBITDA | 2.4 | ||
| Cap/Depr | 44.5% | ||
| Cap/Sales | 2.48% | ||
| Interest Coverage | 7.66 | ||
| Cash Conversion | 77.16% | ||
| Profit Quality | 114.16% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 0.42 |
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)15.65%
EPS 3Y-37.96%
EPS 5Y-20.37%
EPS Q2Q%29.73%
EPS Next Y14.97%
EPS Next 2Y12.89%
EPS Next 3Y10.77%
EPS Next 5YN/A
Revenue 1Y (TTM)2.56%
Revenue growth 3Y42.16%
Revenue growth 5Y20.71%
Sales Q2Q%30.45%
Revenue Next Year11.16%
Revenue Next 2Y8.64%
Revenue Next 3Y7.73%
Revenue Next 5YN/A
EBIT growth 1Y17.83%
EBIT growth 3Y8.22%
EBIT growth 5Y10.72%
EBIT Next Year28.39%
EBIT Next 3Y13.04%
EBIT Next 5YN/A
FCF growth 1Y19.58%
FCF growth 3Y12.1%
FCF growth 5Y13.93%
OCF growth 1Y18.77%
OCF growth 3Y12.2%
OCF growth 5Y12.63%