TMX GROUP LTD (X.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:X - CA87262K1057 - Common Stock
50.82 CAD
-0.17 (-0.33%)
X gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 78 industry peers in the Capital Markets industry. X has only an average score on both its financial health and profitability. X is valued quite expensive, but it does show an excellent growth. Finally X also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year X was profitable.
- X had a positive operating cash flow in the past year.
- 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
- X has a Return On Assets of 0.91%. This is comparable to the rest of the industry: X outperforms 58.97% of its industry peers.
- X's Return On Equity of 9.71% is fine compared to the rest of the industry. X outperforms 62.82% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.55%, X is in the better half of the industry, outperforming 74.36% of the companies in the same industry.
- X had an Average Return On Invested Capital over the past 3 years of 6.82%. This is below the industry average of 10.50%.
- The last Return On Invested Capital (7.55%) for X is above the 3 year average (6.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 9.71% | ||
| ROIC | 7.55% |
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
- X's Profit Margin of 15.99% is fine compared to the rest of the industry. X outperforms 60.26% of its industry peers.
- X's Profit Margin has declined in the last couple of years.
- The Operating Margin of X (25.96%) is worse than 64.10% of its industry peers.
- X's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 57.47%, X is doing good in the industry, outperforming 71.79% 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 | 25.96% | ||
| PM (TTM) | 15.99% | ||
| GM | 57.47% |
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
- Compared to 1 year ago, X has more shares outstanding
- The number of shares outstanding for X has been reduced compared to 5 years ago.
- X has a worse debt/assets ratio than last year.
2.2 Solvency
- X has an Altman-Z score of 0.34. This is a bad value and indicates that X is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.34, X perfoms like the industry average, outperforming 51.28% of the companies in the same industry.
- The Debt to FCF ratio of X is 3.41, which is a good value as it means it would take X, 3.41 years of fcf income to pay off all of its debts.
- X's Debt to FCF ratio of 3.41 is fine compared to the rest of the industry. X outperforms 69.23% of its industry peers.
- X has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
- X has a Debt to Equity ratio of 0.35. This is comparable to the rest of the industry: X outperforms 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | 0.34 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 1.00 indicates that X should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.00, X is doing worse than 71.79% of the companies in the same industry.
- X has a Quick Ratio of 1.00. 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 Quick ratio value of 1.00, X is not doing good in the industry: 71.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- X shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.79%, which is quite impressive.
- Measured over the past years, X shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.87% on average per year.
- X shows a decrease in Revenue. In the last year, the revenue decreased by -6.09%.
- The Revenue has been growing by 20.71% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)25.79%
EPS 3Y6.08%
EPS 5Y9.87%
EPS Q2Q%26.83%
Revenue 1Y (TTM)-6.09%
Revenue growth 3Y42.16%
Revenue growth 5Y20.71%
Sales Q2Q%18.32%
3.2 Future
- Based on estimates for the next years, X will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.90% on average per year.
- The Revenue is expected to grow by 10.36% on average over the next years. This is quite good.
EPS Next Y23.5%
EPS Next 2Y16.81%
EPS Next 3Y14.9%
EPS Next 5YN/A
Revenue Next Year17.48%
Revenue Next 2Y12.4%
Revenue Next 3Y10.36%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 25.41, the valuation of X can be described as expensive.
- 67.95% of the companies in the same industry are cheaper than X, based on the Price/Earnings ratio.
- X is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 21.91, which indicates a rather expensive current valuation of X.
- The rest of the industry has a similar Price/Forward Earnings ratio as X.
- X is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.41 | ||
| Fwd PE | 21.91 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of X indicates a somewhat cheap valuation: X is cheaper than 75.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.18 | ||
| EV/EBITDA | 16.94 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- X's earnings are expected to grow with 14.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)2.58
EPS Next 2Y16.81%
EPS Next 3Y14.9%
5. Dividend
5.1 Amount
- X has a Yearly Dividend Yield of 1.74%.
- X's Dividend Yield is a higher than the industry average which is at 1.74.
- Compared to an average S&P500 Dividend Yield of 1.82, X has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
- The dividend of X is nicely growing with an annual growth rate of 8.27%!
- X has paid a dividend for at least 10 years, which is a reliable track record.
- X has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.27%
Div Incr Years9
Div Non Decr Years21
5.3 Sustainability
- 48.98% of the earnings are spent on dividend by X. 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.
DP48.98%
EPS Next 2Y16.81%
EPS Next 3Y14.9%
TMX GROUP LTD / X.CA FAQ
Can you provide the ChartMill fundamental rating for TMX GROUP LTD?
ChartMill assigns a fundamental rating of 5 / 10 to X.CA.
What is the valuation status for X stock?
ChartMill assigns a valuation rating of 3 / 10 to TMX GROUP LTD (X.CA). This can be considered as Overvalued.
How profitable is TMX GROUP LTD (X.CA) stock?
TMX GROUP LTD (X.CA) has a profitability rating of 5 / 10.
How financially healthy is TMX GROUP LTD?
The financial health rating of TMX GROUP LTD (X.CA) is 4 / 10.
What is the earnings growth outlook for TMX GROUP LTD?
The Earnings per Share (EPS) of TMX GROUP LTD (X.CA) is expected to grow by 23.5% in the next year.