TMX GROUP LTD (X.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:X - CA87262K1057 - Common Stock
50.58 CAD
-0.93 (-1.81%)
X gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 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 valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
- In the past year X was profitable.
- In the past year X had a positive cash flow from operations.
- Each year in the past 5 years X has been profitable.
- X had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- X has a Return On Assets (0.91%) which is comparable to the rest of the industry.
- The Return On Equity of X (9.71%) is better than 65.43% 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 75.31% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for X is below the industry average of 10.38%.
- 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
- With a decent Profit Margin value of 15.99%, X is doing good in the industry, outperforming 60.49% of the companies in the same industry.
- In the last couple of years the Profit Margin of X has declined.
- X has a Operating Margin of 25.96%. This is in the lower half of the industry: X underperforms 61.73% 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 72.84% 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
- The number of shares outstanding for X has been increased compared to 1 year ago.
- Compared to 5 years ago, X has less shares outstanding
- X has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.35, we must say that X is in the distress zone and has some risk of bankruptcy.
- X has a Altman-Z score (0.35) which is comparable to the rest of the 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 has a Debt to FCF ratio of 3.41. This is in the better half of the industry: X outperforms 69.14% 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's Debt to Equity ratio of 0.35 is in line compared to the rest of the industry. X outperforms 51.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | 0.35 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- X has a Current 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.
- X has a Current ratio of 1.00. This is in the lower half of the industry: X underperforms 71.60% of its industry peers.
- A Quick Ratio of 1.00 indicates that X should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.00, X is doing worse than 71.60% of the companies in the same industry.
| 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.
- The Revenue has decreased by -6.09% in the past year.
- X shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.71% yearly.
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
- The Earnings Per Share is expected to grow by 14.90% on average over the next years. This is quite good.
- X is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.36% yearly.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 25.29, which means the current valuation is very expensive for X.
- Based on the Price/Earnings ratio, X is valued a bit more expensive than 64.20% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, X is valued at the same level.
- X is valuated rather expensively with a Price/Forward Earnings ratio of 21.80.
- The rest of the industry has a similar Price/Forward Earnings ratio as X.
- When comparing the Price/Forward Earnings ratio of X to the average of the S&P500 Index (24.26), we can say X is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.29 | ||
| Fwd PE | 21.8 |
4.2 Price Multiples
- X's Enterprise Value to EBITDA is on the same level as the industry average.
- 70.37% of the companies in the same industry are more expensive than X, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.08 | ||
| EV/EBITDA | 17.07 |
4.3 Compensation for Growth
- X's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as X's earnings are expected to grow with 14.90% in the coming years.
PEG (NY)1.08
PEG (5Y)2.56
EPS Next 2Y16.81%
EPS Next 3Y14.9%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.74%, X has a reasonable but not impressive dividend return.
- X's Dividend Yield is comparable with the industry average which is at 3.62.
- X's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| 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 been paying a dividend for at least 10 years, so it has 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.