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TMX GROUP LTD (X.CA) Stock Fundamental Analysis

TSX:X - Toronto Stock Exchange - CA87262K1057 - Common Stock - Currency: CAD

50.64  -0.04 (-0.08%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to X. X was compared to 82 industry peers in the Capital Markets industry. X has only an average score on both its financial health and profitability. X is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

X had positive earnings in the past year.
X had a positive operating cash flow in the past year.
In the past 5 years X has always been profitable.
Each year in the past 5 years X had a positive operating cash flow.
X.CA Yearly Net Income VS EBIT VS OCF VS FCFX.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

1.2 Ratios

X has a Return On Assets of 1.20%. This is in the better half of the industry: X outperforms 67.57% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 6.37%, X belongs to the top of the industry, outperforming 82.43% 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 9.06%.
Industry RankSector 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%
X.CA Yearly ROA, ROE, ROICX.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10

1.3 Margins

X has a better Profit Margin (16.20%) than 70.27% of its industry peers.
X's Profit Margin has declined in the last couple of years.
X's Operating Margin of 21.61% is in line compared 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.
With a decent Gross Margin value of 49.12%, X is doing good in the industry, outperforming 68.92% of the companies in the same industry.
X's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
X.CA Yearly Profit, Operating, Gross MarginsX.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

4

2. Health

2.1 Basic Checks

Compared to 1 year ago, X has more shares outstanding
Compared to 5 years ago, X has less shares outstanding
X has a worse debt/assets ratio than last year.
X.CA Yearly Shares OutstandingX.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
X.CA Yearly Total Debt VS Total AssetsX.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

Based on the Altman-Z score of 0.43, we must say that X is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.43, X is in line with its industry, outperforming 51.35% of the companies in the same industry.
The Debt to FCF ratio of X is 3.94, which is a good value as it means it would take X, 3.94 years of fcf income to pay off 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.
A Debt/Equity ratio of 0.42 indicates that X is not too dependend on debt financing.
X has a Debt to Equity ratio of 0.42. This is comparable to the rest of the industry: X outperforms 54.05% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.42
Debt/FCF 3.94
Altman-Z 0.43
ROIC/WACCN/A
WACCN/A
X.CA Yearly LT Debt VS Equity VS FCFX.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

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 perfoms like the industry average, outperforming 56.76% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.01, X is in line with its industry, outperforming 56.76% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.01
Quick Ratio 1.01
X.CA Yearly Current Assets VS Current LiabilitesX.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

5

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
Looking at the last year, X shows a small growth in Revenue. The Revenue has grown by 2.56% in the last 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)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

X is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.84% yearly.
X is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.08% yearly.
EPS Next Y12.63%
EPS Next 2Y11.49%
EPS Next 3Y7.84%
EPS Next 5YN/A
Revenue Next Year8.52%
Revenue Next 2Y7.62%
Revenue Next 3Y6.08%
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.
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.
X.CA Yearly Revenue VS EstimatesX.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B 2.5B
X.CA Yearly EPS VS EstimatesX.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 29.79 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.
Compared to an average S&P500 Price/Earnings ratio of 30.19, X is valued at the same level.
Based on the Price/Forward Earnings ratio of 26.45, the valuation of X can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as X.
The average S&P500 Price/Forward Earnings ratio is at 23.58. X is around the same levels.
Industry RankSector Rank
PE 29.79
Fwd PE 26.45
X.CA Price Earnings VS Forward Price EarningsX.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

X's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, X is valued a bit cheaper than the industry average as 74.32% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 25.6
EV/EBITDA 19.42
X.CA Per share dataX.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 15

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.
PEG (NY)2.36
PEG (5Y)N/A
EPS Next 2Y11.49%
EPS Next 3Y7.84%

5

5. Dividend

5.1 Amount

X has a Yearly Dividend Yield of 1.58%.
X's Dividend Yield is a higher than the industry average which is at 3.19.
Compared to the average S&P500 Dividend Yield of 2.30, X is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.58%

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 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
X.CA Yearly Dividends per shareX.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

43.22% 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 slower than its dividend. This means the dividend growth is not sustainable.
DP43.22%
EPS Next 2Y11.49%
EPS Next 3Y7.84%
X.CA Yearly Income VS Free CF VS DividendX.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M
X.CA Dividend Payout.X.CA Dividend Payout, showing the Payout Ratio.X.CA Dividend Payout.PayoutRetained Earnings

TMX GROUP LTD

TSX:X (2/14/2025, 7:00:00 PM)

50.64

-0.04 (-0.08%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-03 2025-02-03/amc
Earnings (Next)04-30 2025-04-30
Inst Owners57.12%
Inst Owner ChangeN/A
Ins Owners1.15%
Ins Owner ChangeN/A
Market Cap14.07B
Analysts72.86
Price Target49.22 (-2.8%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.58%
Yearly Dividend0.75
Dividend Growth(5Y)8.27%
DP43.22%
Div Incr Years9
Div Non Decr Years21
Ex-Date02-21 2025-02-21 (0.2)
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)1.58%
PT rev (3m)9.82%
EPS NQ rev (1m)1.14%
EPS NQ rev (3m)5.09%
EPS NY rev (1m)1.32%
EPS NY rev (3m)1.72%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)2.12%
Valuation
Industry RankSector Rank
PE 29.79
Fwd PE 26.45
P/S 4.73
P/FCF 25.6
P/OCF 22.57
P/B 3.07
P/tB N/A
EV/EBITDA 19.42
EPS(TTM)1.7
EY3.36%
EPS(NY)1.91
Fwd EY3.78%
FCF(TTM)1.98
FCFY3.91%
OCF(TTM)2.24
OCFY4.43%
SpS10.7
BVpS16.47
TBVpS-9.85
PEG (NY)2.36
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 0.43
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 Y12.63%
EPS Next 2Y11.49%
EPS Next 3Y7.84%
EPS Next 5YN/A
Revenue 1Y (TTM)2.56%
Revenue growth 3Y42.16%
Revenue growth 5Y20.71%
Sales Q2Q%30.45%
Revenue Next Year8.52%
Revenue Next 2Y7.62%
Revenue Next 3Y6.08%
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%