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 79 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
In the past year X was profitable.
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 Return On Assets (0.83%) which is in line with its industry peers.
X's Return On Equity of 9.59% is fine compared to the rest of the industry. X outperforms 73.42% of its industry peers.
With a decent Return On Invested Capital value of 6.70%, X is doing good in the industry, outperforming 75.95% 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 in line with the industry average of 8.03%.
| 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
X has a Profit Margin of 15.40%. This is in the better half of the industry: X outperforms 64.56% of its industry peers.
X's Profit Margin has declined in the last couple of years.
X's Operating Margin of 23.45% is in line compared to the rest of the industry. X outperforms 45.57% of its industry peers.
In the last couple of years the Operating Margin of X has declined.
X has a Gross Margin of 52.73%. This is in the better half of the industry: X outperforms 69.62% of its industry peers.
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.
Compared to 5 years ago, X has less shares outstanding
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 55.70% of the companies in the same industry.
The Debt to FCF ratio of X is 3.59, which is a good value as it means it would take X, 3.59 years of fcf income to pay off all of its debts.
X's Debt to FCF ratio of 3.59 is fine compared to the rest of the industry. X outperforms 69.62% 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 (0.42) which is in line with 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
A Current Ratio of 1.01 indicates that X should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.01, X is doing worse than 74.68% 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 53.16% of the companies in the same 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 23.53% over the past year.
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)23.53%
EPS 3Y-37.96%
EPS 5Y-20.37%
EPS Q2Q%20.93%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y42.16%
Revenue growth 5Y20.71%
Sales Q2Q%14.87%
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.
The Revenue is expected to grow by 9.41% on average over the next years. This is quite good.
EPS Next Y16.43%
EPS Next 2Y13.9%
EPS Next 3Y12.45%
EPS Next 5YN/A
Revenue Next Year15.1%
Revenue Next 2Y10.69%
Revenue Next 3Y9.41%
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
The Price/Earnings ratio is 30.12, which means the current valuation is very expensive for X.
Based on the Price/Earnings ratio, X is valued a bit more expensive than the industry average as 64.56% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of X to the average of the S&P500 Index (26.87), we can say X is valued inline with the index average.
The Price/Forward Earnings ratio is 25.81, which means the current valuation is very expensive for X.
X's Price/Forward Earnings ratio is in line with the industry average.
X is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.12 | ||
| Fwd PE | 25.81 |
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.
Based on the Price/Free Cash Flow ratio, X is valued a bit cheaper than 65.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.56 | ||
| EV/EBITDA | 20.55 |
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.
A more expensive valuation may be justified as X's earnings are expected to grow with 12.45% in the coming years.
PEG (NY)1.83
PEG (5Y)N/A
EPS Next 2Y13.9%
EPS Next 3Y12.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.58%, X has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.51, X has a dividend in line with its industry peers.
X's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector 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 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.
X's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP47.76%
EPS Next 2Y13.9%
EPS Next 3Y12.45%
TSX:X (8/15/2025, 7:00:00 PM)
56.92
0 (0%)
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 Cap15.83B
Analysts74.29
Price Target62.29 (9.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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)8.57%
PT rev (3m)15.5%
EPS NQ rev (1m)1.8%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)1.3%
Revenue NQ rev (3m)2.28%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)2.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.12 | ||
| Fwd PE | 25.81 | ||
| P/S | 5.44 | ||
| P/FCF | 26.56 | ||
| P/OCF | 23.26 | ||
| P/B | 3.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.55 |
EPS(TTM)1.89
EY3.32%
EPS(NY)2.21
Fwd EY3.87%
FCF(TTM)2.14
FCFY3.76%
OCF(TTM)2.45
OCFY4.3%
SpS10.46
BVpS16.79
TBVpS-9.61
PEG (NY)1.83
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)23.53%
EPS 3Y-37.96%
EPS 5Y-20.37%
EPS Q2Q%20.93%
EPS Next Y16.43%
EPS Next 2Y13.9%
EPS Next 3Y12.45%
EPS Next 5YN/A
Revenue 1Y (TTM)2.56%
Revenue growth 3Y42.16%
Revenue growth 5Y20.71%
Sales Q2Q%14.87%
Revenue Next Year15.1%
Revenue Next 2Y10.69%
Revenue Next 3Y9.41%
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%