TMX Group Limited
TMX Group Limited Fundamental Analysis
TMX Group Limited (TMXXF) shows moderate financial fundamentals with a PE ratio of 4.19, profit margin of 29.35%, and ROE of 16.24%. The company generates $12.1B in annual revenue with weak year-over-year growth of 1.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze TMXXF's fundamental strength across five key dimensions:
Efficiency Score
WeakTMXXF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTMXXF trades at attractive valuation levels.
Growth Score
WeakTMXXF faces weak or negative growth trends.
Financial Health Score
ExcellentTMXXF maintains a strong and stable balance sheet.
Profitability Score
ExcellentTMXXF achieves industry-leading margins.
Key Financial Metrics
Is TMXXF Expensive or Cheap?
P/E Ratio
TMXXF trades at 4.19 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TMXXF's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values TMX Group Limited at 0.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.61 times EBITDA. This is generally considered low.
How Well Does TMXXF Make Money?
Net Profit Margin
For every $100 in sales, TMX Group Limited keeps $29.35 as profit after all expenses.
Operating Margin
Core operations generate 34.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.24 in profit for every $100 of shareholder equity.
ROA
TMX Group Limited generates $0.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TMX Group Limited produces operating cash flow of $1.99B, showing steady but balanced cash generation.
Free Cash Flow
TMX Group Limited generates strong free cash flow of $1.63B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.92 in free cash annually.
FCF Yield
TMXXF converts 7.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.005
vs 25 benchmark
How TMXXF Stacks Against Its Sector Peers
| Metric | TMXXF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.19 | 18.88 | Better (Cheaper) |
| ROE | 16.24% | 801.00% | Weak |
| Net Margin | 29.35% | 2213.00% | Weak |
| Debt/Equity | 0.44 | 1.03 | Strong (Low Leverage) |
| Current Ratio | 2.35 | 615.97 | Strong Liquidity |
| ROA | 0.46% | -19854.00% (disorted) | Weak |
TMXXF outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TMX Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
242.71%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
50.78%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
69.29%
Industry Style: Value, Dividend, Cyclical
High Growth