TMX Group Ltd. (X) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is TMX Group Ltd. ?

Strong Long Term Fundamental Strength with a 24.76% CAGR growth in Net Sales

Healthy long term growth as Net Sales has grown by an annual rate of 24.76%

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CAD 685.6 MM
ROCE(HY) Highest at 12.61%
DEBT-EQUITY RATIO (HY) Lowest at 25.94 %

With ROE of 9.78%, it has a very expensive valuation with a 2.71 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -6.89%, its profits have risen by 7.7% ; the PEG ratio of the company is 3.7

Majority shareholders : FIIs

Underperformed the market in the last 1 year

Even though the market (S&P/TSX 60) has generated returns of 28.13% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -6.89% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TMX Group Ltd. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is TMX Group Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

TMX Group Ltd.

-9.71%

1.67

24.49%

S&P/TSX 60

28.13%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.76%

EBIT Growth (5y)

13.15%

EBIT to Interest (avg)

11.56

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

25.43%

Dividend Payout Ratio

56.19%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

18.05%

ROE (avg)

9.91%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.71

EV to EBIT

15.39

EV to EBITDA

12.57

EV to Capital Employed

2.91

EV to Sales

4.33

PEG Ratio

3.67

Dividend Yield

ROCE (Latest)

18.91%

ROE (Latest)

9.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 685.6 MM

ROCE(HY)

Highest at 12.61%

DEBT-EQUITY RATIO (HY)

Lowest at 25.94 %

RAW MATERIAL COST(Y)

Fallen by -19.84% (YoY

CASH AND EQV(HY)

Highest at CAD 1,589.5 MM

DIVIDEND PER SHARE(HY)

Highest at CAD 9.16

PRE-TAX PROFIT(Q)

At CAD 226.5 MM has Grown at 78.77%

NET PROFIT(Q)

At CAD 150.59 MM has Grown at 106.37%

-3What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.16 times

DIVIDEND PAYOUT RATIO(Y)

Lowest at 46.42%

Here's what is working for TMX Group Ltd.

Operating Cash Flow

Highest at CAD 685.6 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Lowest at 25.94 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Pre-Tax Profit

At CAD 226.5 MM has Grown at 78.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 150.59 MM has Grown at 106.37%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Cash and Eqv

Highest at CAD 1,589.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at CAD 9.16

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -19.84% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for TMX Group Ltd.

Debtors Turnover Ratio

Lowest at 9.16 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 46.42%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)