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%

With a growth in Net Profit of 112.09%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CAD 677.1 MM
INTEREST COVERAGE RATIO(Q) Highest at 1,255.02
ROCE(HY) Highest at 11.19%

With ROE of 9.78%, it has a very expensive valuation with a 2.85 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 -16.29%, its profits have risen by 7.7% ; the PEG ratio of the company is 3.9

Majority shareholders : FIIs

Below par performance in long term as well as near term

Along with generating -16.29% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

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, Medium Return

Absolute

Risk Adjusted

Volatility

TMX Group Ltd.

-16.29%

1.13

24.16%

S&P/TSX 60

29.6%

2.31

12.81%

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)

12.74

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

23.29%

Dividend Payout Ratio

56.19%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

17.12%

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

2.85

EV to EBIT

16.20

EV to EBITDA

13.23

EV to Capital Employed

3.06

EV to Sales

4.56

PEG Ratio

3.85

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

46What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 677.1 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,255.02

ROCE(HY)

Highest at 11.19%

RAW MATERIAL COST(Y)

Fallen by -15.18% (YoY

CASH AND EQV(HY)

Highest at CAD 5,775.6 MM

DIVIDEND PER SHARE(HY)

Highest at CAD 4.72

NET SALES(Q)

Highest at CAD 7,410 MM

PRE-TAX PROFIT(Q)

Highest at CAD 230.3 MM

NET PROFIT(Q)

Highest at CAD 157.97 MM

EPS(Q)

Highest at CAD 0.8

-15What is not working for the Company

ROCE(HY)

Lowest at 9.56%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 2.97%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.72 times

INTEREST(Q)

Highest at CAD 229 MM

Here's what is working for TMX Group Ltd.

Net Sales

At CAD 7,410 MM has Grown at 925.75%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CAD MM)

Interest Coverage Ratio

Highest at 1,255.02 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At CAD 2,303 MM has Grown at 1,319.85%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 1,579.71 MM has Grown at 1,402.6%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Operating Cash Flow

Highest at CAD 677.1 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)

Net Sales

Highest at CAD 7,410 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Pre-Tax Profit

Highest at CAD 230.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 157.97 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 0.8

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Cash and Eqv

Highest at CAD 5,775.6 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 4.72

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -15.18% (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

Depreciation

Highest at CAD 48.8 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Depreciation

At CAD 488 MM has Grown at 938.3%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CAD MM)

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

Interest

At CAD 229 MM has Grown at 900%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest

Highest at CAD 229 MM

in the last five periods and Increased by 900% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debtors Turnover Ratio

Lowest at 4.72 times

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 2.97%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)