# TMX Group Limited (X.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Financial Services / Capital Markets. Price C$54.43, market value C$15.0 billion.

## Valuation
- **P/E (trailing): 25.1×** (5-yr avg 23.2×, 3-yr avg 27.9×). TMX Group Limited trades at 25.1× trailing earnings, close to its own five-year average of 23.2×. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 20.0×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 4.5×**. Each dollar of revenue is priced at 4.5×.
- **Price / book: 3.0×**. The shares trade at 3.0× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 3.3×**. Enterprise value is 3.3× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 7.9%** (5-yr avg 5.1%). Free cash flow equals 7.9% of the market value, above its five-year average of 5.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.0%**. The inverse of the P/E: 4.0% of the price is earned each year.

## Profitability
- **Gross margin: 41.5%**. TMX Group Limited keeps 41.5% of revenue after the direct cost of what it sells.
- **Operating margin: 26.1%**. 26.1% of revenue is left after running the business, an exceptional level.
- **Net margin: 14.2%**. 14.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.7%**. 8.7% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 10.5%**. Return on all capital, debt included, is 10.5%.
- **Return on assets: 1.2%**. Each dollar of assets produces 1.2% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 100.1%** (3-yr 37.9%/yr, 5-yr 27.6%/yr). Revenue grew 100.1% over the last year, against 27.6% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -13.9%** (3-yr -8.4%/yr, 5-yr 8.7%/yr). Earnings per share fell 13.9%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 13.0%/yr**. Free cash flow has compounded at 13.0% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.
- **Cash and short-term investments: C$758 million**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 1.76%** (C$0.92 per share, trailing). TMX Group Limited yields 1.76%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 56%** (72% of free cash flow). 56% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 21**. 21 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 9.1%/yr** (1-yr 12.0%). The dividend has grown 9.1% a year over five years.
- **Shareholder yield: 6.2%**. Dividends plus net buybacks return 6.2% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (7 analysts). 7 analysts cover TMX Group Limited; the consensus is strong_buy, with an average price target of C$65.43 (+20% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 1.2%** (YTD 5.2%, 3-mo 9.8%). The shares are up 1.2% over twelve months including dividends.
- **From 52-week high: -5.0%** (23.4% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 61**. An RSI of 61 is neutral.
- **Beta (1 yr): 0.41** (volatility 24%). Beta of 0.41 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=X.TO · Page: https://foliofundamentals.com/stocks/x.to

Not investment advice.