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TMX Group

DB:9TX
Snowflake Description

Adequate balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
9TX
DB
CA$6B
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

TMX Group Limited operates exchanges, markets, and clearinghouses primarily for capital markets in Canada and internationally. The last earnings update was 47 days ago. More info.


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  • TMX Group has significant price volatility in the past 3 months.
9TX Share Price and Events
7 Day Returns
0.8%
DB:9TX
12.3%
DE Capital Markets
7.2%
DE Market
1 Year Returns
16.3%
DB:9TX
-8.8%
DE Capital Markets
-17.5%
DE Market
9TX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TMX Group (9TX) 0.8% -13.3% -15% 16.3% 37.9% 64.1%
DE Capital Markets 12.3% -26.5% -16.8% -8.8% -29% -56.3%
DE Market 7.2% -22.3% -26.1% -17.5% -25.7% -29.1%
1 Year Return vs Industry and Market
  • 9TX outperformed the Capital Markets industry which returned -8.8% over the past year.
  • 9TX outperformed the Market in Germany which returned -17.5% over the past year.
Price Volatility
9TX
Industry
5yr Volatility vs Market

Value

 Is TMX Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of TMX Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for TMX Group.

DB:9TX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= CA$68.24 * 7.4%
CA$5.06
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. CA$68.24
Discount Rate (Cost of Equity) See below 4.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:9TX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.75
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.754 (1 + (1- 26.5%) (19.15%))
0.906
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.906 * 5.44%)
4.54%

Discounted Cash Flow Calculation for DB:9TX using Excess Returns Model Model

The calculations below outline how an intrinsic value for TMX Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:9TX Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (7.4% – 4.54%) * CA$68.24)
CA$1.96
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CA$1.96 / (4.54% - -0.39%)
CA$39.77
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CA$68.24 + CA$39.77
CA$108.01
DB:9TX Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:9TX represents 0.63726x of TSX:X
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.63726x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 108.01 x 0.63726
€68.83
Value per share (EUR) From above. €68.83
Current discount Discount to share price of €65.00
= -1 x (€65.00 - €68.83) / €68.83
5.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price TMX Group is available for.
Intrinsic value
6%
Share price is €65 vs Future cash flow value of €68.83
Current Discount Checks
For TMX Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • TMX Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • TMX Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for TMX Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TMX Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:9TX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$4.42
TSX:X Share Price ** TSX (2020-03-27) in CAD CA$102
Germany Capital Markets Industry PE Ratio Median Figure of 17 Publicly-Listed Capital Markets Companies 21.49x
Germany Market PE Ratio Median Figure of 400 Publicly-Listed Companies 16.49x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of TMX Group.

DB:9TX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:X Share Price ÷ EPS (both in CAD)

= 102 ÷ 4.42

23.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TMX Group is overvalued based on earnings compared to the DE Capital Markets industry average.
  • TMX Group is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does TMX Group's expected growth come at a high price?
Raw Data
DB:9TX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
10.7%per year
Germany Capital Markets Industry PEG Ratio Median Figure of 7 Publicly-Listed Capital Markets Companies 1.49x
Germany Market PEG Ratio Median Figure of 252 Publicly-Listed Companies 1.22x

*Line of best fit is calculated by linear regression .

DB:9TX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.09x ÷ 10.7%

2.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TMX Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on TMX Group's assets?
Raw Data
DB:9TX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$62.22
TSX:X Share Price * TSX (2020-03-27) in CAD CA$102
Germany Capital Markets Industry PB Ratio Median Figure of 32 Publicly-Listed Capital Markets Companies 1.61x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.42x
DB:9TX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:X Share Price ÷ Book Value per Share (both in CAD)

= 102 ÷ 62.22

1.64x

* Primary Listing of TMX Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TMX Group is overvalued based on assets compared to the DE Capital Markets industry average.
X
Value checks
We assess TMX Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. TMX Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is TMX Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TMX Group expected to grow at an attractive rate?
  • TMX Group's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • TMX Group's earnings growth is positive but not above the Germany market average.
  • TMX Group's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:9TX Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:9TX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 10.7%
DB:9TX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -10.6%
Germany Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 41.2%
Germany Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:9TX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:9TX Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 911 333 1
2021-12-31 904 413 323 5
2020-12-31 860 384 294 5
2020-03-28
DB:9TX Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,160 344 248
2019-09-30 1,112 329 270
2019-06-30 1,088 333 266
2019-03-31 1,036 341 284
2018-12-31 1,029 347 286
2018-09-30 944 338 256
2018-06-30 869 301 246
2018-03-31 798 268 212
2017-12-31 747 277 191
2017-09-30 693 295 188
2017-06-30 717 314 180
2017-03-31 736 325 177

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TMX Group's earnings are expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).
  • TMX Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:9TX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from TMX Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:9TX Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 5.86 5.86 5.86 1.00
2021-12-31 5.97 6.10 5.84 2.00
2020-12-31 5.54 5.75 5.33 2.00
2020-03-28
DB:9TX Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 4.42
2019-09-30 4.82
2019-06-30 4.76
2019-03-31 5.10
2018-12-31 5.14
2018-09-30 4.61
2018-06-30 4.43
2018-03-31 3.82
2017-12-31 3.46
2017-09-30 3.41
2017-06-30 3.28
2017-03-31 3.23

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • TMX Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess TMX Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
TMX Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has TMX Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare TMX Group's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • TMX Group has delivered over 20% year on year earnings growth in the past 5 years.
  • TMX Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • TMX Group's 1-year earnings growth is negative, it can't be compared to the DE Capital Markets industry average.
Earnings and Revenue History
TMX Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from TMX Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:9TX Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,160.10 247.60 288.70
2019-09-30 1,112.40 269.90 293.20
2019-06-30 1,088.30 265.70 289.90
2019-03-31 1,036.30 284.10 307.40
2018-12-31 1,029.00 286.00 321.20
2018-09-30 944.40 256.10 303.30
2018-06-30 869.00 245.80 296.50
2018-03-31 797.80 211.70 269.00
2017-12-31 747.30 191.20 253.50
2017-09-30 692.90 188.20 234.30
2017-06-30 716.60 180.20 242.70
2017-03-31 736.20 177.00 252.90
2016-12-31 745.40 180.70 259.80
2016-09-30 785.50 -15.20 294.00
2016-06-30 776.60 -17.90 297.10
2016-03-31 759.60 -48.60 299.30
2015-12-31 763.20 -52.30 303.40
2015-09-30 782.70 147.80 301.60
2015-06-30 785.10 150.70 302.20
2015-03-31 790.60 96.70 305.30
2014-12-31 794.40 100.50 298.40
2014-09-30 786.70 100.80 294.20
2014-06-30 780.40 80.60 291.80
2014-03-31 782.90 132.50 291.50
2013-12-31 773.90 123.90 296.00
2013-09-30 769.60 115.10 290.00
2013-06-30 707.00 111.20 265.00
2013-03-31 506.00 57.30 187.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • TMX Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • TMX Group used its assets less efficiently than the DE Capital Markets industry average last year based on Return on Assets.
  • TMX Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess TMX Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
TMX Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is TMX Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up TMX Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TMX Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • TMX Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of TMX Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 27.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from TMX Group Company Filings, last reported 2 months ago.

DB:9TX Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 3,499.10 994.90 229.40
2019-09-30 3,438.50 1,021.70 241.70
2019-06-30 3,423.00 1,050.90 218.70
2019-03-31 3,415.50 1,050.50 188.70
2018-12-31 3,380.80 1,106.20 230.70
2018-09-30 3,315.90 1,158.30 261.90
2018-06-30 3,314.50 1,188.70 232.10
2018-03-31 3,285.20 1,305.80 210.60
2017-12-31 3,182.80 1,342.60 225.10
2017-09-30 3,021.90 929.10 408.10
2017-06-30 2,997.90 930.10 381.40
2017-03-31 2,955.50 953.10 338.00
2016-12-31 2,920.70 963.20 302.40
2016-09-30 2,885.20 1,019.30 318.00
2016-06-30 2,874.10 1,027.20 264.90
2016-03-31 2,833.30 1,050.00 227.30
2015-12-31 2,818.30 1,073.70 225.30
2015-09-30 2,999.50 1,142.00 279.70
2015-06-30 2,975.00 1,203.50 301.50
2015-03-31 2,968.40 1,209.30 261.60
2014-12-31 2,945.90 1,233.90 273.70
2014-09-30 2,930.40 1,266.90 310.00
2014-06-30 2,908.60 1,309.30 306.80
2014-03-31 3,006.00 1,333.10 284.70
2013-12-31 2,970.80 1,329.50 279.20
2013-09-30 2,934.90 1,351.70 345.10
2013-06-30 2,945.40 1,354.00 340.50
2013-03-31 2,926.60 1,430.50 323.80
  • TMX Group's level of debt (28.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (41.9% vs 28.4% today).
  • Debt is well covered by operating cash flow (34.6%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess TMX Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. TMX Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is TMX Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.59%
Current annual income from TMX Group dividends. Estimated to be 2.72% next year.
If you bought €2,000 of TMX Group shares you are expected to receive €52 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • TMX Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.68%).
  • TMX Group's dividend is below the markets top 25% of dividend payers in Germany (4.96%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:9TX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Germany Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 3.4%
Germany Market Average Dividend Yield Market Cap Weighted Average of 320 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:9TX Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 3.20 1.00
2021-12-31 2.81 7.00
2020-12-31 2.68 7.00
2020-03-28
DB:9TX Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2020-02-10 2.640 2.433
2019-11-07 2.640 2.324
2019-08-07 2.480 2.155
2019-05-09 2.480 2.683
2019-02-14 2.480 2.920
2019-02-13 2.480 3.028
2018-11-08 2.320 3.059
2018-08-08 2.320 2.716
2018-05-10 2.320 2.765
2018-05-09 2.320 2.991
2018-02-13 2.000 2.619
2017-11-10 2.000 2.784
2017-08-09 2.000 2.947
2017-02-14 1.800 2.554
2016-11-04 1.800 2.604
2016-11-03 1.800 2.890
2016-08-03 1.600 2.672
2016-05-10 1.600 3.005
2016-02-12 1.600 3.485
2015-11-06 1.600 3.979
2015-08-06 1.600 3.398
2015-05-11 1.600 3.114
2015-02-04 1.600 3.059
2014-11-07 1.600 3.172
2014-08-08 1.600 2.963
2014-05-09 1.600 2.766
2014-02-05 1.600 2.993
2013-11-07 1.600 3.174
2013-08-01 1.600 3.397
2013-05-10 1.600 3.415
2013-02-06 1.600 2.936
2012-11-09 1.600 3.108

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, TMX Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but TMX Group only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of TMX Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess TMX Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can TMX Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TMX Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of TMX Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John McKenzie
COMPENSATION CA$1,648,678
TENURE AS CEO 0.2 years
CEO Bio

Mr. John McKenzie has been the Chief Financial Officer of TMX Group Limited since July 11, 2016 and serves as its Senior Vice President and its Interim Chief Executive Officer since January 10, 2020. Mr. McKenzie served as Vice President of Corporate Strategy & Development at Tsx Group Inc. Mr. McKenzie has been with TMX Group Limited for 16 years. He served as the President of the Canadian Depository for Securities Limited (CDS), Canada's equity and fixed income clearing house and a wholly-owned subsidiary of TMX Group. After joining TMX Group in 2000 as Director of Finance and Administration, Mr. McKenzie held increasingly senior executive positions in Corporate Strategy and Development and Finance. In these roles, he led TMX financial and strategic planning and managed various TMX acquisitions, including the Maple transaction, Montréal Exchange and Shorcan, as well as the resulting integration initiatives. In September 2013, Mr. McKenzie served as the Chief Operating Officer and Chief Financial Officer of CDS and in July 2015, he was named President of CDS. He served as the Chief Financial Officer and Mr. McKenzie is a board member of the Canadian Capital Markets Association. Mr. McKenzie is a Chartered Professional Accountant (CPA, CMA) and has MBA from Edinburgh Business School, Heriot-Watt University and an Honours BA from Wilfrid Laurier University.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year, both up more than 20%.
  • John's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the TMX Group management team in years:

2.6
Average Tenure
  • The tenure for the TMX Group management team is about average.
Management Team

John McKenzie

TITLE
Senior VP
COMPENSATION
CA$2M
TENURE
0.2 yrs

Jay Rajarathinam

TITLE
President of CDCC & CDS and Chief Technology & Operations Officer
COMPENSATION
CA$2M
TENURE
1.8 yrs

Cheryl Graden

TITLE
Sr. VP, Group Head-Legal & Business Affairs
COMPENSATION
CA$1M
TENURE
5 yrs

Luc Fortin

TITLE
President and CEO of the Montréal Exchange (MX) & Global Head of Trading
COMPENSATION
CA$1M
TENURE
2.2 yrs

Frank Di Liso

TITLE
Vice President of Corporate Finance and Administration

Paul Malcolmson

TITLE
Director of Investor Relations

Alison Simpson

TITLE
Senior Vice President of Marketing and Branding
TENURE
3.1 yrs

Sanjay Kulkarni

TITLE
Chief Marketing Officer & Head of Digital Solutions
TENURE
1.3 yrs

Mary Hukezalie

TITLE
Senior VP & Group Head of Human Resources
TENURE
8.2 yrs

Shaun McIver

TITLE
Chief Client Officer
TENURE
3.9 yrs
Board of Directors Tenure

Average tenure and age of the TMX Group board of directors in years:

7.7
Average Tenure
66
Average Age
  • The tenure for the TMX Group board of directors is about average.
Board of Directors

Chuck Winograd

TITLE
Independent Chairman of the Board
COMPENSATION
CA$300K
AGE
71
TENURE
7.7 yrs

David Wood

TITLE
Chairman of the Canadian Depository for Securities Limited
TENURE
10.2 yrs

Marie Giguére

TITLE
Corporate Independent Director
COMPENSATION
CA$147K
AGE
67
TENURE
8.8 yrs

Bill Linton

TITLE
Independent Director
COMPENSATION
CA$202K
AGE
65
TENURE
7.7 yrs

Jean Martel

TITLE
Corporate Independent Director
COMPENSATION
CA$136K
AGE
66
TENURE
7.7 yrs

Luc Bertrand

TITLE
Director
COMPENSATION
CA$56K
AGE
64
TENURE
8.8 yrs

Harry Jaako

TITLE
Independent Director
COMPENSATION
CA$135K
AGE
66
TENURE
7.7 yrs

Gerri Sinclair

TITLE
Independent Director
COMPENSATION
CA$136K
AGE
71
TENURE
7.7 yrs

Kevin Sullivan

TITLE
Director
COMPENSATION
CA$121K
AGE
59
TENURE
7.7 yrs

Eric Wetlaufer

TITLE
Corporate Independent Director
COMPENSATION
CA$141K
AGE
57
TENURE
7.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess TMX Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. TMX Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

TMX Group Limited operates exchanges, markets, and clearinghouses primarily for capital markets in Canada and internationally. The company operates through four segments: Global Solutions, Insights & Analytics; Capital Formation; Derivatives Trading & Clearing; and Equities and Fixed Income Trading and Clearing. The Global Solutions, Insights & Analytics segment delivers integrated data sets to fuel proprietary and third party analytics for trading and investment decisions. The Capital Formation segment facilitates capital raising for issuers for the development and access to alternative source of capital. The Derivatives Trading & Clearing segment trades in interest rate, index, and equity derivatives. The Equities and Fixed Income Trading and Clearing segment engages in the provision of equities and fixed income trading, clearing, settlement, and depository services. The company was formerly known as Maple Group Acquisition Corporation and changed its name to TMX Group Limited in August 2012. TMX Group Limited was incorporated in 2011 and is based in Toronto, Canada.

Details
Name: TMX Group Limited
9TX
Exchange: DB
Founded: 2011
CA$3,677,257,447
56,256,637
Website: http://www.tmx.com
Address: TMX Group Limited
300-100 Adelaide Street West,
Toronto,
Ontario, M5H 1S3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX X Common Shares The Toronto Stock Exchange CA CAD 19. Sep 2012
OTCPK TMXX.F Common Shares Pink Sheets LLC US USD 19. Sep 2012
DB 9TX Common Shares Deutsche Boerse AG DE EUR 19. Sep 2012
Number of employees
Current staff
Staff numbers
1,287
TMX Group employees.
Industry
Financial Exchanges and Data
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 22:05
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/02/10
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.