TMX Group Limited (X.TO) stock analysis

In our weekly check, TMX Group Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 1, red flags: 5.

About TMX Group Limited

TMX Group Limited is a Financial Services company (Financial - Data & Stock Exchanges) based in Canada, listed on TSX as X.TO.

What our checks show for X.TO

Red flags

• Operating profit does not cover the interest bill (0.7x): interest is paid from cash or new debt.
• The dividend takes 142% of profit: little cushion if profit falls.
• The stock has fallen as much as 61% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.3 years.
• Return on capital (ROCE) is only 1.7%.

Warning signs

• The net margin fell by 2 points over 5 years, to 32.6%: the company keeps less of each sale as profit.

Strengths

• Net debt is only 0.6x a year of EBITDA: the balance sheet has room.
• Operating cash flow is 2.37x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 16.2% a year over the next years.
• Revenue grew 18.4% a year over the last 3 years.
• The company keeps 32.6% of its revenue as net profit.
• Free cash flow is 63.6% of revenue: cash for dividends, buybacks or growth.

Next earnings report: 2026-10-29

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Questions

What grade does TMX Group Limited (X.TO) have?

In our weekly check, TMX Group Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 1, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of X.TO stock?

This week's biggest flags for TMX Group Limited: Weak interest cover, Dividend stretched, Deep past fall. In total 6 of 25 checks show a warning or a red flag.

What does TMX Group Limited do?

TMX Group Limited is a Financial Services company (Financial - Data & Stock Exchanges) based in Canada, listed on TSX as X.TO.

When does TMX Group Limited report earnings next?

The next earnings report is expected on 2026-10-29. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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