Thoughts on X.TO – TMX Group

Thanks Mat. I bought the stock for the same reason everyone buys stocks.. make $$$. Is there another reason? 5.8% is not bad at all, it just seems low when compared to the previous returns. Thanks for the answer and have a good night.

Thanks Mat. I bought the stock for the same reason everyone buys stocks.. make $$$. Is there another reason? 5.8% is not bad at all, it just seems low when compared to the previous returns. Thanks for the answer and have a good night.

Hi Jacob,

I guess it depends on why you are bought the stock in the first place. One year return of 5.8% might seem 'bad' but in reality it is double that of the S&P/TSX COmposite Index. So it had a decent year all things considered. Is this a stock that is going to grow at a double digit clip consistently year in and year out? Not likely. Expectation is for high single digit earnings and revenue growth over the next few years which is why it ranks lower on our screener.

Our Growth screener is built with growth in mind - TMX ranks low in terms of growth metrics which is why it has a lower score. Doesn't mean its a bad stock. It trades at pretty decent valuations, has a strong dividend and is likely to continue rewarding investors. If however, you are looking for like 40-50% annual growth out of your investment - you'd best look elsewhere.

Mat

Hi Jacob,

I guess it depends on why you are bought the stock in the first place. One year return of 5.8% might seem 'bad' but in reality it is double that of the S&P/TSX COmposite Index. So it had a decent year all things considered. Is this a stock that is going to grow at a double digit clip consistently year in and year out? Not likely. Expectation is for high single digit earnings and revenue growth over the next few years which is why it ranks lower on our screener.

Our Growth screener is built with growth in mind - TMX ranks low in terms of growth metrics which is why it has a lower score. Doesn't mean its a bad stock. It trades at pretty decent valuations, has a strong dividend and is likely to continue rewarding investors. If however, you are looking for like 40-50% annual growth out of your investment - you'd best look elsewhere.

Mat