FMP

FMP

TMX Group Limited's Financial Performance and Market Valuation

  • TMX Group Limited (OTC:TMXXF) reported earnings per share (EPS) of $0.43, surpassing estimates and indicating strong financial performance.
  • The company achieved a record revenue of $457.8 million in Q4 2025, a 16% increase year-over-year, showcasing its ability to expand and adapt.
  • Despite a decrease in diluted EPS due to net foreign exchange losses, adjusted diluted EPS rose by 22% to $0.60, reflecting underlying financial strength and operational efficiency.

TMX Group Limited, trading under the symbol OTC:TMXXF, is a prominent player in the financial services sector. The company operates various exchanges and provides services related to trading, clearing, and data solutions. TMX Group competes with other major financial service providers, offering a diverse range of products to meet the needs of its global client base.

On February 5, 2026, TMXXF reported earnings per share (EPS) of $0.43, surpassing the estimated $0.40. This positive performance is supported by the company's record revenue of $457.8 million in Q4 2025, a 16% increase from $393.3 million in the same period of 2024. The revenue growth highlights TMX's ability to adapt to market demands and expand its core and new markets.

Despite the strong revenue figures, TMX Group's diluted EPS fell by 29% to $0.41 in Q4 2025, down from $0.58 in Q4 2024. This decline is primarily due to a $0.19 per share decrease related to net foreign exchange losses. However, the adjusted diluted EPS rose by 22% to $0.60, indicating the company's underlying financial strength and operational efficiency.

TMX Group's financial metrics provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 20.02, reflecting the market's confidence in its earnings potential. Its price-to-sales ratio is about 6.65, and the enterprise value to sales ratio is around 7.55, indicating a strong market valuation relative to its revenue and total value.

The company's enterprise value to operating cash flow ratio is approximately 21.02, showing how its total value relates to cash flow from operations. With an earnings yield of about 4.99%, TMX Group demonstrates its ability to generate earnings per dollar invested. Additionally, a debt-to-equity ratio of approximately 0.46 indicates a moderate level of debt, suggesting a balanced financial structure.