TMX Group Price To Sales vs. Profit Margin
| X Stock | CAD 44.27 0.13 0.29% |
TMX Group Price To Sales Ratio |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.81 | 0.9682 |
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| Operating Profit Margin | 0.18 | 0.1863 |
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For TMX Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of TMX Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well TMX Group Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between TMX Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of TMX Group Limited over time as well as its relative position and ranking within its peers.
TMX |
TMX Group Limited Profit Margin vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining TMX Group's current stock value. Our valuation model uses many indicators to compare TMX Group value to that of its competitors to determine the firm's financial worth. TMX Group Limited is rated first in price to sales category among its peers. It is rated first in profit margin category among its peers fabricating about 0.03 of Profit Margin per Price To Sales. The ratio of Price To Sales to Profit Margin for TMX Group Limited is roughly 30.32 . At this time, TMX Group's Price To Sales Ratio is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value TMX Group by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for TMX Group's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.TMX Profit Margin vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
TMX Group |
| = | 9.01 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
TMX Group |
| = | 0.30 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
TMX Profit Margin Comparison
TMX Group is currently under evaluation in profit margin category among its peers.
TMX Group Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in TMX Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, TMX Group will eventually generate negative long term returns. The profitability progress is the general direction of TMX Group's change in net profit over the period of time. It can combine multiple indicators of TMX Group, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -12.7 M | -12.1 M | |
| Operating Income | 540 M | 366.1 M | |
| Income Before Tax | 517.4 M | 285 M | |
| Total Other Income Expense Net | -22.6 M | -23.7 M | |
| Net Income | 517.4 M | 543.3 M | |
| Income Tax Expense | 129.2 M | 85.9 M | |
| Net Income From Continuing Ops | 388.2 M | 261.9 M | |
| Net Income Applicable To Common Shares | 624.1 M | 655.3 M | |
| Interest Income | 1.7 B | 1.8 B | |
| Net Interest Income | -24.1 M | -25.3 M | |
| Change To Netincome | -137.3 M | -130.5 M | |
| Net Income Per Share | 1.28 | 1.22 | |
| Income Quality | 1.01 | 1.07 | |
| Net Income Per E B T | 0.69 | 0.71 |
TMX Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on TMX Group. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of TMX Group position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the TMX Group's important profitability drivers and their relationship over time.
Use TMX Group in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if TMX Group position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in TMX Group will appreciate offsetting losses from the drop in the long position's value.TMX Group Pair Trading
TMX Group Limited Pair Trading Analysis
The ability to find closely correlated positions to TMX Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace TMX Group when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back TMX Group - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling TMX Group Limited to buy it.
The correlation of TMX Group is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as TMX Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if TMX Group Limited moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for TMX Group can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your TMX Group position
In addition to having TMX Group in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Restaurants Thematic Idea Now
Restaurants
Entities that are involved in restaurant business, as well as coffee shop chains and other eateries. The Restaurants theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Restaurants Theme or any other thematic opportunities.
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Other Information on Investing in TMX Stock
To fully project TMX Group's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of TMX Group Limited at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include TMX Group's income statement, its balance sheet, and the statement of cash flows.