Financial exchanges have experienced terrific growth since the beginning of the 21st century. Indeed, a generational global recession and pandemic have not been enough to derail the rapid financialization of developed economies. That should spur investors to target companies that will post growth due to this trend.
TMX Group (TSX:X) is a Toronto-based company that operates exchanges, markets, and clearinghouses primarily for capital markets in Canada and around the world. Shares of this TSX stock have dropped 1.5% year-over-year as of close on March 7. The stock has increased marginally so far in 2023.
This company unveiled its fourth quarter and full year fiscal 2022 earnings on February 6, 2023. It posted revenue growth of 9% to $274 million as it benefited from the acquisition of voting control of BOX on January 3, 2022. Meanwhile, adjusted diluted earnings per share (EPS) fell 2% to $1.74.
For the full year, TMX Group delivered total revenue of $1.11 billion – up 14% from $980 million in fiscal 2021. Moreover, income from operations climbed 7% to $524 million. Meanwhile, adjusted earnings per share remained largely static at $7.13. Cash flow from operating activities also increased a paltry 1% to $444 million.
Shares of TMX Group possess a favourable price-to-earnings ratio of 13. Investors should look to snatch up this TSX stock as it is geared up for strong earnings growth going forward. Better yet, it offers a quarterly dividend of $0.87 per share. That represents a 2.6% yield.
