Toromont to the moon, TMX to the ditch

0:00Disclaimer, the following is for education and general information only, not investment, legal or tax advice, and not a recommendation to buy or sell anything. Investing involves risk, dividends are not guaranteed, and past performance does not predict the future. I may hold position in securities discuss and may trade at any time. Hey, what's up market moves, Mike from the Moose, on the lose. So today we are talking about two stocks that reported to earnings in February. One is going to the moon to remount industries, thicker T.I.H. that is up 21% versus the TSX 60 as like up 5.5 since the beginning of the year. So let's give you some kind of like an interesting difference, right? And the other one is going down to the ditch, T.M.X Group, thicker X. That is down 11%. The one is up 21, the other one is down 11, I own both of them.

1:01And today you can still listen to the Moose on the lose as a podcast on Spotify. But if you want to see a little bit more, I'm sharing my screen to show you the stock card on YouTube for both companies. So we're going to review the earnings. We're going to see what really happened here. Why one is like down double digit and the other one is up double digit. And what can we do moving forward? Full disclaimer, I do have shares of Thoremon industries and I also have shares of T.M.X. I'm completely biased on this one. I love both. All right. So let's get started. As you can see on the screen in the stock card. So for more than 1000 stocks, we have analysts that are going through the quarterly earnings and they will take a look at what happened and they will give you that shortcut. So you spend like five minutes reading this instead of spending hours analyzing the earnings, the latest quarterly earnings.

2:02So what we have here, well, first the CEO, what he said, well, T.M.X. Outstanding results of the year driven by Strongings Parties wide revenue growth. I like the benefits of a diverse high performance business model. And in an adaptive approach to meeting the rapidly evolving needs of growing client base around the world, long story short, most of the CEO are going to tell you that they had an amazing year. So it's fun. But it's not necessarily something that you should believe because that's the CEO's job to tell them that they're super proud, they're super proud and they want to go like higher. However, the CEO shares some interesting take about what's moving the needle right now. Traditional core markets and recent expansion areas try it in 2025. Later on, he says that it resulted in a 20% increase of operating income. So now you're talking, you're telling me outstanding results, but you're talking also

3:05about a 20% operating income increase. I kind of like that. So you can't read more about what the CEO said. You can actually have access to the press release directly from our website. But now let's take a look at what really happened to quarter. So TMA Group reported strong quarter revenue up 16% earnings per share up 22%. So I'm like, oh, now you're talking strong revenue growth, strong EPS growth. So capital formation up 13% equities and fixed income trading and clearing. So literally like literally like all the trades that are happening on the stock exchange up 13% as well, derivative trading and clearing up 22%. So a lot of options and futures that are coming up, I mean, you know, like there is a big hype around covered calls. Someone is making money out of that and that person is not you. It's the TMA Group and the investment firm selling you those. I mean, just a parenthesis here.

4:06Then you have a global insight. So they're selling data as well, which is great because it's a recurring source of income for TMAX. That part was up 16% as well. So long story short, it's growing double digit, but across the board. So for the IPOs for the trading for stocks for the trading for options and also for selling dirt and their data and analytics, which is great. And on top of that, they announced a 9% dividend increase, which is always great, right? So you get the increase, you get strong numbers. And if you look at the dividend triangle, hopefully you have access to the DSR. What do you see here is kind of strange because you see that revenues are, I mean, they increase for a while, especially big jump between 21 to 24 then it's pretty much stable from 24 to the beginning of this year, but now we're going back up with this quarter. For the earnings per share, we got a big jump in 22, but then it's like going up, but

5:08not that strong, but at least it's on the growth pace. The dividend is actually going very fast, very high. So what is interesting here is we do have a company with a strong dividend triangle where the stock price was actually above 55 bucks in mid 2025. And now all the way down to $46, $45, not that great, right? So going down very fast, you look at the analyzed growth rate for the past five years, revenue growth as surged by 24%, but as I said, it really started with some growth by acquisition and additional trading activities in the early 2020s. Now it's not that strong. So this number is going to go down earnings per share growth over the past five years, 6.75 and the dividend growth over the past five years, 8.85. So 9% dividend growth rate.

6:09So this is the type of stock that I would like to have in my portfolio. Oh, wait, I do have it in my portfolio. So that's perfect. So I don't mind about the stock price going down what I like here is the numbers are great. The dividend triangle is strong. There's another dividend increase of 9%. I'm super happy. All right. So now let's move on to Torrimont Industries. And we're going to skip the CEO part just want to go into what's really interesting here. So Torrimont Industries also reported a good quarter revenue up 9%. So that was good. But earnings per share only up by one. So already you have, I mean, it's not a big red flag, but you need to understand what happened here because revenue up mine earnings one. So of course, you made more money, you actually sold more stuff. So in this case, it's like equipment, but it's not that profitable. So let's take a look at what happened by segment now. So equipment group revenue up 9% and Simco up 10%.

7:11But it's important. And at DSR, we often try to put the numbers also into percentage. So in dollars, the equipment group is like 1.29 billion and Simco is 133 million. So not that much, right? So yes, it's up 10%, but it's not huge. So the growth came from acquired business, AVL and higher equipment, product support alongside with strength in new equipment sales. So of course, right now we are in high demand for power. So we need a lot of construction equipment and Torrimont Industries is doing exactly this. Also the gold price and other metals, such as like silver and even copper, it's going up. So they also see some strong activities from the mining group. So overall, they have a lot of backlogs actually that is going a lot better. And we saw that in the investment thesis right here.

8:13So at the end of 2025, the backlog was 1.5 million dollars up from 1.1 from the year before. So again, very promising moving forward. And I haven't answered the major question, what happened with the earnings per share, right? So you could go into the earnings per share, the quarterly earnings, read the press release, look into the numbers, or you could be at the SR member and just read that simple sentence. So the earnings per share was affected by higher expenses as margin fell from 16.2% to 15.3. Nonetheless though, TIH announced a 7.7% dividend increase. So we have an acquisition, so that will impact earnings per share. We had like smaller margin as well. So that happened. One key element here, it would be to follow up to see if it's going to be a recurring problem or not. So one quarter, not a problem, multiple quarters with lower margin, then becomes a problem.

9:14So right now, good quarter, ironically, TMX had a stronger one, but the remont industries is just flying high. So we're going to hand with the dividend triangle. So this one is a lot more stable though. The revenue keeps on increasing. The earnings per share has increased for a long while until 2024, and now it's starting to slow down a little bit. So you can see that the margin issue has still been around. So you have to be careful about that while revenues are increasing, but earnings per share are decreasing. This is a sign that the company, yes, it's growing, but it has a cost for growth. So it will be interesting to follow up on this story to see how the remont industries will manage to improve its margin and actually kick up a little bit the earnings per share. I'm not too worried about this one because this company has been a long time dividend drawer. You can see the steady trend here over the past 10 years. And the last dividend increase was 7.7 for the past five years before that increase. It was 11% analyze growth rate over the past five years.

10:18That was kind of crazy, but it matches the earnings per share growth that was 13% and the revenue at eight. So long story short here, do have two companies that have a long history of dividend growth, strong dividend triangle. So numbers backing up interesting narrative. Not the first time I tell you about the remont industries, I actually did a special episode with Nelson from the keen investing newsletter last year. And we were saying that this company was going to keep on rocking. This is what's happening. So I mean, sometimes we have to celebrate, right? So congrats to you. If you have TIH, if you're holding TMX Group instead, like me, don't be worried too much. I mean, the numbers are still strong. This is what's important. And on my side, I'm not worried at all. If you have any questions, just go into YouTube website, just let me know about either. If you have questions about the remont industries or TMX Group, I'm going to see you in the comment.

11:19And until next, I mean, I'm going to until tomorrow, stay invested.