BGC GROUP INC-A (BGC) Stock Fundamental Analysis
NASDAQ:BGC - Nasdaq - US0889291045 - Common Stock - Currency: USD
Taking everything into account, BGC scores 4 out of 10 in our fundamental rating. BGC was compared to 231 industry peers in the Capital Markets industry. While BGC seems to be doing ok healthwise, there are quite some concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on BGC.
1. Profitability
1.1 Basic Checks
In the past year BGC was profitable.
BGC had a positive operating cash flow in the past year.
BGC had positive earnings in 4 of the past 5 years.
BGC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.07%, BGC is not doing good in the industry: 64.50% of the companies in the same industry are doing better.
BGC's Return On Equity of 3.85% is on the low side compared to the rest of the industry. BGC is outperformed by 64.07% of its industry peers.
BGC has a Return On Invested Capital (3.73%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.07% | ||
| ROE | 3.85% | ||
| ROIC | 3.73% |
ROA(3y)2.12%
ROA(5y)1.73%
ROE(3y)10.38%
ROE(5y)8.7%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BGC's Profit Margin of 1.68% is on the low side compared to the rest of the industry. BGC is outperformed by 71.86% of its industry peers.
In the last couple of years the Profit Margin of BGC has declined.
BGC has a worse Operating Margin (6.02%) than 71.00% of its industry peers.
In the last couple of years the Operating Margin of BGC has declined.
BGC's Gross Margin of 98.39% is amongst the best of the industry. BGC outperforms 97.84% of its industry peers.
In the last couple of years the Gross Margin of BGC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.02% | ||
| PM (TTM) | 1.68% | ||
| GM | 98.39% |
OM growth 3Y-6.37%
OM growth 5Y-5.83%
PM growth 3Y-8.43%
PM growth 5Y-30.58%
GM growth 3Y-0.16%
GM growth 5Y-0.12%
2. Health
2.1 Basic Checks
There is no outstanding debt for BGC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
BGC has an Altman-Z score of 1.56. This is a bad value and indicates that BGC is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.56, BGC is doing good in the industry, outperforming 64.94% of the companies in the same industry.
BGC has a debt to FCF ratio of 3.45. This is a good value and a sign of high solvency as BGC would need 3.45 years to pay back of all of its debts.
BGC has a Debt to FCF ratio of 3.45. This is in the better half of the industry: BGC outperforms 72.73% of its industry peers.
BGC has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.34, BGC is not doing good in the industry: 65.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 1.56 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BGC has a Current Ratio of 1.21. This is a normal value and indicates that BGC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BGC (1.21) is comparable to the rest of the industry.
A Quick Ratio of 1.21 indicates that BGC should not have too much problems paying its short term obligations.
BGC has a Quick ratio (1.21) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.28% over the past year.
BGC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.81% yearly.
EPS 1Y (TTM)19.28%
EPS 3Y15.06%
EPS 5Y9.81%
EPS Q2Q%19.05%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%10.75%
3.2 Future
BGC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.21% yearly.
BGC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.73% yearly.
EPS Next Y23.95%
EPS Next 2Y21.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year27.91%
Revenue Next 2Y18.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.59, the valuation of BGC can be described as reasonable.
Based on the Price/Earnings ratio, BGC is valued a bit cheaper than the industry average as 73.16% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.29, BGC is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.73, the valuation of BGC can be described as very cheap.
Based on the Price/Forward Earnings ratio, BGC is valued cheaply inside the industry as 83.55% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BGC to the average of the S&P500 Index (20.42), we can say BGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 7.73 |
4.2 Price Multiples
67.53% of the companies in the same industry are more expensive than BGC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BGC indicates a somewhat cheap valuation: BGC is cheaper than 67.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.29 | ||
| EV/EBITDA | 25.28 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as BGC's earnings are expected to grow with 21.21% in the coming years.
PEG (NY)0.4
PEG (5Y)0.98
EPS Next 2Y21.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.89%, BGC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.44, BGC is paying slightly less dividend.
With a Dividend Yield of 0.89, BGC pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
The dividend of BGC decreases each year by -34.04%.
BGC has been paying a dividend for at least 10 years, so it has a reliable track record.
BGC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-34.04%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
BGC pays out 51.02% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP51.02%
EPS Next 2Y21.21%
EPS Next 3YN/A
9.49
+0.08 (+0.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.43%
Inst Owner Change0.06%
Ins Owners4.86%
Ins Owner Change-0.52%
Market Cap4.58B
Analysts83.33
Price Target14.79 (55.85%)
Short Float %2.87%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend0.07
Dividend Growth(5Y)-34.04%
DP51.02%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.24%
Min EPS beat(2)3.96%
Max EPS beat(2)4.51%
EPS beat(4)3
Avg EPS beat(4)2.93%
Min EPS beat(4)-0.99%
Max EPS beat(4)4.51%
EPS beat(8)6
Avg EPS beat(8)2.65%
EPS beat(12)8
Avg EPS beat(12)1.18%
EPS beat(16)10
Avg EPS beat(16)1.32%
Revenue beat(2)1
Avg Revenue beat(2)-3.22%
Min Revenue beat(2)-7.74%
Max Revenue beat(2)1.3%
Revenue beat(4)2
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-7.74%
Max Revenue beat(4)2.78%
Revenue beat(8)4
Avg Revenue beat(8)-0.81%
Revenue beat(12)5
Avg Revenue beat(12)-1.55%
Revenue beat(16)7
Avg Revenue beat(16)-1.18%
PT rev (1m)3.57%
PT rev (3m)20.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 7.73 | ||
| P/S | 2.26 | ||
| P/FCF | 13.29 | ||
| P/OCF | 11.31 | ||
| P/B | 5.18 | ||
| P/tB | 27.37 | ||
| EV/EBITDA | 25.28 |
EPS(TTM)0.99
EY10.43%
EPS(NY)1.23
Fwd EY12.93%
FCF(TTM)0.71
FCFY7.52%
OCF(TTM)0.84
OCFY8.84%
SpS4.19
BVpS1.83
TBVpS0.35
PEG (NY)0.4
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.07% | ||
| ROE | 3.85% | ||
| ROCE | 5.84% | ||
| ROIC | 3.73% | ||
| ROICexc | 5.44% | ||
| ROICexgc | N/A | ||
| OM | 6.02% | ||
| PM (TTM) | 1.68% | ||
| GM | 98.39% | ||
| FCFM | 17.03% |
ROA(3y)2.12%
ROA(5y)1.73%
ROE(3y)10.38%
ROE(5y)8.7%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-7.98%
ROICexc growth 3Y-4.08%
ROICexc growth 5Y-5.99%
OM growth 3Y-6.37%
OM growth 5Y-5.83%
PM growth 3Y-8.43%
PM growth 5Y-30.58%
GM growth 3Y-0.16%
GM growth 5Y-0.12%
F-Score6
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 5.87 | ||
| Cap/Depr | 75.07% | ||
| Cap/Sales | 2.98% | ||
| Interest Coverage | 1.51 | ||
| Cash Conversion | 200.28% | ||
| Profit Quality | 1012.12% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 1.56 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)73.09%
Cap/Depr(5y)88.07%
Cap/Sales(3y)2.98%
Cap/Sales(5y)3.56%
Profit Quality(3y)548.09%
Profit Quality(5y)489.9%
High Growth Momentum
Growth
EPS 1Y (TTM)19.28%
EPS 3Y15.06%
EPS 5Y9.81%
EPS Q2Q%19.05%
EPS Next Y23.95%
EPS Next 2Y21.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%10.75%
Revenue Next Year27.91%
Revenue Next 2Y18.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-20.64%
EBIT growth 3Y-6.85%
EBIT growth 5Y-5%
EBIT Next Year21.28%
EBIT Next 3Y31.54%
EBIT Next 5YN/A
FCF growth 1Y109%
FCF growth 3Y16.97%
FCF growth 5YN/A
OCF growth 1Y80.6%
OCF growth 3Y10.22%
OCF growth 5YN/A