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 232 industry peers in the Capital Markets industry. While BGC seems to be doing ok healthwise, there are quite some concerns on its profitability. BGC scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
BGC had positive earnings in the past year.
In the past year BGC had a positive cash flow from operations.
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
BGC's Return On Assets of 1.07% is on the low side compared to the rest of the industry. BGC is outperformed by 65.95% of its industry peers.
BGC has a Return On Equity of 3.85%. This is in the lower half of the industry: BGC underperforms 63.79% of its industry peers.
BGC's Return On Invested Capital of 3.73% is in line compared to the rest of the industry. BGC outperforms 47.41% of its industry peers.
| 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
The Profit Margin of BGC (1.68%) is worse than 70.26% of its industry peers.
In the last couple of years the Profit Margin of BGC has declined.
BGC's Operating Margin of 6.02% is on the low side compared to the rest of the industry. BGC is outperformed by 72.41% of its industry peers.
In the last couple of years the Operating Margin of BGC has declined.
The Gross Margin of BGC (98.39%) is better than 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
BGC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 1.53, we must say that BGC is in the distress zone and has some risk of bankruptcy.
BGC has a Altman-Z score of 1.53. This is in the better half of the industry: BGC outperforms 63.79% of its industry peers.
The Debt to FCF ratio of BGC is 3.45, which is a good value as it means it would take BGC, 3.45 years of fcf income to pay off 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 73.28% of its industry peers.
A Debt/Equity ratio of 1.34 is on the high side and indicates that BGC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.34, BGC is doing worse than 66.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 1.53 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.21 indicates that BGC should not have too much problems paying its short term obligations.
BGC's Current ratio of 1.21 is in line compared to the rest of the industry. BGC outperforms 52.59% of its industry peers.
A Quick Ratio of 1.21 indicates that BGC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.21, BGC perfoms like the industry average, outperforming 53.02% of the companies in the same 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 impressive 21.18% over the past year.
The Earnings Per Share has been growing by 9.81% on average over the past years. This is quite good.
EPS 1Y (TTM)21.18%
EPS 3Y15.06%
EPS 5Y9.81%
EPS Q2Q%16%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%14.8%
3.2 Future
Based on estimates for the next years, BGC will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.51% on average per year.
BGC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 25.82% yearly.
EPS Next Y19.87%
EPS Next 2Y19.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year44.13%
Revenue Next 2Y25.82%
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
With a Price/Earnings ratio of 9.37, the valuation of BGC can be described as very reasonable.
Based on the Price/Earnings ratio, BGC is valued a bit cheaper than the industry average as 74.14% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BGC to the average of the S&P500 Index (26.57), we can say BGC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.82, 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 92.24% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.41, BGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 6.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BGC is valued a bit cheaper than the industry average as 66.81% of the companies are valued more expensively.
68.97% of the companies in the same industry are more expensive than BGC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.96 | ||
| EV/EBITDA | 24.72 |
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.
BGC's earnings are expected to grow with 19.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)0.95
EPS Next 2Y19.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BGC has a yearly dividend return of 0.81%, which is pretty low.
Compared to an average industry Dividend Yield of 7.91, BGC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, BGC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
The dividend of BGC decreases each year by -34.04%.
BGC has paid a dividend for at least 10 years, which is 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 2Y19.51%
EPS Next 3YN/A
9.65
+0.2 (+2.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners82.47%
Inst Owner Change1.73%
Ins Owners0.92%
Ins Owner Change-5.7%
Market Cap4.47B
Analysts83.33
Price Target14.79 (53.26%)
Short Float %2.82%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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)0%
PT rev (3m)3.57%
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 | 9.37 | ||
| Fwd PE | 6.82 | ||
| P/S | 2.21 | ||
| P/FCF | 12.96 | ||
| P/OCF | 11.03 | ||
| P/B | 5.05 | ||
| P/tB | 26.69 | ||
| EV/EBITDA | 24.72 |
EPS(TTM)1.03
EY10.67%
EPS(NY)1.41
Fwd EY14.65%
FCF(TTM)0.74
FCFY7.72%
OCF(TTM)0.88
OCFY9.07%
SpS4.37
BVpS1.91
TBVpS0.36
PEG (NY)0.47
PEG (5Y)0.95
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 | 1.53 |
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)21.18%
EPS 3Y15.06%
EPS 5Y9.81%
EPS Q2Q%16%
EPS Next Y19.87%
EPS Next 2Y19.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%14.8%
Revenue Next Year44.13%
Revenue Next 2Y25.82%
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 3Y27.26%
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