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BGC GROUP INC-A (BGC) Stock Fundamental Analysis

NASDAQ:BGC - Nasdaq - US0889291045 - Common Stock - Currency: USD

8.9  -0.33 (-3.58%)

After market: 8.85 -0.05 (-0.56%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to BGC. BGC was compared to 225 industry peers in the Capital Markets industry. While BGC seems to be doing ok healthwise, there are quite some concerns on its profitability. BGC is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

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.
BGC Yearly Net Income VS EBIT VS OCF VS FCFBGC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B

1.2 Ratios

With a Return On Assets value of 1.07%, BGC is not doing good in the industry: 66.21% 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 66.67% of its industry peers.
BGC has a Return On Invested Capital of 3.73%. This is comparable to the rest of the industry: BGC outperforms 46.12% of its industry peers.
Industry RankSector 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
BGC Yearly ROA, ROE, ROICBGC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20 25

1.3 Margins

With a Profit Margin value of 1.68%, BGC is not doing good in the industry: 73.52% of the companies in the same industry are doing better.
BGC's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.02%, BGC is not doing good in the industry: 72.15% of the companies in the same industry are doing better.
BGC's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 98.39%, BGC belongs to the best of the industry, outperforming 97.26% of the companies in the same industry.
In the last couple of years the Gross Margin of BGC has remained more or less at the same level.
Industry RankSector 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%
BGC Yearly Profit, Operating, Gross MarginsBGC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60 80

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4

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.
BGC Yearly Shares OutstandingBGC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
BGC Yearly Total Debt VS Total AssetsBGC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

BGC has an Altman-Z score of 1.47. This is a bad value and indicates that BGC is not financially healthy and even has some risk of bankruptcy.
BGC has a better Altman-Z score (1.47) than 63.93% of its industry peers.
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.
With a decent Debt to FCF ratio value of 3.45, BGC is doing good in the industry, outperforming 70.78% of the companies in the same industry.
A Debt/Equity ratio of 1.34 is on the high side and indicates that BGC has dependencies on debt financing.
BGC's Debt to Equity ratio of 1.34 is on the low side compared to the rest of the industry. BGC is outperformed by 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.34
Debt/FCF 3.45
Altman-Z 1.47
ROIC/WACCN/A
WACCN/A
BGC Yearly LT Debt VS Equity VS FCFBGC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B 1.5B

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 52.97% of its industry peers.
BGC has a Quick 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.
Looking at the Quick ratio, with a value of 1.21, BGC is in line with its industry, outperforming 52.97% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.21
Quick Ratio 1.21
BGC Yearly Current Assets VS Current LiabilitesBGC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

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4

3. Growth

3.1 Past

BGC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.28%, which is quite good.
The Earnings Per Share has been growing by 9.81% on average over the past years. This is quite good.
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%10.74%

3.2 Future

The Earnings Per Share is expected to grow by 9.25% on average over the next years. This is quite good.
BGC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.33% yearly.
EPS Next Y10.18%
EPS Next 2Y9.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year22.97%
Revenue Next 2Y16.33%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
BGC Yearly Revenue VS EstimatesBGC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
BGC Yearly EPS VS EstimatesBGC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.99, 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 76.71% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.53. BGC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.16 indicates a reasonable valuation of BGC.
86.76% of the companies in the same industry are more expensive than BGC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BGC to the average of the S&P500 Index (22.65), we can say BGC is valued rather cheaply.
Industry RankSector Rank
PE 8.99
Fwd PE 8.16
BGC Price Earnings VS Forward Price EarningsBGC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

BGC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BGC is cheaper than 68.04% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BGC is valued a bit cheaper than 64.84% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.38
EV/EBITDA 23.74
BGC Per share dataBGC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

4.3 Compensation for Growth

BGC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.88
PEG (5Y)0.92
EPS Next 2Y9.25%
EPS Next 3YN/A

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3

5. Dividend

5.1 Amount

With a yearly dividend of 0.86%, BGC is not a good candidate for dividend investing.
BGC's Dividend Yield is slightly below the industry average, which is at 9.91.
Compared to an average S&P500 Dividend Yield of 2.27, BGC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.86%

5.2 History

The dividend of BGC decreases each year by -44.17%.
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)-44.17%
Div Incr Years1
Div Non Decr Years3
BGC Yearly Dividends per shareBGC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

51.02% of the earnings are spent on dividend by BGC. This is a bit on the high side, but may be sustainable.
DP51.02%
EPS Next 2Y9.25%
EPS Next 3YN/A
BGC Yearly Income VS Free CF VS DividendBGC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B
BGC Dividend Payout.BGC Dividend Payout, showing the Payout Ratio.BGC Dividend Payout.PayoutRetained Earnings

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BGC GROUP INC-A

NASDAQ:BGC (2/24/2025, 8:14:52 PM)

After market: 8.85 -0.05 (-0.56%)

8.9

-0.33 (-3.58%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-14 2025-02-14/bmo
Earnings (Next)04-28 2025-04-28/bmo
Inst Owners79.43%
Inst Owner Change-74.01%
Ins Owners4.86%
Ins Owner Change-0.65%
Market Cap4.27B
Analysts80
Price Target12.24 (37.53%)
Short Float %3.89%
Short Ratio5.01
Dividend
Industry RankSector Rank
Dividend Yield 0.86%
Yearly Dividend0.04
Dividend Growth(5Y)-44.17%
DP51.02%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
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)0%
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)-10.38%
Valuation
Industry RankSector Rank
PE 8.99
Fwd PE 8.16
P/S 2.11
P/FCF 12.38
P/OCF 10.54
P/B 4.82
P/tB 25.5
EV/EBITDA 23.74
EPS(TTM)0.99
EY11.12%
EPS(NY)1.09
Fwd EY12.26%
FCF(TTM)0.72
FCFY8.08%
OCF(TTM)0.84
OCFY9.49%
SpS4.22
BVpS1.84
TBVpS0.35
PEG (NY)0.88
PEG (5Y)0.92
Profitability
Industry RankSector 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 RankSector 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 1.47
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 Y10.18%
EPS Next 2Y9.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%10.74%
Revenue Next Year22.97%
Revenue Next 2Y16.33%
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 3YN/A
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