BGC GROUP INC-A (BGC) Stock Fundamental Analysis
NASDAQ:BGC - Nasdaq - US0889291045 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to BGC. BGC was compared to 233 industry peers in the Capital Markets industry. BGC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. BGC is valued quite cheap, while showing a decent growth score. This is a good 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.
Of the past 5 years BGC 4 years were profitable.
BGC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
BGC has a Return On Assets of 1.07%. This is in the lower half of the industry: BGC underperforms 65.24% of its industry peers.
The Return On Equity of BGC (3.85%) is worse than 63.52% 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 47.64% 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 69.96% of its industry peers.
In the last couple of years the Profit Margin of BGC has declined.
Looking at the Operating Margin, with a value of 6.02%, BGC is doing worse than 72.10% of the companies in the same industry.
BGC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 98.39%, BGC belongs to the top of the industry, outperforming 97.85% of the companies in the same industry.
BGC's Gross Margin has been stable in the last couple of years.
| 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
Based on the Altman-Z score of 1.62, we must say that BGC is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.62, BGC is doing good in the industry, outperforming 65.67% of the companies in the same industry.
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 better Debt to FCF ratio (3.45) than 73.82% 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.
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 66.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 1.62 |
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.
BGC has a Current ratio (1.21) which 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.
Looking at the Quick ratio, with a value of 1.21, BGC is in line with its industry, outperforming 53.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
BGC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.18%, which is quite impressive.
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 19.08% on average per year.
The Revenue is expected to grow by 25.82% on average over the next years. This is a very strong growth
EPS Next Y19.87%
EPS Next 2Y19.08%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
BGC is valuated reasonably with a Price/Earnings ratio of 10.03.
Compared to the rest of the industry, the Price/Earnings ratio of BGC indicates a somewhat cheap valuation: BGC is cheaper than 73.82% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BGC to the average of the S&P500 Index (27.30), we can say BGC is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.36, 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 90.56% of the companies are valued more expensively.
BGC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.03 | ||
| Fwd PE | 7.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BGC indicates a somewhat cheap valuation: BGC is cheaper than 66.52% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BGC is valued a bit cheaper than the industry average as 68.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.87 | ||
| EV/EBITDA | 26.51 |
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.
A more expensive valuation may be justified as BGC's earnings are expected to grow with 19.08% in the coming years.
PEG (NY)0.5
PEG (5Y)1.02
EPS Next 2Y19.08%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BGC has a yearly dividend return of 0.74%, which is pretty low.
Compared to an average industry Dividend Yield of 8.10, BGC is paying slightly less dividend.
With a Dividend Yield of 0.74, BGC pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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 2Y19.08%
EPS Next 3YN/A
10.33
-0.1 (-0.96%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners82.47%
Inst Owner Change-0.05%
Ins Owners0.92%
Ins Owner Change-5.7%
Market Cap4.78B
Analysts83.33
Price Target14.79 (43.18%)
Short Float %2.9%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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 | 10.03 | ||
| Fwd PE | 7.36 | ||
| P/S | 2.36 | ||
| P/FCF | 13.87 | ||
| P/OCF | 11.81 | ||
| P/B | 5.4 | ||
| P/tB | 28.57 | ||
| EV/EBITDA | 26.51 |
EPS(TTM)1.03
EY9.97%
EPS(NY)1.4
Fwd EY13.59%
FCF(TTM)0.74
FCFY7.21%
OCF(TTM)0.88
OCFY8.47%
SpS4.37
BVpS1.91
TBVpS0.36
PEG (NY)0.5
PEG (5Y)1.02
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 | 1.62 |
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 2Y19.08%
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