LSE:CMCX

Stock Analysis Report

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Executive Summary

CMC Markets plc, together with its subsidiaries, provides online retail financial services to retail, professional, stockbroking, and institutional clients in Australia, the United Kingdom, and internationally. More Details


Snowflake Analysis

Outstanding track record with adequate balance sheet.


Similar Companies

Share Price & News

How has CMC Markets's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CMCX is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CMCX's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.4%

CMCX

-1.7%

GB Capital Markets

-2.3%

GB Market


1 Year Return

170.7%

CMCX

15.5%

GB Capital Markets

1.1%

GB Market

Return vs Industry: CMCX exceeded the UK Capital Markets industry which returned 13.6% over the past year.

Return vs Market: CMCX exceeded the UK Market which returned -0.2% over the past year.


Shareholder returns

CMCXIndustryMarket
7 Day-2.4%-1.7%-2.3%
30 Day1.1%2.8%-0.1%
90 Day8.6%11.9%4.2%
1 Year188.1%170.7%19.2%15.5%7.1%1.1%
3 Year205.9%167.8%50.7%33.5%9.7%-3.4%
5 Year111.7%68.6%111.8%76.1%36.9%10.5%

Long-Term Price Volatility Vs. Market

How volatile is CMC Markets's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CMC Markets undervalued compared to its fair value and its price relative to the market?

6.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CMCX (£4.06) is trading above our estimate of fair value (£3.11)

Significantly Below Fair Value: CMCX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CMCX is good value based on its PE Ratio (6.9x) compared to the GB Capital Markets industry average (21.2x).

PE vs Market: CMCX is good value based on its PE Ratio (6.9x) compared to the UK market (24x).


Price to Earnings Growth Ratio

PEG Ratio: CMCX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CMCX is overvalued based on its PB Ratio (3.3x) compared to the GB Capital Markets industry average (1.6x).


Next Steps

Future Growth

How is CMC Markets forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-36.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMCX's earnings are forecast to decline over the next 3 years (-36.8% per year).

Earnings vs Market: CMCX's earnings are forecast to decline over the next 3 years (-36.8% per year).

High Growth Earnings: CMCX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CMCX's revenue is expected to decline over the next 3 years (-17.3% per year).

High Growth Revenue: CMCX's revenue is forecast to decline over the next 3 years (-17.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CMCX's Return on Equity is forecast to be low in 3 years time (19.2%).


Next Steps

Past Performance

How has CMC Markets performed over the past 5 years?

21.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMCX has high quality earnings.

Growing Profit Margin: CMCX's current net profit margins (45%) are higher than last year (16.1%).


Past Earnings Growth Analysis

Earnings Trend: CMCX's earnings have grown significantly by 21.4% per year over the past 5 years.

Accelerating Growth: CMCX's earnings growth over the past year (556.8%) exceeds its 5-year average (21.4% per year).

Earnings vs Industry: CMCX earnings growth over the past year (556.8%) exceeded the Capital Markets industry -1.4%.


Return on Equity

High ROE: CMCX's Return on Equity (47.2%) is considered outstanding.


Next Steps

Financial Health

How is CMC Markets's financial position?


Financial Position Analysis

Short Term Liabilities: CMCX's short term assets (£460.4M) exceed its short term liabilities (£156.2M).

Long Term Liabilities: CMCX's short term assets (£460.4M) exceed its long term liabilities (£17.5M).


Debt to Equity History and Analysis

Debt Level: CMCX's debt to equity ratio (1.4%) is considered satisfactory.

Reducing Debt: CMCX's debt to equity ratio has increased from 0.5% to 1.4% over the past 5 years.

Debt Coverage: CMCX's debt is well covered by operating cash flow (3069.3%).

Interest Coverage: Insufficient data to determine if CMCX's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is CMC Markets's current dividend yield, its reliability and sustainability?

3.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CMCX's dividend (3.7%) is higher than the bottom 25% of dividend payers in the UK market (1.48%).

High Dividend: CMCX's dividend (3.7%) is low compared to the top 25% of dividend payers in the UK market (4.52%).


Stability and Growth of Payments

Stable Dividend: CMCX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CMCX's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.3%), CMCX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CMCX's dividends in 3 years are forecast to be covered by earnings (50% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Peter Cruddas (67 yo)

7.92yrs

Tenure

UK£1,048,500

Compensation

Dr. Peter Andrew Cruddas founded CMC Markets Plc in 1989 and has been its Chief Executive Officer since 1989. Dr. Cruddas serves as Chairman and Chief Executive Officer of CMC Markets UK Plc and served as ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD1.46M) is about average for companies of similar size in the UK market ($USD1.64M).

Compensation vs Earnings: Peter's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Cruddas
Founder7.92yrsUK£1.05m59.98%
£ 707.0m
Euan Marshall
CFO & Director1.25yrsUK£331.28k0.0050%
£ 58.8k
David Fineberg
Group Commercial Director7.08yrsUK£813.10k0.11%
£ 1.3m
Matthew Lewis
Head of Asia Pacific & Canada and Director1.25yrsUK£238.40k0.061%
£ 724.4k
Foxen Brendan
Chief Technology Officer0.58yrno datano data
Oliver Basi
General Counselno datano datano data
Marie-Claude Warnotte
Group Head of Human Resourcesno datano datano data
Matthew Macklin
Head of European Distributionno datano datano data
Greg Niebank
Group Head of Productno datano datano data
Luke Welch
Global Head of Business Intelligenceno datano datano data
Dave Worsfold
Group Head of Operationsno datano datano data
Dione Marshall
Head of Customer Analytics and Researchno datano datano data

1.8yrs

Average Tenure

43yo

Average Age

Experienced Management: CMCX's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Peter Cruddas
Founder7.92yrsUK£1.05m59.98%
£ 707.0m
Euan Marshall
CFO & Director1.25yrsUK£331.28k0.0050%
£ 58.8k
David Fineberg
Group Commercial Director7.08yrsUK£813.10k0.11%
£ 1.3m
Matthew Lewis
Head of Asia Pacific & Canada and Director1.25yrsUK£238.40k0.061%
£ 724.4k
Clare Salmon
Independent Non-Executive Director3.33yrsUK£70.00k0.00028%
£ 3.3k
Paul Wainscott
Senior Independent Directorno dataUK£75.30kno data
Sarah Ing
Independent Non-Executive Director3.42yrsUK£70.00kno data
James Richards
Independent Chairman3.08yrsUK£160.00kno data

3.3yrs

Average Tenure

50yo

Average Age

Experienced Board: CMCX's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CMCX insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CMC Markets plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CMC Markets plc
  • Ticker: CMCX
  • Exchange: LSE
  • Founded: 1989
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: UK£1.179b
  • Shares outstanding: 290.36m
  • Website: https://www.cmcmarkets.com

Number of Employees


Location

  • CMC Markets plc
  • 133 Houndsditch
  • London
  • Greater London
  • EC3A 7BX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMCXLSE (London Stock Exchange)YesOrdinary SharesGBGBPFeb 2016
CMCXLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPFeb 2016
T8QDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2016
CCMM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2016

Biography

CMC Markets plc, together with its subsidiaries, provides online retail financial services to retail, professional, stockbroking, and institutional clients in Australia, the United Kingdom, and internation...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/27 20:30
End of Day Share Price2021/02/26 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.