CMC Markets
Market Cap
UK£1.2b
Last Updated
2021/02/27 20:30 UTC
Data Sources
Company Financials +
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
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 36.8% per year for the next 3 years
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
| CMCX | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.4% | -1.7% | -2.3% |
| 30 Day | 1.1% | 2.8% | -0.1% |
| 90 Day | 8.6% | 11.9% | 4.2% |
| 1 Year | 188.1%170.7% | 19.2%15.5% | 7.1%1.1% |
| 3 Year | 205.9%167.8% | 50.7%33.5% | 9.7%-3.4% |
| 5 Year | 111.7%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
2 weeks ago | Simply Wall St
The Independent Non-Executive Director of CMC Markets plc (LON:CMCX), Clare Salmon, Just Sold 94% Of Their Holding1 month ago | Simply Wall St
Did You Miss CMC Markets' (LON:CMCX) Impressive 178% Share Price Gain?2 months ago | Simply Wall St
If You Like EPS Growth Then Check Out CMC Markets (LON:CMCX) Before It's Too LateValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 7.92yrs | UK£1.05m | 59.98% £ 707.0m | |
| CFO & Director | 1.25yrs | UK£331.28k | 0.0050% £ 58.8k | |
| Group Commercial Director | 7.08yrs | UK£813.10k | 0.11% £ 1.3m | |
| Head of Asia Pacific & Canada and Director | 1.25yrs | UK£238.40k | 0.061% £ 724.4k | |
| Chief Technology Officer | 0.58yr | no data | no data | |
| General Counsel | no data | no data | no data | |
| Group Head of Human Resources | no data | no data | no data | |
| Head of European Distribution | no data | no data | no data | |
| Group Head of Product | no data | no data | no data | |
| Global Head of Business Intelligence | no data | no data | no data | |
| Group Head of Operations | no data | no data | no data | |
| Head of Customer Analytics and Research | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 7.92yrs | UK£1.05m | 59.98% £ 707.0m | |
| CFO & Director | 1.25yrs | UK£331.28k | 0.0050% £ 58.8k | |
| Group Commercial Director | 7.08yrs | UK£813.10k | 0.11% £ 1.3m | |
| Head of Asia Pacific & Canada and Director | 1.25yrs | UK£238.40k | 0.061% £ 724.4k | |
| Independent Non-Executive Director | 3.33yrs | UK£70.00k | 0.00028% £ 3.3k | |
| Senior Independent Director | no data | UK£75.30k | no data | |
| Independent Non-Executive Director | 3.42yrs | UK£70.00k | no data | |
| Independent Chairman | 3.08yrs | UK£160.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CMCX | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Feb 2016 |
| CMCXL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Feb 2016 |
| T8Q | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Feb 2016 |
| CCMM.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Feb 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/27 20:30 |
| End of Day Share Price | 2021/02/26 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
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.