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CMCX

CMC MarketsLSE:CMCX Stock Report

Last Price

UK£2.37

Market Cap

UK£689.9m

7D

-5.2%

1Y

-44.8%

Updated

19 Jan, 2022

Data

Company Financials +
CMCX fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance3/6
Financial Health5/6
Dividends4/6

CMCX Stock Overview

CMC Markets plc, together with its subsidiaries, provides financial services to retail, professional, stockbroking, and institutional clients in the United Kingdom, Ireland, Australia, New Zealand, Germany, Singapore, and internationally.

CMC Markets Competitors

IG Group Holdings

LSE:IGG

UK£3.5b

MSCI

NYSE:MSCI

US$42.3b

MarketAxess Holdings

NasdaqGS:MKTX

US$14.2b

Virtu Financial

NasdaqGS:VIRT

US$5.4b

Price History & Performance

Summary of all time highs, changes and price drops for CMC Markets
Historical stock prices
Current Share PriceUK£2.37
52 Week HighUK£5.59
52 Week LowUK£2.28
Beta0.64
1 Month Change-1.25%
3 Month Change-12.71%
1 Year Change-44.76%
3 Year Change107.17%
5 Year Change107.90%
Change since IPO-1.25%

Recent News & Updates

Nov 07
If You Like EPS Growth Then Check Out CMC Markets (LON:CMCX) Before It's Too Late

If You Like EPS Growth Then Check Out CMC Markets (LON:CMCX) Before It's Too Late

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

CMCXGB Capital MarketsGB Market
7D-5.2%-1.4%-1.0%
1Y-44.8%-3.0%8.3%

Return vs Industry: CMCX underperformed the UK Capital Markets industry which returned -1.9% over the past year.

Return vs Market: CMCX underperformed the UK Market which returned 8.3% over the past year.

Price Volatility

Is CMCX's price volatile compared to industry and market?
CMCX volatility
CMCX Average Weekly Movement6.1%
Capital Markets Industry Average Movement4.1%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: CMCX is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CMCX's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1989873Peter Cruddashttps://www.cmcmarkets.com

CMC Markets plc, together with its subsidiaries, provides financial services to retail, professional, stockbroking, and institutional clients in the United Kingdom, Ireland, Australia, New Zealand, Germany, Singapore, and internationally. The company offers its clients with the ability to trade contracts for difference and financial spread betting on a range of underlying shares, including indices, foreign pairs, commodities, cryptocurrencies, shares and ETFs, and treasuries through its trading platform. It also provides a range of education opportunities through tools and resources, trading webinars and events, platform guides, advanced trading strategies, articles from market analysts, and others, as well as Trader Development program, which offers a range of in-platform, on-demand education, and tailored market commentary.

CMC Markets Fundamentals Summary

How do CMC Markets's earnings and revenue compare to its market cap?
CMCX fundamental statistics
Market CapUK£689.86m
Earnings (TTM)UK£95.19m
Revenue (TTM)UK£303.79m

7.2x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CMCX income statement (TTM)
RevenueUK£303.79m
Cost of RevenueUK£2.45m
Gross ProfitUK£301.35m
ExpensesUK£206.16m
EarningsUK£95.19m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Apr 08, 2022

Earnings per share (EPS)0.33
Gross Margin99.19%
Net Profit Margin31.33%
Debt/Equity Ratio0.9%

How did CMCX perform over the long term?

See historical performance and comparison

Dividends

10.5%

Current Dividend Yield

76%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CMCX (£2.37) is trading below our estimate of fair value (£9.72)

Significantly Below Fair Value: CMCX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CMCX is good value based on its PE Ratio (7.2x) compared to the UK Capital Markets industry average (10.9x).

PE vs Market: CMCX is good value based on its PE Ratio (7.2x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: CMCX is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: CMCX is overvalued based on its PB Ratio (1.9x) compared to the GB Capital Markets industry average (1.7x).


Future Growth

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

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMCX's forecast earnings growth (3.4% per year) is above the savings rate (0.9%).

Earnings vs Market: CMCX's earnings (3.4% per year) are forecast to grow slower than the UK market (12.1% per year).

High Growth Earnings: CMCX's earnings are forecast to grow, but not significantly.

Revenue vs Market: CMCX's revenue (6.6% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: CMCX's revenue (6.6% per year) is forecast to grow slower than 20% 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 (17%).


Past Performance

How has CMC Markets performed over the past 5 years?

35.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMCX has high quality earnings.

Growing Profit Margin: CMCX's current net profit margins (31.3%) are lower than last year (45%).


Past Earnings Growth Analysis

Earnings Trend: CMCX's earnings have grown significantly by 35.4% per year over the past 5 years.

Accelerating Growth: CMCX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CMCX had negative earnings growth (-44.1%) over the past year, making it difficult to compare to the Capital Markets industry average (66.7%).


Return on Equity

High ROE: CMCX's Return on Equity (26.1%) is considered high.


Financial Health

How is CMC Markets's financial position?


Financial Position Analysis

Short Term Liabilities: CMCX's short term assets (£481.7M) exceed its short term liabilities (£190.5M).

Long Term Liabilities: CMCX's short term assets (£481.7M) exceed its long term liabilities (£13.7M).


Debt to Equity History and Analysis

Debt Level: CMCX has more cash than its total debt.

Reducing Debt: CMCX's debt to equity ratio has reduced from 1.5% to 0.9% over the past 5 years.

Debt Coverage: CMCX's debt is well covered by operating cash flow (3478.5%).

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


Balance Sheet


Dividend

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

10.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CMCX's dividend (10.52%) is higher than the bottom 25% of dividend payers in the UK market (1.41%).

High Dividend: CMCX's dividend (10.52%) is in the top 25% of dividend payers in the UK market (4.06%)


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 5 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.1%), CMCX's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CMCX's dividends in 3 years are forecast to be well covered by earnings (47% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Peter Cruddas (68 yo)

33yrs

Tenure

UK£1,459,400

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD1.99M) is above average for companies of similar size in the UK market ($USD1.06M).

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


Leadership Team

Experienced Management: CMCX's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: CMCX's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CMCX insiders have bought more shares than they have sold 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 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
  • Implied Market Cap: UK£689.863m
  • Shares outstanding: 291.08m
  • Website: https://www.cmcmarkets.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 21:19
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.