| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 2/6 |
| Past Performance | 3/6 |
| Financial Health | 5/6 |
| Dividends | 4/6 |
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
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£2.37 |
| 52 Week High | UK£5.59 |
| 52 Week Low | UK£2.28 |
| Beta | 0.64 |
| 1 Month Change | -1.25% |
| 3 Month Change | -12.71% |
| 1 Year Change | -44.76% |
| 3 Year Change | 107.17% |
| 5 Year Change | 107.90% |
| Change since IPO | -1.25% |
Recent News & Updates
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
| CMCX | GB Capital Markets | GB 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
| CMCX volatility | |
|---|---|
| CMCX Average Weekly Movement | 6.1% |
| Capital Markets Industry Average Movement | 4.1% |
| Market Average Movement | 5.0% |
| 10% most volatile stocks in GB Market | 10.7% |
| 10% least volatile stocks in GB Market | 2.5% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1989 | 873 | Peter Cruddas | https://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
| CMCX fundamental statistics | |
|---|---|
| Market Cap | UK£689.86m |
| Earnings (TTM) | UK£95.19m |
| Revenue (TTM) | UK£303.79m |
7.2x
P/E Ratio2.3x
P/S RatioIs CMCX overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CMCX income statement (TTM) | |
|---|---|
| Revenue | UK£303.79m |
| Cost of Revenue | UK£2.45m |
| Gross Profit | UK£301.35m |
| Expenses | UK£206.16m |
| Earnings | UK£95.19m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Apr 08, 2022
| Earnings per share (EPS) | 0.33 |
| Gross Margin | 99.19% |
| Net Profit Margin | 31.33% |
| Debt/Equity Ratio | 0.9% |
How did CMCX perform over the long term?
See historical performance and comparisonDividends
10.5%
Current Dividend Yield76%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/19 21:19 |
| End of Day Share Price | 2022/01/19 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/03/31 |
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.