NasdaqGS:BGCP

Stock Analysis Report

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Market Cap

US$2.3b

Last Updated

2021/07/27 01:49 UTC

Data Sources

Company Financials +

Executive Summary

BGC Partners, Inc. operates as a brokerage and financial technology company in the United States, Canada, Europe, the United Kingdom, Latin America, Asia, Africa, the Middle East, and internationally. More Details


Snowflake Analysis

Mediocre balance sheet with questionable track record.


Similar Companies

Share Price & News

How has BGC Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

2.9%

BGCP

4.4%

US Capital Markets

3.3%

US Market


1 Year Return

88.4%

BGCP

56.0%

US Capital Markets

37.8%

US Market

Return vs Industry: BGCP exceeded the US Capital Markets industry which returned 55.9% over the past year.

Return vs Market: BGCP exceeded the US Market which returned 39.1% over the past year.


Shareholder returns

BGCPIndustryMarket
7 Day2.9%4.4%3.3%
30 Day-10.2%0.6%1.1%
90 Day-7.0%5.3%2.9%
1 Year90.4%88.4%59.4%56.0%39.9%37.8%
3 Year-5.2%-49.4%72.8%60.3%65.8%55.4%
5 Year23.2%-41.6%173.3%140.1%124.3%99.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is BGC Partners undervalued compared to its fair value and its price relative to the market?

24.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BGCP ($5.35) is trading above our estimate of fair value ($1.66)

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


Price To Earnings Ratio

PE vs Industry: BGCP is poor value based on its PE Ratio (25x) compared to the US Capital Markets industry average (13.2x).

PE vs Market: BGCP is poor value based on its PE Ratio (25x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: BGCP is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: BGCP is good value based on its PB Ratio (2.6x) compared to the US Capital Markets industry average (61.8x).


Future Growth

How is BGC Partners forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BGCP's forecast earnings growth (18.3% per year) is above the savings rate (2%).

Earnings vs Market: BGCP's earnings (18.3% per year) are forecast to grow faster than the US market (15% per year).

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

Revenue vs Market: BGCP's revenue (3.2% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: BGCP's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BGCP's Return on Equity is forecast to be high in 3 years time


Past Performance

How has BGC Partners performed over the past 5 years?

-19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BGCP has high quality earnings.

Growing Profit Margin: BGCP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BGCP's earnings have declined by 19.7% per year over the past 5 years.

Accelerating Growth: BGCP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BGCP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (51.3%).


Return on Equity

High ROE: BGCP's Return on Equity (10.7%) is considered low.


Financial Health

How is BGC Partners's financial position?


Financial Position Analysis

Short Term Liabilities: BGCP's short term assets ($4.0B) exceed its short term liabilities ($2.6B).

Long Term Liabilities: BGCP's short term assets ($4.0B) exceed its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: BGCP's debt to equity ratio (147.9%) is considered high.

Reducing Debt: BGCP's debt to equity ratio has increased from 68.7% to 147.9% over the past 5 years.

Debt Coverage: BGCP's debt is well covered by operating cash flow (31.9%).

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


Balance Sheet


Dividend

What is BGC Partners's current dividend yield, its reliability and sustainability?

0.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BGCP's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: BGCP's dividend (0.75%) is low compared to the top 25% of dividend payers in the US market (3.56%).


Stability and Growth of Payments

Stable Dividend: BGCP's dividend payments have been volatile in the past 10 years.

Growing Dividend: BGCP's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.7%), BGCP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Howard Lutnick (59 yo)

22.08yrs

Tenure

US$12,000,000

Compensation

Mr. Howard W. Lutnick has been Chairman and Chief Executive Officer at Cantor Fitzgerald Income Trust, Inc. since February 2017. In addition, he has served as Chief Executive Officer of Rodin Income Adviso...


CEO Compensation Analysis

Compensation vs Market: Howard's total compensation ($USD12.00M) is above average for companies of similar size in the US market ($USD3.72M).

Compensation vs Earnings: Howard's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BGCP's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: BGCP's board of directors are considered experienced (8.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.6%.


Top Shareholders

Company Information

BGC Partners, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BGC Partners, Inc.
  • Ticker: BGCP
  • Exchange: NasdaqGS
  • Founded: 1972
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Implied Market Cap: US$2.337b
  • Market Cap: US$2.056b
  • Shares outstanding: 436.78m
  • Website: https://www.bgcpartners.com

Number of Employees


Location

  • BGC Partners, Inc.
  • 499 Park Avenue
  • New York
  • New York
  • 10022
  • United States

Listings


Biography

BGC Partners, Inc. operates as a brokerage and financial technology company in the United States, Canada, Europe, the United Kingdom, Latin America, Asia, Africa, the Middle East, and internationally. It o...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/27 01:49
End of Day Share Price2021/07/26 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.