NasdaqGS:BGCP

Stock Analysis Report

Executive Summary

BGC Partners, Inc. operates as a brokerage and financial technology company worldwide.


Snowflake Analysis

Second-rate dividend payer and slightly overvalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.2%

BGCP

0.8%

US Capital Markets

-2.6%

US Market


1 Year Return

-54.7%

BGCP

-11.7%

US Capital Markets

-13.3%

US Market

Return vs Industry: BGCP underperformed the US Capital Markets industry which returned -14.5% over the past year.

Return vs Market: BGCP underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

BGCPIndustryMarket
7 Day1.2%0.8%-2.6%
30 Day-44.9%-12.7%-15.2%
90 Day-56.3%-23.1%-22.2%
1 Year-49.4%-54.7%-9.9%-11.7%-11.5%-13.3%
3 Year-54.3%-76.9%11.0%4.6%13.2%5.7%
5 Year-41.1%-73.8%35.1%22.5%31.8%17.2%

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?

15.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BGCP ($2.19) is trading above our estimate of fair value ($1.7)

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


Price To Earnings Ratio

PE vs Industry: BGCP is good value based on its PE Ratio (13.5x) compared to the Capital Markets industry average (33.7x).

PE vs Market: BGCP is poor value based on its PE Ratio (13.5x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BGCP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BGCP is good value based on its PB Ratio (1.1x) compared to the US Capital Markets industry average (7.7x).


Next Steps

Future Growth

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

4.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BGCP's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if BGCP's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BGCP's revenue (4.8% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: BGCP's revenue (4.8% 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


Next Steps

Past Performance

How has BGC Partners performed over the past 5 years?

-13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BGCP has high quality earnings.

Growing Profit Margin: BGCP's current net profit margins (2.7%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: BGCP has become profitable over the past 5 years, growing earnings by -13% per year.

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

Earnings vs Industry: BGCP had negative earnings growth (-20.8%) over the past year, making it difficult to compare to the Capital Markets industry average (9.7%).


Return on Equity

High ROE: BGCP's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is BGC Partners's financial position?


Financial Position Analysis

Short Term Liabilities: BGCP's short term assets ($2.4B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: BGCP's short term assets ($2.4B) exceed its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: BGCP's debt to equity ratio (151.4%) is considered high.

Reducing Debt: BGCP's debt to equity ratio has increased from 110.2% to 151.4% over the past 5 years.

Debt Coverage: BGCP's debt is well covered by operating cash flow (20.6%).

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


Balance Sheet


Next Steps

Dividend

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

15.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BGCP's dividend (18.26%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: BGCP's dividend (18.26%) is in the top 25% of dividend payers in the US market (5.82%)


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (346.1%), BGCP's dividend payments are not 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?

11.3yrs

Average management tenure


CEO

Howard Lutnick (57yo)

20.83s

Tenure

US$29,694,152

Compensation

Mr. Howard W. Lutnick is Chairman & CEO of Cantor Fitzgerald L.P., and Chairman & CEO of BGC Partners Inc. Mr. Lutnick guided the rebuilding of Cantor Fitzgerald. Mr. Lutnick has been recognized as a symbo ...


CEO Compensation Analysis

Compensation vs Market: Howard's total compensation ($USD29.69M) is above average for companies of similar size in the US market ($USD3.29M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Howard Lutnick
Chairman & CEO20.83yrsUS$29.69m2.6% $23.2m
Shaun Lynn
President12yrsUS$8.50m0.0015% $13.5k
Sean Windeatt
Chief Operating Officer11.25yrsUS$2.28mno data
Sean Galvin
Chief Accounting Officer1.5yrsUS$168.44kno data
Stephen Merkel
Executive VP & General Counsel20.83yrsUS$5.18m0.0093% $82.9k
Steven Bisgay
Executive MD & CFO0.25yrno data0.00042% $3.7k
Adrian Thomas
Director of Communicationsno datano datano data
Karen Laureano-Rikardsen
Chief Marketing Officerno datano datano data
Lori Pennay
Senior MD and Global Head of Human Resources & Partnership8.25yrsno datano data
Daniel LaVecchia
Executive MD of North America Operations & Global Head of FX Productsno datano datano data

11.3yrs

Average Tenure

56yo

Average Age

Experienced Management: BGCP's management team is seasoned and experienced (11.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Howard Lutnick
Chairman & CEO20.83yrsUS$29.69m2.6% $23.2m
David Richards
Independent Director2.33yrsUS$210.00k0.0019% $16.9k
William Moran
Independent Director6.83yrsUS$243.00k0.017% $155.4k
Stephen Curwood
Independent Director10.33yrsUS$233.00k0.0078% $69.9k
Linda Bell
Independent Director6.75yrsUS$215.00k0.0011% $10.3k

6.8yrs

Average Tenure

67yo

Average Age

Experienced Board: BGCP's board of directors are considered experienced (6.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.9%.


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: 1999
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Implied Market Cap: US$891.831m
  • Market Cap: US$894.262m
  • Shares outstanding: 407.23m
  • Website: https://www.bgcpartners.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESDADB (Deutsche Boerse AG)YesClass A Common StockDEEURDec 1999
BGCPNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDDec 1999
0HKMLSE (London Stock Exchange)YesClass A Common StockGBUSDDec 1999
ESDABRSE (Berne Stock Exchange)YesClass A Common StockCHCHFDec 1999

Biography

BGC Partners, Inc. operates as a brokerage and financial technology company worldwide. It offers various brokerage products, such as fixed income, foreign exchange, equities, energy and commodities, insurance, and futures. The company also provides other services that include trade execution, broker dealer, clearing, trade compression, post-trade, information, and other back office services to financial and non-financial institutions. In addition, it offers fully electronic brokerage, financial technology solutions, market data, post-trade services, and analytics related to financial instrument and markets under the Fenics, BGC Trader, CreditMatch, Fenics Market Data, BGC Market Data, kACE2, EMBonds, Capitalab, Swaptioniser, CBID, and Lucera brand names. Further, the company provides screen-based market solutions, which enable its clients to develop a marketplace, trade with their customers, issue debt, trade odd lots, access program trading interfaces, and access its network and intellectual property; software and technology infrastructure for the transactional and technology related elements; and option pricing and analysis tools. It primarily serves banks, broker-dealers, investment banks, trading firms, hedge funds, governments, and corporations, as well as investment firms. BGC Partners, Inc. was incorporated in 1999 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 03:05
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.