NasdaqGS:BGCP

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Second-rate dividend payer and slightly overvalued.

Risks

  • BGC Partners is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-2.0%

NasdaqGS:BGCP

-1.1%

US Capital Markets

-1.6%

US Market


1 Year Return

-58.0%

NasdaqGS:BGCP

-7.4%

US Capital Markets

-3.0%

US Market

BGCP underperformed the Capital Markets industry which returned -7.4% over the past year.

BGCP underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

BGCPIndustryMarket
7 Day-2.0%-1.1%-1.6%
30 Day-8.9%-6.7%-5.7%
90 Day4.2%-0.6%0.2%
1 Year-27.4%-58.0%-5.3%-7.4%-0.8%-3.0%
3 Year11.6%-42.5%48.0%39.5%38.1%29.1%
5 Year44.9%-34.1%65.7%50.4%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

20.38x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

BGC Partners's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

BGC Partners's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

BGC Partners is good value based on earnings compared to the US Capital Markets industry average.

BGC Partners is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for BGC Partners, we can't assess if its growth is good value.


Price Based on Value of Assets

BGC Partners is good value based on assets compared to the US Capital Markets industry average.


Next Steps

Future Growth

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

5.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

BGC Partners's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).

BGC Partners's earnings are expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

BGC Partners's revenue growth is positive but not above the United States of America market average.

BGC Partners's earnings growth is positive but not above the United States of America market average.

BGC Partners's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if BGC Partners will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has BGC Partners performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

BGC Partners's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

BGC Partners has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

BGC Partners has become profitable in the last year making it difficult to compare the US Capital Markets industry average.


Return on Equity

BGC Partners has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

BGC Partners used its assets more efficiently than the US Capital Markets industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if BGC Partners improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is BGC Partners's financial position?


Financial Position Analysis

BGC Partners is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

BGC Partners's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

BGC Partners's level of debt (123.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (58.4% vs 123.3% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on BGC Partners's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.5x debt.


Next Steps

Dividend

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

11.22%

Current Dividend Yield


Dividend Yield and Payments Analysis

BGC Partners's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

BGC Partners's dividend is above the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of BGC Partners's salary, the management and board of directors tenure and is there insider trading?

7.6yrs

Average management tenure


CEO

Howard Lutnick (57yo)

20.2yrs

Tenure

US$29,694,152

Compensation

Mr. Howard W. Lutnick has been Chairman of the Board at Newmark Group, Inc. since 2016 and served as its Principal Executive Officer. He serves as the Chairman at Newmark & Company Real Estate, Inc. Mr. Lu ...


CEO Compensation Analysis

Howard's remuneration is higher than average for companies of similar size in United States of America.

Howard's compensation has increased in line with BGC Partners recently becoming profitable.


Management Age and Tenure

7.6yrs

Average Tenure

56.5yo

Average Age

The average tenure for the BGC Partners management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.2yrs

Average Tenure

67yo

Average Age

The tenure for the BGC Partners board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$102,02718 Mar 19
Linda Bell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares17,887
Max PriceUS$5.70
BuyUS$221,60031 Oct 18
Sean Galvin
EntityIndividual
Shares20,000
Max PriceUS$11.08

Ownership Breakdown


Management Team

  • Howard Lutnick (57yo)

    Chairman & CEO

    • Tenure: 20.2yrs
    • Compensation: US$29.69m
  • Stephen Merkel (60yo)

    Executive VP & General Counsel

    • Tenure: 20.2yrs
    • Compensation: US$5.18m
  • Daniel LaVecchia

    Executive MD of North America Operations & Global Head of FX Products

    • Tenure: 0.0yrs
  • Shaun Lynn (56yo)

    President

    • Tenure: 11.3yrs
    • Compensation: US$8.50m
  • Adrian Thomas

    Director of Communications

    • Tenure: 0.0yrs
  • Sean Windeatt (46yo)

    Interim CFO & COO

    • Tenure: 0.7yrs
    • Compensation: US$2.28m
  • Lori Pennay

    Senior MD and Global Head of Human Resources & Partnership

    • Tenure: 7.6yrs
  • Eric Hirschhorn

    Chief Information Officer

    • Tenure: 4.8yrs
  • Karen Laureano-Rikardsen

    Chief Marketing Officer

    • Tenure: 0.0yrs
  • Sean Galvin

    Chief Accounting Officer

    • Tenure: 0.8yrs
    • Compensation: US$168.44k

Board Members

  • Howard Lutnick (57yo)

    Chairman & CEO

    • Tenure: 20.2yrs
    • Compensation: US$29.69m
  • David Richards (67yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$210.00k
  • William Moran (77yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$243.00k
  • Stephen Curwood (71yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$233.00k
  • Linda Bell (60yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$215.00k

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$1.983b
  • Market Cap: US$1.722b
  • Shares outstanding: 397.47m
  • 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

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, insura ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 00:34
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.