NasdaqGS:BGCP

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Executive Summary

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


Snowflake Analysis

Imperfect balance sheet and 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

BGCP

-1.5%

US Capital Markets

-1.4%

US Market


1 Year Return

-48.0%

BGCP

8.9%

US Capital Markets

17.8%

US Market

Return vs Industry: BGCP underperformed the US Capital Markets industry which returned 9.9% over the past year.

Return vs Market: BGCP underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

BGCPIndustryMarket
7 Day-1.1%-1.5%-1.4%
30 Day16.3%5.7%4.7%
90 Day-1.8%3.0%8.2%
1 Year-44.8%-48.0%11.6%8.9%20.5%17.8%
3 Year-65.8%-82.3%21.7%12.3%42.2%32.7%
5 Year-32.4%-69.3%68.7%47.6%83.4%62.7%

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?

42.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BGCP ($2.71) is trading above our estimate of fair value ($1.51)

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 (42.4x) compared to the US Capital Markets industry average (22.9x).

PE vs Market: BGCP is poor value based on its PE Ratio (42.4x) compared to the US market (19x).


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 (1.4x) compared to the US Capital Markets industry average (4.8x).


Next Steps

Future Growth

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

3.4%

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 (2.2%).

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 (3.4% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: BGCP's revenue (3.4% 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?

-21.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BGCP has a large one-off loss of $58.8M impacting its June 30 2020 financial results.

Growing Profit Margin: BGCP's current net profit margins (1.1%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: BGCP's earnings have declined by 21.4% per year over the past 5 years.

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 (-72.3%) over the past year, making it difficult to compare to the Capital Markets industry average (11.9%).


Return on Equity

High ROE: BGCP's Return on Equity (4.7%) 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 ($3.0B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: BGCP's short term assets ($3.0B) exceed its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: BGCP's debt to equity ratio (164.7%) is considered high.

Reducing Debt: BGCP's debt to equity ratio has increased from 83.4% to 164.7% over the past 5 years.

Debt Coverage: BGCP's debt is not well covered by operating cash flow (19.6%).

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?

1.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BGCP's dividend (1.48%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: BGCP's dividend (1.48%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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 high payout ratio (672.4%), 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?

8.8yrs

Average management tenure


CEO

Howard Lutnick (58 yo)

21.33yrs

Tenure

US$11,750,000

Compensation

Mr. Howard W. Lutnick has been Chairman and Chief Executive Officer at CF Finance Acquisition Corp. III since March 2016. He was Chairman and Chief Executive Officer at CF Finance Acquisition Corp. II sinc ...


CEO Compensation Analysis

Compensation vs Market: Howard's total compensation ($USD11.75M) is above average for companies of similar size in the US market ($USD2.85M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Howard Lutnick
Chairman & CEO21.33yrsUS$11.75m2.6%
$ 29.7m
Sean Windeatt
Chief Operating Officer11.75yrsUS$2.17mno data
Stephen Merkel
Executive VP & General Counsel21.33yrsUS$2.85m0.011%
$ 129.1k
Steven Bisgay
Executive MD & CFO0.75yrno data0.00042%
$ 4.8k
Steven Sadoff
Chief Information Officer0.33yrno datano data
Jason Chryssicas
Head of Investor Relations0.75yrno datano data
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 & Partnership8.75yrsno datano data
Daniel LaVecchia
Executive MD of North America Operations & Global Head of FX Productsno datano datano data
Jean-Pierre Aubin
Executive MD & Co-Global Head of Brokerageno datano datano data
Louis Scotto
Executive MD of North America & Global Head of Fenics US Treasuriesno datano datano data

8.8yrs

Average Tenure

57yo

Average Age

Experienced Management: BGCP's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Howard Lutnick
Chairman & CEO21.33yrsUS$11.75m2.6%
$ 29.7m
David Richards
Independent Director2.83yrsUS$192.20k0.0025%
$ 28.6k
William Moran
Independent Director7.33yrsUS$228.00k0.017%
$ 196.2k
Shaun Lynn
Vice Chairman of the Boardno dataUS$4.00m0.0015%
$ 17.0k
Stephen Curwood
Independent Director10.83yrsUS$218.00k0.0077%
$ 88.2k
Linda Bell
Independent Director7.25yrsUS$203.00k0.0011%
$ 13.0k

7.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: BGCP's board of directors are considered experienced (7.3 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 3.7%.


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:
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Implied Market Cap: US$1.141b
  • Market Cap: US$974.612m
  • Shares outstanding: 412.00m
  • 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 in the United States, the United Kingdom, rest of Asia, France, the Middle East, Africa, rest of Europe, and internationally. It ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 00:10
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.