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.


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

5.6%

BGCP

2.7%

US Capital Markets

1.8%

US Market


1 Year Return

-48.3%

BGCP

1.9%

US Capital Markets

7.3%

US Market

Return vs Industry: BGCP underperformed the US Capital Markets industry which returned 1.9% over the past year.

Return vs Market: BGCP underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

BGCPIndustryMarket
7 Day5.6%2.7%1.8%
30 Day1.6%-4.0%-0.7%
90 Day-1.0%-2.5%0.06%
1 Year-10.6%-48.3%4.2%1.9%9.7%7.3%
3 Year23.7%-36.3%50.9%42.5%46.3%36.9%
5 Year60.9%-26.8%77.0%60.7%64.5%46.5%

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?

23.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BGCP ($5.66) is trading above our estimate of fair value ($3.1)

Significantly Undervalued: 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 (23.1x) compared to the Capital Markets industry average (39.4x).

PE vs Market: BGCP is poor value based on its PE Ratio (23.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low 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 (2.5x) compared to the US Capital Markets industry average (6.5x).


Next Steps

Future Growth

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

5.1%

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 (2.7%).

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 (5.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BGCP's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-9.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BGCP's earnings have declined by -9.2% 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 (31.4%).


Return on Equity

High ROE: BGCP's Return on Equity (12.3%) is considered low.


Return on Assets

ROA vs Industry: BGCP has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate BGCP's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is BGC Partners's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BGCP has a low level of unsold assets or inventory.

Debt Coverage by Assets: BGCP's debt is covered by short term assets (assets are 3.545590x debt).


Financial Institutions Analysis

Asset Level: BGCP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BGCP has a sufficient allowance for bad loans.

Low Risk Liabilities: BGCP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BGCP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BGCP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BGCP has an appropriate level of bad loans.


Next Steps

Dividend

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

9.89%

Current Dividend Yield


Dividend Yield vs Market

company9.9%marketbottom25%1.5%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BGCP's dividend (9.89%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BGCP's dividend (9.89%) is in the top 25% of dividend payers in the US market (3.72%)

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 (245.1%), 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

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

7.8yrs

Average management tenure


CEO

Howard Lutnick (57yo)

20.3yrs

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 Chairman at Newmark & Company Real Estate, Inc. Mr. Lutnic ...


CEO Compensation Analysis

Compensation vs. Market: Howard's total compensation ($USD29.69M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

7.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: BGCP's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

67yo

Average Age

Experienced Board: BGCP's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

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


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: 20.3yrs
    • Compensation: US$29.69m
  • Stephen Merkel (60yo)

    Executive VP & General Counsel

    • Tenure: 20.3yrs
    • Compensation: US$5.18m
  • Daniel LaVecchia

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

    • Tenure: 0yrs
  • Shaun Lynn (56yo)

    President

    • Tenure: 11.5yrs
    • Compensation: US$8.50m
  • Adrian Thomas

    Director of Communications

    • Tenure: 0yrs
  • Sean Windeatt (46yo)

    COO & Interim CFO

    • Tenure: 0.8yrs
    • Compensation: US$2.28m
  • Lori Pennay

    Senior MD and Global Head of Human Resources & Partnership

    • Tenure: 7.8yrs
  • Eric Hirschhorn

    Chief Information Officer

    • Tenure: 5yrs
  • Karen Laureano-Rikardsen

    Chief Marketing Officer

    • Tenure: 0yrs
  • Sean Galvin

    Chief Accounting Officer

    • Tenure: 1yrs
    • Compensation: US$168.44k

Board Members

  • Howard Lutnick (57yo)

    Chairman & CEO

    • Tenure: 20.3yrs
    • Compensation: US$29.69m
  • David Richards (67yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$210.00k
  • William Moran (77yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$243.00k
  • Stephen Curwood (71yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$233.00k
  • Linda Bell (60yo)

    Independent Director

    • Tenure: 6.3yrs
    • 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$2.218b
  • Market Cap: US$1.953b
  • 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 Analysis2019/10/17 23:55
End of Day Share Price2019/10/17 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.