NYSE:GCAP

Stock Analysis Report

Executive Summary

GAIN Capital Holdings, Inc., together with its subsidiary, provides trading services and solutions to retail, institutional, and futures service customers worldwide.


Snowflake Analysis

Reasonable growth potential unattractive dividend payer.


Similar Companies

Share Price & News

How has GAIN Capital Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GCAP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.3%

GCAP

-4.2%

US Capital Markets

-4.2%

US Market


1 Year Return

-47.7%

GCAP

12.0%

US Capital Markets

14.0%

US Market

Return vs Industry: GCAP underperformed the US Capital Markets industry which returned 15.4% over the past year.

Return vs Market: GCAP underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

GCAPIndustryMarket
7 Day4.3%-4.2%-4.2%
30 Day-10.4%-2.1%-1.8%
90 Day-12.4%1.1%2.6%
1 Year-45.0%-47.7%14.3%12.0%16.3%14.0%
3 Year-48.2%-54.0%35.2%27.6%43.2%34.0%
5 Year-55.6%-62.7%74.5%58.3%65.9%47.6%

Price Volatility Vs. Market

How volatile is GAIN Capital Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GAIN Capital Holdings undervalued compared to its fair value and its price relative to the market?

0.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GCAP ($3.49) is trading above our estimate of fair value ($2.36)

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


Price To Earnings Ratio

PE vs Industry: GCAP is unprofitable, so we can't compare its PE Ratio to the Capital Markets industry average.

PE vs Market: GCAP is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GCAP is good value based on its PB Ratio (0.5x) compared to the US Capital Markets industry average (6.6x).


Next Steps

Future Growth

How is GAIN Capital Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

121.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GCAP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: GCAP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GCAP's is expected to become profitable in the next 3 years.

Revenue vs Market: GCAP's revenue (12.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: GCAP's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GCAP's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has GAIN Capital Holdings performed over the past 5 years?

-34.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GCAP is currently unprofitable.

Growing Profit Margin: GCAP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GCAP is unprofitable, and losses have increased over the past 5 years at a rate of -34.4% per year.

Accelerating Growth: Unable to compare GCAP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GCAP is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (8.4%).


Return on Equity

High ROE: GCAP has a negative Return on Equity (-11.96%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GAIN Capital Holdings'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: GCAP has a low level of unsold assets or inventory.

Debt Coverage by Assets: GCAP's debt is covered by short term assets (assets are 8.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GCAP has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: GCAP has been profitable on average in the past, therefore cash runway is not a concern.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is GAIN Capital Holdings's current dividend yield, its reliability and sustainability?

6.65%

Current Dividend Yield


Dividend Yield vs Market

company6.6%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years6.6%

Current dividend yield vs market & industry

Notable Dividend: GCAP's dividend (6.88%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: GCAP's dividend (6.88%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, GCAP has been paying a dividend for less than 10 years.

Growing Dividend: GCAP's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: GCAP is paying a dividend but the company is unprofitable.


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?

4.7yrs

Average management tenure


CEO

Glenn Stevens (56yo)

12.7yrs

Tenure

US$3,771,507

Compensation

Mr. Glenn H. Stevens has been the Chief Executive Officer of GAIN Capital Group, LLC since June 16, 2007. Mr. Stevens has been the Chief Executive Officer and President of GAIN Capital Holdings, Inc. since ...


CEO Compensation Analysis

Compensation vs Market: Glenn's total compensation ($USD3.77M) is above average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: Glenn's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Glenn Stevens
President12.7yrsUS$3.77m4.08% $5.5m
Nigel Rose
Chief Financial Officer4.3yrsUS$937.17k0.12% $157.2k
Alastair Hine
Chief Operating Officer2.3yrsUS$818.62kno data
Diego Rotsztain
Head of Corporate Development9.1yrsUS$1.27m0.15% $202.0k
Timothy O'Sullivan
Chief Risk Officer7.1yrsUS$1.55mno data
Graham Beale
Head of Business Development - GTX5.5yrsno datano data
John Miesner
MD & Head of Global Sales - GTX5.1yrsno datano data
Alex Howard
Managing Director of Asia Pacific1.4yrsno datano data
Boris Levine
Head of IT Development1.1yrsno datano data
Rasmus Hansen
Head of Infrastructure Technology1.1yrsno datano data

4.7yrs

Average Tenure

53yo

Average Age

Experienced Management: GCAP's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Glenn Stevens
President12.7yrsUS$3.77m4.08% $5.5m
Thomas Bevilacqua
Independent Director8.8yrsUS$94.63k0.24% $328.7k
Joseph Schenk
Chairman of the Board2.4yrsUS$189.25k0.43% $579.0k
Alexander Goor
Independent Director2.4yrsUS$141.94k0.51% $691.0k
Peter Quick
Independent Director13.2yrsUS$141.94k0.49% $664.5k
Christopher Calhoun
Independent Director9.3yrsUS$141.94k0.033% $44.5k
John Rhoten
Director0.3yrsno datano data

8.8yrs

Average Tenure

58yo

Average Age

Experienced Board: GCAP's board of directors are considered experienced (8.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GAIN Capital Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GAIN Capital Holdings, Inc.
  • Ticker: GCAP
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$135.122m
  • Shares outstanding: 37.43m
  • Website: https://www.gaincapital.com

Number of Employees


Location

  • GAIN Capital Holdings, Inc.
  • Bedminster One
  • Suite 11
  • Bedminster
  • New Jersey
  • 7921
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GCAPNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2010
58GDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2010

Biography

GAIN Capital Holdings, Inc., together with its subsidiary, provides trading services and solutions to retail, institutional, and futures service customers worldwide. The company operates in two segments, Retail and Futures. It specializes in over-the-counter (OTC) and exchange-traded markets. The company offers access to a range of financial products, including spot foreign exchange (forex) and precious metals trading; and spread bets and contracts for differences on currencies, commodities, indices, individual equities, bonds, options, and interest rate products, as well as OTC options on forex. It provides services to retail customers through FOREX.com and Cityindex.com, as well as through brokers and white label partners. The company offers execution and risk management services for exchange-traded futures and futures options on the United States and European futures and options exchanges; and online trading services. GAIN Capital Holdings, Inc. was founded in 1999 and is headquartered in Bedminster, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:45
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
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.