Binah Capital Group (BCG) AI Stock Analysis

• Market Cap: $24.57M
• Dividend Yield: N/A
• Average Volume (3M): 59.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: -37.08%
• EPS Growth: N/A
• Country: US
• Employees: 150
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.08
• Shares Outstanding: 16,602,460
• 10 Day Avg. Volume: 109,964
• 30 Day Avg. Volume: 59,482
• PEG Ratio: <0.01
• Price to Book (P/B): 39.63
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -69.49
• Enterprise Value/Market Cap: 2.85
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 6.03
• Enterprise Value/Ebitda: 11.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $3.00 ▲(0.33% Upside)

The overall stock score for Binah Capital Group is primarily influenced by its financial performance and valuation concerns. The company faces significant financial challenges with high leverage and declining profitability. While technical analysis indicates strong bullish momentum, the overbought conditions suggest caution. The high P/E ratio further indicates potential overvaluation.

Positive Factors

Business Model Strength

BCG's diverse service offerings in investment management and advisory services provide a robust business model, catering to varied client needs and ensuring multiple revenue streams.

Revenue Streams

The company's ability to earn through multiple channels, including fees and advisory services, enhances its revenue stability and potential for growth in different market conditions.

Industry Focus

By targeting high-growth sectors, BCG positions itself to capitalize on emerging trends and opportunities, potentially driving long-term growth and competitive advantage.

Negative Factors

Declining Profitability

Inconsistent revenue and declining profitability can hinder financial performance, reducing the firm's ability to reinvest in growth and maintain competitive positioning.

High Leverage

High leverage increases financial risk, potentially limiting operational flexibility and increasing vulnerability to economic downturns or interest rate hikes.

Cash Flow Challenges

Declining free cash flow suggests operational cash challenges, which can impact the company's ability to fund operations, invest in growth, and meet financial obligations.

Binah Capital Group Business Overview & Revenue Model

Company Description

Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.

How the Company Makes Money

Binah Capital Group generates revenue primarily through management fees and performance-based fees associated with its investment funds and portfolios. These fees are typically a percentage of the assets under management (AUM) and can vary based on the investment strategy and client agreements. Additionally, BCG earns income from advisory services provided to clients, which may include consultancy fees for strategic financial planning, market analysis, and transaction advisory. The company also benefits from partnerships with financial institutions, enabling access to a broader client base and potential co-investment opportunities, further enhancing its revenue streams.

Binah Capital Group Financial Statement Overview

Summary

Binah Capital Group faces financial challenges with declining profitability and high leverage. The income statement shows inconsistent revenue and profit margins, while the balance sheet highlights significant debt levels. Cash flow issues further exacerbate financial stability concerns.

Income Statement

Binah Capital Group has shown a mixed performance in its income statement. The gross profit margin has remained relatively stable, but there is a concerning decline in net income, resulting in a negative net profit margin for the latest year. Revenue growth has been inconsistent, with a recent decline. EBIT and EBITDA margins have also shown volatility, indicating challenges in operational efficiency.

Balance Sheet

The balance sheet reveals significant leverage, with a high debt-to-equity ratio due to substantial total debt compared to equity. The equity ratio is low, reflecting limited equity financing. Return on equity has turned negative, indicating profitability challenges. The company's financial stability is at risk due to high liabilities relative to assets.

Cash Flow

Cash flow analysis indicates declining free cash flow, with negative growth in the latest period. The operating cash flow to net income ratio is negative, reflecting operational cash challenges. However, the company has managed to maintain positive financing cash flow, which may support liquidity in the short term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	176.76M	164.39M	159.86M	172.40M	167.28M	110.43M
Gross Profit	11.60M	11.91M	10.30M	12.53M	12.29M	9.09M
EBITDA	6.01M	1.90M	6.82M	6.33M	6.52M	1.06M
Net Income	1.04M	-5.29M	571.00K	911.00K	2.79M	-3.39M
Balance Sheet
Total Assets	67.56M	66.68M	67.41M	68.68M	74.09M	64.35M
Cash, Cash Equivalents and Short-Term Investments	8.34M	7.49M	7.62M	7.85M	7.32M	6.69M
Total Debt	26.84M	28.82M	42.55M	39.06M	46.65M	40.65M
Total Liabilities	49.47M	65.45M	62.31M	63.79M	67.87M	59.04M
Stockholders Equity	18.10M	1.23M	5.10M	4.90M	6.21M	5.30M
Cash Flow
Free Cash Flow	3.72M	-702.00K	2.47M	5.03M	2.10M	1.58M
Operating Cash Flow	3.84M	-617.00K	2.55M	5.36M	2.53M	2.14M
Investing Cash Flow	-122.00K	-85.00K	-80.00K	-327.00K	-4.99M	-1.00M
Financing Cash Flow	-2.63M	1.57M	-2.70M	-4.51M	3.10M	925.67K

Binah Capital Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCG, the sentiment is Positive. The current price of 2.99 is above the 20-day moving average (MA) of 1.87, above the 50-day MA of 1.83, and above the 200-day MA of 2.02, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 69.07 is Neutral, neither overbought nor oversold. The STOCH value of 88.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BCG.

Binah Capital Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAND	70 Outperform	―	―	-19.46%	36.58%	-72.52%	-184.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BCG	56 Neutral	$24.57M	-13.17	5.87%	―	-37.08%	―
TURN	52 Neutral	―	―	―	―	51.84%	―
LRFC	52 Neutral	―	―	―	―	678.57%	98.81%
RMCO	44 Neutral	$34.52M	―	-2.53%	0.22%	261.58%	-329.41%
MGLD	43 Neutral	$43.67M	―	-18.96%	―	-10.16%	13.49%