BGC Group (BGC) AI Stock Analysis

• Market Cap: $4.64B
• Dividend Yield: 0.81%
• Average Volume (3M): 2.83M
• Price to Earnings (P/E): 32.3
• Beta (1Y): 1.02
• Revenue Growth: 21.05%
• EPS Growth: 23.00%
• Country: US
• Employees: 3,971
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Capital Markets
• EPS (TTM): 0.31
• Shares Outstanding: 364,862,100
• 10 Day Avg. Volume: 2,842,277
• 30 Day Avg. Volume: 2,828,516
• PEG Ratio: 0.15
• Price to Book (P/B): 4.77
• Price to Sales (P/S): 1.94
• P/FCF Ratio: 17.63
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 2.80
• Enterprise Value/Gross Profit: 6.35
• Enterprise Value/Ebitda: 17.82
• 1Y Price Target: $14.50
• Price Target Upside: 47.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: $11.00 ▲(11.56% Upside)

BGC Group's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting significant revenue growth and strategic achievements. However, the high P/E ratio suggests potential overvaluation, and technical indicators show a short-term bearish trend.

Positive Factors

Market Expansion

FMX Futures is expected to introduce differentiated services, enhancing its value proposition and market appeal.

Product Innovation

BGC Group's FMX Futures Exchange added 2Yr and 5Yr US Treasury futures to its product line-up, representing a meaningful milestone in the exchange’s ramp.

Regulatory Environment

A favorable macro backdrop under the new US administration is expected to benefit BGC Group, supporting the Buy recommendation.

Negative Factors

Operational Challenges

Compliance and operational hurdles are slowing down the adoption of FMX Futures platform among brokers.

Regulatory Challenges

Banks face regulatory restrictions and integration challenges before becoming active on FMX Futures, affecting trading activity.

BGC Group Business Overview & Revenue Model

Company Description

BGC Group, Inc. operates as a financial brokerage and technology company in the United States and internationally. The company offers various brokerage products, such as fixed income, such as government bonds, corporate bonds, and other debt instruments, as well as related interest rate derivatives and credit derivatives; equities, energy and commodities, shipping, insurance, and futures and options. It also provides trade execution, connectivity solutions, brokerage services, clearing, trade compression and other post-trade services, information, and other back-office services to an assortment of financial and non-financial institutions. In addition, the company offers electronic and hybrid brokerage, other financial technology solutions, market data and related information services, and analytics related to financial instrument and markets. Its integrated platform is designed to provide flexibility to customers with regard to price discovery, execution and processing of transactions, and enables to use ots Voice, Hybrid, or in various markets, as well as fully electronic brokerage services in connection with transactions executed either OTC or through an exchange. It primarily serves banks, broker-dealers, investment banks, trading firms, hedge funds, governments, and corporations, as well as investment firms. BGC Group, Inc. was founded in 1945 and is headquartered in New York, New York.

How the Company Makes Money

BGC Group generates revenue primarily through brokerage commissions and fees charged for executing trades on behalf of its clients. The company's primary revenue streams include transaction-based earnings from the buying and selling of financial instruments, as well as subscription fees for access to its trading platforms and data services. Additionally, BGC earns income from market-making activities and providing liquidity in various asset classes. The firm also benefits from strategic partnerships with financial institutions and technology providers, which enhance its service offerings and expand its market reach, further contributing to its overall earnings.

BGC Group Financial Statement Overview

Summary

BGC Group showcases robust financial health, with strong revenue growth, profitability, and efficient cash flow management. The balance sheet is stable despite a slight increase in leverage, and overall, the company is well-positioned in the capital markets industry.

Income Statement

BGC Group demonstrates strong profitability with a consistent increase in gross profit margin and net profit margin over recent periods. The revenue growth is stable, with the latest TTM showing a 3.80% increase from the previous year. EBIT and EBITDA margins have also improved, indicating better operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, which has slightly increased, indicating some reliance on debt financing. Return on equity has improved over the periods, signaling efficient use of equity capital. The equity ratio shows a stable capital structure with reasonable equity backing the assets.

Cash Flow

Operating cash flow remains strong and covers net income comfortably, suggesting good cash generation. Although free cash flow has decreased in the TTM, the overall trend shows positive growth over the years. The free cash flow to net income ratio indicates efficient cash utilization despite some fluctuations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.29B	2.21B	1.98B	1.77B	1.99B	2.06B
Gross Profit	1.01B	979.52M	1.81B	837.19M	633.31M	842.50M
EBITDA	360.28M	345.65M	215.36M	230.44M	327.70M	234.25M
Net Income	132.94M	126.99M	36.27M	48.71M	124.01M	45.06M
Balance Sheet
Total Assets	4.88B	3.59B	3.18B	3.07B	3.34B	3.95B
Cash, Cash Equivalents and Short-Term Investments	966.36M	711.58M	672.90M	502.01M	553.60M	654.86M
Total Debt	1.85B	1.48B	1.34B	1.21B	1.23B	1.51B
Total Liabilities	3.74B	2.51B	2.28B	2.34B	2.68B	3.14B
Stockholders Equity	963.78M	898.51M	885.08M	669.64M	619.75M	754.24M
Cash Flow
Free Cash Flow	215.76M	243.29M	345.31M	165.60M	363.89M	217.44M
Operating Cash Flow	288.10M	315.35M	405.20M	224.36M	417.19M	302.61M
Investing Cash Flow	-94.43M	-96.99M	-90.71M	-53.33M	121.13M	-77.94M
Financing Cash Flow	211.68M	-149.02M	-146.88M	-233.21M	-819.54M	-13.10M

BGC Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.86
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BGC, the sentiment is Neutral. The current price of 9.86 is below the 20-day moving average (MA) of 9.94, below the 50-day MA of 10.01, and above the 200-day MA of 9.49, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 45.86 is Neutral, neither overbought nor oversold. The STOCH value of 11.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BGC.

BGC Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MC	80 Outperform	$5.76B	28.11	45.36%	3.63%	42.85%	1398.33%
LAZ	79 Outperform	$5.07B	18.55	50.41%	3.75%	10.40%	91.75%
PIPR	76 Outperform	$5.73B	27.31	17.91%	1.74%	10.46%	50.47%
BGC	72 Outperform	$4.64B	32.32	17.07%	0.81%	21.05%	23.00%
AMRK	68 Neutral	$570.56M	15.58	5.81%	3.51%	6.41%	-54.25%
Sector *	68 Neutral	$17.49B	11.70	10.34%	3.85%	9.75%	0.63%
SNEX	66 Neutral	$5.03B	16.33	16.01%	―	53.19%	23.89%

BGC Group Corporate Events

BGC Group Reports Record Q2 2025 Financial Results

BGC Group, Inc. announced its 2025 Annual Meeting of Stockholders will be held on November 12, 2025, with a new deadline for stockholder proposals set for August 10, 2025. The company reported record financial results for the second quarter of 2025, with revenues reaching $784 million, a 42% increase from the previous year. The company experienced significant growth in its ECS and financial markets, with strong performance across all asset classes and geographies. BGC’s recent acquisition and cost reduction program are expected to enhance profitability and deliver long-term shareholder value.

BGC Group Updates Q2 2025 Financial Outlook

On June 30, 2025, BGC Group, Inc. announced an updated outlook for the second quarter of 2025, expecting to exceed its previously stated ranges for revenue and pre-tax Adjusted Earnings. This update suggests a positive financial performance for the quarter, potentially strengthening BGC’s market position and signaling growth to stakeholders.