BGC Group (BGC) AI Stock Analysis

• Market Cap: $4.80B
• Dividend Yield: 0.81%
• Average Volume (3M): 2.53M
• Price to Earnings (P/E): 35.8
• Beta (1Y): 0.96
• Revenue Growth: 13.28%
• EPS Growth: 117.88%
• Country: US
• Employees: 3,971
• Sector: Financial
• Sector Strength: 78
• Industry: Financial - Capital Markets
• EPS (TTM): 0.29
• Shares Outstanding: 378,720,500
• 10 Day Avg. Volume: 2,450,601
• 30 Day Avg. Volume: 2,534,533
• PEG Ratio: -0.64
• Price to Book (P/B): 2.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.37
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 2.88
• Enterprise Value/Ebitda: 2.31
• 1Y Price Target: $14.50
• Price Target Upside: 53.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: $10.50 ▲(11.11%Upside)

BGC Group's overall stock score reflects a strong financial performance and upbeat future guidance, primarily driven by strategic acquisitions and robust revenue growth. While technical analysis shows mixed signals, and valuation appears high, the positive corporate events and earnings outlook bolster investor confidence.

Positive Factors

Energy Sector Growth

The energy segment of BGC Group is seen as having underappreciated secular growth qualities, contributing positively to the stock rating.

Market Share Growth

FMX' UST market structure is driving rapid market share gains in interdealer Treasury trading, indicating strong demand for its execution mechanisms.

Product Innovation

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

Negative Factors

Market Adoption

Compliance and operational hurdles are the primary contributors to the slow uptake at FMX Futures.

Operational Hurdles

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 its brokerage services, where it acts as an intermediary in the trading of various financial instruments, earning commissions and fees for facilitating these transactions. The company also derives income from its technology and data solutions, providing clients with market data and analytics services. Additionally, BGC has significant partnerships and strategic alliances that enhance its service offerings and expand its market reach, contributing to its overall earnings. BGC's acquisition strategy also plays a vital role in its revenue model, allowing it to integrate new services and technologies that complement its existing operations.

BGC Group Financial Statement Overview

Summary

BGC Group exhibits strong financial health with a stable revenue growth trajectory and improved profitability metrics. The balance sheet is robust, though there is a slight uptick in leverage. Cash flow management remains efficient, supporting positive financial prospects.

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
	EBIT
267.11M	185.10M	138.66M	202.54M	-34.61M	144.67M
	EBITDA
360.28M	345.65M	202.48M	230.44M	327.70M	234.25M
	Net Income Common Stockholders
132.94M	126.99M	36.27M	48.71M	124.01M	45.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
966.36M	711.58M	655.64M	484.99M	553.60M	654.86M
	Total Assets
4.88B	3.59B	3.18B	3.07B	3.34B	3.95B
	Total Debt
1.69B	1.48B	1.34B	1.21B	1.23B	1.32B
	Net Debt
722.28M	765.03M	682.23M	728.29M	672.02M	726.14M
	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	219.44M
	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: Positive
• Last Price: 9.45
• 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 BGC, the sentiment is Positive. The current price of 9.45 is below the 20-day moving average (MA) of 9.50, above the 50-day MA of 9.05, and above the 200-day MA of 9.37, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 63.05 is Neutral, neither overbought nor oversold. The STOCH value of 88.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BGC.

BGC Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BGC	76 Outperform	$4.80B	35.81	14.17%	0.81%	13.28%	117.88%
PIPR	71 Outperform	$4.59B	22.01	17.59%	1.01%	10.27%	88.77%
LAZ	71 Outperform	$4.12B	15.28	59.68%	4.52%	9.54%	―
SNEX	68 Neutral	$4.17B	14.28	16.69%	―	67.71%	19.42%
AMRK	68 Neutral	$531.89M	14.53	5.81%	3.70%	5.48%	-54.25%
MC	66 Neutral	$4.68B	26.57	39.98%	4.41%	45.14%	―
Sector *	64 Neutral	$12.93B	9.70	7.85%	78.03%	12.07%	-7.83%

BGC Group Corporate Events

BGC Group Buys Back Shares from Former CEO

On May 16, 2025, Howard W. Lutnick, the U.S. Secretary of Commerce and former CEO of BGC Group, agreed to sell over 16.4 million shares of Class A Common Stock back to the company as part of a divestiture to comply with U.S. government ethics rules. The transaction, valued at approximately $151.5 million, reflects BGC’s strategy to return capital to shareholders and is expected to enhance shareholder value. Additionally, Lutnick agreed to sell his Class B shares and other interests to Cantor Fitzgerald, maintaining Cantor Fitzgerald as BGC’s largest shareholder. These moves are part of Lutnick’s broader plan to divest his interests in BGC, transferring control to trusts managed by his family.

The most recent analyst rating on (BGC) stock is a Buy with a $11.50 price target. To see the full list of analyst forecasts on BGC Group stock, see the BGC Stock Forecast page.

BGC Group Completes Acquisition of OTC Global Holdings

On April 1, 2025, BGC Group, Inc. announced the completion of its acquisition of OTC Global Holdings, LP, a prominent energy, commodities, and shipping brokerage firm, for $325 million in an all-cash transaction. This acquisition is expected to be immediately accretive and enhance BGC’s position as a leading global ECS brokerage firm, delivering significant value to clients and shareholders. The integration of OTC’s complementary product suite is set to redefine the global ECS landscape, marking a transformative step in BGC’s growth strategy.

BGC Group Reaffirms Q1 2025 Financial Outlook

On March 26, 2025, BGC Group announced an update to its financial outlook for the first quarter ending March 31, 2025, reaffirming its previously stated revenue and pre-tax adjusted earnings ranges. The announcement highlights BGC’s use of non-GAAP financial measures to provide a clearer picture of its operating performance, excluding certain non-cash items and expenses that do not reflect the company’s underlying operations. This approach is intended to align the interests of employees and management with those of shareholders, potentially impacting stakeholder perceptions and market positioning.