CMC Markets (CMCX) AI Stock Analysis

• Market Cap: £607.06M
• Dividend Yield: 4.78%
• Average Volume (3M): 287.99K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.50
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 1,165
• Sector: Financial
• Sector Strength: 93
• Industry: Capital Markets
• EPS (TTM): 0.30
• Shares Outstanding: 279,815,460
• 10 Day Avg. Volume: 473,754
• 30 Day Avg. Volume: 287,989
• PEG Ratio: 0.00965
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.49
• Price to Cash Flow (P/CF): 5.00
• P/FCF Ratio: 5.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 246.00p
• Price Target Upside: 13.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

CMC Markets has a solid financial foundation with strong revenue growth and low leverage. However, the stock faces technical challenges with bearish momentum. The low P/E ratio and high dividend yield present a valuation opportunity, while insider share acquisitions signal confidence in the company's future.

CMC Markets Business Overview & Revenue Model

Company Description

CMC Markets (CMCX) is a leading global provider of online trading services, headquartered in London, UK. The company operates within the financial services sector, offering retail and institutional clients access to a wide range of financial instruments including forex, commodities, indices, and cryptocurrencies through its advanced trading platform. CMC Markets is known for its innovative technology, comprehensive education resources, and robust customer support, catering to traders of all experience levels.

How the Company Makes Money

CMC Markets primarily generates revenue through the spreads and commissions charged on trades executed on its platform. The company offers a variety of trading products including Contracts for Difference (CFDs) and Spread Betting, where clients can speculate on the price movements of financial instruments. Revenue is also derived from overnight holding fees for leveraged positions, as well as from the interest on client funds held by the company. Additionally, CMC Markets benefits from partnerships with institutional clients, providing them with white-label trading solutions and liquidity services. The company's earnings are influenced by trading volumes, market volatility, and the retention of active client accounts.

CMC Markets Financial Statement Overview

Summary

CMC Markets exhibits strong financial health with robust revenue growth, effective cost management, and a low leverage balance sheet. However, there is a need to address the declining growth in free cash flow.

Income Statement

CMC Markets has demonstrated strong revenue growth over the years, with a revenue increase of 11.65% from 2023 to 2024. The company maintains healthy margins, with a gross profit margin of 59.57% and a net profit margin of 13.03% in the latest annual report. However, the decline in EBIT and EBITDA margins compared to earlier years suggests increasing operational costs, which may need attention.

Balance Sheet

The balance sheet of CMC Markets shows a robust financial position, with a healthy debt-to-equity ratio of 0.04, indicating low leverage. The return on equity is a commendable 11.62%, demonstrating effective use of equity. The equity ratio of 56.30% reflects a strong capital structure, with equity financing playing a significant role.

Cash Flow

CMC Markets has shown a positive trend in operating cash flow, with growth from previous years. The operating cash flow to net income ratio is 1.71, indicating good cash conversion efficiency. The free cash flow has also grown, with a free cash flow to net income ratio of 1.28, suggesting efficient capital expenditure management. However, the decline in free cash flow growth rate from previous years indicates potential challenges in sustaining cash flow growth.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
359.75M	322.17M	323.85M	455.52M	292.99M
	Gross Profit
214.31M	269.81M	266.77M	391.99M	235.96M
	EBIT
65.57M	61.84M	101.30M	225.55M	102.41M
	EBITDA
92.71M	77.48M	113.69M	236.79M	113.37M
	Net Income Common Stockholders
46.89M	41.44M	71.48M	178.11M	86.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
211.19M	176.79M	191.07M	147.03M	109.75M
	Total Assets
716.86M	586.42M	646.81M	577.63M	464.46M
	Total Debt
16.91M	11.82M	14.45M	16.46M	20.90M
	Net Debt
-143.38M	-134.40M	-162.13M	-102.46M	-63.40M
	Total Liabilities
313.37M	212.41M	277.93M	177.12M	181.58M
	Stockholders Equity
403.49M	374.01M	368.88M	400.52M	282.88M
Cash Flow		Free Cash Flow
60.21M	42.94M	140.27M	105.53M	58.17M
	Operating Cash Flow
80.08M	71.16M	156.08M	117.72M	62.44M
	Investing Cash Flow
-41.57M	-31.16M	-17.64M	-17.71M	-6.39M
	Financing Cash Flow
-21.01M	-69.06M	-82.16M	-69.34M	-17.29M

CMC Markets Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 217.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CMCX, the sentiment is Neutral. The current price of 217.5 is above the 20-day moving average (MA) of 212.75, below the 50-day MA of 228.13, and below the 200-day MA of 281.80, indicating a neutral trend. The MACD of -4.69 indicates Negative momentum. The RSI at 46.96 is Neutral, neither overbought nor oversold. The STOCH value of 81.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:CMCX.

CMC Markets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HL	76 Outperform	$5.24B	17.86	38.21%	3.75%	4.05%	-9.50%
IGG	71 Outperform	£3.29B	9.59	19.85%	4.96%	6.34%	30.64%
AJB	68 Neutral	£1.73B	20.67	45.56%	2.96%	23.46%	23.33%
CMCX	65 Neutral	£607.06M	7.14	21.94%	4.78%	―	―
Sector *	64 Neutral	$14.34B	10.61	9.28%	4.07%	18.04%	-9.54%