CMC Markets (CMCX) AI Stock Analysis

• Market Cap: £947.58M
• Dividend Yield: 4.65%
• Average Volume (3M): 236.93K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.65
• Revenue Growth: -10.92%
• EPS Growth: -24.05%
• Country: UK
• Employees: 1,071
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.13
• Shares Outstanding: 279,815,460
• 10 Day Avg. Volume: 239,883
• 30 Day Avg. Volume: 236,929
• PEG Ratio: 0.26
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 1.58
• P/FCF Ratio: 3.43
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.3
• Revenue Forecast (FY): £391.80M

• Rating: 80 Outperform
• Price Target: 390.00 p ▲(17.47% Upside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

CMC Markets is well-positioned with strong financial performance and strategic corporate actions. The company's robust cash flow and low leverage enhance its stability. While technical indicators show bullish momentum, caution is advised due to overbought signals. The fair valuation and attractive dividend yield further support the stock's appeal.

Positive Factors

Strong cash generation

Material free cash flow expansion and an operating cash flow to net income ratio of 2.82 indicate durable internal funding. This strong cash generation supports sustaining dividends, funding technology and compliance investments, and opportunistic capital allocation without reliance on external financing.

Very low leverage and solid capital structure

Extremely low leverage and a high equity ratio provide financial flexibility and lower bankruptcy risk over time. Combined with a mid-teens ROE, the balance sheet supports continued dividend policy, discretionary investment, and resilience through market cycles.

High and consistent margins

Healthy gross and operating margins reflect scalable platform economics and efficient cost structure. Strong margin profile helps preserve profitability during top-line softness and enables reinvestment in platform development and client services, supporting long-term competitiveness.

Negative Factors

Weak revenue growth

Negative year-over-year revenue growth near -11% is a durable headwind that constrains the ability to scale operating leverage. Persistent top-line contraction limits reinvestment capacity, pressures future earnings growth, and may force tougher trade-offs on pricing or client acquisition spend.

Declining EPS

A roughly 24% decline in EPS signals reduced earnings per share that can limit long-term dividend sustainability and capital return flexibility. Unless addressed by revenue recovery or margin expansion, declining EPS undermines shareholder returns and raises scrutiny of operating trends.

Revenue cyclicality tied to client activity

Business model depends on client trading volumes, product mix and market volatility, creating structural revenue cyclicality. In prolonged low-volatility or regulatory-constrained environments, trading activity can fall, making revenue and earnings less predictable despite strong margins and balance sheet.

CMC Markets Business Overview & Revenue Model

Company Description

CMC Markets plc, together with its subsidiaries, provides online retail financial services to retail, professional, stockbroking, and institutional clients in the United Kingdom, Ireland, Europe, Australia, New Zealand, Singapore, Canada, and internationally. The company offers its clients with the ability to trade contracts for difference and financial spread betting on a range of underlying shares, including indices, foreign currencies, commodities, cryptocurrencies, shares and ETFs, and treasuries through its trading platform. It also provides a range of education services through tools and resources, trading webinars and events, platform guides, advanced trading strategies, articles from market analysts, and others. The company was founded in 1989 and is headquartered in London, the United Kingdom.

How the Company Makes Money

CMC Markets primarily generates revenue from client trading activity on leveraged products (notably CFDs and, where available, spread betting). The core economics are driven by trading-related income: (1) Spread/price markup: CMC typically earns the difference between the buy and sell price (the spread) or a markup embedded in the price it quotes to clients; higher client volumes generally increase this revenue. (2) Commissions: for certain instruments or account types (for example, cash equities execution in relevant offerings and/or specific CFD share products depending on the market), CMC may charge explicit dealing commissions in addition to or instead of spread-based pricing; if specific commission schedules are not publicly available in a single source here, they are not enumerated. (3) Financing/overnight charges: for leveraged positions held beyond a trading day, CMC charges (or in some cases credits) financing based on reference rates plus/minus a margin; this is a meaningful revenue component when clients hold positions overnight. (4) Other trading-related fees: CMC may earn from ancillary fees tied to trading and account services (e.g., market data where applicable, guaranteed stop-loss premiums or similar risk-management feature charges where offered, and certain administrative fees); the exact mix varies by product and jurisdiction. In addition to direct client revenue, CMC can earn via B2B/partnership distribution of its trading technology and liquidity services. This includes providing white-label or platform services to third parties (such as brokers, banks, or other financial institutions) and related service/usage fees; specific counterparties and contractual terms are not provided here (null). Earnings are also influenced by market volatility and client activity (which affect trading volumes), client mix (active traders vs. longer-holding clients impacting spreads vs. financing), and risk management/hedging practices used to manage market exposure arising from client positions.

CMC Markets Financial Statement Overview

Summary

CMC Markets shows strong financial health with robust profitability, excellent cash flow management, and a stable balance sheet. The company has a low debt-to-equity ratio and high equity ratio, indicating financial stability. However, revenue growth remains a challenge.

Income Statement

CMC Markets has demonstrated solid gross and net profit margins over the years. The gross profit margin for the latest year is 62.89%, and the net profit margin is 17.27%. Revenue growth has been relatively flat, with a slight increase of 0.10% from the previous year. The EBIT and EBITDA margins are also strong at 24.87% and 27.88%, respectively. The consistent profitability and healthy margins reflect operational efficiency, although revenue growth remains a challenge.

Balance Sheet

The balance sheet of CMC Markets is robust, with a low debt-to-equity ratio of 0.034 indicating minimal leverage. The company maintains a high equity ratio of 57.09%, suggesting a strong capital structure and financial stability. Return on equity (ROE) is at 14.88%, showcasing effective use of equity to generate profits. The company's financial position is stable, with good liquidity and low risk of financial distress.

Cash Flow

CMC Markets exhibits a strong cash flow position with a significant improvement in free cash flow, which grew by 176.06% year-over-year. The operating cash flow to net income ratio is 2.82, indicating excellent cash generation relative to net income. The free cash flow to net income ratio is also strong at 2.67. These metrics suggest excellent cash management and the ability to fund operations and investments without relying on external financing.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	362.09M	360.10M	359.75M	322.17M	323.85M	455.52M
Gross Profit	169.37M	226.42M	214.31M	269.81M	266.77M	391.99M
EBITDA	105.88M	100.37M	92.71M	77.48M	113.69M	236.79M
Net Income	62.87M	62.19M	46.89M	41.44M	71.48M	178.11M
Balance Sheet
Total Assets	767.46M	731.98M	716.86M	586.42M	646.81M	577.63M
Cash, Cash Equivalents and Short-Term Investments	288.23M	328.22M	211.19M	176.79M	191.07M	147.03M
Total Debt	35.76M	14.34M	16.91M	11.82M	14.45M	16.46M
Total Liabilities	341.92M	314.01M	313.37M	212.41M	277.93M	177.12M
Stockholders Equity	425.05M	417.97M	403.49M	374.01M	368.88M	400.52M
Cash Flow
Free Cash Flow	128.34M	166.25M	60.21M	42.94M	140.27M	105.53M
Operating Cash Flow	132.03M	175.35M	80.08M	71.16M	156.08M	117.72M
Investing Cash Flow	35.00K	-41.35M	-41.57M	-31.16M	-17.64M	-17.71M
Financing Cash Flow	-81.01M	-41.31M	-21.01M	-69.06M	-82.16M	-69.34M

CMC Markets Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 332.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CMCX, the sentiment is Positive. The current price of 332 is above the 20-day moving average (MA) of 327.47, above the 50-day MA of 324.47, and above the 200-day MA of 260.79, indicating a bullish trend. The MACD of 3.70 indicates Negative momentum. The RSI at 61.47 is Neutral, neither overbought nor oversold. The STOCH value of 73.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CMCX.

CMC Markets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLUS	84 Outperform	£2.94B	12.16	47.78%	4.70%	1.09%	4.88%
CMCX	80 Outperform	£947.58M	4.51	14.91%	4.65%	-10.92%	-24.05%
IGG	78 Outperform	£4.88B	5.29	20.39%	3.62%	9.46%	32.24%
TCAP	73 Outperform	£1.92B	10.28	9.39%	6.35%	5.77%	81.14%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WHI	48 Neutral	£8.73M	-0.20	―	―	―	―
CBG	46 Neutral	£514.90M	-2.93	-9.28%	―	-15.79%	-211.91%

CMC Markets Corporate Events

CMC Markets Executives Acquire Shares Under Incentive Plan

CMC Markets has disclosed share transactions by senior executives under its UK Share Incentive Plan, reinforcing equity-based participation among key management. Head of Global Strategic Partnerships David John Fineberg and Chief Operating Officer Jonathan Bendall each acquired 92 ordinary shares at 326p on 5 March 2026.

The purchases, executed on the London Stock Exchange, marginally increase management’s direct equity exposure and signal ongoing use of share plans to align leadership interests with those of shareholders. While small in volume, such routine acquisitions can be viewed as part of CMC Markets’ broader remuneration and retention framework for senior staff.

The most recent analyst rating on (GB:CMCX) stock is a Buy with a £359.00 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.

CMC Markets Executives Acquire Shares Under UK Incentive Plan

CMC Markets has reported that Head of Global Strategic Partnerships David John Fineberg and Chief Operating Officer Jonathan Bendall have each acquired 94 ordinary shares in the company at a price of 319.50p per share under the firm’s UK Share Incentive Plan. The modest director dealings, disclosed as required for persons discharging managerial responsibilities, underscore ongoing executive participation in the company’s equity-based incentive schemes, aligning senior management interests with shareholders and providing incremental transparency to the market over insider shareholdings.

The most recent analyst rating on (GB:CMCX) stock is a Buy with a £360.00 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.

CMC Markets Executives Add Shares Through Dividend Plans

CMC Markets has reported a series of share acquisitions by senior executives and managers under its share incentive and dividend reinvestment arrangements. On 8 January 2026, Head of Global Strategic Partnerships David Fineberg and Chief Operating Officer Jonathan Bendall acquired small volumes of ordinary shares through the company’s Share Incentive Plan via dividend purchases, while CEO Lord Cruddas, Head of Capital Markets Laurence Booth and Head of ANZ Matthew Lewis increased their holdings through dividend reinvestment within vested share trust accounts, all at a price of 313p per share on the London Stock Exchange. The transactions, though modest in size, signal continued alignment of key management’s interests with shareholders through ongoing participation in equity-based remuneration schemes.

The most recent analyst rating on (GB:CMCX) stock is a Buy with a £331.00 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.

CMC Markets Executives Acquire Shares Under UK Incentive Plan

CMC Markets has disclosed that Head of Global Strategic Partnerships David John Fineberg and Chief Operating Officer Jonathan Bendall have each acquired 100 ordinary shares in the company under its UK Share Incentive Plan. The transactions, executed on 5 January 2026 at a price of 302.50p per share on the London Stock Exchange, reflect routine participation by senior executives in the company’s employee share scheme and provide incremental alignment between management and shareholder interests.

The most recent analyst rating on (GB:CMCX) stock is a Buy with a £331.00 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.