CMC Markets (CMCX) AI Stock Analysis

• Market Cap: £872.22M
• Dividend Yield: 4.65%
• Average Volume (3M): 236.93K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.75
• 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: £316.25
• Price Target Upside: 1.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: 375.00p ▲(20.00% Upside)

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 free cash flow generation

Significantly higher free cash flow and operating cash conversion indicate durable internal funding ability. This strengthens capacity to invest in platform technology, pay dividends, and absorb market shocks without relying on external financing, supporting long-term financial flexibility.

Very low financial leverage

Minimal leverage and a strong equity base reduce bankruptcy risk and interest burden, enabling strategic investments and shareholder returns. A conservative capital structure provides resilience through market cycles and preserves optionality for M&A or reinvestment over the medium term.

High and sustainable profit margins

Robust gross and operating margins show efficient trading platform economics and cost control. Sustainable margins mean the business can generate healthy profits across cycles, funding R&D and client services while maintaining shareholder distributions over multiple quarters.

Negative Factors

Weak revenue growth trend

Declining top-line growth signals structural pressure on client volumes or pricing, which can erode scale benefits and cap long-term earnings growth. Sustained revenue weakness forces reliance on margins and cost cuts to maintain profitability, limiting strategic reinvestment.

Earnings per share contraction

Material EPS decline suggests deterioration in core earnings power or capital allocation effectiveness. Over time, falling EPS can reduce dividend sustainability and investor confidence, and may reflect persistent revenue or margin pressures rather than transitory items.

Revenue concentration on trading volumes and volatility

A business model heavily tied to client trading activity and market volatility creates cyclicality in revenue. Structural reliance on unpredictable volume spikes limits revenue stability and makes long-term forecasting and steady growth harder without diversification of fee streams.

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 generates revenue primarily through spreads and commissions on trades executed by its clients. The company charges a spread, which is the difference between the buying and selling prices of an asset, and this is a key source of income. Additionally, CMC Markets may charge commissions on certain types of trades, particularly in its stockbroking services. The company also earns revenue from overnight financing fees for leveraged positions held by clients. Significant partnerships with liquidity providers and technology firms enhance its trading infrastructure and broaden its market access, thereby contributing to its overall profitability. Furthermore, CMC Markets benefits from increased trading volumes during volatile market conditions, which can lead to higher earnings.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	362.09M	360.10M	359.75M	322.17M	323.85M	455.52M
Gross Profit	0.00	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	19.84M	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: 312.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 312.5 is above the 20-day moving average (MA) of 299.55, above the 50-day MA of 267.98, and above the 200-day MA of 237.99, indicating a bullish trend. The MACD of 11.71 indicates Positive momentum. The RSI at 64.97 is Neutral, neither overbought nor oversold. The STOCH value of 58.71 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	83 Outperform	£2.55B	12.57	42.26%	4.70%	1.09%	4.88%
CMCX	80 Outperform	£872.22M	13.50	15.04%	4.65%	-10.92%	-24.05%
IGG	78 Outperform	£4.47B	12.41	20.39%	3.62%	9.46%	32.24%
TCAP	74 Outperform	£1.80B	10.77	8.74%	6.35%	5.77%	81.14%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CBG	51 Neutral	£773.01M	-7.50	-9.28%	―	-15.79%	-211.91%
WHI	48 Neutral	£9.90M	―	―	―	―	―

CMC Markets Corporate Events

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.

CMC Markets Executives Acquire Shares Under Incentive Plan

CMC Markets plc has announced the acquisition of shares by two of its senior executives, David John Fineberg, Head of Global Strategic Partnerships, and Jonathan Bendall, Chief Operating Officer, under the company’s UK Share Incentive Plan. This transaction, involving ordinary shares at a price of 280.50p each, reflects the company’s ongoing commitment to aligning managerial interests with shareholder value, potentially impacting its market positioning and stakeholder confidence.

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 Declares Interim Dividend for 2025

CMC Markets Plc has announced an interim dividend of 5.5 pence per share for the half year ended 30 September 2025. This dividend will be paid on 8 January 2026, with shareholders having the option to reinvest through the Dividend Reinvestment Plan. The announcement reflects CMC’s commitment to returning value to shareholders and may influence investor sentiment positively.

The most recent analyst rating on (GB:CMCX) stock is a Buy with a £246.00 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.

CMC Markets Surpasses Expectations with Strong H1 Performance and Strategic Partnerships

CMC Markets reported a strong first half of the fiscal year 2026, surpassing market expectations with a 5% increase in net operating income to £186.2 million. The company announced a significant partnership with Westpac, expected to expand its Australian customer base and increase trading volumes by 45%. CMC’s strategic initiatives, including a new multi-asset platform and partnerships with major banks and retailers, aim to enhance its market position and drive future growth. The company is also advancing in Web3 technology, aiming to redefine financial markets through decentralization and blockchain integration.

The most recent analyst rating on (GB:CMCX) stock is a Buy with a £246.00 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.

CMC Markets Executive Acquires Shares Under Incentive Plan

CMC Markets has announced a transaction involving David John Fineberg, the Global Head of Strategic Partnerships, who acquired ordinary shares under the company’s UK Share Incentive Plan. This move highlights the company’s ongoing efforts to align managerial interests with shareholder value, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (GB:CMCX) stock is a Buy with a £246.00 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.

CMC Markets Appoints Stuart Manning as Non-Executive Director

CMC Markets has appointed Stuart Manning as a Non-Executive Director, effective from November 1, 2025. Manning, with over 15 years of experience in venture capital, corporate finance, and regulatory supervision, will also serve as Chair of the Group Audit Committee and a member of several other committees. His expertise is expected to enhance the company’s financial management and governance as it pursues its strategic objectives.

The most recent analyst rating on (GB:CMCX) stock is a Buy with a £246.00 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.