CMC Markets (CMCX) AI Stock Analysis

• Market Cap: £604.27M
• Dividend Yield: 4.78%
• Average Volume (3M): 236.93K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.99
• 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: 8.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: 305.00p ▲(4.81% Upside)

CMC Markets scores well due to its strong financial performance and attractive valuation. The company's robust cash flow and low leverage enhance its financial stability. However, technical analysis indicates overbought conditions, which could lead to short-term volatility. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Cash Flow Strength

Strong cash flow growth indicates robust cash generation, enabling the company to fund operations and investments without external financing.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and reduces the risk of financial distress, supporting long-term growth.

Profit Margins

High profit margins reflect operational efficiency and pricing power, contributing to sustained profitability and competitive advantage.

Negative Factors

Revenue Growth Challenges

Flat revenue growth suggests challenges in expanding market share or product adoption, potentially limiting long-term earnings growth.

Earnings Decline

A significant decline in earnings per share indicates potential issues in profitability, which could impact investor confidence and valuation.

Revenue Decline

A decline in revenue growth can signal weakening demand or competitive pressures, affecting the company's ability to sustain its market position.

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 demonstrates strong financial performance with robust profitability, excellent cash flow management, and a stable balance sheet. The company has low leverage and high equity, indicating financial stability. However, revenue growth remains flat, which is a potential area for improvement.

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	344.38M	360.10M	359.75M	322.17M	323.85M	455.52M
Gross Profit	175.98M	226.42M	214.31M	269.81M	266.77M	391.99M
EBITDA	107.94M	100.37M	92.71M	77.48M	113.69M	236.79M
Net Income	62.19M	62.19M	46.89M	41.44M	71.48M	178.11M
Balance Sheet
Total Assets	731.98M	731.98M	716.86M	586.42M	646.81M	577.63M
Cash, Cash Equivalents and Short-Term Investments	328.22M	328.22M	211.19M	176.79M	191.07M	147.03M
Total Debt	14.34M	14.34M	16.91M	11.82M	14.45M	16.46M
Total Liabilities	314.01M	314.01M	313.37M	212.41M	277.93M	177.12M
Stockholders Equity	417.97M	417.97M	403.49M	374.01M	368.88M	400.52M
Cash Flow
Free Cash Flow	201.28M	166.25M	60.21M	42.94M	140.27M	105.53M
Operating Cash Flow	204.30M	175.35M	80.08M	71.16M	156.08M	117.72M
Investing Cash Flow	-70.31M	-41.35M	-41.57M	-31.16M	-17.64M	-17.71M
Financing Cash Flow	-41.31M	-41.31M	-21.01M	-69.06M	-82.16M	-69.34M

CMC Markets Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 291.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 291 is above the 20-day moving average (MA) of 241.61, above the 50-day MA of 226.43, and above the 200-day MA of 225.51, indicating a bullish trend. The MACD of 21.36 indicates Negative momentum. The RSI at 81.88 is Negative, neither overbought nor oversold. The STOCH value of 80.11 is Negative, 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
CMCX	78 Outperform	£604.27M	9.58	15.04%	4.78%	-10.92%	-24.05%
ALPH	78 Outperform	£1.79B	21.86	30.28%	0.34%	17.44%	-12.83%
PLUS	74 Outperform	£2.16B	10.78	42.26%	4.99%	1.09%	4.88%
TCAP	74 Outperform	£1.86B	11.13	8.74%	4.58%	5.77%	81.14%
IGG	71 Outperform	£3.84B	10.51	20.39%	4.10%	9.46%	32.24%
CBG	68 Neutral	£662.27M	-6.61	-9.28%	―	-15.79%	-211.91%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

CMC Markets Corporate Events

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.

CMC Markets Announces Managerial Share Acquisition

CMC Markets announced a transaction involving David John Fineberg, the Global Head of Strategic Partnerships, who acquired shares under the company’s UK Share Incentive Plan. This acquisition of 134 ordinary shares at a price of 225.00p each, dated October 6, 2025, 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 £269.00 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.

CMC Markets Expands Strategic Partnership with Westpac in Australia

CMC Markets has extended its strategic partnership with Westpac Banking Corporation, becoming the preferred vendor for Westpac’s online share trading services in Australia. This collaboration will integrate CMC’s advanced trading technology with Westpac’s existing platforms, enhancing the user experience for Westpac and St.George customers. The integration is expected to significantly increase CMC’s market presence, servicing 40% more customers and boosting domestic trading volumes by approximately 45%. This partnership underscores CMC’s strong position in the industry and its capability to deliver innovative trading solutions.

The most recent analyst rating on (GB:CMCX) stock is a Buy with a £249.00 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.

CMC Markets Announces Internal Share Transfer

CMC Markets plc has announced a transfer of 69,561 ordinary shares from David John Fineberg, the Global Head of Strategic Partnerships, to his spouse, Victoria Fineberg. This transaction, conducted outside a trading venue and at nil consideration, reflects internal shareholding adjustments and may have implications for the company’s managerial responsibilities and share distribution.

The most recent analyst rating on (GB:CMCX) stock is a Buy with a £272.00 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 plc announced that David John Fineberg, the Global Head of Strategic Partnerships, has acquired ordinary shares under the company’s UK Share Incentive Plan. This transaction, involving 132 shares at a price of 225.00p each, reflects ongoing managerial involvement in the company’s equity, potentially signaling confidence in CMC Markets’ strategic direction and market positioning.

The most recent analyst rating on (GB:CMCX) stock is a Buy with a £272.00 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.

CMC Markets Appoints Sarah Ing as Senior Independent Director

CMC Markets has appointed Sarah Ing as the Senior Independent Director, effective from September 1, 2025. This strategic appointment is likely to strengthen the company’s governance structure and potentially enhance its market position by bringing in experienced leadership, which could have positive implications for stakeholders.

The most recent analyst rating on (GB:CMCX) stock is a Buy with a £272.00 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.