CMC Markets (CMCX) AI Stock Analysis

• Market Cap: £891.76M
• Dividend Yield: 4.65%
• Average Volume (3M): 236.93K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.82
• 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: 373.00p ▲(12.35% 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

Substantially improved free cash flow and an OCF-to-net-income ratio well above 1 indicate persistent cash conversion. This strengthens the firm's ability to fund operations, allocate capital, pay shareholders, and invest in product and tech without relying on external financing, a durable advantage.

Low leverage and solid capital structure

Minimal financial leverage and a high equity ratio reduce default and refinancing risk across market cycles. Combined with a mid-teens ROE, this supports long-term stability, preserves strategic optionality for acquisitions or product investment, and cushions macro shocks.

Proprietary platform and B2B distribution

Owning trading technology and offering white-label/B2B services creates recurring, diversified revenue streams beyond retail trading. Platform IP and partner relationships can produce higher margins, cross-sell opportunities and customer stickiness, reinforcing competitive positioning over time.

Negative Factors

Declining revenue

Negative top-line growth is a structural concern: shrinking revenues constrain the firm's ability to leverage fixed costs and reinvest in product development or marketing. If sustained, revenue contraction can compress margins and limit long-term competitive investments.

Earnings deterioration

A substantial decline in EPS signals weakening earnings power which can reduce internally generated capital for growth and dividends. Persistently falling earnings may force tougher cost cuts or constrain R&D, undermining long-term product leadership and shareholder returns.

Revenue cyclicality tied to market activity

Business reliance on client activity and market volatility creates structural cyclicality: calm markets or reduced retail activity lower spreads, commissions, and financing income. This makes earnings and cashflow variable and complicates long-term planning and steady revenue expansion.

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	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: 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 332 is above the 20-day moving average (MA) of 324.42, above the 50-day MA of 317.93, and above the 200-day MA of 256.08, indicating a neutral trend. The MACD of 1.89 indicates Positive momentum. The RSI at 47.01 is Neutral, neither overbought nor oversold. The STOCH value of 39.93 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	42.26%	4.70%	1.09%	4.88%
CMCX	80 Outperform	£891.76M	4.51	15.04%	4.65%	-10.92%	-24.05%
IGG	78 Outperform	£4.52B	10.55	20.39%	3.62%	9.46%	32.24%
TCAP	74 Outperform	£1.77B	5.32	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	£671.30M	-7.76	-9.28%	―	-15.79%	-211.91%
WHI	48 Neutral	£9.90M	-0.20	―	―	―	―

CMC Markets Corporate Events

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.

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.