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Marex Group plc (MRX)
NASDAQ:MRX
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Marex Group plc
(NASDAQ:MRX)
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Rating:70Outperform
Price Target:
$39.00
▲(30.09% Upside)
Marex Group plc's overall stock score is driven by strong financial performance and positive earnings call highlights, including robust revenue growth and strategic acquisitions. However, technical analysis indicates bearish trends, and cash flow challenges raise liquidity concerns. The valuation is moderate, with a balanced P/E ratio and dividend yield.
Positive Factors
Revenue Growth
Strong revenue growth indicates Marex's effective market strategies and expanding client base, enhancing its competitive position in the financial services sector.
Successful Acquisitions
Successful acquisitions like Cowen's prime brokerage strengthen Marex's service offerings and market reach, supporting long-term growth and diversification.
Liquidity Position
A strong liquidity position ensures Marex can meet regulatory requirements and invest in growth opportunities, enhancing financial stability and operational flexibility.
Negative Factors
Cash Flow Challenges
Declining cash flow may limit Marex's ability to fund operations and investments, posing risks to its financial health and ability to capitalize on growth opportunities.
Market Making Segment Decline
A decline in the Market Making segment highlights potential vulnerabilities in Marex's business model, which could affect future revenue stability if not addressed.
High Liabilities
High liabilities may strain Marex's financial flexibility, increasing risk exposure and potentially impacting its ability to invest in strategic initiatives.
Marex Group plc (MRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.18B
Dividend Yield1.93%
Average Volume (3M)1.08M
Price to Earnings (P/E)10.4
Beta (1Y)0.47
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees2,425
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)1.02
Shares Outstanding71,231,705
10 Day Avg. Volume1,234,306
30 Day Avg. Volume1,075,269
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)2.56
Price to Sales (P/S)0.86
P/FCF Ratio2.18
Enterprise Value/Market Cap-0.35
Enterprise Value/Revenue-0.29
Enterprise Value/Gross Profit-0.65
Enterprise Value/Ebitda-1.38
Forecast
1Y Price Target
$50.60Price Target Upside68.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Marex Group plc Business Overview & Revenue Model
Company DescriptionMarex Group plc (MRX) is a leading global commodities broker and financial services firm headquartered in London, specializing in providing a wide range of services across various sectors including commodities, financial derivatives, and institutional trading. The company offers expertise in areas such as energy, metals, and agricultural products, facilitating trading and risk management solutions for clients ranging from producers and consumers to financial institutions.
How the Company Makes MoneyMarex Group generates revenue primarily through transaction fees and commissions from its brokerage services, where it acts as an intermediary between buyers and sellers in various commodity markets. Key revenue streams include trading commissions from institutional clients, fees from advisory services, and income from proprietary trading activities. Additionally, the company benefits from strategic partnerships with other financial institutions, enhancing its trading capabilities and market reach. The firm's strong reputation and expertise in the commodities sector also allow it to attract a diverse client base, contributing to its overall earnings.
Marex Group plc Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
Marex delivered strong financial performance in the first half of 2025, with record revenue and profit growth, successful acquisitions, and a solid liquidity position. However, the short seller report allegations and challenges in certain segments, such as Market Making and Hedging Solutions, present concerns that need addressing.Q2-2025 Updates
Positive Updates
Record Revenue and Profit Growth
Marex reported $967 million in revenue and $203 million in adjusted profit before tax for the first half of 2025, representing a 27% increase compared to the previous year. The second quarter alone saw $500 million in revenue, up 18% from the previous year, with an adjusted profit before tax of $106 million, marking a 16% year-on-year increase.
Successful Acquisition and Integration
The acquisition of Cowen's prime brokerage has been highly successful, with revenues increasing from $85 million to over $200 million on a half-year run rate basis. The Aarna acquisition also exceeded expectations, running at 50% above pre-acquisition levels.
Strong Liquidity Position
Marex ended the quarter with $2 billion in surplus liquidity versus regulatory requirements, bolstered by a $500 million senior notes issuance in May.
Agency and Execution Segment Outperformance
Revenue in the Agency and Execution segment grew by 59% to $261 million in Q2, driven by strong growth in securities and energy, with margins improving from 14% to 26%.
Positive Market Reaction and Increased Public Float
The public float increased significantly, with private equity shareholders reducing their holdings to 17% from 64% at the IPO. The company also completed a successful equity follow-on transaction.
Negative Updates
Short Seller Report Allegations
A short seller report published allegations against Marex, questioning financial practices. The company has refuted these claims, but the report has created market concern.
Market Making Segment Decline
Market Making revenue decreased by 17% to $57 million in Q2, impacted by a challenging environment for agriculture and softer market conditions compared to the previous year.
Hedging and Investment Solutions Underperformance
The Hedging and Investment Solutions segment saw a revenue decline of 9% to $41 million in Q2, affected by challenging market conditions and volatility following U.S. tariff announcements.
Company Guidance
During the Marex Second Quarter 2025 earnings call, the company reported a robust performance, achieving $500 million in revenue, an 18% increase from the previous year, and $106 million in Adjusted Profit Before Tax (PBT), up 16% year-on-year. For the first half of the year, Marex's revenue grew to $967 million, a 23% increase, with Adjusted PBT at $203 million, reflecting a 27% increase. The company highlighted a 21% margin expansion and a 31.4% adjusted return on equity. Marex also issued $500 million in senior notes to strengthen its liquidity, ending the quarter with $2 billion of surplus liquidity. The call emphasized the firm's strategic acquisitions, particularly Cowen's prime brokerage, contributing significantly to revenue growth. Additionally, Marex addressed a recent short-seller report, providing a detailed rebuttal to the allegations and affirming the strength of its financial and operational framework.Marex Group plc Financial Statement Overview
Summary
Marex Group plc shows strong revenue growth and improved profitability, with a high gross profit margin and enhanced net profit margin. The balance sheet reflects a solid equity position, but high liabilities pose potential risks. Cash flow challenges, particularly in operating cash flow, highlight liquidity concerns that need addressing.Income Statement
Marex Group plc demonstrates strong revenue growth with a significant increase from $1.01B in 2022 to $2.36B in 2024. The company's gross profit margin remains high at 100% due to the equivalent gross profit and total revenue figures, indicating efficient cost management. The net profit margin improved to 9.25% in 2024 from 6.80% in 2023, showcasing enhanced profitability. The EBIT margin also reflects significant improvement, highlighting effective operational management. However, the absence of EBITDA data for 2024 limits the comprehensive assessment of operational performance.85
Very Positive
Balance Sheet
The balance sheet reflects a solid financial position with increasing stockholders' equity, reaching $976.9M in 2024. The debt-to-equity ratio improved substantially, indicating a stronger equity position relative to debt. The equity ratio improved to 4.02% in 2024 from 3.69% in 2023, suggesting enhanced financial stability. However, the company operates with a high level of total liabilities relative to assets, which could pose potential risks if not managed carefully.78
Positive
Cash Flow
Cash flow analysis reveals a significant decline in operating cash flow from $735M in 2023 to zero in 2024, raising concerns about cash generation capabilities. Free cash flow has also dropped to zero in 2024, indicating potential challenges in funding operations and investments internally. The absence of cash flow data for EBITDA and operating activities in 2024 further limits the ability to fully assess cash flow health.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.65B | 2.89B | 2.35B | 1.18B | 851.70M | 757.53M |
| Gross Profit | 1.19B | 1.29B | 1.69B | 862.30M | 825.30M | 757.53M |
| EBITDA | 559.90M | 865.80M | 705.40M | 284.30M | 107.70M | 18.56M |
| Net Income | 191.80M | 218.00M | 128.00M | 91.60M | 56.50M | 43.82M |
Balance Sheet | ||||||
| Total Assets | 31.19B | 24.31B | 17.75B | 15.74B | 5.26B | 3.77B |
| Cash, Cash Equivalents and Short-Term Investments | 6.91B | 5.21B | 6.06B | 910.10M | 712.00M | 291.55M |
| Total Debt | 8.55B | 6.14B | 5.39B | 5.73B | 1.29B | 246.76M |
| Total Liabilities | 30.08B | 23.34B | 16.97B | 15.07B | 4.79B | 3.32B |
| Stockholders Equity | 1.11B | 976.90M | 775.90M | 677.70M | 477.70M | 443.79M |
Cash Flow | ||||||
| Free Cash Flow | 1.62B | 1.14B | 722.90M | 216.20M | 463.50M | -49.14M |
| Operating Cash Flow | 1.64B | 1.16B | 735.00M | 225.60M | 470.80M | -45.78M |
| Investing Cash Flow | -92.70M | -35.30M | -97.60M | -46.30M | -19.80M | -31.05M |
| Financing Cash Flow | -113.80M | -37.20M | -72.80M | 26.50M | -27.20M | 150.88M |
Marex Group plc Technical Analysis
Negative
29.98
Price Trends
34.86
Negative
37.80
Negative
36.80
Negative
Market Momentum
-1.08
Positive
28.01
Positive
11.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRX, the sentiment is Negative. The current price of 29.98 is below the 20-day moving average (MA) of 33.18, below the 50-day MA of 34.86, and below the 200-day MA of 36.80, indicating a bearish trend. The MACD of -1.08 indicates Positive momentum. The RSI at 28.01 is Positive, neither overbought nor oversold. The STOCH value of 11.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MRX.
Marex Group plc Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $2.18B | 10.37 | 16.50% | 1.93% | ― | ― | |
68 Neutral | $1.82B | 15.59 | 9.27% | ― | 58.88% | 305.98% | |
67 Neutral | $737.80M | 9.14 | 9.76% | 1.00% | 13.84% | 42.61% | |
65 Neutral | $636.12M | 13.68 | 33.22% | ― | 39.84% | -10.81% | |
59 Neutral | $3.47B | ― | 23.11% | ― | ― | ― | |
52 Neutral | $1.87B | 25.99 | -17.97% | 1.34% | 20.01% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
MRX
Marex Group plc
29.98
6.15
25.81%
OPY
Oppenheimer Holdings
71.69
22.97
47.15%
TIGR
Up Fintech Holding
10.19
-2.20
-17.76%
PWP
Perella Weinberg Partners
20.94
0.82
4.08%
FUFU
BitFuFu
3.86
-0.20
-4.93%
ETOR
eToro
40.98
-25.87
-38.70%
Marex Group plc Corporate Events
Marex Group Reports Strong Q2 2025 Financial Results
Aug 13, 2025
On August 13, 2025, Marex Group plc announced its financial results for the second quarter of 2025, reporting a strong performance with nearly $1 billion in revenue and a record $203 million in Adjusted Profit Before Tax, marking a 27% increase from the previous year. The company’s strategic acquisitions, including the Prime Services business from TD Cowen and Agrinvest, have significantly contributed to its earnings growth, while its diversified platform has driven revenue increases across various sectors. Marex’s robust financial results underscore its effective strategy execution and promising future prospects.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.