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Marex Group plc (MRX)
NASDAQ:MRX
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Marex Group plc
(NASDAQ:MRX)
Rating:68Neutral
Price Target:
$38.00
▲(5.26% Upside)
Positive Factors
Strategic Initiatives
Continued momentum in strategic initiatives, especially in prime services and Middle East expansion, is expected to further support revenue growth.
Trading Revenue
The favorable trading environment with elevated volatility and volumes is expected to support MRX’s robust trading revenue growth.
Negative Factors
Acquisition Activity
MRX has not announced any new acquisitions since the Hamilton Court announcement, attributed to a tougher deal-making backdrop.
Valuation Concerns
The stock has experienced a robust rally, with a 64% increase in 2024 and 16% YTD, but there is limited room for further upward re-rating.
Marex Group plc (MRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.50B
Dividend Yield1.6%
Average Volume (3M)1.24M
Price to Earnings (P/E)11.9
Beta (1Y)0.50
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees2,425
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)1.02
Shares Outstanding71,231,705
10 Day Avg. Volume1,229,629
30 Day Avg. Volume1,238,170
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap-0.31
Enterprise Value/Revenue-0.35
Enterprise Value/Gross Profit-0.60
Enterprise Value/Ebitda-0.90
Forecast
1Y Price Target
$47.67Price Target Upside32.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Marex Group plc Business Overview & Revenue Model
Company DescriptionMarex Group plc (MRX) is a global financial services organization that operates primarily in the commodities and financial markets sectors. The company provides a wide range of services, including market-making, execution, and clearing of trades across multiple asset classes. Marex Group serves a diverse client base, including corporate clients, institutional investors, and professional traders, offering comprehensive solutions tailored to meet their needs.
How the Company Makes MoneyMarex Group plc generates revenue through a variety of financial services and activities. The company makes money primarily through its market-making operations, where it provides liquidity by buying and selling financial instruments, earning profits from the bid-ask spread. Additionally, Marex earns fees and commissions from executing and clearing trades for its clients across commodities, financial futures, and options markets. The company also leverages its expertise in risk management and advisory services to generate additional revenue streams. Key partnerships with exchanges and financial institutions further enhance its revenue model by facilitating access to markets and expanding its service offerings.
Marex Group plc Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: 4.70%|
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 robust income statement. The balance sheet indicates enhanced equity strength and a favorable debt-to-equity ratio, though high liabilities pose risks. Cash flow challenges, particularly in operating cash flow, highlight potential liquidity issues 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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.89B | 1.88B | 1.01B | 825.30M | 757.53M |
| Gross Profit | 1.29B | 564.60M | 1.01B | 825.30M | 757.53M |
| EBITDA | 865.80M | 705.40M | 284.30M | 107.70M | 18.56M |
| Net Income | 218.00M | 128.00M | 91.60M | 56.50M | 43.82M |
Balance Sheet | |||||
| Total Assets | 24.31B | 17.75B | 15.74B | 5.26B | 3.77B |
| Cash, Cash Equivalents and Short-Term Investments | 5.21B | 6.06B | 910.10M | 712.00M | 291.55M |
| Total Debt | 6.14B | 3.17B | 472.10M | 136.60M | 246.76M |
| Total Liabilities | 23.34B | 16.97B | 15.07B | 136.60M | 3.32B |
| Stockholders Equity | 976.90M | 775.90M | 677.70M | 477.70M | 443.79M |
Cash Flow | |||||
| Free Cash Flow | 1.14B | 722.90M | 216.20M | 463.50M | -49.14M |
| Operating Cash Flow | 1.16B | 735.00M | 225.60M | 470.80M | -45.78M |
| Investing Cash Flow | -35.30M | -97.60M | -46.30M | -19.80M | -31.05M |
| Financing Cash Flow | -37.20M | -72.80M | 26.50M | -27.20M | 150.88M |
Marex Group plc Technical Analysis
Negative
36.10
Price Trends
37.85
Negative
39.92
Negative
36.16
Negative
Market Momentum
-0.84
Negative
46.59
Neutral
52.34
Neutral
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 36.1 is below the 20-day moving average (MA) of 36.24, below the 50-day MA of 37.85, and below the 200-day MA of 36.16, indicating a bearish trend. The MACD of -0.84 indicates Negative momentum. The RSI at 46.59 is Neutral, neither overbought nor oversold. The STOCH value of 52.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MRX.
Marex Group plc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.76B | 28.11 | 45.36% | 3.63% | 42.85% | 1398.33% | |
76 Outperform | $5.73B | 27.31 | 17.91% | 1.74% | 10.46% | 50.47% | |
72 Outperform | $4.64B | 32.32 | 17.07% | 0.81% | 21.05% | 23.00% | |
68 Neutral | $2.50B | 11.86 | 16.50% | 1.60% | ― | ― | |
68 Neutral | $570.56M | 15.58 | 5.81% | 3.51% | 6.41% | -54.25% | |
66 Neutral | $5.03B | 16.33 | 16.01% | ― | 53.19% | 23.89% | |
55 Neutral | $6.40B | 7.52 | -10.19% | 6.32% | 14.96% | -2.21% |
* General Sector Average
Performance Comparison
MRX
Marex Group plc
36.10
12.29
51.62%
BGC
BGC Group
9.86
0.24
2.49%
SNEX
StoneX Group
95.96
41.63
76.62%
PIPR
Piper Sandler
319.99
51.43
19.15%
MC
Moelis
69.38
4.18
6.41%
AMRK
A-Mark Precious Metals
22.62
-13.84
-37.96%
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.