Marex Group plc (MRX) AI Stock Analysis

• Market Cap: $2.75B
• Dividend Yield: 1.55%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.56
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 2,425
• Sector: General
• Sector Strength: N/A
• Industry: Financial - Capital Markets
• EPS (TTM): 0.91
• Shares Outstanding: 71,231,705
• 10 Day Avg. Volume: 2,084,180
• 30 Day Avg. Volume: 1,283,039
• PEG Ratio: 0.31
• Price to Book (P/B): 2.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.37
• Enterprise Value/Market Cap: 2.29
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 4.90
• Enterprise Value/Ebitda: 5.04
• 1Y Price Target: $53.60
• Price Target Upside: 38.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: $44.00 ▲(13.99%Upside)

Marex Group plc receives an overall score of 71, driven by robust earnings growth and a solid financial position. The earnings call provided a positive outlook with strong profit growth and strategic initiatives, while technical indicators suggest mixed signals with short-term bearish trends. Valuation is moderate, and cash flow concerns need addressing for sustainable growth. The absence of notable corporate events means more weight is placed on financial performance and earnings call analysis.

Positive Factors

Revenue Growth

The favorable trading environment with elevated volatility and volumes is expected to support MRX’s robust trading revenue growth.

Strategic Initiatives

Continued momentum in strategic initiatives, especially in prime services and Middle East expansion, is expected to further support revenue growth.

Negative Factors

Valuation Concerns

Further growth would need to be both substantial and sustainable to justify a higher valuation multiple, leading to a downgrade to Hold from Buy.

Marex Group plc Business Overview & Revenue Model

Company Description

Marex Group plc, a financial services platform provider company, provides liquidity, market access, and infrastructure services to clients in the energy, commodities, and financial markets in the United Kingdom, the United States, and internationally. It operates through Clearing, Agency and Execution, Market Making, and Hedging and Investment Solutions segments. The company offers execution and clearing services in metals, agricultural products, energy and financial futures and options; liquidity and execution services for financial securities through trading desks that cover products, including foreign exchange, equities, fixed income, and others. It also operates as an agent to trade in OTC energy products using knowledge of the energy sector and relationships with clients for oil, power and gas, and shipping and freight products; and provides market-making services across commodities markets, such as metals, agricultural products, and energy markets. In addition, the company offers OTC traded hedging and customized OTC derivatives solutions; and risk management solutions across commodity markets comprising agriculture, metals, energy, and currency markets for trading houses, producers and consumers, and banks and distributors. Further, it engages in the structured notes business, which allows investors to build structured notes across asset classes, including commodities, equities, foreign exchange, and fixed-income products for private banks, independent asset managers, pension funds, and corporates. Additionally, the company offers technology platforms, including Neon, a trading, risk, and data platform; and Agile, a commodity broking platform. Marex Group plc was incorporated in 2005 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Marex 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 Financial Statement Overview

Summary

Marex Group plc shows strong revenue growth and improved profitability. The balance sheet reflects enhanced equity strength and a favorable debt-to-equity ratio, though high liabilities need careful management. Cash flow challenges, particularly in operating cash flow, indicate potential liquidity issues that require attention. Overall, the company is on a positive growth trajectory but must address cash flow sustainability for long-term financial health.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 38.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 38.6 is below the 20-day moving average (MA) of 39.29, below the 50-day MA of 42.56, and above the 200-day MA of 34.12, indicating a neutral trend. The MACD of -0.90 indicates Negative momentum. The RSI at 36.76 is Neutral, neither overbought nor oversold. The STOCH value of 33.32 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BGC	80 Outperform	$5.29B	41.08	14.17%	0.74%	13.28%	117.88%
PIPR	74 Outperform	$5.13B	25.24	17.59%	0.90%	10.27%	88.77%
MRX	71 Outperform	$2.75B	13.06	16.50%	1.55%	―	―
AMRK	69 Neutral	$554.80M	15.15	5.81%	3.55%	5.48%	-54.25%
SNEX	69 Neutral	$4.60B	16.26	16.69%	―	67.71%	19.42%
MC	68 Neutral	$5.29B	30.04	39.98%	3.96%	45.14%	―
Sector *	57 Neutral	$5.70B	23.05	-28.61%	5.61%	10.25%	-31.59%