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Marex Group plc (MRX)
NASDAQ:MRX
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Marex Group plc
(NASDAQ:MRX)
Rating:73Outperform
Price Target:
$44.00
▲(12.22%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 Growth
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
$2.85B
Dividend Yield1.5%
Average Volume (3M)1.00M
Price to Earnings (P/E)13.3
Beta (1Y)0.58
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees2,425
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.91
Shares Outstanding71,231,705
10 Day Avg. Volume852,509
30 Day Avg. Volume1,001,348
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)1.98
Price to Sales (P/S)0.00
P/FCF Ratio6.22
Enterprise Value/Market Cap0.32
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit0.61
Enterprise Value/Ebitda0.72
Forecast
1Y Price Target
$52.00Price Target Upside32.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Marex Group plc Business Overview & Revenue Model
Company DescriptionMarex Group plc (MRX) is a leading global financial services company that operates in the commodities and financial markets. It provides a wide range of services including market-making, execution, and clearing services across various asset classes such as metals, agricultural products, energy, and financial futures and options. Marex is known for its deep expertise in these markets, offering clients access to liquidity and risk management solutions through its extensive trading infrastructure.
How the Company Makes MoneyMarex Group makes money through several key revenue streams. Primarily, the company generates income from trading and market-making activities in commodities and financial markets, where it earns spreads on buy and sell transactions. Marex also earns fees from providing clearing and execution services for its clients, including hedge funds, asset managers, and other institutional investors. Additionally, the company offers risk management and hedging solutions, which contribute to its revenue by providing tailored financial products to help clients manage their market exposure. Strategic partnerships and collaborations with exchanges and other financial institutions also play a role in enhancing Marex's service offerings and expanding its market reach, thereby contributing to its earnings.
Marex Group plc Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: -18.21%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong overall performance for Marex in the first quarter of 2025, with significant achievements in profit growth, successful market offerings, and operational resilience. However, challenges such as agricultural segment underperformance and potential interest rate impacts were noted. Despite these lowlights, the company's robust growth and strategic initiatives have positioned it well for future success.Q1-2025 Updates
Positive Updates
Strong First Quarter Performance
Adjusted profit before tax reached $96 million, at the top end of the preliminary range, representing a 42% increase with strong revenue growth across all business segments.
Successful Equity and Debt Offerings
Marex conducted a highly successful equity offering in April and a well-received $500 million senior notes issuance in May, demonstrating strong market support.
Record Client Activity and Operational Resilience
The company processed heightened volumes successfully, confirming the operational resilience and scalability of the Marex platform.
Agency Execution and Prime Services Growth
Agency execution revenue grew 42% to $240 million, with securities revenue up 59% and energy revenue up 20%, driven by record volumes and strong demand.
Increased Dividend
Dividend increased to $0.15 per share for Q1 2025 from $0.14 in 2024, reflecting strong earnings performance.
Negative Updates
Agricultural Segment Underperformance
Agricultural clearing revenue faced challenges due to lower client activity and higher volatility in the previous year, leading to a decrease in net commission income.
Impact of Funding Costs on Net Interest Income
Funding costs, particularly from the $500 million senior notes issuance, impacted net interest income, though deemed a necessary trade-off for liquidity.
Potential Interest Rate Challenges
Projected decreases in Fed rates could reduce adjusted profit before tax by around $20 million annually, highlighting sensitivity to interest rate changes.
Muted Metals Revenue Growth
Metals revenue growth was limited to 6% due to uncertainty from potential global tariffs on base metals.
Company Guidance
During the Marex Q1 2025 earnings call, the company reported a robust performance with several key metrics highlighted. Marex achieved an adjusted profit before tax of $96 million, a 42% increase compared to the same quarter last year. This growth was supported by a 28% rise in revenue, amounting to $467 million, and a 26% increase in total costs, which reached $365 million. The company also expanded its profit margins by 200 basis points to 21% and reported an adjusted return on equity of 30%. Notably, Marex saw a 15% year-on-year increase in exchange volumes, driven by strong client activity and a favorable operating environment, with particular strength in agency execution and the energy business. Additionally, Marex successfully managed its liquidity, maintaining a record surplus bolstered by a $500 million senior notes issuance. These developments, alongside the completion of the Aarna acquisition and an increased quarterly dividend of $0.15 per share, underscore Marex’s strategic growth and resilience in the current market landscape.Marex Group plc Financial Statement Overview
Summary
Marex Group plc demonstrates strong revenue growth and improved profitability, with significant improvements in net profit and EBIT margins. The balance sheet shows enhanced equity strength and a favorable debt-to-equity ratio, despite high liabilities. Cash flow challenges, particularly in operating cash flow, highlight potential liquidity issues that require attention.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 | EBIT |
| 836.30M | 204.30M | 102.60M | 68.60M | 36.42M | EBITDA |
| 865.80M | 705.40M | 284.30M | 107.70M | 18.56M | Net Income Common Stockholders |
| 218.00M | 128.00M | 91.60M | 56.50M | 43.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.21B | 6.06B | 910.10M | 712.00M | 291.55M | Total Assets |
| 24.31B | 17.75B | 15.74B | 5.26B | 3.77B | Total Debt |
| 6.14B | 3.17B | 472.10M | 136.60M | 246.76M | Net Debt |
| 3.58B | 1.69B | -438.00M | -575.40M | -44.79M | 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
Neutral
39.21
Price Trends
42.17
Negative
38.67
Positive
33.03
Positive
Market Momentum
-0.94
Positive
35.24
Neutral
19.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRX, the sentiment is Neutral. The current price of 39.21 is below the 20-day moving average (MA) of 42.73, below the 50-day MA of 42.17, and above the 200-day MA of 33.03, indicating a neutral trend. The MACD of -0.94 indicates Positive momentum. The RSI at 35.24 is Neutral, neither overbought nor oversold. The STOCH value of 19.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MRX.
Marex Group plc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.80B | 35.81 | 14.17% | 0.85% | 13.28% | 117.88% | |
73 Outperform | $2.85B | 13.26 | 16.50% | 1.50% | ― | ― | |
71 Outperform | $4.59B | 22.01 | 17.59% | 1.01% | 10.27% | 88.77% | |
68 Neutral | $4.17B | 14.28 | 16.69% | ― | 67.71% | 19.42% | |
68 Neutral | $523.52M | 14.94 | 5.81% | 3.60% | 5.48% | -54.25% | |
66 Neutral | $4.52B | 25.64 | 39.98% | 4.64% | 45.14% | ― | |
58 Neutral | $4.90B | 18.48 | -17.00% | 7.21% | 13.61% | -24.47% |
* General Sector Average
Performance Comparison
MRX
Marex Group plc
39.21
20.36
108.01%
BGC
BGC Group
9.45
1.53
19.32%
SNEX
StoneX Group
84.24
36.37
75.98%
PIPR
Piper Sandler
251.86
44.80
21.64%
MC
Moelis
55.99
5.64
11.20%
AMRK
A-Mark Precious Metals
22.22
-9.54
-30.04%
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.