StoneX Group (SNEX) AI Stock Analysis

• Market Cap: $3.81B
• Dividend Yield: N/A
• Average Volume (3M): 443.49K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.86
• Revenue Growth: 60.57%
• EPS Growth: 17.39%
• Country: US
• Employees: 4,620
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Capital Markets
• EPS (TTM): 5.57
• Shares Outstanding: 48,126,938
• 10 Day Avg. Volume: 451,684
• 30 Day Avg. Volume: 443,493
• PEG Ratio: 0.82
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.03
• Price to Cash Flow (P/CF): -2.00
• P/FCF Ratio: 0.00
• 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: $83.00
• Price Target Upside: 4.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

StoneX Group's overall score reflects its strong financial performance, highlighted by robust revenue growth and strategic acquisitions. The company benefits from a stable market position and reasonable valuation. However, liquidity challenges and high liabilities relative to assets pose risks. The recent positive earnings call and merger announcement support a favorable outlook, balancing potential risks with opportunities for growth.

Positive Factors

Acquisition Benefits

The acquisition of R.J. O'Brien is expected to add scale and enhance Stonex Group's capabilities in interest rate hedging.

Market Leadership

The merger would create the industry's largest non-bank FCM, reducing competitive pressures in client acquisition and broker recruitment.

Revenue Synergies

R.J. O'Brien has a strong presence in the introducing broker space, which is expected to unlock new revenue synergies for Stonex Group.

Negative Factors

Financial Leverage

The acquisition's funding with a combination of debt and equity may lead to increased financial leverage for Stonex Group.

StoneX Group Business Overview & Revenue Model

Company Description

StoneX Group Inc. operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide. Its Commercial segment provides risk management and hedging, exchange-traded and OTC products execution and clearing, voice brokerage, market intelligence, physical trading, and commodity financing and logistics services. The company's Institutional segment provides equity trading services to institutional clients; and originates, structures, and places debt instruments in capital markets worldwide. Its services cover foreign securities, including unlisted American Depository Receipts, Global Depository Receipts, and foreign ordinary shares. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies; engages in asset management business; and offers clearing and execution services in futures exchanges, brokerage foreign exchange services for the financial institutions and professional traders, and OTC products. The company's Retail segment provides trading services and solutions in the global financial markets, including spot foreign exchange, precious metals trading, and contracts for differences; and wealth management and investment services, as well as offers physical gold and other precious metals in various forms and denominations through coininvest.com and silver-to-go.com. Its Global Payments segment provides foreign exchange and treasury services to banks and commercial businesses, charities, and non-governmental and government organizations; and payments services. The company was formerly known as INTL FCStone Inc. and changed its name to StoneX Group Inc. in July 2020. StoneX Group Inc. was founded in 1924 and is headquartered in New York, New York.

How the Company Makes Money

StoneX Group makes money through a diversified revenue model that includes trading commissions, fees for clearing and execution services, and interest earned on client balances. The company facilitates trading in commodities, securities, and foreign exchange markets, earning commissions on each transaction. Additionally, StoneX provides risk management and advisory services, generating fees for its expertise in helping clients hedge against market volatility. The firm's clearing and execution services involve acting as an intermediary in trades, for which it charges fees. Partnerships with financial institutions and corporations expand its reach and enhance its service offerings, contributing to its earnings. Furthermore, interest income from client balances held in various accounts adds another layer to its revenue streams.

StoneX Group Financial Statement Overview

Summary

StoneX Group demonstrates robust revenue growth and a strong return on equity. However, it faces challenges with low operational margins and liquidity issues, as well as high liabilities relative to assets. The absence of debt is a positive factor, yet negative cash flows suggest potential risks. Enhancing operational efficiency and cash management is crucial for sustaining growth.

Income Statement

StoneX Group shows a strong revenue growth trajectory, with significant increases from $60.86 billion in 2023 to $108.25 billion in the TTM period. The gross profit margin is healthy at 27.15%, and the net profit margin is at a modest 0.26%, indicating room for improvement. However, the EBITDA margin is low at 1.55%, reflecting challenges in operational efficiency.

Balance Sheet

The company's balance sheet reveals a solid equity base with a debt-to-equity ratio of 0, illustrating no reliance on debt in the TTM period. However, the equity ratio is low at 6.01%, indicating high liabilities relative to assets. Return on equity is strong at 15.57%, showcasing effective use of shareholder funds.

Cash Flow

StoneX Group's cash flow statement highlights negative free cash flow and operating cash flow in the TTM period, suggesting liquidity challenges. The operating cash flow to net income ratio is negative, indicating potential inefficiencies in cash conversion. Despite these challenges, the company has previously shown positive free cash flow growth.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
108.25B	99.89B	60.86B	4.88B	4.54B	4.03B
	Gross Profit
29.39B	2.01B	1.61B	1.12B	937.00M	793.00M
	EBIT
28.40B	1.77B	1.62B	536.00M	462.00M	368.00M
	EBITDA
1.68B	1.52B	1.22B	511.30M	291.40M	264.60M
	Net Income Common Stockholders
276.80M	260.80M	238.50M	355.00M	338.00M	272.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
59.80M	1.27B	1.11B	430.00M	747.00M	358.00M
	Total Assets
1.72B	27.47B	21.94B	3.44B	3.31B	3.04B
	Total Debt
94.50M	11.32B	6.48B	5.35B	146.60M	118.70M
	Net Debt
34.70M	10.05B	5.37B	5.00B	-465.40M	-182.30M
	Total Liabilities
1.48B	25.76B	20.56B	2.67B	2.43B	2.44B
	Stockholders Equity
244.20M	1.71B	1.38B	780.00M	882.00M	603.00M
Cash Flow		Free Cash Flow
-153.30M	-115.30M	-70.60M	506.00M	178.00M	510.00M
	Operating Cash Flow
-87.20M	-103.80M	-23.70M	562.00M	218.00M	546.00M
	Investing Cash Flow
-187.90M	-63.70M	-53.00M	-226.00M	-135.00M	-151.00M
	Financing Cash Flow
815.20M	188.00M	-169.30M	-536.00M	12.00M	-208.00M

StoneX Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNEX, the sentiment is Positive. The current price of 79.15 is above the 20-day moving average (MA) of 76.54, above the 50-day MA of 77.66, and above the 200-day MA of 64.29, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 56.01 is Neutral, neither overbought nor oversold. The STOCH value of 92.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNEX.

StoneX Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PJT	76 Outperform	$5.10B	26.69	62.26%	0.76%	29.48%	63.03%
LAZ	72 Outperform	$3.20B	13.28	51.51%	5.62%	23.88%	―
PIPR	72 Outperform	$3.99B	22.00	15.66%	1.13%	12.29%	99.57%
MC	70 Outperform	$4.00B	29.36	34.27%	4.70%	39.75%	―
SNEX	70 Outperform	$3.81B	14.20	16.40%	―	60.57%	17.39%
BGC	68 Neutral	$4.13B	33.78	14.24%	0.94%	11.73%	242.82%
Sector *	63 Neutral	$12.75B	9.36	8.64%	84.32%	13.82%	-3.89%

StoneX Group Corporate Events

StoneX Group Announces $900M Merger with R.J. O’Brien

On April 13, 2025, StoneX Group Inc. announced a merger agreement to acquire R.J. O’Brien, a leading futures brokerage, for approximately $900 million. The acquisition will significantly enhance StoneX’s position in the global derivatives market, adding over 75,000 clients and expanding its client float by nearly $6 billion. The transaction is expected to close in the second half of 2025, subject to regulatory approvals. This strategic move is anticipated to drive revenue synergies, enhance margins, and improve StoneX’s market positioning, benefiting stakeholders through expanded services and increased market access.

Spark’s Take on SNEX Stock

According to Spark, TipRanks’ AI Analyst, SNEX is a Outperform.

StoneX Group’s overall stock score is buoyed by strong financial performance in terms of revenue growth and return on equity, as well as positive sentiment from the recent earnings call. Technical indicators suggest a stable momentum, despite short-term consolidation. Valuation appears reasonable, though the lack of dividends might deter some investors. Liquidity issues and high liabilities relative to assets remain key risks.

To see Spark’s full report on SNEX stock, click here.

StoneX Group Grants Shares to Executive Sean O’Connor

On March 31, 2025, StoneX Group Inc. entered into a letter agreement with Executive Sean M. O’Connor, granting him 300,000 restricted shares of Company Stock and performance shares contingent on the company’s return on equity over a four-year period. The performance shares range from zero to a maximum of 337,500, depending on the company’s average ROE, with vesting conditions and determinations made by the company’s board of directors. The grants are part of the StoneX Group Inc. 2022 Omnibus Incentive Compensation Plan and are set to complete vesting by March 31, 2029.

StoneX Group Elects New Leadership at Annual Meeting

On March 5, 2025, StoneX Group Inc. held its Annual Meeting of Shareholders, where key decisions were made regarding the company’s leadership and governance. Eight directors were elected to serve until the 2026 annual meeting, KPMG LLP was ratified as the independent registered public accounting firm for 2025, and several shareholder proposals were approved, including executive compensation and an amendment to the Omnibus Incentive Compensation Plan. Following the meeting, John Radziwill was elected as Chairman of the Board of Directors, and Sean M. O’Connor was elected as Executive Vice-Chairman.