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Stonex Group Inc. (SNEX)
NASDAQ:SNEX
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StoneX Group
(NASDAQ:SNEX)
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Rating:70Outperform
Price Target:
$129.00
▲(0.26% Upside)
Action:UpgradedDate:02/06/26
Strong technical momentum and a very positive earnings update (record results and synergy roadmap) lift the score. Offsetting these are balance-sheet leverage and structurally thin net margins, plus a valuation that is reasonable but not distinctly discounted.
Positive Factors
Scale via Acquisitions
Recent acquisitions (RJO, Benchmark) materially expanded client equity, fee income and product footprint, creating durable scale and cross‑sell opportunities. Scale reduces per‑unit costs and increases institutional distribution, supporting multi‑year revenue diversification and strategic synergies.
Strong Cash Generation
Very strong TTM operating and free cash flow provides durable financial flexibility to fund acquisitions, hedges and capital returns while insulating operations from short term market funding stress; consistent cash conversion supports reinvestment and balance‑sheet management.
Product & Segment Strength
Concentrated growth in listed derivatives and precious metals evidences structural demand across commodities and institutional flows. These high‑growth segments diversify revenue away from volatile retail FX, improving mix and creating sustainable higher‑margin product channels over the medium term.
Negative Factors
High Financial Leverage
Material leverage magnifies returns but exposes the firm to funding and interest‑rate shocks. High debt/equity limits flexibility for opportunistic investments and raises refinancing risk if capital markets tighten, making earnings and capital ratios sensitive to adverse cycles.
Very Thin Net Margins
Extremely low net margins mean small revenue or expense moves significantly affect EPS. With modest operating profitability, integration costs, higher legal fees or rate shifts can quickly erode earnings power, increasing operational risk and sensitivity to cycle and spread compression.
Structural Retail FX Weakness
Sustained declines in FX/CFD and self‑directed retail revenues reflect rate compression and lower spread retention. This reduces a historically important, relatively stable fee pool and increases reliance on institutional/commodities flows, concentrating business risk in fewer segments.
StoneX Group (SNEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.69B
Dividend YieldN/A
Average Volume (3M)357.65K
Price to Earnings (P/E)19.0
Beta (1Y)0.98
Revenue Growth32.53%
EPS Growth13.38%
CountryUS
Employees4,709
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)2.50
Shares Outstanding52,463,318
10 Day Avg. Volume285,634
30 Day Avg. Volume357,655
Financial Highlights & Ratios
PEG Ratio1.18
Price to Book (P/B)2.01
Price to Sales (P/S)0.04
P/FCF Ratio1.11
Enterprise Value/Market Cap3.81
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit8.86
Enterprise Value/Ebitda11.60
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)7.39
Revenue Forecast (FY)$4.82B
StoneX Group Business Overview & Revenue Model
Company DescriptionStoneX 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 MoneyStoneX Group generates revenue through multiple key streams, primarily by acting as a broker and market maker in various financial markets. The company earns commissions and fees from executing trades for clients in commodities, foreign exchange, and other securities. Additionally, StoneX profits from spreads in the market-making process, where it buys and sells assets at different prices. The firm also provides advisory and risk management services, charging fees for these tailored solutions. Significant partnerships with major exchanges and financial institutions further enhance its trading capabilities and access to liquidity, contributing to its overall earnings.
StoneX Group Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive quarter driven by record net income, EPS and revenues, significant contribution from the R.J. O'Brien and Benchmark acquisitions, outstanding performance in precious metals and listed derivatives, and improved interest income. Material growth was offset by notable softness in FX/CFD and self-directed retail revenues, near-term expense increases (including legal and integration costs), and the need to fully realize acquisition synergies over time. On balance, the positive operational and financial momentum and scale benefits from acquisitions outweigh the headwinds.Q1-2026 Updates
Positive Updates
Record Net Income, EPS and Revenues
Net income of $139 million (record) and diluted EPS of $2.50 for the quarter; net income up 63% year-over-year and EPS up 48% year-over-year. Operating revenues just over $1.4 billion, up 52% versus prior year; net operating revenues up 47% versus prior year.
Strong Return on Equity and Trailing 12-Month Performance
Quarter ROE of 22.5% (32.4% return on tangible book equity). Trailing 12-month net income was a record $359.8 million, up 30% year-over-year, with diluted EPS of $6.70 and ROE of 16.9% for the trailing 12 months.
Precious Metals and Physical Contracts Outperformance
Precious metals segment income generated $75 million this quarter (an increase of $24 million versus the entire fiscal year 2025). Operating revenues from physical contracts increased 69% year-over-year, with precious metals contributing an $83.9 million increase versus prior year.
Listed Derivatives and Securities Growth
Operating revenues from listed contracts increased $157.3 million (141% year-over-year), driven largely by the R.J. O'Brien acquisition and LME base metals activity. Securities operating revenues were up 43% year-over-year with volumes up 22% and rate per million up 35%.
Acquisitions Driving Scale and Contribution
R.J. O'Brien and Benchmark acquisitions materially contributed to results: RJO contributed $28.5 million and Benchmark $4.6 million in pretax net income (excluding acquired intangible amortization) for the quarter. RJO added ~$63.8 million to interest and fee income and $5.8 billion in average client equity for the quarter.
Interest and Fee Income Expansion and Hedging Actions
Interest and fee income on aggregate client float increased $66.1 million (61% year-over-year). Company entered into $1.2 billion of fixed-rate SOFR swaps (2-year duration, average rate 3.32%) to hedge interest exposure. Estimated sensitivity: a 100 bps change in short-term rates would change annualized net income by ~$43.2 million or ~$0.80 per share.
Commercial and Institutional Segment Records
Commercial segment net operating revenues increased 65% year-over-year and segment income increased 72%. Institutional segment reported record net operating revenues and segment income, up 86% and 78% year-over-year respectively.
Corporate Actions and Capital Returns
Board approved a Three-for-Two stock split (effective as a stock dividend), demonstrating confidence in capital position and shareholder-friendly action. U.K. consolidation of RJO entity released $20 million in capital.
Negative Updates
FX/CFD Revenue and Rate Compression
FX/CFD revenues declined 30% year-over-year (from a near-record prior year quarter); rate per million declined ~30% and average daily volume declined 4% year-over-year, driven by lower spread retention in self-directed business and muted FX volatility.
Self-Directed/Retail Segment Weakness
Self-directed retail net operating revenues down 34% year-over-year and segment income down 67% year-over-year, driven by a 41% decline in rate per million captured in FX/CFD contracts despite a 13% increase in average daily volumes.
Payments and Some Physical Subsegments Softness
Payments revenues down 3-4% year-over-year (although average daily volume was up 11% year-over-year and sequential improvement noted). Physical agricultural and energy revenues decreased by $19.8 million versus prior year, partially offset by precious metals gains.
Expense Growth and Legal/Integration Costs
Total fixed compensation and other expenses rose $75.6 million (31% year-over-year). Professional fees increased $13.8 million year-over-year primarily due to higher legal fees (including BTIG arbitration) and acquisition-related advisory fees; acquisition-related costs also increased near-term expenses.
FX/CFD Net Operating Revenues Decline on Trailing Basis
On a net basis, FX/CFD net operating revenues declined $30.8 million versus the prior year quarter and declined ~$60 million on a trailing 12-month basis.
Integration Uncertainties and Timing of Synergies
R.J. O'Brien integration is on track but synergies are still being confirmed; management continues to 'affirm' the targeted $50 million of cost synergies but noted realization will be phased, with larger entity consolidations targeted through fiscal 2026 and fiscal 2027.
Client Stress Risk in Extreme Volatility
Management noted that while volatility generally benefits the business, extreme market volatility can create liquidity/stress risks for clients that require active management and could negatively impact clients and, by extension, the firm.
Expense Run-Rate Pressure Early in Calendar Year
Management indicated a near-term tick-up in non-variable compensation at the start of the calendar year (merit increases, taxes, benefits), implying some seasonal expense pressure before synergies and efficiency gains materialize.
Company Guidance
Management said the R.J. O'Brien integration remains on track (U.K. entity migration completed, releasing $20M of capital; U.S. consolidation targeted by year‑end) and reaffirmed expected cost synergies of $50M to be realized across fiscal 2026–27 while expanding OTC products (power in Australia, carbon in Europe), opening Madrid and Paris offices and advancing digitization. They reiterated strong financial positioning after a record Q1 — net income $139M, diluted EPS $2.50 (up 63% and 48% YoY), operating revenues just over $1.4B (up 52% YoY), net operating revenues up 47% YoY, ROE 22.5% (32.4% return on tangible book), trailing‑12‑month net income $359.8M, diluted EPS $6.70 and ROE 16.9% — and highlighted product performance (listed derivatives op rev +141% YoY, physical contracts +69% YoY including $75M precious metals segment income, OTC +72%, securities +43%, FX/CFD down 30%). On the balance‑sheet and interest sensitivity front they noted book value per share $48.17, average client equity +100% (RJO added $5.8B), entry into $1.2B of fixed‑rate SOFR swaps (2‑yr duration, avg rate 3.32%), and that a 100‑bp short‑term rate move would change annualized net income by $43.2M (≈$0.80/sh); the Board also approved a three‑for‑two stock split (record Mar 10, distribution Mar 20, trading Mar 23).StoneX Group Financial Statement Overview
Summary
Solid top-line momentum and strong recent operating/free cash flow support the score, but very thin net margins (~0.23% TTM) and a highly leveraged balance sheet (debt-to-equity ~7.8x) materially increase sensitivity to spreads, expenses, and funding conditions.Income Statement
Revenue has expanded meaningfully over the period and is up 8.4% in TTM (Trailing-Twelve-Months), showing solid top-line momentum. Profitability is steady but thin: net margin is ~0.23% in TTM (Trailing-Twelve-Months), and operating profitability is modest (~1.4% EBIT margin). Overall, the business is growing, but earnings power is sensitive to small changes in spreads/expenses given the very low net margin.72
Positive
Balance Sheet
Leverage is the main constraint: debt-to-equity is high (~7.8x in the latest periods), which can amplify returns but increases risk if market/financing conditions tighten. Equity has grown versus earlier years, and returns on equity are solid (~15% in TTM (Trailing-Twelve-Months)), but the balance sheet remains meaningfully leveraged relative to the equity base.44
Neutral
Cash Flow
Cash generation is strong in TTM (Trailing-Twelve-Months) with operating cash flow of ~$3.62B and free cash flow of ~$3.55B, with free cash flow roughly in line with reported earnings (free cash flow to net income ~1.0x). However, cash flow has been volatile in prior annual periods (including negative operating/free cash flow in some years) and TTM (Trailing-Twelve-Months) free cash flow is down ~18%, suggesting working-capital and business-cycle sensitivity.63
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 143.47B | 132.38B | 99.89B | 60.86B | 66.04B | 42.53B |
| Gross Profit | 2.88B | 2.58B | 2.01B | 1.61B | 861.30M | 561.80M |
| EBITDA | 2.20B | 1.99B | 1.61B | 1.25B | 517.70M | 293.70M |
| Net Income | 359.80M | 305.90M | 260.80M | 238.50M | 207.10M | 116.30M |
Balance Sheet | ||||||
| Total Assets | 47.78B | 45.27B | 27.47B | 21.94B | 19.86B | 18.84B |
| Cash, Cash Equivalents and Short-Term Investments | 1.59B | 1.61B | 1.27B | 1.11B | 1.11B | 1.11B |
| Total Debt | 20.24B | 18.52B | 11.32B | 6.48B | 5.35B | 7.40B |
| Total Liabilities | 45.26B | 42.89B | 25.76B | 20.56B | 18.79B | 17.94B |
| Stockholders Equity | 2.52B | 2.38B | 1.71B | 1.38B | 1.07B | 904.00M |
Cash Flow | ||||||
| Free Cash Flow | 3.55B | 4.32B | 441.70M | -70.60M | -279.00M | 2.06B |
| Operating Cash Flow | 3.62B | 4.39B | 506.90M | -23.70M | -229.50M | 2.12B |
| Investing Cash Flow | -488.70M | -840.00M | -63.70M | -53.00M | -49.50M | -59.80M |
| Financing Cash Flow | 426.80M | 914.80M | 188.00M | -169.30M | 65.80M | -35.60M |
StoneX Group Technical Analysis
Positive
128.67
Price Trends
110.78
Positive
102.02
Positive
97.35
Positive
Market Momentum
5.34
Positive
60.93
Neutral
76.30
Neutral
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 128.67 is above the 20-day moving average (MA) of 123.39, above the 50-day MA of 110.78, and above the 200-day MA of 97.35, indicating a bullish trend. The MACD of 5.34 indicates Positive momentum. The RSI at 60.93 is Neutral, neither overbought nor oversold. The STOCH value of 76.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNEX.
StoneX Group Risk Analysis
StoneX Group disclosed 41 risk factors in its most recent earnings report. StoneX Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
StoneX Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.40B | 8.07 | 30.87% | 2.88% | 27.66% | 131.25% | |
71 Outperform | $4.78B | 20.18 | 46.14% | 3.69% | 51.19% | 456.59% | |
71 Outperform | $7.18B | 22.10 | 72.74% | 0.58% | 23.16% | 64.04% | |
70 Outperform | $6.69B | 19.01 | 16.17% | ― | 32.53% | 13.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $5.27B | 18.68 | 21.65% | 1.63% | 12.77% | 36.43% | |
60 Neutral | $4.75B | 21.36 | 30.59% | 4.06% | 1.58% | 1.93% |
* Financial Sector Average
SNEX
StoneX Group
127.50
45.35
55.21%
LAZ
Lazard
50.60
3.84
8.22%
PIPR
Piper Sandler
295.55
18.00
6.49%
MC
Moelis
59.36
-6.03
-9.23%
VIRT
Virtu Financial
41.41
5.81
16.32%
PJT
PJT Partners
147.68
-8.62
-5.51%
StoneX Group Corporate Events
Financial DisclosuresStock Split
StoneX Group Announces Three-for-Two Stock Split Plan
Positive
Feb 4, 2026
For the fiscal 2026 first quarter ended December 31, 2025, StoneX Group Inc. reported record net operating revenues of $724.4 million, up 47% year-on-year, and record net income of $139.0 million, translating into diluted earnings per share of $2.50 and a quarterly return on equity of 22.5%. Management attributed the strong performance to robust results in its Commercial and Institutional segments—particularly Global Metals and Securities—as well as the first full-quarter contribution from the acquired RJO and Benchmark businesses, underscoring the benefits of its expanding global ecosystem. On February 3, 2026, StoneX’s board approved a three-for-two stock split to be effected as a stock dividend, with additional shares to be distributed after the close of trading on March 20, 2026, to shareholders of record on March 10, 2026; the move is set to increase share liquidity, with trading on a split-adjusted basis expected to begin on March 23, 2026, potentially broadening the investor base and reinforcing confidence in the company’s growth trajectory.
The most recent analyst rating on (SNEX) stock is a Hold with a $117.00 price target. To see the full list of analyst forecasts on StoneX Group stock, see the SNEX Stock Forecast page.
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.