StoneX Group (SNEX) AI Stock Analysis

• Market Cap: $4.14B
• Dividend Yield: N/A
• Average Volume (3M): 388.65K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.82
• Revenue Growth: 67.71%
• EPS Growth: 19.42%
• Country: US
• Employees: 4,709
• Sector: Financial
• Sector Strength: 83
• Industry: Financial - Capital Markets
• EPS (TTM): 1.41
• Shares Outstanding: 48,916,600
• 10 Day Avg. Volume: 254,593
• 30 Day Avg. Volume: 388,649
• PEG Ratio: 1.82
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.28
• Enterprise Value/Market Cap: 3.66
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 7.12
• Enterprise Value/Ebitda: 2.44
• 1Y Price Target: $102.00
• Price Target Upside: 21.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $97.00 ▲(15.75%Upside)

StoneX Group exhibits strong revenue growth and strategic expansions, such as the merger with R.J. O'Brien, that bolster its market position. Technical indicators suggest stable momentum, while valuation remains reasonable. However, liquidity issues and high leverage present risks that need addressing for long-term stability.

Positive Factors

Earnings Growth

EPS growth accelerated to 29% as elevated volatility, a key driver of the business, more than offset building interest rate headwinds.

Market Positioning

StoneX announced an agreement to acquire R.J. O’Brien, which would create the largest nonbank futures commission merchant in the industry.

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.

Strategic Acquisitions

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

Negative Factors

Financial Leverage

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

Return on Equity

Declining interest rates should be a headwind to ROE over the next few years.

StoneX Group Business Overview & Revenue Model

Company Description

StoneX Group Inc. (SNEX) is a financial services organization that operates globally, providing a comprehensive range of services across various sectors including institutional trading, commercial hedging, retail trading, and clearing and execution services. The company serves a diverse client base, including corporations, financial institutions, and individual traders, leveraging its capabilities in risk management, market access, and financial intelligence to deliver tailored solutions.

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 exhibits robust revenue growth and a strong return on equity. However, operational margins are low, and liquidity issues persist with negative cash flows. Despite having no debt in the TTM period, high liabilities relative to assets present potential risks.

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
2.13B	2.01B	1.61B	1.12B	937.00M	793.00M
	EBIT
1.61B	1.53B	1.62B	536.00M	462.00M	368.00M
	EBITDA
1.70B	1.61B	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
1.40B	1.27B	1.11B	430.00M	747.00M	358.00M
	Total Assets
29.59B	27.47B	21.94B	3.44B	3.31B	3.04B
	Total Debt
12.22B	11.32B	6.48B	5.35B	146.60M	118.70M
	Net Debt
10.82B	10.05B	5.37B	5.00B	-465.40M	-182.30M
	Total Liabilities
27.81B	25.76B	20.56B	2.67B	2.43B	2.44B
	Stockholders Equity
1.78B	1.71B	1.38B	780.00M	882.00M	603.00M
Cash Flow		Free Cash Flow
-153.30M	441.70M	-70.60M	506.00M	178.00M	510.00M
	Operating Cash Flow
-87.20M	388.60M	-23.70M	562.00M	218.00M	546.00M
	Investing Cash Flow
-72.60M	-63.70M	-53.00M	-226.00M	-135.00M	-151.00M
	Financing Cash Flow
299.30M	188.00M	-169.30M	-536.00M	12.00M	-208.00M

StoneX Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 83.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNEX, the sentiment is Neutral. The current price of 83.8 is below the 20-day moving average (MA) of 86.96, above the 50-day MA of 83.33, and above the 200-day MA of 70.02, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 34.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SNEX.

StoneX Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BGC	76 Outperform	$4.53B	35.16	14.17%	0.86%	13.28%	117.88%
PJT	75 Outperform	$5.25B	26.43	96.33%	0.66%	16.04%	60.32%
LAZ	72 Outperform	$4.04B	14.97	59.68%	4.58%	9.54%	―
SNEX	71 Outperform	$4.14B	14.40	16.69%	―	67.71%	19.42%
PIPR	71 Outperform	$4.55B	22.38	17.59%	1.01%	12.29%	99.57%
MC	69 Neutral	$4.59B	26.05	39.98%	4.39%	45.14%	―
Sector *	64 Neutral	$12.79B	9.71	7.54%	16971.00%	12.07%	-7.53%

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.

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.