BGC Group, Inc
BGC Group, Inc Fundamental Analysis
BGC Group, Inc (BGC) shows moderate financial fundamentals with a PE ratio of 29.24, profit margin of 5.22%, and ROE of 16.18%. The company generates $3.0B in annual revenue with strong year-over-year growth of 11.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BGC's fundamental strength across five key dimensions:
Efficiency Score
WeakBGC struggles to generate sufficient returns from assets.
Valuation Score
ModerateBGC shows balanced valuation metrics.
Growth Score
ModerateBGC shows steady but slowing expansion.
Financial Health Score
ModerateBGC shows balanced financial health with some risks.
Profitability Score
ModerateBGC maintains healthy but balanced margins.
Key Financial Metrics
Is BGC Expensive or Cheap?
P/E Ratio
BGC trades at 29.24 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BGC's PEG of -4.83 indicates potential undervaluation.
Price to Book
The market values BGC Group, Inc at 4.66 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.11 times EBITDA. This is generally considered low.
How Well Does BGC Make Money?
Net Profit Margin
For every $100 in sales, BGC Group, Inc keeps $5.22 as profit after all expenses.
Operating Margin
Core operations generate 11.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.18 in profit for every $100 of shareholder equity.
ROA
BGC Group, Inc generates $3.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BGC Group, Inc generates limited operating cash flow of $212.74M, signaling weaker underlying cash strength.
Free Cash Flow
BGC Group, Inc produces free cash flow of $164.74M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.35 in free cash annually.
FCF Yield
BGC converts 3.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.85
vs 25 benchmark
Current Ratio
Current assets to current liabilities
89.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How BGC Stacks Against Its Sector Peers
| Metric | BGC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.24 | 18.73 | Worse (Expensive) |
| ROE | 16.18% | 847.00% | Weak |
| Net Margin | 5.22% | 3919.00% | Weak |
| Debt/Equity | 1.85 | 0.93 | Weak (High Leverage) |
| Current Ratio | 89.14 | 674.76 | Strong Liquidity |
| ROA | 3.52% | -21563.00% (disorted) | Weak |
BGC outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BGC Group, Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-23.07%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
110.40%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-4.86%
Industry Style: Value, Dividend, Cyclical
Declining