BGC Group, Inc Fundamental Analysis (NASDAQ: BGC)
BGC Group, Inc Fundamental Analysis (NASDAQ: BGC)
BGC Group, Inc (NASDAQ: BGC) shows moderate financial fundamentals with a PE ratio of 24.35, profit margin of 5.91%, and ROE of 19.20%. The company generates $3.4B in annual revenue with strong year-over-year growth of 36.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.8/100 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
ExcellentBGC trades at attractive valuation levels.
Growth Score
ExcellentBGC delivers strong and consistent growth momentum.
Financial Health Score
WeakBGC carries high financial risk with limited liquidity.
Profitability Score
ModerateBGC maintains healthy but balanced margins.
Key Financial Metrics
Is BGC Expensive or Cheap?
P/E Ratio
BGC trades at 24.35 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BGC's PEG of 0.61 indicates potential undervaluation.
Price to Book
The market values BGC Group, Inc at 4.36 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.47 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 $5.91 as profit after all expenses.
Operating Margin
Core operations generate 11.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.20 in profit for every $100 of shareholder equity.
ROA
BGC Group, Inc generates $3.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BGC Group, Inc produces operating cash flow of $449.90M, showing steady but balanced cash generation.
Free Cash Flow
BGC Group, Inc generates strong free cash flow of $399.10M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.84 in free cash annually.
FCF Yield
BGC converts 8.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.60
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How BGC Stacks Against Its Sector Peers
| Metric | BGC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.35 | 21.17 | Worse (Expensive) |
| ROE | 19.20% | 668.00% | Weak |
| Net Margin | 5.91% | 1006.00% | Weak |
| Debt/Equity | 1.60 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.00 | 905.28 | Weak Liquidity |
| ROA | 3.46% | 4469147.00% | Weak |
BGC outperforms its industry in 0 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
11.73%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
161.14%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-16.22%
Industry Style: Value, Dividend, Cyclical
Declining