OTC Markets Group Inc.
OTC Markets Group Inc. Fundamental Analysis
OTC Markets Group Inc. (OTCM) shows strong financial fundamentals with a PE ratio of 19.08, profit margin of 25.89%, and ROE of 71.29%. The company generates $0.1B in annual revenue with strong year-over-year growth of 19.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 86.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze OTCM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentOTCM demonstrates superior asset utilization.
Valuation Score
ExcellentOTCM trades at attractive valuation levels.
Growth Score
ExcellentOTCM delivers strong and consistent growth momentum.
Financial Health Score
ExcellentOTCM maintains a strong and stable balance sheet.
Profitability Score
ExcellentOTCM achieves industry-leading margins.
Key Financial Metrics
Is OTCM Expensive or Cheap?
P/E Ratio
OTCM trades at 19.08 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, OTCM's PEG of 1.00 indicates fair valuation.
Price to Book
The market values OTC Markets Group Inc. at 14.50 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.66 times EBITDA. This signals the market has high growth expectations.
How Well Does OTCM Make Money?
Net Profit Margin
For every $100 in sales, OTC Markets Group Inc. keeps $25.89 as profit after all expenses.
Operating Margin
Core operations generate 31.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $71.29 in profit for every $100 of shareholder equity.
ROA
OTC Markets Group Inc. generates $34.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
OTC Markets Group Inc. generates strong operating cash flow of $50.22M, reflecting robust business health.
Free Cash Flow
OTC Markets Group Inc. generates strong free cash flow of $49.59M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.12 in free cash annually.
FCF Yield
OTCM converts 7.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.003
vs 25 benchmark
P/B Ratio
Price to book value ratio
14.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.71
vs 25 benchmark
ROA
Return on assets percentage
0.35
vs 25 benchmark
ROCE
Return on capital employed
0.76
vs 25 benchmark
How OTCM Stacks Against Its Sector Peers
| Metric | OTCM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.08 | 18.88 | Neutral |
| ROE | 71.29% | 801.00% | Weak |
| Net Margin | 25.89% | 2213.00% | Weak |
| Debt/Equity | 0.20 | 1.03 | Strong (Low Leverage) |
| Current Ratio | 1.48 | 615.97 | Neutral |
| ROA | 34.79% | -19854.00% (disorted) | Strong |
OTCM outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews OTC Markets Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
71.78%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
65.04%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
81.12%
Industry Style: Value, Dividend, Cyclical
High Growth