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CMC Markets PLC (GB:CMCX)
LSE:CMCX

CMC Markets (CMCX) AI Stock Analysis

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GB

CMC Markets

(LSE:CMCX)

Rating:77Outperform
Price Target:
295.00p
▲(13.46%Upside)
CMC Markets demonstrates strong financial health and strategic initiatives aimed at growth, reflected in a high overall score. While technical indicators are mixed, the company's valuation and corporate events, such as leadership changes and shareholder returns, support a positive investment outlook.

CMC Markets (CMCX) vs. iShares MSCI United Kingdom ETF (EWC)

CMC Markets Business Overview & Revenue Model

Company DescriptionCMC Markets plc, together with its subsidiaries, provides online retail financial services to retail, professional, stockbroking, and institutional clients in the United Kingdom, Ireland, Europe, Australia, New Zealand, Singapore, Canada, and internationally. The company offers its clients with the ability to trade contracts for difference and financial spread betting on a range of underlying shares, including indices, foreign currencies, commodities, cryptocurrencies, shares and ETFs, and treasuries through its trading platform. It also provides a range of education services through tools and resources, trading webinars and events, platform guides, advanced trading strategies, articles from market analysts, and others. The company was founded in 1989 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyCMC Markets generates revenue primarily through the trading activity of its clients. The main revenue streams include spreads, which are the differences between the buy and sell prices of trading instruments, and commissions on trades. Additionally, the company earns income from financing charges on positions held overnight by clients. CMC Markets also benefits from technology-related services, providing trading platforms and solutions to institutional clients. The company's earnings are influenced by market volatility, trading volumes, and the acquisition and retention of active clients. Significant partnerships with financial institutions and continuous investment in technology and client service also contribute to its financial performance.

CMC Markets Financial Statement Overview

Summary
CMC Markets exhibits a strong financial profile with robust cash flow and balance sheet performance. The company has a low debt-to-equity ratio and strong margins, indicating operational efficiency and financial stability. However, revenue growth remains flat, which slightly tempers the overall financial assessment.
Income Statement
78
Positive
CMC Markets has demonstrated solid gross and net profit margins over the years. The gross profit margin for the latest year is 62.89%, and the net profit margin is 17.27%. Revenue growth has been relatively flat, with a slight increase of 0.10% from the previous year. The EBIT and EBITDA margins are also strong at 24.87% and 27.88%, respectively. The consistent profitability and healthy margins reflect operational efficiency, although revenue growth remains a challenge.
Balance Sheet
81
Very Positive
The balance sheet of CMC Markets is robust, with a low debt-to-equity ratio of 0.034 indicating minimal leverage. The company maintains a high equity ratio of 57.09%, suggesting a strong capital structure and financial stability. Return on equity (ROE) is at 14.88%, showcasing effective use of equity to generate profits. The company's financial position is stable, with good liquidity and low risk of financial distress.
Cash Flow
85
Very Positive
CMC Markets exhibits a strong cash flow position with a significant improvement in free cash flow, which grew by 176.06% year-over-year. The operating cash flow to net income ratio is 2.82, indicating excellent cash generation relative to net income. The free cash flow to net income ratio is also strong at 2.67. These metrics suggest excellent cash management and the ability to fund operations and investments without relying on external financing.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
360.10M359.75M322.17M323.85M455.52M
Gross Profit
226.42M214.31M269.81M266.77M391.99M
EBIT
89.56M65.57M61.84M101.30M225.55M
EBITDA
100.37M92.71M77.48M113.69M236.79M
Net Income Common Stockholders
62.19M46.89M41.44M71.48M178.11M
Balance SheetCash, Cash Equivalents and Short-Term Investments
328.22M211.19M176.79M191.07M147.03M
Total Assets
731.98M716.86M586.42M646.81M577.63M
Total Debt
14.34M16.91M11.82M14.45M16.46M
Net Debt
-233.32M-143.38M-134.40M-162.13M-102.46M
Total Liabilities
314.01M313.37M212.41M277.93M177.12M
Stockholders Equity
417.97M403.49M374.01M368.88M400.52M
Cash FlowFree Cash Flow
166.25M60.21M42.94M140.27M105.53M
Operating Cash Flow
175.35M80.08M71.16M156.08M117.72M
Investing Cash Flow
-41.35M-41.57M-31.16M-17.64M-17.71M
Financing Cash Flow
-41.31M-21.01M-69.06M-82.16M-69.34M

CMC Markets Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price260.00
Price Trends
50DMA
246.33
Positive
100DMA
232.67
Positive
200DMA
262.09
Negative
Market Momentum
MACD
1.71
Positive
RSI
50.49
Neutral
STOCH
41.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CMCX, the sentiment is Neutral. The current price of 260 is below the 20-day moving average (MA) of 266.90, above the 50-day MA of 246.33, and below the 200-day MA of 262.09, indicating a neutral trend. The MACD of 1.71 indicates Positive momentum. The RSI at 50.49 is Neutral, neither overbought nor oversold. The STOCH value of 41.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:CMCX.

CMC Markets Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
£724.29M11.4915.14%2.39%-0.07%34.54%
65
Neutral
$12.93B9.817.84%78.03%12.20%-7.74%
$727.42M5.88-6.71%
82
Outperform
£1.32B14.4937.13%0.90%18.79%4.95%
GBIGG
82
Outperform
£3.72B10.9419.85%2.59%6.34%30.64%
82
Outperform
£2.43B12.0940.24%5.73%2.95%9.84%
77
Outperform
£1.93B11.998.13%8.59%2.63%132.46%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CMCX
CMC Markets
260.00
9.38
3.74%
CBGPF
Close Brothers Group
5.20
-0.24
-4.41%
GB:ALPH
Alpha FX
3,050.00
667.48
28.02%
GB:IGG
IG Group Holdings
1,076.00
319.78
42.29%
GB:PLUS
Plus500
3,390.00
1,340.17
65.38%
GB:TCAP
TP ICap
259.50
70.90
37.59%

CMC Markets Corporate Events

Shareholder MeetingsDividends
CMC Markets Confirms Final Dividend Details for 2025
Positive
Jun 12, 2025

CMC Markets Plc has announced the confirmation of its final dividend details for the year ending 31 March 2025. The company plans to pay a final dividend of 8.3 pence per share on 15 August 2025, subject to shareholder approval at the upcoming Annual General Meeting. Shareholders have the option to reinvest their dividends through the Dividend Reinvestment Plan, with elections due by 25 July 2025. This announcement underscores CMC Markets’ commitment to returning value to its shareholders and may impact investor sentiment positively.

The most recent analyst rating on (GB:CMCX) stock is a Hold with a £2.46 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.

Other
CMC Markets Deputy CEO Acquires Shares Under Incentive Plan
Positive
Jun 6, 2025

CMC Markets announced that David John Fineberg, the Deputy Chief Executive Officer, has acquired shares under the company’s UK Share Incentive Plan. This transaction, involving the acquisition of 124 ordinary shares at a price of 242.00p each, reflects ongoing managerial engagement with the company’s equity, potentially signaling confidence in its market positioning and future performance.

The most recent analyst rating on (GB:CMCX) stock is a Sell with a £2.46 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.

Financial DisclosuresRegulatory Filings and Compliance
CMC Markets Releases 2025 Annual Report
Neutral
Jun 5, 2025

CMC Markets Plc has released its Annual Report and Financial Statements for the year ending 31 March 2025. The report, now available on the company’s website and submitted to the National Storage Mechanism, provides stakeholders with insights into the company’s financial performance and compliance with UK Listing Rules, reinforcing its commitment to transparency and regulatory adherence.

The most recent analyst rating on (GB:CMCX) stock is a Hold with a £2.46 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.

Shareholder MeetingsDividends
CMC Markets Proposes Final Dividend for 2025
Positive
Jun 5, 2025

CMC Markets Plc has announced a proposed final dividend of 8.3 pence per share for the year ending 31 March 2025, subject to shareholder approval at the upcoming Annual General Meeting. This decision reflects the company’s ongoing commitment to returning value to its shareholders and may impact its financial positioning and stakeholder relations.

The most recent analyst rating on (GB:CMCX) stock is a Hold with a £2.46 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
CMC Markets Announces Strategic Leadership Changes
Positive
Jun 5, 2025

CMC Markets plc has announced significant changes to its Board of Directors and senior leadership team. David Fineberg will transition to the role of Global Head of Strategic Partnerships, focusing on institutional relationships and growth through partnerships. Matthew Lewis will concentrate on expanding the company’s presence in the ANZ region, particularly in stockbroking and digital asset services. Laurence Booth has been appointed as an Executive Director, while James Richards will step down as Chairman, succeeded by Paul Wainscott. These changes are aimed at strengthening CMC’s strategic direction and market positioning.

The most recent analyst rating on (GB:CMCX) stock is a Hold with a £2.46 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
CMC Markets Advances Web 3.0 Strategy with DeFi Expansion
Positive
Jun 5, 2025

CMC Markets has reported a 12% increase in underlying EBITDA to £103.4 million for the year ending March 31, 2025, and a 33% rise in profit before tax to £84.5 million. The company is advancing its Web 3.0 strategy by launching a third vertical focused on Decentralized Finance (DeFi) and blockchain technology, aiming to position itself at the forefront of next-generation financial services. This strategic move includes initiatives such as 24/7 crypto trading and the acquisition of StrikeX, enhancing CMC’s digital asset capabilities. The company also reported strong financial performance with record net operating income in Australian stockbroking and significant growth in interest income, while maintaining disciplined cost management and expanding its global footprint.

The most recent analyst rating on (GB:CMCX) stock is a Hold with a £275.00 price target. To see the full list of analyst forecasts on CMC Markets stock, see the GB:CMCX Stock Forecast page.

Other
CMC Markets’ Deputy CEO Acquires Shares Under Incentive Plan
Neutral
May 7, 2025

CMC Markets plc has announced a transaction involving its Deputy Chief Executive Officer, David John Fineberg, who acquired ordinary shares under the company’s UK Share Incentive Plan. This acquisition of 118 shares at a price of 255.00p each took place on May 6, 2025, on the XLON exchange. The transaction highlights the company’s ongoing commitment to aligning managerial interests with shareholder value, potentially impacting investor confidence and market perception.

Business Operations and Strategy
CMC Markets Deputy CEO Acquires Shares Under Incentive Plan
Positive
Apr 8, 2025

CMC Markets Plc announced that David John Fineberg, the Deputy Chief Executive Officer, has acquired ordinary shares under the company’s UK Share Incentive Plan. This transaction, involving 152 shares at a price of 197.00p each, reflects ongoing managerial investment in the company, potentially signaling confidence in its future prospects and stability within the financial services sector.

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.