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CMC Markets

DB:T8Q
Snowflake Description

Adequate balance sheet unattractive dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
T8Q
DB
£577M
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

CMC Markets plc and its subsidiaries provide online retail financial services in the United Kingdom and internationally. The last earnings update was 132 days ago. More info.


Add to Portfolio Compare Print
  • CMC Markets has significant price volatility in the past 3 months.
T8Q Share Price and Events
7 Day Returns
16.6%
DB:T8Q
3%
DE Capital Markets
2.2%
DE Market
1 Year Returns
109.4%
DB:T8Q
-6.9%
DE Capital Markets
-17.2%
DE Market
T8Q Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CMC Markets (T8Q) 16.6% 11.7% 16.3% 109.4% 44.5% -
DE Capital Markets 3% -17.7% -13.1% -6.9% -24.7% -54.9%
DE Market 2.2% -15.7% -24% -17.2% -23.3% -27.8%
1 Year Return vs Industry and Market
  • T8Q outperformed the Capital Markets industry which returned -6.9% over the past year.
  • T8Q outperformed the Market in Germany which returned -17.2% over the past year.
Price Volatility
T8Q
Industry
5yr Volatility vs Market

Value

 Is CMC Markets undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CMC Markets to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CMC Markets.

DB:T8Q Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= £0.71 * 18.6%
£0.13
Book Value of Equity per Share Median Book Value from the past 5 years. £0.71
Discount Rate (Cost of Equity) See below 4.8%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:T8Q
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.75
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.753 (1 + (1- 19%) (5.3%))
0.856
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.86
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.856 * 6.07%)
4.81%

Discounted Cash Flow Calculation for DB:T8Q using Excess Returns Model Model

The calculations below outline how an intrinsic value for CMC Markets is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:T8Q Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (18.6% – 4.81%) * £0.71)
£0.10
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £0.10 / (4.81% - -0.39%)
£1.89
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £0.71 + £1.89
£2.6
DB:T8Q Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:T8Q represents 0.977x of LSE:CMCX
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.977x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 2.60 x 0.977
€2.54
Value per share (EUR) From above. €2.54
Current discount Discount to share price of €1.95
= -1 x (€1.95 - €2.54) / €2.54
23%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price CMC Markets is available for.
Intrinsic value
23%
Share price is €1.95 vs Future cash flow value of €2.54
Current Discount Checks
For CMC Markets to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • CMC Markets's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • CMC Markets's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CMC Markets's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CMC Markets's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:T8Q PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in GBP £0.09
LSE:CMCX Share Price ** LSE (2020-04-01) in GBP £2
Germany Capital Markets Industry PE Ratio Median Figure of 16 Publicly-Listed Capital Markets Companies 22.55x
Germany Market PE Ratio Median Figure of 398 Publicly-Listed Companies 16.76x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CMC Markets.

DB:T8Q PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:CMCX Share Price ÷ EPS (both in GBP)

= 2 ÷ 0.09

22.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CMC Markets is overvalued based on earnings compared to the DE Capital Markets industry average.
  • CMC Markets is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does CMC Markets's expected growth come at a high price?
Raw Data
DB:T8Q PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
-1.3%per year
Germany Capital Markets Industry PEG Ratio Median Figure of 6 Publicly-Listed Capital Markets Companies 1.59x
Germany Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

DB:T8Q PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.55x ÷ -1.3%

-16.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CMC Markets earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on CMC Markets's assets?
Raw Data
DB:T8Q PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in GBP £0.80
LSE:CMCX Share Price * LSE (2020-04-01) in GBP £2
Germany Capital Markets Industry PB Ratio Median Figure of 31 Publicly-Listed Capital Markets Companies 1.5x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.44x
DB:T8Q PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:CMCX Share Price ÷ Book Value per Share (both in GBP)

= 2 ÷ 0.80

2.49x

* Primary Listing of CMC Markets.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CMC Markets is overvalued based on assets compared to the DE Capital Markets industry average.
X
Value checks
We assess CMC Markets's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. CMC Markets has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is CMC Markets expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-1.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CMC Markets expected to grow at an attractive rate?
  • CMC Markets's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • CMC Markets's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • CMC Markets's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:T8Q Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:T8Q Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts -1.3%
DB:T8Q Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts -3.7%
Germany Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 39.4%
Germany Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 0.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:T8Q Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:T8Q Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 193 58 43 3
2021-03-31 193 50 41 3
2020-04-01
2020-03-31 233 66 77 3
DB:T8Q Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-09-30 161 62 26
2019-06-30 145 41 16
2019-03-31 129 20 6
2018-12-31 148 29 19
2018-09-30 167 37 32
2018-06-30 176 45 41
2018-03-31 186 53 50
2017-12-31 180 35 50
2017-09-30 174 16 49
2017-06-30 167 9 44
2017-03-31 160 2 39
2016-12-31 163 25 38

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CMC Markets's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • CMC Markets's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:T8Q Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from CMC Markets Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:T8Q Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 0.15 0.15 0.15 1.00
2021-03-31 0.14 0.14 0.14 1.00
2020-04-01
2020-03-31 0.26 0.26 0.26 1.00
DB:T8Q Past Financials Data
Date (Data in GBP Millions) EPS *
2019-09-30 0.09
2019-06-30 0.05
2019-03-31 0.02
2018-12-31 0.07
2018-09-30 0.11
2018-06-30 0.14
2018-03-31 0.17
2017-12-31 0.17
2017-09-30 0.17
2017-06-30 0.15
2017-03-31 0.14
2016-12-31 0.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • CMC Markets is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess CMC Markets's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CMC Markets has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has CMC Markets performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CMC Markets's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CMC Markets's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • CMC Markets's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • CMC Markets's 1-year earnings growth is negative, it can't be compared to the DE Capital Markets industry average.
Earnings and Revenue History
CMC Markets's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CMC Markets Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:T8Q Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 160.85 25.58 108.46
2019-06-30 145.17 15.73 105.24
2019-03-31 129.49 5.88 102.03
2018-12-31 148.19 19.18 105.14
2018-09-30 166.89 32.48 107.57
2018-06-30 176.49 41.08 106.61
2018-03-31 186.08 49.69 105.64
2017-12-31 180.14 49.59 100.79
2017-09-30 174.20 49.50 95.95
2017-06-30 167.22 44.33 94.67
2017-03-31 160.24 39.16 93.40
2016-12-31 162.85 38.13 71.80
2016-09-30 165.46 37.09 50.20
2016-06-30 167.11 39.78 27.50
2016-03-31 168.76 42.46 4.80
2015-12-31 165.83 42.97 4.87
2015-09-30 162.90 43.47 4.94
2015-06-30 152.93 39.11 5.27
2015-03-31 142.96 34.74 5.59
2014-03-31 121.46 23.96 5.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • CMC Markets has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • CMC Markets used its assets more efficiently than the DE Capital Markets industry average last year based on Return on Assets.
  • Unable to establish if CMC Markets improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess CMC Markets's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CMC Markets has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is CMC Markets's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CMC Markets's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CMC Markets is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • CMC Markets's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of CMC Markets's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 30.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CMC Markets Company Filings, last reported 6 months ago.

DB:T8Q Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 231.61 9.15 64.77
2019-06-30 231.61 9.15 64.77
2019-03-31 205.08 5.02 51.61
2018-12-31 205.08 5.02 51.61
2018-09-30 211.38 38.76 52.83
2018-06-30 211.38 38.76 52.83
2018-03-31 220.03 5.09 67.80
2017-12-31 220.03 5.09 67.80
2017-09-30 203.96 22.71 43.49
2017-06-30 203.96 22.71 43.49
2017-03-31 195.77 8.37 55.16
2016-12-31 195.77 8.37 55.16
2016-09-30 178.41 5.95 43.39
2016-06-30 178.41 5.95 43.39
2016-03-31 176.33 5.07 79.08
2015-12-31 176.33 5.07 79.08
2015-09-30 152.53 0.67 40.09
2015-06-30 152.53 0.67 40.09
2015-03-31 142.32 0.90 41.89
2014-03-31 119.58 2.11 58.43
  • CMC Markets's level of debt (4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (1.1% vs 4% today).
  • Debt is well covered by operating cash flow (679.9%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on CMC Markets's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess CMC Markets's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CMC Markets has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is CMC Markets's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.02%
Current annual income from CMC Markets dividends. Estimated to be 3.5% next year.
If you bought €2,000 of CMC Markets shares you are expected to receive €20 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • CMC Markets's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.65%).
  • CMC Markets's dividend is below the markets top 25% of dividend payers in Germany (4.87%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:T8Q Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Germany Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 3.2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 322 Stocks 3.8%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:T8Q Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 0.07 3.00
2021-03-31 0.07 3.00
2020-04-01
2020-03-31 0.12 4.00
DB:T8Q Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-07-25 0.020 1.603
2018-11-22 0.073 7.756
2018-07-26 0.089 6.162
2017-07-27 0.089 5.374
2016-09-07 0.107 7.672

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CMC Markets has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • CMC Markets has only been paying a dividend for 4 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of CMC Markets's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess CMC Markets's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CMC Markets afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CMC Markets has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of CMC Markets's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Peter Cruddas
COMPENSATION £434,400
AGE 66
TENURE AS CEO 7.1 years
CEO Bio

Dr. Peter Andrew Cruddas founded CMC Markets Plc in 1989 and has been its Chief Executive Officer since 1989. Dr. Cruddas serves as Chairman and Chief Executive Officer of CMC Markets UK Plc and served as its Managing Director. Prior to establishing CMC, Dr. Cruddas served as the Chief Dealer and Group Treasury Advisor at S.C.F. Equity Services, where he was responsible for all the activities of a dealing room whose principal activities were trading futures and options in currencies, precious metals, commodities, financials and spot forwards on foreign exchange and bullion. Dr. Cruddas is the Chairman of CMC Markets UK Plc. Dr. Cruddas has been a Director at CMC Markets Plc since June 1, 2004 and served as its Director since December 1, 1989.

CEO Compensation
  • Peter's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Peter's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the CMC Markets management team in years:

1
Average Tenure
42
Average Age
  • The average tenure for the CMC Markets management team is less than 2 years, this suggests a new team.
Management Team

Peter Cruddas

TITLE
Founder
COMPENSATION
£434K
AGE
66
TENURE
7.1 yrs

David Fineberg

TITLE
Group Commercial Director
COMPENSATION
£335K
AGE
40
TENURE
1 yrs

Euan Marshall

TITLE
CFO & Director
AGE
42
TENURE
0.8 yrs

Oliver Basi

TITLE
General Counsel
AGE
40

Marie-Claude Warnotte

TITLE
Group Head of Human Resources
AGE
55

Matthew Lewis

TITLE
Head of Asia Pacific & Canada and Director
AGE
42

Matthew Macklin

TITLE
Head of European Distribution
AGE
40

Greg Niebank

TITLE
Group Head of Product
AGE
42

Luke Welch

TITLE
Global Head of Business Intelligence
AGE
39

Dave Worsfold

TITLE
Group Head of Operations
AGE
48
Board of Directors Tenure

Average tenure and age of the CMC Markets board of directors in years:

2.5
Average Tenure
49
Average Age
  • The average tenure for the CMC Markets board of directors is less than 3 years, this suggests a new board.
Board of Directors

James Richards

TITLE
Independent Chairman
COMPENSATION
£160K
AGE
62
TENURE
2.3 yrs

Peter Cruddas

TITLE
Founder
COMPENSATION
£434K
AGE
66
TENURE
15.8 yrs

David Fineberg

TITLE
Group Commercial Director
COMPENSATION
£335K
AGE
40
TENURE
6.3 yrs

Euan Marshall

TITLE
CFO & Director
AGE
42
TENURE
0.4 yrs

Matthew Lewis

TITLE
Head of Asia Pacific & Canada and Director
AGE
42
TENURE
0.4 yrs

Sarah Ing

TITLE
Independent Non-Executive Director
COMPENSATION
£70K
TENURE
2.6 yrs

Clare Salmon

TITLE
Independent Non-Executive Director
COMPENSATION
£70K
AGE
56
TENURE
2.5 yrs

Paul Wainscott

TITLE
Senior Independent Director
COMPENSATION
£78K
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
30. Aug 19 Sell David Fineberg Individual 29. Aug 19 29. Aug 19 -11,400 €1.03 €-11,726
30. Aug 19 Buy David Fineberg Individual 29. Aug 19 29. Aug 19 11,400 €1.04 €11,799
X
Management checks
We assess CMC Markets's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CMC Markets has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

CMC Markets plc and its subsidiaries provide online retail financial services in the United Kingdom and internationally. It operates in three segments: UK and Ireland, Europe, and Australia, New Zealand and Singapore (APAC) and Canada. The company provides its clients with the ability to trade contracts for difference and financial spread betting on a range of underlying shares, indices, foreign currencies, commodities, and treasuries through its trading platform. It also offers Australian clients the opportunity to trade Australian and selected international instruments, including shares, options, managed funds, warrants, and exchange traded funds. In addition, the company provides four types of digital 100s, such as Ladder, One Touch, Up/Down, and Range; and Countdowns. Further, the company offers its clients a range of education opportunities through weekly and monthly webinars and seminars, as well as Trader Development programme, which provides a range of in-platform, on-demand education, and tailored market commentary. CMC Markets plc was founded in 1989 and is headquartered in London, the United Kingdom.

Details
Name: CMC Markets Plc
T8Q
Exchange: DB
Founded: 1989
£654,386,570
288,609,880
Website: http://www.cmcmarkets.com
Address: CMC Markets Plc
133 Houndsditch,
London,
Greater London, EC3A 7BX,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE CMCX Ordinary Shares London Stock Exchange GB GBP 05. Feb 2016
OTCPK CCMM.F Ordinary Shares Pink Sheets LLC US USD 05. Feb 2016
DB T8Q Ordinary Shares Deutsche Boerse AG DE EUR 05. Feb 2016
BATS-CHIXE CMCXL Ordinary Shares BATS 'Chi-X Europe' GB GBP 05. Feb 2016
Number of employees
Current staff
Staff numbers
687
CMC Markets employees.
Industry
Investment Banking and Brokerage
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/01 22:51
End of day share price update: 2020/04/01 00:00
Last estimates confirmation: 2020/03/28
Last earnings filing: 2019/11/21
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.