BGC Group, Inc. (BGC) stock analysis

P/E below its 5-year median

BGC's P/E of 22.6 is below its own 5-year median of 34.5.

P/E below the industry

BGC's P/E of 22.6 is below the Security & commodity brokers, dealers, exchanges & services median of 25.3.

EV/EBITDA below its 5-year median

BGC's EV/EBITDA of 14.4 is below its 5-year median of 18.0.

P/B above the industry

BGC's price-to-book of 4.84 is above the Security & commodity brokers, dealers, exchanges & services median of 4.26.

Trading below fair value

The share price of $11.07 is below our fair value estimate of $13.09.

Margin of safety under 20%

The price is 15.4% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 17.9% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 33.6% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 49.5% over the last twelve months, against a 5-year average of 24.9% a year.

Growing faster than the industry

Revenue grew 22.9% over the last twelve months; the Security & commodity brokers, dealers, exchanges & services median is 14.4%.

Guidance issued

The latest outlook (3Q 2026 Revenues, Jul 30, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 23.6% over the last twelve months and averaged 13.4% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

BGC's return on equity of 23.6% is above the Security & commodity brokers, dealers, exchanges & services median of 14.2%.

Earnings grew over 5 years

Net income grew 24.9% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 7.1% over the last twelve months, against a 5-year average of 4.7%.

Net margin above the industry

BGC's net margin of 7.1% is above the Security & commodity brokers, dealers, exchanges & services median of 3.6%.

High debt

Debt is 163% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 175% five years ago to 163%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 33.9% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 1.12; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

BGC paid dividends worth 0.7% of the share price over the last twelve months.

Yield below Treasuries

The 0.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; BGC yields 0.7%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 15.9% of net income.

Covered by free cash flow

Dividends take 7.0% of free cash flow.