CMC Markets (CMCX)

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CMC Markets CMCX Logo

Established in 1989 and now one of the world’s leading online financial trading businesses – Serving retail and institutional clients through regulated offices and branches in 14 countries.

23-Nov-2017 – 166.75p – £478.3m – PER 13.1

Interim Results For The 6 Months To End September 2017 – Revenue up 19% (£89.6m) and PBT up58% (£29.8m) on high value client business. H2 trades in-line although there are still concerns regarding regulatory uncertainty. This comment is worthy of a thought “the Group considers a greater level of regulation could give it a competitive advantage as some smaller, less established players may find it more challenging to meet the new requirements”.

Yielding 5% (reasonably well covered) or so if you wish to accept the potential regulatory impact – This looks decent value here.

29-Mar-2018 – 155.2p – £448.5m – PER 12.6

Trading Update – Seems quite cautious to me.

There is uncertainty related to the recent (and potentially more) regulatory introductions here. Looks decent value with a decent yield but, with the potential for (downside) surprises, it’s just not for me at present.

22-Nov-2018 – 118.6p – £342.8m – PER 9.97

Results For The 6 Months To End September 2018 – Income down -21%, PBT down -76% and EPS down -69% on an increase in trades (14%) and a reduction in active clients of 4% – Even Revenue per active client is down -22%.

Still too much uncertainty here and the fall in Revenue per active client is not encouraging at all – I’m still Neutral.

3-Apr-2019 – 84p – £242m – PER 9.3

Trading Update For The 12 Months To End March 2019 – Expects to report CFD and Spread Bet Revenue down -37% on last year due to clients using more money for funding requirements.

I still see a little too much uncertainty here (in the sector in general, suspecting CMC or IG to win the long game here, not sure the winner though will be hugely profitable!).

6-Jun-2019 – 89p – £258m – PER 11.2

Results For The 12 Months To End March 2019 – Income down -30%, PBT down -89%, EPS down -88%, Dividend down -77%. 2020 started in-line.

I said this last time and it still feels appropriate – “I still see a little too much uncertainty here (in the sector in general, suspecting CMC or IG to win the long game here, not sure the winner though will be hugely profitable!)”.

25-Jul-2019 – 98p – £283m – PER 12

Q1 Trading Update – LFL Net operating income up but costs marginally higher. Early in the year but still guides FY in-line.

Perhaps there’s value here but the potential of additional regulation still keeps me away from the sector in general.

3-Oct-2019 – 106p – £307m – PER 15

Trading Update For The 6 Months To End September 2019 – Revenue growth strong (mainly due to white label partnerships in Australia), confident FY Operating Income (Revenue I assume) wll exceed £170m and PBT will increase.

This looks quite good and perhaps there is still value to be had here, I will wait to see how the FY actuals look.

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