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Marex Group plc (MRX)
:MRX
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Marex Group plc
(NASDAQ:MRX)
71Outperform
Positive Factors
Client Balances
Client balances increased significantly to $15.5B from $13.8B in the previous quarter and $10.9B in the same quarter last year.
Earnings Growth
Marex Group delivered strong recurring earnings growth of 34% year-over-year in 2024, capitalizing on increased market volatility and heightened client activity.
Revenue Increase
MRX reported total revenue of $416M, which grew 20% year-over-year and 6% quarter-over-quarter.
Negative Factors
Acquisition Activity
MRX has not announced any new acquisitions since the Hamilton Court announcement, attributed to a tougher deal-making backdrop.
Stock Valuation
The stock has experienced a robust rally, with a 64% increase in 2024 and 16% YTD, but there is limited room for further upward re-rating.
Marex Group plc (MRX) vs. S&P 500 (SPY)
Market Cap
$2.35B
Dividend Yield0.84%
Average Volume (3M)493.13K
Price to Earnings (P/E)11.3
Beta (1Y)0.99
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees2,425
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)2.88
Shares Outstanding70,290,886
10 Day Avg. Volume514,013
30 Day Avg. Volume493,130
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)22763.10
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$40.25Price Target Upside20.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Marex Group plc Business Overview & Revenue Model
Company DescriptionMarex Group plc (MRX) is a leading global financial services company that operates in the commodities and financial markets. It provides a wide range of services including market-making, execution, and clearing services across various asset classes such as metals, agricultural products, energy, and financial futures and options. Marex is known for its deep expertise in these markets, offering clients access to liquidity and risk management solutions through its extensive trading infrastructure.
How the Company Makes MoneyMarex Group makes money through several key revenue streams. Primarily, the company generates income from trading and market-making activities in commodities and financial markets, where it earns spreads on buy and sell transactions. Marex also earns fees from providing clearing and execution services for its clients, including hedge funds, asset managers, and other institutional investors. Additionally, the company offers risk management and hedging solutions, which contribute to its revenue by providing tailored financial products to help clients manage their market exposure. Strategic partnerships and collaborations with exchanges and other financial institutions also play a role in enhancing Marex's service offerings and expanding its market reach, thereby contributing to its earnings.
Marex Group plc Financial Statement Overview
Summary
Marex Group plc demonstrates strong financial health with impressive revenue and profit growth, supported by substantial cash flow generation. The income statement shows robust margins and significant revenue growth. The balance sheet indicates manageable leverage, though higher than ideal, balanced by strong equity growth. Cash flow statements highlight excellent cash generation capabilities. Overall, the company's financial position is strong, though careful monitoring of leverage is advised.Income Statement
The company exhibits strong revenue growth, increasing from $549.2 million in 2019 to $1,882.1 million in 2023, indicating a significant upward trajectory. Gross profit margins are robust, consistently above 30%, and net profit margin improved to 6.8% in 2023. EBIT and EBITDA margins have shown positive trends, further solidifying profitability. However, the volatility in revenue growth rates and the reliance on non-recurring gains in earlier years present potential risks.85
Very Positive
Balance Sheet
The balance sheet reflects a strong equity position with a debt-to-equity ratio of 4.09 in 2023, indicating higher leverage risk but within manageable limits due to substantial equity growth. The equity ratio of 4.37% is low, suggesting potential reliance on debt financing. Despite the high liabilities, the company maintains a solid asset base, which supports its capital structure.75
Positive
Cash Flow
Cash flow from operations is robust, with significant improvements, reaching $735 million in 2023. Free cash flow growth is impressive, nearly tripling from 2022, indicating strong cash generation capability. The operating cash flow to net income ratio is healthy, suggesting efficient conversion of income to cash. However, some fluctuations in investing and financing cash flows highlight areas for monitoring.90
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.82B | 1.88B | 1.01B | 825.30M | 757.53M | 549.19M | Gross Profit |
| 1.37B | 564.60M | 1.01B | 825.30M | 757.53M | 549.19M | EBIT |
| 683.70M | 204.30M | 102.60M | 68.60M | 36.42M | 12.23M | EBITDA |
| 228.55M | 705.40M | 284.30M | 107.70M | 18.56M | 34.40M | Net Income Common Stockholders |
| 178.65M | 128.00M | 91.60M | 56.50M | 43.82M | 36.39M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.48B | 6.06B | 910.10M | 712.00M | 291.55M | 217.50M | Total Assets |
| 17.75B | 17.75B | 15.74B | 5.26B | 3.77B | 2.58B | Total Debt |
| 907.90M | 3.17B | 472.10M | 136.60M | 246.76M | 12.95M | Net Debt |
| -575.60M | 1.69B | -438.00M | -575.40M | -44.79M | -204.56M | Total Liabilities |
| 16.97B | 16.97B | 15.07B | 136.60M | 3.32B | 2.16B | Stockholders Equity |
| 775.90M | 775.90M | 677.70M | 477.70M | 443.79M | 417.75M |
| Cash Flow | Free Cash Flow | ||||
| 804.75M | 722.90M | 216.20M | 463.50M | -49.14M | -25.90M | Operating Cash Flow |
| 820.00M | 735.00M | 225.60M | 470.80M | -45.78M | -23.14M | Investing Cash Flow |
| -59.50M | -97.60M | -46.30M | -19.80M | -31.05M | -106.15M | Financing Cash Flow |
| -40.20M | -72.80M | 26.50M | -27.20M | 150.88M | 186.07M |
Marex Group plc Technical Analysis
Positive
33.45
Price Trends
34.89
Negative
32.16
Positive
27.11
Positive
Market Momentum
-0.48
Negative
50.18
Neutral
78.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRX, the sentiment is Positive. The current price of 33.45 is below the 20-day moving average (MA) of 34.38, below the 50-day MA of 34.89, and above the 200-day MA of 27.11, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 50.18 is Neutral, neither overbought nor oversold. The STOCH value of 78.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MRX.
Marex Group plc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $94.90B | 27.23 | 13.26% | 3.95% | 9.88% | 9.18% | |
79 Outperform | $22.49B | 29.77 | 18.42% | 1.14% | 8.51% | 1.13% | |
77 Outperform | $100.20B | 36.47 | 10.32% | 1.03% | 15.32% | 14.02% | |
72 Outperform | $43.45B | 39.17 | 10.15% | 1.24% | 21.96% | -8.37% | |
71 Outperform | $2.35B | 11.31 | 16.50% | 0.84% | ― | ― | |
67 Neutral | $193.77B | 15.12 | 13.16% | 3.02% | 7.16% | 53.77% | |
55 Neutral | $4.58B | -19.70 | -4.70% | 5.70% | 27.38% | -68.17% |
* General Sector Average
Performance Comparison
MRX
Marex Group plc
34.36
15.64
83.55%
CBOE
Cboe Global Markets
212.96
37.00
21.03%
CME
CME Group
262.94
59.48
29.23%
ICE
Intercontinental Exchange
175.25
39.74
29.33%
MS
Morgan Stanley
124.27
35.92
40.66%
NDAQ
Nasdaq
77.41
16.03
26.12%
Marex Group plc Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -7.29% | Next Earnings Date: Aug 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, including strong revenue growth and successful equity and debt offerings. The company has upgraded its full-year guidance and demonstrated resilience across its business segments. However, there are concerns about interest rate impacts and seasonal slowdowns. Overall, the sentiment reflects confidence in the company's growth strategy and market position.Highlights
Successful Equity and Debt Offering
Equity offering oversubscribed 7x and debt offering 4x, underscoring strong institutional interest.
Significant Revenue Growth
Total revenue grew 32%, with double-digit growth across all business segments.
Upgraded Full-Year Guidance
Full-year adjusted operating profit guidance increased to between $300 million and $305 million.
Strong Market Position
Marex's growth outpaced overall market volumes in almost all markets.
Diversification and Expansion
Announced acquisitions expected to contribute approximately 10% of total profit after tax in 2025.
Lowlights
Interest Rate Sensitivity
A 100 basis point decrease in rates is estimated to reduce operating profits by $20 million.
Lower Fourth Quarter Expectations
Guidance implies a slowdown due to seasonality, with anticipated headwinds from interest rates.
IPO-related Costs
Incurred $8.6 million in IPO costs impacting the tax rate, not tax deductible.
Company Guidance
During the Marex Group's Q3 2024 earnings call, several key metrics were highlighted, showcasing the company's robust performance and future guidance. The equity and debt offerings were significantly oversubscribed, at 7x and 4x respectively. Total revenue increased by 32% while the adjusted operating profit surged by 52%, with the reported ROE reaching 25%. Furthermore, the company upgraded its full-year 2024 guidance, anticipating an adjusted operating profit between $300 million and $305 million, up from the previous $280 million to $290 million range. The firm also reported strong client growth, with around 5,200 active clients by the end of Q3, and announced a dividend of $0.14 per share for the quarter. The company continues to grow faster than the market, with Marex's volumes often outpacing market growth across various service segments.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.