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StoneX Group (SNEX)
NASDAQ:SNEX
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StoneX Group
(NASDAQ:SNEX)
70Outperform
StoneX Group (SNEX) vs. S&P 500 (SPY)
Market Cap
$3.66B
Dividend YieldN/A
Average Volume (3M)441.85K
Price to Earnings (P/E)13.7
Beta (1Y)0.82
Revenue Growth60.57%
EPS Growth17.39%
CountryUS
Employees4,620
SectorFinancial
Sector Strength82
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)5.57
Shares Outstanding48,126,938
10 Day Avg. Volume454,516
30 Day Avg. Volume441,852
Financial Highlights & Ratios
PEG Ratio0.79
Price to Book (P/B)N/A
Price to Sales (P/S)0.03
Price to Cash Flow (P/CF)-2.00
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
$119.00Price Target Upside55.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
StoneX Group Business Overview & Revenue Model
Company DescriptionStoneX Group Inc. operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide. Its Commercial segment provides risk management and hedging, exchange-traded and OTC products execution and clearing, voice brokerage, market intelligence, physical trading, and commodity financing and logistics services. The company's Institutional segment provides equity trading services to institutional clients; and originates, structures, and places debt instruments in capital markets worldwide. Its services cover foreign securities, including unlisted American Depository Receipts, Global Depository Receipts, and foreign ordinary shares. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies; engages in asset management business; and offers clearing and execution services in futures exchanges, brokerage foreign exchange services for the financial institutions and professional traders, and OTC products. The company's Retail segment provides trading services and solutions in the global financial markets, including spot foreign exchange, precious metals trading, and contracts for differences; and wealth management and investment services, as well as offers physical gold and other precious metals in various forms and denominations through coininvest.com and silver-to-go.com. Its Global Payments segment provides foreign exchange and treasury services to banks and commercial businesses, charities, and non-governmental and government organizations; and payments services. The company was formerly known as INTL FCStone Inc. and changed its name to StoneX Group Inc. in July 2020. StoneX Group Inc. was founded in 1924 and is headquartered in New York, New York.
How the Company Makes MoneyStoneX Group makes money through a diversified revenue model that includes trading commissions, fees for clearing and execution services, and interest earned on client balances. The company facilitates trading in commodities, securities, and foreign exchange markets, earning commissions on each transaction. Additionally, StoneX provides risk management and advisory services, generating fees for its expertise in helping clients hedge against market volatility. The firm's clearing and execution services involve acting as an intermediary in trades, for which it charges fees. Partnerships with financial institutions and corporations expand its reach and enhance its service offerings, contributing to its earnings. Furthermore, interest income from client balances held in various accounts adds another layer to its revenue streams.
StoneX Group Financial Statement Overview
Summary
StoneX Group demonstrates robust revenue growth and a strong return on equity. However, it faces challenges with low operational margins and liquidity issues, as well as high liabilities relative to assets. The absence of debt is a positive factor, yet negative cash flows suggest potential risks. Enhancing operational efficiency and cash management is crucial for sustaining growth.Income Statement
StoneX Group shows a strong revenue growth trajectory, with significant increases from $60.86 billion in 2023 to $108.25 billion in the TTM period. The gross profit margin is healthy at 27.15%, and the net profit margin is at a modest 0.26%, indicating room for improvement. However, the EBITDA margin is low at 1.55%, reflecting challenges in operational efficiency.76
Positive
Balance Sheet
The company's balance sheet reveals a solid equity base with a debt-to-equity ratio of 0, illustrating no reliance on debt in the TTM period. However, the equity ratio is low at 6.01%, indicating high liabilities relative to assets. Return on equity is strong at 15.57%, showcasing effective use of shareholder funds.64
Positive
Cash Flow
StoneX Group's cash flow statement highlights negative free cash flow and operating cash flow in the TTM period, suggesting liquidity challenges. The operating cash flow to net income ratio is negative, indicating potential inefficiencies in cash conversion. Despite these challenges, the company has previously shown positive free cash flow growth.58
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 108.25B | 99.89B | 60.86B | 4.88B | 4.54B | 4.03B | Gross Profit |
| 29.39B | 2.01B | 1.61B | 1.12B | 937.00M | 793.00M | EBIT |
| 28.40B | 1.77B | 1.62B | 536.00M | 462.00M | 368.00M | EBITDA |
| 1.68B | 1.52B | 1.22B | 511.30M | 291.40M | 264.60M | Net Income Common Stockholders |
| 276.80M | 260.80M | 238.50M | 355.00M | 338.00M | 272.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 59.80M | 1.27B | 1.11B | 430.00M | 747.00M | 358.00M | Total Assets |
| 1.72B | 27.47B | 21.94B | 3.44B | 3.31B | 3.04B | Total Debt |
| 94.50M | 11.32B | 6.48B | 5.35B | 146.60M | 118.70M | Net Debt |
| 34.70M | 10.05B | 5.37B | 5.00B | -465.40M | -182.30M | Total Liabilities |
| 1.48B | 25.76B | 20.56B | 2.67B | 2.43B | 2.44B | Stockholders Equity |
| 244.20M | 1.71B | 1.38B | 780.00M | 882.00M | 603.00M |
| Cash Flow | Free Cash Flow | ||||
| -153.30M | -115.30M | -70.60M | 506.00M | 178.00M | 510.00M | Operating Cash Flow |
| -87.20M | -103.80M | -23.70M | 562.00M | 218.00M | 546.00M | Investing Cash Flow |
| -187.90M | -63.70M | -53.00M | -226.00M | -135.00M | -151.00M | Financing Cash Flow |
| 815.20M | 188.00M | -169.30M | -536.00M | 12.00M | -208.00M |
StoneX Group Technical Analysis
Neutral
76.38
Price Trends
76.98
Negative
71.78
Positive
62.67
Positive
Market Momentum
0.29
Positive
47.61
Neutral
35.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNEX, the sentiment is Neutral. The current price of 76.38 is below the 20-day moving average (MA) of 76.83, below the 50-day MA of 76.98, and above the 200-day MA of 62.67, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 47.61 is Neutral, neither overbought nor oversold. The STOCH value of 35.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SNEX.
StoneX Group Risk Analysis
StoneX Group disclosed 41 risk factors in its most recent earnings report. StoneX Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
StoneX Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $94.50B | 27.11 | 13.26% | 3.97% | 9.88% | 9.18% | |
75 Outperform | $168.80B | 13.40 | 11.95% | 2.16% | 14.80% | 77.97% | |
74 Outperform | $69.61B | 23.78 | 19.20% | 0.61% | 19.54% | 22.23% | |
72 Outperform | $145.07B | 26.05 | 13.30% | 1.31% | 1.87% | 17.63% | |
70 Outperform | $3.66B | 13.66 | 16.40% | ― | 60.57% | 17.39% | |
67 Neutral | $186.01B | 14.52 | 13.16% | 3.14% | 7.16% | 53.77% | |
64 Neutral | $14.25B | 10.26 | 8.97% | 4.33% | 16.33% | -11.91% |
* Financial Sector Average
Performance Comparison
SNEX
StoneX Group
76.38
30.21
65.43%
CME
CME Group
265.29
62.65
30.92%
IBKR
Interactive Brokers
165.59
54.26
48.74%
MS
Morgan Stanley
116.67
26.15
28.89%
SCHW
Charles Schwab
78.28
6.92
9.70%
GS
Goldman Sachs Group
546.29
141.71
35.03%
StoneX Group Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 2.83% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook for StoneX, highlighting record revenues and strong growth across several segments. The company is expanding through strategic acquisitions and technological advancements. Despite some challenges in the payments and OTC derivatives segments, the overall momentum and future prospects appear favorable.Highlights
Record Quarter for Start of Fiscal 2025
StoneX reported a record quarter with net income of $85.1 million and diluted EPS of $2.54, representing 23% and 19% growth over the prior year quarter.
Strong Growth in Operating Revenues
Operating revenues reached $944.3 million, up 20% year-over-year and 3% quarter-over-quarter.
Expansion in Physical Contracts
Operating revenues from physical contracts increased by 80% compared to the prior year, driven by strong growth in precious metals and physical ag and energy businesses.
Self-Directed Retail Segment Performance
The self-directed retail segment achieved record net operating revenues up 41% and segment income up 98%.
Strategic Acquisitions and Expansions
StoneX completed several strategic acquisitions, including Oktop Finance and JBR Recovery, and received approval to operate a digital asset business in Europe.
Payments Segment Growth
The payments segment saw a 20% increase in operating revenue on the immediately preceding quarter with significant growth in transaction volumes.
Lowlights
Decrease in Payments Revenue Year-over-Year
Payments revenues were down 4% compared to a record year ago quarter, impacted by tighter FX spreads in key payment corridors.
Challenges in OTC Derivatives
Revenues from OTC derivatives were down 18%, largely due to a 22% decrease in revenue capture.
Company Guidance
The first quarter fiscal 2025 earnings call for StoneX Group Inc. highlighted a record performance, continuing the momentum from the previous year. The company reported a net income of $85.1 million and diluted earnings per share of $2.54, reflecting growth of 23% and 19% respectively over the prior year quarter. Operating revenues reached $944.3 million, up 20% year-over-year and 3% sequentially, while net operating revenues rose 17% year-over-year and 8% from the previous quarter. The return on equity (ROE) was 19.5% despite a 51% increase in book value over two years. Significant contributions came from physical contracts, which increased by 80% year-over-year, driven by strong performances in precious metals and agricultural commodities. The self-directed retail segment showed impressive growth, with net operating revenues up 41% and segment income up 98%. The payments segment experienced a slight decrease in revenues compared to a record previous year but saw a 20% sequential increase. The company also announced a three-for-two stock split, further indicating their positive outlook.StoneX Group Corporate Events
Executive/Board ChangesShareholder Meetings
StoneX Group Elects New Leadership at Annual Meeting
Neutral
Mar 10, 2025
On March 5, 2025, StoneX Group Inc. held its Annual Meeting of Shareholders, where key decisions were made regarding the company’s leadership and governance. Eight directors were elected to serve until the 2026 annual meeting, KPMG LLP was ratified as the independent registered public accounting firm for 2025, and several shareholder proposals were approved, including executive compensation and an amendment to the Omnibus Incentive Compensation Plan. Following the meeting, John Radziwill was elected as Chairman of the Board of Directors, and Sean M. O’Connor was elected as Executive Vice-Chairman.
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.