September 5, 2024
Top 10 Stock CMC Markets Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View CMC Markets Strong Buy

360 METRICS	September 5, 2024
VALUE
VALUE	83
GROWTH
GROWTH	53
SAFETY
SAFETY	92
SENTIMENT
SENTIMENT	49
360° VIEW
360° VIEW	96

ANALYSIS: With an Obermatt 360° View of 96 (better than 96% compared with alternatives) for 2024, overall professional sentiment and financial characteristics for the stock CMC Markets are very positive. The 360° View is based on consolidating four consolidated indicators, with three out of four indicators above average for CMC Markets. The consolidated Value Rank has an attractive rank of 83, which means that the share price of CMC Markets is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 83% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 53, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth, as well as stock returns. The company is also safely financed with a Safety Rank of 92. But the professional market sentiment is below average compared with other stock investment alternatives with a Sentiment Rank of only 49. Professional investors are more confident in 51% other stocks. ...read more

RECOMMENDATION: With a consolidated 360° View of 96, CMC Markets is better positioned than 96% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 83), above-average growth (Growth Rank of 53), and safe financing practices (Safety Rank of 92), it is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely, unless information not publicly available. Only the professional market sentiment is on the riskier side (Sentiment Rank of 49), but that could also mean an overreaction to negative news in the past. Good value is sometimes an indication that the company's future is challenging. If they have been enjoying above average growth and are still a good value, this may not continue. We recommend evaluating whether the future of CMC Markets is as challenging as the low price of the stock despite good growth and safe financing practices suggest. Since the professional community is pessimistic, you may want to reflect these negative opinions in light of what you find reasonable to expect for the future. If you believe this pessimistic view is transitory, you have a solid investment case based on current financial factors. ...read more

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Sentiment Strategy: Professional Market Sentiment for CMC Markets only reserved

SENTIMENT METRICS	September 5, 2024
ANALYST OPINION
ANALYST OPINION	1
OPINIONS CHANGE
OPINIONS CHANGE	66
PRO HOLDINGS
PRO HOLDINGS	100
MARKET PULSE
MARKET PULSE	29
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	49

ANALYSIS: With an Obermatt Sentiment Rank of 49 (better than 49% compared with alternatives), overall professional sentiment and engagement for the stock CMC Markets is below industry average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for CMC Markets. Analyst Opinions are at a rank of 1 (worse than 99% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 66, which means that stock research experts are more positive in their investment recommendations in the company. In other words, they are getting more optimistic of stock investments in CMC Markets. More encouragingly, the Professional Investors rank is 100, which means that professional investors hold more stock in this company than in 100% of alternative investment opportunities. Pros tend to favor investing in this company. But Market Pulse is on the lower side with a rank of 29, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 71% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 49 (less encouraging than 51% compared with investment alternatives), CMC Markets has a reputation among professional investors that is below that of its competitors. The sentiment signals are mixed for CMC Markets. While analysts and the news channels are negative, there is a change in what analysts think. Above-average institutional investors in this company support them. Sentiment signals remain mixed with analysts and news channels pessimistic, though improving, and professional investors above average. ...read more

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Value Strategy: CMC Markets Stock Price Value at the top

VALUE METRICS	September 5, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	44
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	76
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	65
DIVIDEND YIELD
DIVIDEND YIELD	89
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	83

ANALYSIS: With an Obermatt Value Rank of 83 (better than 83% compared with alternatives) for 2024, CMC Markets shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for CMC Markets. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 76 which means that the stock price compared with what market professionals expect for future profits is lower than for 76% of comparable companies, indicating a good value concerning CMC Markets's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 65, and for Dividend Yield with a Dividend Yield Rank of 89. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 56% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 44). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 83, is a buy recommendation based on CMC Markets's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that CMC Markets has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing CMC Markets shares. ...read more

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Growth Strategy: CMC Markets Growth Momentum good

GROWTH METRICS	September 5, 2024
REVENUE GROWTH
REVENUE GROWTH	21
PROFIT GROWTH
PROFIT GROWTH	64
CAPITAL GROWTH
CAPITAL GROWTH	16
STOCK RETURNS
STOCK RETURNS	100
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	53

ANALYSIS: With an Obermatt Growth Rank of 53 (better than 53% compared with alternatives), CMC Markets shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for CMC Markets. Profit Growth has a rank of 64, which means that currently professionals expect the company to grow its profits more than 64% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 100 (above 100% of alternative investments). But Sales Growth has a below the median rank of 21, which means that, currently, professionals expect the company to grow less than 79% of its competitors, and Capital Growth also has a lower rank of 16. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 53, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for CMC Markets. ...read more

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Safety Strategy: CMC Markets Debt Financing Safety very solid

SAFETY METRICS	September 5, 2024
LEVERAGE
LEVERAGE	82
REFINANCING
REFINANCING	65
LIQUIDITY
LIQUIDITY	76
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	92

ANALYSIS: With an Obermatt Safety Rank of 92 (better than 92% compared with alternatives) for 2024, the company CMC Markets has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of CMC Markets is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for CMC Markets. Leverage is at 82, meaning the company has a below-average debt-to-equity ratio. It has less debt than 82% of its competitors. Refinancing is at a rank of 65, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 65% of its competitors. Finally, Liquidity is also good at a rank of 76, which means that the company generates more profit to service its debt than 76% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 92 (better than 92% compared with alternatives), CMC Markets has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. ...read more

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Combined financial peformance: CMC Markets Top Financial Performance

COMBINED PERFORMANCE	September 5, 2024
VALUE
VALUE	83
GROWTH
GROWTH	53
SAFETY
SAFETY	76
COMBINED
COMBINED	100

ANALYSIS: With an Obermatt Combined Rank of 100 (better than 100% compared with investment alternatives), CMC Markets (Investment Banking & Brokerage, United Kingdom) shares have much better financial characteristics than comparable stocks. Shares of CMC Markets are a good value (attractively priced) with a consolidated Value Rank of 83 (better than 83% of alternatives), show above-average growth (Growth Rank of 53), and are safely financed (Safety Rank of 92), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 100, is a strong buy recommendation based on CMC Markets's financial characteristics. As the company CMC Markets's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 83), above-average growth (Obermatt Growth Rank of 53), and indicate that the company is safely financed (Obermatt Safety Rank of 92), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of CMC Markets. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more

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