📊 BGC Key Takeaways
Is BGC Group, Inc. (BGC) a Good Investment?
BGC demonstrates strong topline growth (+20.5% YoY) and solid EPS expansion (+24.0%), but faces significant headwinds from deteriorating earnings quality and weak cash conversion. The dramatic divergence between net income ($84.1M) and operating cash flow ($20.2M), combined with modest asset efficiency (ROA 1.4%) and elevated leverage (1.40x debt/equity), suggests operational stress despite revenue gains.
BGC Group shows strong fundamental momentum with 20.5% revenue growth and very strong free cash flow generation, indicating that recent expansion is translating into real cash earnings. Profitability is still moderate rather than exceptional, but solid interest coverage, ample cash, and healthy returns on equity support a favorable view despite elevated leverage.
BGC Group, Inc. Key Strengths (BGC)
- Revenue growth of 20.5% YoY demonstrates strong market demand and business expansion
- EPS growth of 24.0% YoY outpacing net income growth indicates improved per-share economics
- Substantial cash reserves of $781M provide liquidity buffer and operational flexibility
- Operating margin of 12.1% is respectable for commodity brokerage sector
- Strong top-line growth with revenue up 20.5% year over year
- Robust cash generation with $372.87M in free cash flow and a 12.7% FCF margin
- Good debt service capacity supported by 10.6x interest coverage and $851.50M in cash
BGC Stock Risks: BGC Group, Inc. Investment Risks
- Critical cash flow red flag: operating cash flow ($20.2M) is only 24% of net income ($84.1M), signaling potential earnings quality issues or severe working capital deterioration
- Net income growth (+4.3%) significantly lags revenue growth (+20.5%), indicating margin compression or rising operating costs offsetting topline gains
- Low return on assets (1.4%) and modest return on equity (7.7%) suggest inefficient asset utilization and capital deployment
- Elevated debt-to-equity ratio (1.40x) combined with weak free cash flow generation ($15.4M, 1.6% FCF margin) limits financial flexibility and raises refinancing concerns
- Leverage is meaningful with debt-to-equity of 1.58x and $1.54B in long-term debt
- Net income growth of 4.3% trails revenue growth, suggesting margin pressure or higher expense burden
- Operating and net margins remain relatively modest at 7.3% and 5.3%, limiting downside protection if market conditions weaken
Key Metrics to Watch
- Operating cash flow trend and reconciliation to net income divergence
- Net margin trajectory and operating expense control
- Free cash flow generation and conversion efficiency
- Debt/equity ratio and interest coverage sustainability
- Operating margin trend
- Free cash flow consistency
BGC Group, Inc. (BGC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.6% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
BGC Profit Margin, ROE & Profitability Analysis
BGC vs Services Sector: How BGC Group, Inc. Compares
How BGC Group, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is BGC Group, Inc. Stock Overvalued? BGC Valuation Analysis 2026
Based on fundamental analysis, BGC Group, Inc. shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
BGC Group, Inc. Balance Sheet: BGC Debt, Cash & Liquidity
BGC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: BGC Group, Inc.'s revenue has grown significantly by 39% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.07 reflects profitable operations.
BGC Revenue Growth, EPS Growth & YoY Performance
BGC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $534.6M | $55.2M | $0.11 |
| Q3 2025 | $448.9M | $14.7M | $0.03 |
| Q2 2025 | $435.0M | $37.8M | $0.08 |
| Q1 2025 | $453.6M | $49.2M | $0.10 |
| Q3 2024 | $385.7M | $14.7M | $0.03 |
| Q2 2024 | $384.6M | -$726.0K | $0.00 |
| Q1 2024 | $410.8M | $19.0M | $0.05 |
| Q3 2023 | $331.4M | $5.8M | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BGC Group, Inc. Dividends, Buybacks & Capital Allocation
BGC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for BGC Group, Inc. (CIK: 0001094831)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BGC
What is the AI rating for BGC?
BGC Group, Inc. (BGC) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BGC's key strengths?
Claude: Revenue growth of 20.5% YoY demonstrates strong market demand and business expansion. EPS growth of 24.0% YoY outpacing net income growth indicates improved per-share economics. ChatGPT: Strong top-line growth with revenue up 20.5% year over year. Robust cash generation with $372.87M in free cash flow and a 12.7% FCF margin.
What are the risks of investing in BGC?
Claude: Critical cash flow red flag: operating cash flow ($20.2M) is only 24% of net income ($84.1M), signaling potential earnings quality issues or severe working capital deterioration. Net income growth (+4.3%) significantly lags revenue growth (+20.5%), indicating margin compression or rising operating costs offsetting topline gains. ChatGPT: Leverage is meaningful with debt-to-equity of 1.58x and $1.54B in long-term debt. Net income growth of 4.3% trails revenue growth, suggesting margin pressure or higher expense burden.
What is BGC's revenue and growth?
BGC Group, Inc. reported revenue of $955.5M.
Does BGC pay dividends?
BGC Group, Inc. pays dividends, with $9.7M distributed to shareholders in the trailing twelve months.
Where can I find BGC SEC filings?
Official SEC filings for BGC Group, Inc. (CIK: 0001094831) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BGC's EPS?
BGC Group, Inc. has a diluted EPS of $0.17.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is BGC's fundamental grade?
Based on our AI fundamental analysis in June 2026, BGC Group, Inc. has a A grade with 68% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is BGC stock overvalued or undervalued?
Valuation metrics for BGC: ROE of 7.7% (sector avg: 16%), net margin of 8.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is BGC's AI grade for 2026?
Our dual AI analysis gives BGC Group, Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BGC's free cash flow?
BGC Group, Inc.'s operating cash flow is $20.2M, with capital expenditures of $4.8M. FCF margin is 1.6%.
How does BGC compare to other Services stocks?
Vs Services sector averages: Net margin 8.8% (avg: 10%), ROE 7.7% (avg: 16%), current ratio N/A (avg: 1.5).