OTC Markets Group

US: OTCM

$391.2m market cap

$33.66 last close

OTC Markets Group operates the OTCQX, OTCQB and Pink financial markets for over 10,000 US and global securities. OTC Link LLC, a member of FINRA, operates OTC Link ATS and OTC Link ECN, both SEC-registered Alternative Trading Systems.

Investment summary

OTCM’s Q219 revenues increased 6% y-o-y with the most rapid growth in Corporate Services, where a combination of healthy net client gains for OTCQX and a price increase for OTCQB last year delivered a 9% advance. Operating expenses (+15%) outpaced this growth with drivers being acquisitions, recruitment and investment in IT to sustain development of the business. Pre-tax profits and diluted EPS fell by 11%. Two further states have granted OTCM’s premium markets Blue Sky recognition, taking the total to 36 for OTCQX, covering 55% of the US population.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 54.7 19.7 18.4 105.8 31.8 18.1
2018A 59.3 20.7 19.8 136.3 24.7 16.0
2019E 62.8 19.5 18.2 125.2 26.9 17.4
2020E 66.6 22.4 21.0 142.6 23.6 15.1
Last updated on 16/09/2019
Industry outlook

Lower Q2 earnings should be seen in the context of the company’s successful long-term development of its cost-effective, transparent markets. This is a year in which it is investing in technology, acquisitions and staff, as well as moving into a new HQ. OTCM remains consistent in its commitment to developing its markets and enhancing its offering to corporate clients and market users which should underpin continued longer-term growth.

Last updated on 16/09/2019
Share price graph
Balance sheet
Forecast net cash (US$m) 26.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 3.6 8.1 17.1
Relative* (0.1) 4.1 13.4
52-week high/low US$40.0/US$27.0
*% relative to local index
Key management
Cromwell Coulson CEO
Bea Ordonez CFO

Content on OTC Markets Group