OTC Markets Group

US: OTCM

$401.3m market cap

$34.2 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 Q319 results released in November showed revenues ahead 7% y-o-y with growth in all three segments. Investment in operating costs resulted in a 17% increase in operating expenses and PBT was 11% lower with EPS down 9% after a lower tax rate. OTCM announced it had entered into a strategic alliance with North Capital Investment Technology to provide companies with access to a cost-effective platform to enable them to manage online securities offerings, an area expected to develop substantially in the long term.

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 32.3 18.3
2018A 59.3 20.7 19.8 136.3 25.1 16.2
2019E 62.8 19.4 18.1 125.9 27.2 17.5
2020E 66.6 22.4 21.0 142.3 24.0 15.3
Industry outlook

The reduction in earnings should be seen in the context of the company’s successful long-term development of its cost-effective, transparent markets. 2019 was a year in which OTCM was 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 12/02/2020
Share price graph
Balance sheet
Forecast net cash (US$m) 26.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 0.4 (0.2) (5.7)
Relative* (2.1) (8.5) (23.0)
52-week high/low US$40.0/US$29.6
*% relative to local index
Key management
Cromwell Coulson CEO
Bea Ordonez CFO

Content on OTC Markets Group