OTC Markets Group

US: OTCM

$394.7m market cap

$34 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

In March OTCM reported FY18 gross revenue up 8.5% with OTC Link showing the largest percentage growth (+11%): growth in trading on the recently launched OTC Link ECN was the main factor here. In Corporate Services (+9%) a key feature was an increase in the number of companies on OTCQX while in Market Data Licensing (+7%) increasing usage and price rises were positive factors. Expenses, fees and rebates were up 10% leaving PBT nearly 8% ahead and after a sharply lower tax rate, EPS rose 29%. The full year dividend was 6% higher.

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 32.1 18.2
2018A 59.3 20.7 19.8 136.3 24.9 16.1
2019E 62.2 21.9 20.9 143.3 23.7 19.8
2020E 65.1 23.7 22.6 151.3 22.5 15.0
Last updated on 25/04/2019
Industry outlook

Looking through near-term macro/market uncertainties and fluctuations, OTCM continues to focus on building the reputation of its markets through data-driven transparency while adding to the range of services provided for corporate clients both organically and through selective acquisitions, exemplified by this year’s Virtual Investor Conferences and Qaravan purchases.

Last updated on 25/04/2019
Share price graph
Balance sheet
Forecast net cash (US$m) 27.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 1.3 12.4 23.4
Relative* (3.1) 2.4 11.3
52-week high/low US$40.0/US$26.3
*% relative to local index
Key management
Cromwell Coulson CEO
Bea Ordonez CFO

Content on OTC Markets Group