OTC Markets Group

US: OTCM

$406.3m market cap

$35 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

Since 2008 OTC Markets Group (OTCM) has recorded compound revenue growth of 11%, more than doubled its operating margin and gained increasing traction with its premium markets OTCQX and OTCQB. The number of states granting the markets Blue Sky recognition has continued to rise. This helps explain P/E ratings above the average for global exchanges while the significant scope for OTCM to attract more international and domestic companies to its cost effective markets could mean increased earnings estimates still prove conservative.

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 33.1 18.8
2018A 59.3 20.7 19.8 136.3 25.7 16.6
2019E 62.2 21.9 20.9 143.3 24.4 20.4
2020E 65.1 23.7 22.6 151.3 23.1 15.5
Last updated on 19/03/2019
Industry outlook

The data-driven transparency and cost-effective proposition of OTCM’s premium markets can be seen to be gaining traction and we increased our estimates following the Q318 results. While fluctuations in market conditions may affect quarterly progress, the long-term scope for increased penetration of international and domestic companies could provide the basis for further estimate increases. Q418/FY18 results due 6 March.

Last updated on 19/03/2019
Share price graph
Balance sheet
Forecast net cash (US$m) 27.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (6.7) 25.0 28.2
Relative* (8.4) 10.7 22.8
52-week high/low US$40.0/US$26.0
*% relative to local index
Key management
Cromwell Coulson CEO
Bea Ordonez CFO

Content on OTC Markets Group