OTC Markets Group

US: OTCM

$397.9m market cap

$34.24 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

Between 2008 and 2018, OTC Markets Group (OTCM) recorded compound revenue growth of 11% and more than doubled its operating margin. This reflected an expanding client base, sustained investment in new products and technology and a focus on increased data-driven transparency for market participants. OTCM has gained increasing numbers of corporate clients and regulatory recognition for its premium markets, the OTCQX Best Market and OTCQB Venture Market. Prospectively, a continued focus on growing market share in its trading business, on gaining additional regulatory recognitions and on adding corporate clients, together with the addition of related services organically and through incremental acquisitions should provide the basis for long-term growth.

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 32.4 18.4
2018A 59.3 20.7 19.8 136.3 25.1 16.3
2019E 62.8 19.5 18.2 125.2 27.3 17.7
2020E 66.6 22.4 21.0 142.6 24.0 15.4
Industry outlook

The reduction in 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. OTCM’s Q319 earnings release is due 5 November with an earnings call the following day.

Last updated on 15/11/2019
Share price graph
Balance sheet
Forecast net cash (US$m) 26.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (0.8) 6.6 7.8
Relative* (4.7) (2.7) (5.6)
52-week high/low US$40.0/US$27.5
*% relative to local index
Key management
Cromwell Coulson CEO
Bea Ordonez CFO

Content on OTC Markets Group