OTC Markets Group (OTCM)

Business description

OTC Markets Group operates the OTCQX, OTCQB and Pink financial markets for c 10,000 US and global securities. Its trading system, OTC Link ATS, is operated by OTC Link LLC, a member of FINRA and is an SEC-regulated Alternative Trading System.

Stock data

Market cap.US$305.1m
Last closeUS$26.50
High / Low (52 weeks)US$32.0 / US$22.5
Stock market listingUS
Forecast net cash (US$m)27.8
Forecast gearing ratio (%)N/A
TeamFinancials
SectorFinancials

Price performance

%1m3m12m
Actual(3.6)7.917.8
Relative *(6.9)8.73.8

* % Relative to local index

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Company news

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2016A 50.9 18.5 16.9 92.4 28.7 13.8
2017A 54.7 19.7 18.4 109.9 24.1 14.2
2018E 57.7 21.1 20.1 131.6 20.1 13.3
2019E 60.2 22.1 21.1 137.4 19.3 13.1

Last updated on 18/04/2018

Investment summary

OTCM's overall FY17 revenues were up 7%, primarily driven by the Corporate Services segment where stronger sales and lower churn at OTCQB, and a price increase for OTCQX clients, contributed to growth of nearly 18%. Operating expenses grew at a slightly slower pace, allowing pre-tax profit growth of more than 8%. The tax charge was lower leading to fully diluted EPS growth of 17% to $1.06. Including the special dividend of $0.60 the total dividend was $1.16 (unchanged). Net cash of $23.7m at the year-end was only modestly lower after increased capex and returns to shareholders through dividends and share buybacks up 5% to $16.5m.

Last updated on 27/04/2018

Industry outlook

OTCM remains consistent in its focus on positioning itself as a cost-effective, transparent and less onerous way of accessing capital markets. To this end, it has introduced new products, invested in IT, made strategic alliances and continued to work towards further Blue Sky recognitions. While equity markets have seen an increase in volatility in early 2018 the economic background remains resilient and on a longer view development of online capital raising could significantly broaden the range of potential clients for OTCM's services. OTCM is due to announce Q118 results on 9 May.

Last updated on 27/04/2018

Key management

Cromwell Coulson , CEO
Bea Ordonez, CFO

Company address

304 Hudson Street
2nd Floor
New York
NY 10013
United States
+1 212.896.4400
View website