Search Follow us

OTC Markets Group (OTCM)

Business description

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.

Stock data

Market cap.US$427.1m
Last closeUS$36.99
High / Low (52 weeks)US$37.6 / US$23.8
Stock market listingUS
Forecast net cash (US$m)21.1
Forecast gearing ratio (%)N/A

Price performance

Relative *20.413.043.8

* % Relative to local index

Other companies in sector Show

3i Group Abbey Protection
Aberdeen Asset Management Admiral Group
AFH Financial Group Ai Claims Solutions
Allied Minds Alpha Strategic
Amlin APQ Global
Arbuthnot Banking Group Arden Partners
Ashford Ashford Hospitality Trust
Ashmore Group Attica Bank
Aviva Banca IFIS
Banca Sistema BB Healthcare Trust
Beazley Braemar Hotels & Resorts
Brewin Dolphin Brightside Group
Catlin Group Cenkos Securities
ChimpChange Circle Holdings
City of London Group Collins Stewart
Consus Real Estate Corestate Capital Holding
Covercy Creditshelf
Curtis Banks DeA Capital
Deutsche Börse Deutsche Grundstücksauktionen
DF Deutsche Forfait Empiric Student Property
Ernst Russ Experian
Fairpoint Group FBD Holdings
FCR Immobilien Ferratum Oyj
FinLab Freedom Holding Corp
Gable Holdings Gartmore Group
GCP Student Living German Startups Group
GLI Finance Grand City Properties
Hardy Underwriting Hargreaves Lansdown
Heartland New Zealand Helphire
Henderson Group Hiscox
HSBC Holdings ICAP
ICG-Longbow SSUP IE Financial
IFG Group IG Group
Impax Asset Management International Personal Finance
Is Yatirim Menkul Degerler JDC Group
John Laing Group Jupiter Fund Management
Lancashire Holdings Lighthouse Group
Liontrust Asset Management Lloyd Fonds
London Stock Exchange Group MAN Group
Market Tech Holdings Mattioli Woods
MCB Finance Group mic MPC Capital
MyBucks NEOVIA Financial
Noratis Novae Group
Numis Corporation Nurnberger Beteiligungs
Oakley Capital Investments Ocean Capital
Oekoworld Omega Insurance Holdings
Panmure Gordon Park Group
Picton Property Income Powerhouse Ventures
Prudential publity
Quayle Munro Holdings Randall & Quilter Investment Holdings
RCM Beteiligungs Record
Rensburg Sheppards RSM Tenon
S&U Sanlam Securities UK
Scherzer & Co Schroders
Secure Trust Bank Share
Shore Capital Group St. James's Place
Supermarket Income REIT Syndicate Asset Management
Tawa The Dolphin Square Charitable Foundation
Town Centre Securities Tungsten Corporation
UmweltBank Warsaw Stock Exchange
WH Ireland WorldSpreads Group

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 90.4 40.9 19.2
2017A 54.7 19.7 18.4 105.8 35.0 19.8
2018E 58.6 20.9 20.0 136.1 27.2 24.2
2019E 61.3 21.8 20.9 138.2 26.8 17.6

Last updated on 27/01/2019

Investment summary

OTC Markets Group’s (OTCM’s) Q318 results showed sound revenue growth, a pick-up in corporate client numbers and a further increase in the number of states granting Blue Sky recognition. Revenue was up by 8% y-o-y. Within this, OTC Link (+16%) was helped by the contribution from the OTC Link ECN trading platform, launched at the end of last year. Although staff costs increased by 8%, reflecting additional headcount and increased compensation, overall expense growth was 3.5%, allowing pre-tax profits to increase by 16%. A lower tax charge in the quarter (18%) resulted in diluted EPS growth of 26% to $0.37. The quarterly dividend was maintained at $0.15 (increased from $0.14 at the Q218 stage) and a special dividend of $0.65 was announced (compared with $0.60 last year). The balance sheet remains strong, with net cash at the period end of $26.1m.

Last updated on 01/02/2019

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 01/02/2019

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