Bgc Partners Stock Story


USD 4.08  0.05  1.21%   

Bgc Partners is currently does not generate positive expected returns and assumes 2.5389% risk (volatility on return distribution) over the 90 days horizon. As many investors are getting excited about financial services space, it is fair to recap Bgc Partners Cl. We will evaluate if Bgc Partners' current volatility will continue into June. Bgc Partners' low volatility may still impact the value of the stock as we estimate it as currently undervalued. The real value, based on our analysis, is getting close to 4.16 per share.
Published over two months ago
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Is Bgc Partners (NASDAQ:BGCP) a good hedge for your existing portfolios?

Bgc Partners Cl currently holds roughly 507.32 M in cash with 470.83 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.38.
Volatility is a rate at which the price of Bgc Partners or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Bgc Partners may increase or decrease. In other words, similar to Bgc Partners's beta indicator, it measures the risk of Bgc Partners and helps estimate the fluctuations that may happen in a short period of time. So if prices of Bgc Partners fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is Bgc Partners's Liquidity

Bgc Partners financial leverage refers to using borrowed capital as a funding source to finance Bgc Partners Cl ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bgc Partners financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Bgc Partners's total debt and its cash.

How does Bgc Partners utilize its cash?

To perform a cash flow analysis of Bgc Partners, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Bgc Partners is receiving and how much cash it distributes out in a given period. The Bgc Partners cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Bgc Partners Net Cash Flow from Operations is very stable at the moment as compared to the past year. Bgc Partners reported last year Net Cash Flow from Operations of 417.19 Million

Bgc Partners Volatility Drivers

Bgc Partners unsystematic risk is unique to Bgc Partners Cl and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Bgc Partners you can also buy La-Z-Boy. You can also mitigate this risk by investing in the capital markets sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Bgc Partners important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Bgc Partners income statement and balance sheet. Here are more details about Bgc Partners volatility.