Bgc Partners Cl currently holds roughly 607.64
M in cash with 417.18
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.66.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Bgc Partners has an asset utilization ratio of 48.85 percent. This suggests that the company is making $0.49 for each dollar of assets. An increasing asset utilization means that Bgc Partners Cl is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in BGC Partners, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding BGC Partners along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of BGC Partners' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as BGC Partners. Your research has to be compared to or analyzed against BGC Partners' peers to derive any actionable benefits. When done correctly, BGC Partners' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in BGC Partners.
How important is BGC Partners's Liquidity
BGC Partners
financial leverage refers to using borrowed capital as a funding source to finance BGC Partners 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. Financial leverage can amplify the potential profits to BGC Partners' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of BGC Partners' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between BGC Partners's total debt and its cash.
BGC Partners Correlation with Peers
Investors in BGC can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in BGC Partners. Diversification will allow for the same portfolio return with reduced risk. The correlation table of BGC Partners and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities BGC is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of BGC for more details
Is BGC Partners valued sensibly by the market?
Bgc Partners Cl secures Sharpe Ratio (or Efficiency) of -0.2, which signifies that the company had -0.2% of return per unit of standard deviation over the last 3 months. Macroaxis philosophy in foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. Bgc Partners Cl exposes twenty-one different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to confirm Bgc Partners Cl
mean deviation of 2.05, and Risk Adjusted Performance of
(0.26) to double-check the risk estimate we provide.
Will Bgc Partners decline impact its fundamentals?
Recent mean deviation is at 2.05. Bgc Partners Cl exhibits very low volatility with skewness of 0.08 and kurtosis of 1.35. However, we advise investors to further study Bgc Partners Cl technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bgc Partners' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bgc Partners' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Bgc Partners Implied Volatility
Bgc Partners' implied volatility exposes the market's sentiment of Bgc Partners Cl stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Bgc Partners' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Bgc Partners stock will not fluctuate a lot when Bgc Partners' options are near their expiration.
Our Final Perspective on Bgc Partners
Although some companies in the capital markets industry are either recovering or due for a correction, Bgc Partners may not be performing as strong as the other in terms of long-term growth potentials. On the whole, as of the 7th of June 2022, we believe that at this point, Bgc Partners is slightly risky with
average probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be
undervalued. Our overall 90 days recommendation on the firm is
Strong Hold.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of BGC Partners. Please refer to our
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