BGC Group Inc. Class A Common Stock (BGC)

FairStock Score: 42/100 — MIXED

Key Financials

Strengths

• Solid return on equity of 13.2% above cost of capital
• Revenue growth of 32.8% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($4) with negative 200% margin of safety—limited downside protection
• Altman Z-Score of 1.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

BGC Group Inc. Class A Common Stock is a small-cap financial services company valued at $5.4 billion. Revenue stands at $2.8 billion. From a quality standpoint, BGC shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.2 warrants caution. On valuation, the stock is trading at a premium 36.6x earnings, with trades far above its Graham Number ($4) with no margin of safety. Growth dynamics show revenue growing at 32.8% and profit growth of -43.0%. Our composite FairStock Score of 42/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

BGC's 33% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 37x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer