Core Insights - Marex Group plc will release its 2024 fourth quarter and full year results on March 6, 2025, before market open [1] - A conference call to discuss the results is scheduled for 9am ET on the same day, with registration available for analysts and investors [2] - An investor day is planned for April 2, 2025, in New York City [2] Company Overview - Marex Group plc is a diversified global financial services platform that provides liquidity, market access, and infrastructure services across energy, commodities, and financial markets [3] - The company enables access to 60 exchanges and offers four core services: Clearing, Agency and Execution, Market Making and Hedging, and Investment Solutions [3] - In 2023, Marex executed approximately 129 million trades and cleared 856 million contracts, serving over 4,000 active clients [3] - The company has a strong presence in major metals, energy, and agricultural products, catering to large commodity producers, consumers, traders, banks, hedge funds, and asset managers [3] - Headquartered in London, Marex operates more than 40 offices globally and employs over 2,000 staff across Europe, Asia, and the Americas [3]

Group 1 - PCB Bancorp (PCB) has seen a 4.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Zions Bancorporation, National Association (ZION) has experienced a 6.4% increase in the Zacks Consensus Estimate for its current year earnings in the past 60 days [2] - Marex Group plc (MRX) has had a 4.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] Group 2 - PCB Bancorp (PCB) has a dividend yield of 3.4%, significantly higher than the industry average of 0.6% [2] - Zions Bancorporation (ZION) has a dividend yield of 2.8%, compared to the industry average of 2.5% [3] - Marex Group plc (MRX) has a dividend yield of 1.9%, while the industry average is 0.0% [3]

Core Insights - Three stocks with strong value characteristics and a Zacks Rank 1 are highlighted for investors to consider on December 3 Company Summaries - **Marex Group plc (MRX)**: - Current year earnings estimate increased by 4.6% over the last 60 days - Price-to-earnings ratio (P/E) is 10.01, compared to the industry average of 13.20 - Value Score is B [1] - **PCB Bancorp (PCB)**: - Current year earnings estimate increased by 4.8% over the last 60 days - Price-to-earnings ratio (P/E) is 12.39, compared to the industry average of 19.60 - Value Score is B [2] - **Zions Bancorporation, National Association (ZION)**: - Current year earnings estimate increased by 6.4% over the last 60 days - Price-to-earnings ratio (P/E) is 12.48, compared to the industry average of 22.20 - Value Score is B [3]

Core Viewpoint - Marex Group PLC (MRX) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - A strong correlation exists between earnings estimate revisions and near-term stock price movements, making the Zacks rating system valuable for investors [4][6]. - For the fiscal year ending December 2024, Marex Group PLC is expected to earn $2.93 per share, representing a 168.8% increase from the previous year [8]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of stocks, and their investment actions based on these estimates can lead to significant price movements [4][5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [9][11].

Core Insights - The article highlights three stocks with strong income characteristics and a buy rank for investors to consider on November 26 [1][2][3]. Group 1: Company Performance - Washington Trust Bancorp, Inc. (WASH) has seen a 4.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1]. - Marex Group plc (MRX) has also experienced a 4.6% increase in the Zacks Consensus Estimate for its current year earnings in the same timeframe [2]. - ZIM Integrated Shipping Services Ltd. (ZIM) has shown a significant 41.7% increase in the Zacks Consensus Estimate for its current year earnings over the past 60 days [3]. Group 2: Dividend Yields - Washington Trust Bancorp, Inc. (WASH) offers a dividend yield of 6.0%, which is substantially higher than the industry average of 2.4% [1]. - Marex Group plc (MRX) provides a dividend yield of 1.9%, compared to the industry average of 0.0% [2]. - ZIM Integrated Shipping Services Ltd. (ZIM) has a dividend yield of 4.9%, exceeding the industry average of 3.2% [3].

Revenue Growth - Revenue for Q3 2024 increased by 32% to $391.2 million compared to $296.6 million in Q3 2023[3] - Revenue for the Clearing business increased by 22% to $116.7 million in Q3 2024, driven by a 54% rise in net interest income[24] - Revenue for Agency and Execution increased by 30% to $170.4 million in Q3 2024, primarily due to the Cowen acquisition and strong organic growth[33] - Revenue for the three months ended 30 September 2024 increased by 30% to $170.4 million, compared to $131.3 million in the same period of 2023[36] - The company reported a 40% increase in revenue to $163.3 million for the nine months ended 30 September 2024, compared to $116.4 million in the same period of 2023[45] - Q3 2024 revenue increased to $16.5 million, up 33% from $12.4 million in Q3 2023, and 9M 2024 revenue reached $49.6 million, a 43% increase from $34.6 million in 9M 2023[50] Profitability - Profit Before Tax for Q3 2024 rose by 66% to $79.0 million from $47.6 million in the same period last year[3] - Adjusted Operating Profit for Q3 2024 increased by 52% to $80.5 million, with an Adjusted Operating Profit Margin of 21%[10] - Adjusted Operating Profit increased by 35% to $239.7 million in 9M 2024, with Adjusted Operating Profit Margins improving to 20% from 19% in 9M 2023[21] - Adjusted Operating Profit for the three months ended 30 September 2024 rose by 60% to $25.6 million, with an Adjusted Operating Profit Margin of 15%, up from 12% in the prior year[36] - Adjusted Operating Profit for the nine months ended September 30, 2024, reached $239.7 million, a 35.1% increase compared to $177.4 million for the same period in 2023[75] - The company reported a Profit After Tax Margin of 15% for the three months ended September 30, 2024, compared to 11% in the same period last year[75] Income Sources - Net commission income grew by 15% to $202.8 million in Q3 2024, driven by increased customer activity in Energy and Securities[12] - Net commission income increased by 20% to $630.1 million in 9M 2024 from $523.5 million in 9M 2023, driven by growth in Agency and Execution and the acquisition of Cowen's prime services business[17] - Net trading income rose by 21% to $364.3 million in 9M 2024 from $299.9 million in 9M 2023, primarily due to the Hedging and Investment Solutions business[17] - Net interest income surged by 102% to $63.5 million in Q3 2024, reflecting higher balances and reinvestment at higher yields[14] - Net interest income increased by 80% to $164.5 million in 9M 2024 from $91.4 million in 9M 2023, reflecting higher average investment returns and the acquisition of Cowen's prime services business[19] - Net physical commodities income surged by 381% to $20.2 million in 9M 2024 from $4.2 million in 9M 2023, driven by increased sales volumes in recycled metals and oil[21] Strategic Investments and Acquisitions - Marex Group announced strategic investments including the acquisition of Aarna Capital and Hamilton Court Group to expand geographic footprint and product capabilities[5] - A successful secondary equity placement resulted in the issuance of 9.7 million shares, increasing public float to approximately 52%[5] - The company issued $600 million in 5-year senior unsecured notes to diversify funding sources and enhance liquidity[5] Capital and Liquidity - Total assets rose by $1.9 billion to $19.5 billion as of September 30, 2024, driven by a $1.3 billion increase in cash and liquid assets[51] - Total equity increased by 24% to $959.8 million, up from $775.9 million, with a profit after tax of $161.3 million for the nine months ending September 30, 2024[53] - Cash and liquid assets grew by 31% to $5.83 billion from $4.47 billion at the end of 2023[53] - The Group's total capital ratio improved to 310% as of September 30, 2024, compared to 229% at the end of 2023, indicating significant capital headroom[60] - Total available liquid resources increased to $1.83 billion from $1.37 billion at the end of 2023[57] Dividends - A dividend of $0.14 per share is scheduled to be paid in Q4 2024[5] - An interim dividend of $0.14 per share was approved, expected to be paid on December 10, 2024[62] Performance Metrics - Basic Earnings per Share for the nine months ended September 30, 2024, was $2.20, an increase of 40.1% from $1.57 in the same period in 2023[75] - Return on Equity for the three months ended September 30, 2024, improved to 25%, compared to 18% in the same period last year[75] - Adjusted Operating Profit Margin for the three months ended September 30, 2024, was 21%, up from 18% in the same period last year[75] - Common Equity as of September 30, 2024, was $823.5 million, an increase from $622.0 million in the same period last year[75] Future Outlook - The company anticipates continued growth in revenue and profitability driven by market expansion and new product development initiatives[75] - Full year Adjusted Operating Profit is anticipated to be approximately $300 million to $305 million[65] - Reported Profit Before Tax for 2024 is expected to be approximately $277 million to $282 million[65]

Financial Performance - Marex Group plc reported a revenue increase of 32% to $391.2 million for Q3 2024, compared to $296.6 million in Q3 2023, and a 28% increase to $1,179.1 million for the nine months ended September 30, 2024, compared to $919.0 million in the same period of 2023 [1][8][16] - Profit Before Tax for Q3 2024 rose by 66% to $79.0 million from $47.6 million in Q3 2023, and for the nine months, it increased by 39% to $218.0 million from $157.1 million [1][8][16] - Adjusted Operating Profit for Q3 2024 increased by 52% to $80.5 million, with an Adjusted Operating Profit Margin of 21%, up from 18% in Q3 2023 [1][15][26] Business Segments Performance - The Clearing business saw revenue growth of 22% to $116.7 million in Q3 2024, driven by a 54% increase in net interest income [28][30] - Agency and Execution revenue increased by 30% to $170.4 million in Q3 2024, supported by the Cowen acquisition and strong organic growth [37][39] - Market Making revenue more than doubled to $52.0 million in Q3 2024, primarily due to strong performance in Metals trading [45][46] Strategic Developments - Marex upgraded its full-year guidance for Adjusted Operating Profit to approximately $300 million to $305 million, up from the previous estimate of $280 million to $290 million [3] - The company announced strategic investments, including acquisitions to expand its geographic footprint and product capabilities, such as Aarna Capital and Hamilton Court Group [3][5] - A successful secondary equity placement increased public float to approximately 52% [3] Market Conditions - The positive market backdrop and growth in exchange volumes in both commodities and financials contributed to the strong performance across all business segments [2][4] - The company continues to benefit from favorable market conditions, particularly in the energy and financial securities markets [4][40]

Financial Performance - Revenue for H1 2024 increased by 27% to $787.9 million from $622.4 million in H1 2023[8] - Profit Before Tax for H1 2024 rose by 27% to $139.0 million compared to $109.5 million in H1 2023[8] - Adjusted Operating Profit for H1 2024 increased by 28% to $159.2 million from $124.5 million in H1 2023[11] - Net commission income for H1 2024 grew by 23% to $427.3 million from $347.2 million in H1 2023[9] - Net trading income for H1 2024 rose by 14% to $242.7 million from $212.5 million in H1 2023[9] - Net interest income for H1 2024 increased by 68% to $101.0 million from $60.0 million in H1 2023[11] - Net physical commodities income surged by 526% to $16.9 million for H1 2024 from $2.7 million in H1 2023[11] - Adjusted Operating Profit increased by 21% in H1 2024 to $119.0 million, with Adjusted Operating Profit Margins rising by 200 basis points to 53%[15] - Agency and Execution revenue rose to $332.6 million in H1 2024, a 32% increase from $252.3 million in H1 2023, benefiting from positive market conditions and recent acquisitions[16] - Securities revenue increased by 25% to $188.5 million in H1 2024, compared to $150.2 million in H1 2023, primarily due to the Cowen acquisition[18] - Energy division revenue grew by 42% to $143.3 million in H1 2024, up from $101.0 million in H1 2023, reflecting improved activity levels in European Energy markets[20] - Market Making revenue increased by 23% to $111.3 million in H1 2024, driven by strong Metals trading performance[22] - Hedging and Investment Solutions revenue rose by 36% to $86.0 million in H1 2024, up from $63.3 million in H1 2023, with growth across all regions[25] - Profit After Tax for the three months ended June 30, 2024, was $59.3 million, compared to $43.6 million in the previous quarter[48] - Profit after tax for the six months ended June 30, 2024, was $102.9 million, up from $80.8 million, marking a growth of 27.5%[57] - Total comprehensive income for the period ended 30 June 2024 was $98.9 million, compared to $75.3 million for the same period in 2023, reflecting a year-over-year increase of 31.2%[63] Dividends and Shareholder Returns - A progressive dividend policy was announced, with an initial dividend of $10 million or $0.14 per share to be paid in Q3 2024[3] - The Board of Directors approved an initial dividend of $10 million or $0.14 per share, expected to be paid on 16 September 2024[36] - Dividends paid during the period totaled $44.1 million to ordinary shareholders and $6.6 million to holders of AT1 securities, compared to $24.5 million and $6.6 million, respectively, in the prior year[98] - The company paid ordinary dividends of $50.7 million for the six months ended June 30, 2024, compared to $31.1 million in the same period of 2023, reflecting a year-over-year increase of 62.0%[66] Assets and Liabilities - Total Assets decreased from $17.6 billion at 31 December 2023 to $17.2 billion at 30 June 2024, primarily due to a reduction in Reverse Repo agreements from $3.2 billion to $2.1 billion[29] - Cash and Liquid Assets increased from $4.5 billion at 31 December 2023 to $5.1 billion at 30 June 2024, reflecting liquidity generated from structured notes and customer balance growth[30] - Total Equity increased by 14% to $882.3 million, up from $775.9 million, driven by a Profit After Tax of $102.9 million in H1 2024[31] - The Group's Total Capital Ratio improved to 276% as of 30 June 2024, up from 229% at 31 December 2023, indicating significant capital headroom[35] - Total liabilities decreased to $16,307.1 million from $16,835.7 million, showing a reduction of 3.1%[61] - Current assets totaled $16,665.2 million, slightly down from $16,936.0 million at the end of December 2023[59] - Non-current assets as of June 30, 2024, totaled $317.6 million, an increase from $293.0 million as of December 31, 2023[94] - The total balance of derivative financial assets increased from $655.6 million (December 2023) to $730.8 million (June 2024), reflecting a growth of 11.5%[107] - The total balance of derivative financial liabilities increased from $402.2 million (December 2023) to $496.8 million (June 2024), an increase of 23.5%[109] Operational Metrics - Clearing business cleared 538 million contracts in H1 2024, a 28% increase compared to the same period in 2023[13] - Average headcount increased by 13% to 295 in H1 2024, supporting revenue growth across various segments[14] - Total number of trades executed on the platform increased, contributing to overall revenue growth[46] - Average Balances of segregated and non-segregated client balances generating interest income increased over the last five quarters[46] Costs and Expenses - Control and support costs increased by 65% to $(90.2) million in H1 2024 compared to $(54.8) million in H1 2023[28] - The company incurred $4.6 million in IPO preparation costs for the three months ended June 30, 2024[48] - The Corporate segment reported an adjusted operating loss of $70.2 million, impacting the overall profitability of the Group[90] Accounting and Reporting Changes - The Group adopted new accounting standards effective January 1, 2024, but these did not impact the interim condensed consolidated financial statements[70] - The Group's accounting policies for revenue presentation were changed to disaggregate income derived from ordinary activities, enhancing clarity[73] - Revenue for the six months ended June 30, 2023, was restated to $622.4 million, down from the originally reported $1,191.3 million[74] - Interest income for the six months ended June 30, 2023, was restated to $308.3 million, correcting a previous misclassification[76] - Provision for credit losses for the six months ended June 30, 2023, was restated to $4.5 million, previously included in operating expenses[77] - Impairment of goodwill increased by $10.7 million for the six months ended June 30, 2023, related to Volatility Performance Fund S.A.[78] Shareholder Equity and Capital Management - Common Equity as of June 30, 2024, was $784.7 million, up from $673.7 million in the previous quarter[49] - Basic earnings per share increased to $1.41, compared to $1.13 in the prior year, indicating a rise of 24.8%[55] - The Group's management has determined that there are no material uncertainties affecting its ability to continue as a going concern for at least 12 months from the reporting period end[69] - The Group's Level 3 financial assets decreased slightly to $0.7 million as of June 30, 2024, from $0.8 million as of December 31, 2023, while Level 3 financial liabilities decreased to $2.6 million from $6.0 million[139] IPO and Acquisitions - The company issued 3,846,153 new ordinary shares at an initial offering price of $19.00 per share, generating gross proceeds of $73.0 million during its IPO[68] - The Group completed the acquisition of Cowen Asia Limited and Cowen and Company (Asia) Limited for a total consideration of $3.5 million on 2 July 2024[159] - The acquisition of Pinnacle Fuel LLC was completed for a total consideration of $4.0 million, which included $3.7 million of goodwill premium[100]