GICS Sector : Financial Services
StoneX Group Inc.operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide.Its Commercial segment provides risk management and hedging, exchange-traded and OTC products execution and clearing, voice brokerage, market intelligence, physical trading, and commodity financing and logistics services.
StoneX Group Inc. reported a record net income of $85.7 million and diluted EPS of $1.57 for Q4 FY 2025, representing a 12% growth in net income and 1% growth in EPS. The quarter was impacted by pretax acquisition-related charges of $9.3 million. Operating revenues were $1.2 billion, up 31% versus the prior year and 17% versus the immediately preceding quarter. Net operating revenues increased 29% versus a year ago and 20% versus the immediately preceding quarter.
Publication Date: Nov -26
The company's segment performance showed significant growth across various segments, with Commercial segment net operating revenues up 25%, Institutional segment net operating revenues up 67%, and Payments segment net operating revenues up 7%. However, the Self-Directed Retail segment net operating revenues were down 35%. The acquisitions of R.J. O'Brien and Benchmark contributed $22.1 million and $2.4 million in pretax net income, respectively.
The integration of R.J. O'Brien is on track, with estimated $50 million in annual run-rate cost synergies. The company achieved $20 million in annualized cost savings just four months after the deal close and expects to realize the targets within 24 months. The acquisition is expected to be strongly accretive and drive results for 2026.
With a P/E Ratio of 14.39 and an ROE of 15.6%, the company's valuation appears reasonable. The actual EPS of $1.57 was slightly lower than estimates of $1.58. Analysts estimate next year's revenue growth at 21.1%. The company's growing asset pool as a custodian of client assets across various products provides a stable revenue source. The acquisitions, including R.J. O'Brien, are tracking well, and the company is excited about prospects for 2026.
The company is taking steps to manage its interest rate sensitivity, planning to be active in hedging and locking in rates, particularly in the 2-year window, to limit the impact of rate fluctuations. The company may also look to utilize R.J. O'Brien's capabilities in managing the portfolio to earn a spread to the 1-month T-bill rate.
Creative Planning Has $2.04 Million Stock Position in StoneX Group Inc. $SNEX
Nov -26
Creative Planning Purchases 5,838 Shares of StoneX Group Inc. $SNEX
Nov -26
StoneX Group Inc. (SNEX) Q4 2025 Earnings Call Transcript
Nov -25
Commonwealth of Pennsylvania Public School Empls Retrmt SYS Grows Position in StoneX Group Inc. $SNEX
Nov -24
Tweedy Browne's Strategic Moves: Alphabet Inc. Sees a -1.43% Portfolio Impact
Nov -20
StoneX Group Inc. to Announce 2025 Fiscal Fourth Quarter Earnings on November 24, 2025
Nov -17
Private Capital's Strategic Moves: Spotlight on Matthews International Corp
Nov -14
Teacher Retirement System of Texas Lowers Stock Holdings in StoneX Group Inc. $SNEX
Nov -05
StoneX Group Inc.'s commercial segment growth is driven by increasing demand for diversified financial services, expansion into new markets, and strategic acquisitions. The company's strong brand reputation, advanced technology, and experienced management team also contribute to its growth. Additionally, the rising need for risk management and hedging solutions among commercial clients further fuels the segment's growth.
Institutional segment growth of 2% from StoneX Group Inc. is driven by increasing demand for hedging and risk management solutions, expansion into new markets, and strategic partnerships. Additionally, the company's investment in digital platforms and technology has improved operational efficiency, enabling it to attract and retain institutional clients.
The 4% growth in Retail from StoneX Group Inc. is driven by increasing demand for online trading platforms, expansion into new markets, and strategic partnerships. Additionally, the company's focus on improving customer experience, investing in digital marketing, and offering competitive pricing have contributed to its growth.
Global Payments from StoneX Group Inc. growth driven by increasing cross-border e-commerce, rising demand for digital payment solutions, expansion into new markets, strategic partnerships, and investments in technology infrastructure, enabling faster and secure transactions, thereby fueling 5% growth.
StoneX Group Inc.'s eliminations growth is stagnant at 0%. This is attributed to the absence of significant acquisitions, divestitures, or changes in reporting structures. The company's focus on organic growth and lack of material transactions have resulted in no eliminations, maintaining a stable financial reporting landscape.
StoneX Group Inc.'s Corporate Unallocated segment growth is driven by increasing trading volumes, expansion of its clearing and execution services, and strategic acquisitions. The company's diversified revenue streams, including interest income and investment gains, also contribute to its growth. Furthermore, StoneX's strong balance sheet and efficient cost management enable it to invest in growth initiatives and capitalize on market opportunities.
StoneX Group Inc. offers commodity trading services, enabling clients to buy and sell physical commodities such as agricultural products, energy, and metals.
StoneX provides foreign exchange services, allowing clients to exchange one currency for another.
StoneX offers futures and options trading, enabling clients to manage risk and speculate on market movements.
StoneX provides securities lending services, allowing clients to borrow and lend securities.
StoneX offers prime brokerage services, providing clients with financing, custody, and execution services.
StoneX provides over-the-counter (OTC) derivatives, enabling clients to customize risk management solutions.
StoneX offers precious metals trading, storage, and financing services.
StoneX provides digital asset trading and custody services, enabling clients to access cryptocurrency markets.
StoneX Group Inc. operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand recognition and diversified product offerings help to mitigate the threat of substitutes.
StoneX Group Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often customized to meet the specific needs of its customers, making it difficult for them to switch to alternative providers.
StoneX Group Inc. relies on a network of suppliers to provide goods and services. While the company has some bargaining power due to its size and scale, suppliers also have some bargaining power due to the specialized nature of their products and services.
The financial services industry is highly regulated, and there are significant barriers to entry. StoneX Group Inc. has a strong brand and established customer relationships, making it difficult for new entrants to gain traction.
The financial services industry is highly competitive, and StoneX Group Inc. faces intense rivalry from established players. The company must continually innovate and improve its products and services to maintain its market share.
| Value | |
|---|---|
| Debt Weight | 82.44% |
| Debt Cost | 8.21% |
| Equity Weight | 17.56% |
| Equity Cost | 8.21% |
| WACC | 8.21% |
| Leverage | 469.60% |
Value: 3.8
Growth: 8.2
Quality: 6.5
Yield: 3.0
Momentum: 8.0
Volatility: 7.3
1-Year Total Return ->
Value: 2.0
Growth: 6.8
Quality: 7.8
Yield: 3.0
Momentum: 7.5
Volatility: 8.3
1-Year Total Return ->
Value: 3.3
Growth: 5.8
Quality: 8.2
Yield: 3.0
Momentum: 7.5
Volatility: 5.7
1-Year Total Return ->
Value: 1.8
Growth: 5.4
Quality: 7.9
Yield: 5.0
Momentum: 6.5
Volatility: 6.7
1-Year Total Return ->
Value: 5.0
Growth: 6.9
Quality: 5.6
Yield: 0.0
Momentum: 8.5
Volatility: 6.0
1-Year Total Return ->
Value: 6.9
Growth: 4.8
Quality: 4.0
Yield: 0.0
Momentum: 10.0
Volatility: 5.7
1-Year Total Return ->