Siebert Financial Corp (SIEB) Stock Analysis and Metrics

Sector: Financial Services Industry: Capital Markets CIK: 0000065596

Market Cap 164.63 Mn

P/B 1.81

P/E 22.56

P/S 1.82

ROIC (Qtr) 7.01

Div Yield % 0.00

Rev 1y % (Qtr) 19.00

Total Debt (Qtr) 7.86 Mn

Debt/Equity (Qtr) 0.09

About

Siebert Financial Corp, commonly known as Siebert, is a financial services company that operates in the brokerage industry. Its ticker symbol is SIEB. The company generates revenue through its primary products and services, which include brokerage services, financial planning, and investment management. Siebert's main business activities involve providing brokerage services to clients, offering a range of investment options such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs). The company has a diverse clientele, which includes...

Siebert Financial Corp, commonly known as Siebert, is a financial services company that operates in the brokerage industry. Its ticker symbol is SIEB. The company generates revenue through its primary products and services, which include brokerage services, financial planning, and investment management.

Siebert's main business activities involve providing brokerage services to clients, offering a range of investment options such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs). The company has a diverse clientele, which includes individual investors, institutional clients, and other financial institutions. Siebert's operations span across various regions, with a focus on the domestic market in the United States.

The company generates revenue through its brokerage services, financial planning, and investment management offerings. Its brokerage services are the most profitable, generating revenue through commissions and fees charged to clients for trading and investment services. Financial planning services help clients achieve their financial goals by providing personalized investment advice and portfolio management, generating revenue through fees charged to clients for financial planning and investment management services. Investment management services offer a range of investment strategies, including actively managed portfolios, index funds, and ETFs, generating revenue through fees charged to clients for investment management services.

Siebert's position within the industry is strong, with a reputation for offering quality brokerage services. The company competes with larger financial institutions, such as Fidelity Investments and Charles Schwab, as well as smaller, independent brokerages. Despite the competition, Siebert maintains a loyal customer base, thanks to its focus on providing excellent customer service and its commitment to offering competitive pricing.

Siebert's customers include individual investors, families, trusts, estates, and institutional investors, such as pension funds and endowments. The company's financial advisors work closely with clients to understand their financial objectives, risk tolerance, and investment time horizon, providing personalized investment advice and portfolio management services.

Siebert's brand names and trade names include its primary offerings of brokerage services, financial planning, and investment management. Its brokerage services are offered under the Siebert brand, while its financial planning and investment management services are offered under the Siebert Financial Services brand.

Price action

Investment thesis

Bull case

Strong operating cash flow of 73M provides robust 9.28x coverage of total debt 7.86M, indicating excellent debt servicing capability and financial flexibility.
Healthy cash reserves of 208.21M provide 91.16x coverage of short-term debt 2.28M, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 598.33M provides 76.09x coverage of total debt 7.86M, indicating robust asset backing and low credit risk.
Operating cash flow of 73M provides exceptional 36501.50x coverage of minority interest expenses 2000, showing strong core operations.
Operating cash flow of 73M provides exceptional 195.72x coverage of interest expenses 373000, showing strong debt service capability.

Bear case

Operating cash flow of 73M barely covers its investment activities of (6.39M), with a coverage ratio of -11.42, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Cash reserves of 208.21M provide limited coverage of acquisition spending of (2.44M), which is -85.30x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
R&D investment of 0 represents just 0x of SG&A expenses of 16.14M, indicating potential underinvestment in innovation relative to administrative overhead.
Fixed assets of 12.69M showing 5.95x ratio to depreciation of 2.13M indicates aging infrastructure requiring significant near-term capital investment.
R&D spending of 0 represents just 0x of capital expenditure 3.72M, indicating potential underinvestment in innovation relative to physical assets.

Peer comparison

Companies in the Capital Markets

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	GS	Goldman Sachs Group Inc	284.23 Bn	17.94	4.84	911.32 Bn
2	MS	Morgan Stanley	279.63 Bn	17.97	4.05	353.12 Bn
3	SCHW	Schwab Charles Corp	179.33 Bn	23.09	7.83	27.59 Bn
4	HOOD	Robinhood Markets, Inc.	106.92 Bn	48.73	25.43	0.00 Bn
5	CRCL	Circle Internet Group, Inc.	40.97 Bn	261.00	24.22	0.15 Bn
6	IBKR	Interactive Brokers Group, Inc.	28.23 Bn	30.79	4.75	28.43 Bn
7	LPLA	LPL Financial Holdings Inc.	27.60 Bn	33.13	1.77	7.52 Bn
8	FUTU	Futu Holdings Ltd	22.89 Bn	18.13	8.54	1.75 Bn

Industry comparisons

Current Valuation	Value	Ind Avg
EV to Assets EV to Assets	-0.01	1.07
EV to Cash from Ops. EV/CFO	-0.05	15.33
EV to Debt EV to Debt	-0.50	21.89
EV to EBIT EV/EBIT	-0.42	-0.80
EV to EBITDA EV/EBITDA	-0.34	11.20
EV to Free Cash Flow [EV/FCF] EV/FCF	-0.06	43.08
EV to Market Cap EV to Market Cap	-0.02	-0.05
EV to Revenue EV/Rev	-0.04	12.82
Price to Book Value [P/B] P/B	1.81	3.09
Price to Earnings [P/E] P/E	22.56	6.20

Dividend Metrics	Value	Ind Avg
Dividend Coverage Ratio Dividend Coverage Ratio	0.00	4.22
Dividend Payout Ratio % Div Payout % (Qtr)	0.00	10.37
Dividend per Basic Share Div per Share (Qtr)	0.00	0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr)	0.00	-8.68
Interest Coverage Int. cover (Qtr)	24.59	37.53

Growth Metrics	Value	Ind Avg
Capex Growth (1y) % Capex 1y % (Qtr)	22.26	-12,429.64
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr)	-6.15	1,588.78
Dividend Growth (1y) % Dividend Growth (1y) %	0.00	4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr)	-30.11	270.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr)	-50.57	333.57
EBIT Growth (1y) % EBIT 1y % (Qtr)	-37.57	3,103.22
EBT Growth (1y) % EBT 1y % (Qtr)	-39.18	3,039.53
EPS Growth (1y) % EPS 1y % (Qtr)	-30.77	24.25
FCF Growth (1y) % FCF 1y % (Qtr)	104.01	-80.08
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr)	-14.50	51.33

Liquidity Ratios	Value	Ind Avg
Asset Utilization Ratio Asset Util Ratio (Qtr)	0.15	0.42
Cash Payout Ratio Cash Payout (Qtr)	0.00	-0.08
Cash Ratio Cash Ratio (Qtr)	0.41	2.01
Current Ratio Curr Ratio (Qtr)	1.14	3.47
Debt to Equity Ratio Debt/Equity (Qtr)	0.09	1.46
Interest Cover Ratio Int Coverage (Qtr)	24.59	37.53
Times Interest Earned Times Interest Earned (Qtr)	24.59	37.53

Profitability	Value	Ind Avg
EBITDA Margin % EBITDA Margin % (Qtr)	12.50	76.68
EBIT Margin % EBIT Margin % (Qtr)	10.12	46.81
EBT Margin % EBT Margin % (Qtr)	9.70	58.57
Gross Margin % Gross Margin % (Qtr)	39.10	53.60
Net Profit Margin % Net Margin % (Qtr)	8.10	29.41

Siebert Financial Corp (NASDAQ: SIEB)

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Price action

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Bull case

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