Company Overview
Siebert Financial Corp. operates within the Financial Services sector, specifically focusing on the Capital Markets industry by providing brokerage and financial advisory services across the United States. The company's core activities include offering self-directed trading platforms, market making, fixed income investment solutions, stock borrowing and lending, equity compensation plans, and comprehensive wealth management services to a diverse client base. As a publicly traded entity with the ticker symbol SIEB, the organization employs a workforce of 146 individuals to execute these complex financial operations. The company currently holds a market capitalization of $76.81M and reports annual revenue of $90.29M, indicating a mid-sized position within the broader capital markets landscape. These financial figures suggest that while the firm has established a revenue stream exceeding $90M, it maintains a relatively modest market valuation relative to its sales, which often characterizes specialized niche players or firms undergoing specific structural adjustments in the financial services sector.
Financial Health
Siebert Financial Corp. reported a trailing twelve-month revenue of $90.29M and net income of $7.30M, while the EBITDA metric is not available in the current reporting cycle. The significant disparity between the $90.29M in revenue and the $7.30M in net income reveals a cost structure where operating expenses absorb approximately 81.9% of total revenue, resulting in a profit margin of 8.1%. Regarding liquidity and operational cash generation, the company holds cash reserves of $481.62M, though free cash flow data is not disclosed; however, the substantial cash balance relative to market cap suggests significant liquidity on the balance sheet. The gross margin stands at 92.4%, indicating that the majority of revenue is generated before accounting for the direct costs associated with delivering brokerage and advisory services. The operating margin is 8.2%, and the profit margin is 8.1%, with these figures collectively highlighting that while the company retains high gross efficiency, overhead costs and other expenses significantly impact the bottom line. In terms of leverage, total debt stands at $256.08M against cash holdings of $481.62M, resulting in a debt-to-equity ratio of 278.75, which indicates a highly leveraged balance sheet structure where equity capital is a small fraction of the capital structure. The current ratio is 1.14, a metric that suggests the company possesses just enough current assets to cover its current liabilities, implying a tight but sufficient short-term liquidity position. Return on equity is 8.3%, while return on assets is 1.2%, metrics that reveal the management team generates returns primarily through high equity leverage rather than organic asset growth efficiency.
Valuation Assessment
The trailing twelve-month P/E ratio is 10.56, whereas the forward P/E ratio is not available, implying that future earnings expectations or analyst consensus projections are not currently quantified for this specific security. The price-to-book ratio is 0.85, which indicates that the market values the company at a discount to its book value, suggesting that investors are pricing in potential risks or that the asset base is valued conservatively relative to market price. Additionally, the price-to-sales ratio is 0.85, and the EV/EBITDA metric is not available; these alternative valuation multiples suggest that the company trades at less than one dollar of revenue per share and lacks a standardized earnings multiple for enterprise value comparison. The stock has traded between a 52-week low of $1.77 and a 52-week high of $5.77, providing a clear price range context for recent trading activity. The beta value is 1.07, which indicates that the stock's price volatility is slightly higher than the broader market benchmark, moving 7% more than the market average over the measurement period.
Growth & Income
The company reported revenue growth of 18.9% year-over-year, contrasted with an earnings growth rate of -58.0%, indicating that while top-line sales are expanding rapidly, profitability is contracting significantly. This divergence implies that revenue growth is not yet translating into proportional income growth, likely due to the high fixed costs or one-time adjustments affecting the net income figure. As the dividend yield is not available and the payout ratio is 0.0%, the company does not currently distribute dividends to shareholders. Consequently, the firm retains all of its earnings, prioritizing the reinvestment of capital into business operations or balance sheet strengthening rather than providing income through distributions. The overall growth and income profile is characterized by strong top-line expansion accompanied by a notable decline in earnings per share and a complete absence of dividend payouts.