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Why NASDAQ:TW qualifies as a quality stock.

By Mill Chart

Last update: Sep 22, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if TRADEWEB MARKETS INC-CLASS A (NASDAQ:TW) is suited for quality investing. Investors should of course do their own research, but we spotted TRADEWEB MARKETS INC-CLASS A showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

A Deep Dive into TRADEWEB MARKETS INC-CLASS A's Quality Metrics.

  • TRADEWEB MARKETS INC-CLASS A has achieved substantial revenue growth over the past 5 years, with a 18.7% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • TRADEWEB MARKETS INC-CLASS A exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 43.15% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • TRADEWEB MARKETS INC-CLASS A demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.0, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • With a robust Profit Quality (5-year) ratio of 225.0%, TRADEWEB MARKETS INC-CLASS A highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • With a robust 5-year EBIT growth of 35.87%, TRADEWEB MARKETS INC-CLASS A showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • TRADEWEB MARKETS INC-CLASS A demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

A complete fundamental analysis of NASDAQ:TW

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

Overall TW gets a fundamental rating of 6 out of 10. We evaluated TW against 206 industry peers in the Capital Markets industry. TW has an excellent financial health rating, but there are some minor concerns on its profitability. TW is valied quite expensively at the moment, while it does show a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of TW

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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