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Why Quality Investors May Find TRADEWEB MARKETS INC-CLASS A (NASDAQ:TW) Attractive.

By Mill Chart

Last update: Oct 18, 2023

In this article we will dive into TRADEWEB MARKETS INC-CLASS A (NASDAQ:TW) as a possible candidate for quality investing. Investors should always do their own research, but we noticed TRADEWEB MARKETS INC-CLASS A showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of TRADEWEB MARKETS INC-CLASS A

  • Over the past 5 years, TRADEWEB MARKETS INC-CLASS A has experienced impressive revenue growth, with 18.7% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • The ROIC excluding cash and goodwill of TRADEWEB MARKETS INC-CLASS A stands at 43.15%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • With a favorable Debt/Free Cash Flow Ratio of 0.0, TRADEWEB MARKETS INC-CLASS A showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • 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.
  • TRADEWEB MARKETS INC-CLASS A has demonstrated consistent growth in EBIT over the past 5 years, with a strong 35.87%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • TRADEWEB MARKETS INC-CLASS A has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

How does the complete fundamental picture look for NASDAQ:TW?

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to TW. TW was compared to 208 industry peers in the Capital Markets industry. While TW has a great health rating, its profitability is only average at the moment. TW is quite expensive at the moment. 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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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