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Should you consider NASDAQ:TW for quality investing?

By Mill Chart

Last update: Nov 9, 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.

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

  • The 5-year revenue growth of TRADEWEB MARKETS INC-CLASS A has been remarkable, with 18.7% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • The ROIC excluding cash and goodwill of TRADEWEB MARKETS INC-CLASS A stands at 48.7%, 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.
  • TRADEWEB MARKETS INC-CLASS A maintains a healthy Debt/Free Cash Flow Ratio of 0.0, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • 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 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?

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. While showing a medium growth rate, TW is valued expensive at the moment.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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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