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Is TRADEWEB MARKETS INC-CLASS A (NASDAQ:TW) a Strong Candidate for Quality Investing?

By Mill Chart

Last update: Feb 23, 2024

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.

Exploring Why NASDAQ:TW Holds Appeal for Quality Investors.

  • TRADEWEB MARKETS INC-CLASS A has achieved substantial revenue growth over the past 5 years, with a 15.27% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • TRADEWEB MARKETS INC-CLASS A demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 58.04% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • TRADEWEB MARKETS INC-CLASS A demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.03, 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 favorable Profit Quality (5-year) ratio of 233.0%, TRADEWEB MARKETS INC-CLASS A showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • With a robust 5-year EBIT growth of 24.01%, 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.

What else is there to say on the fundamentals of NASDAQ:TW?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

TW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 208 industry peers in the Capital Markets industry. TW is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. TW is quite expensive at the moment. It does show a decent growth rate.

Check the latest full fundamental report of TW for a complete fundamental analysis.

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

Keep in mind

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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