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Why the quality investor may take a look at NASDAQ:TW.

By Mill Chart

Last update: Apr 25, 2024

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.

Key Considerations for Quality Investors.

  • The 5-year revenue growth of TRADEWEB MARKETS INC-CLASS A has been remarkable, with 15.27% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • TRADEWEB MARKETS INC-CLASS A exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 58.04% 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 0.03, 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.
  • TRADEWEB MARKETS INC-CLASS A has consistently achieved strong EBIT growth over the past 5 years, with a 24.01% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • TRADEWEB MARKETS INC-CLASS A has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What is the full fundamental picture of NASDAQ:TW telling us.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall TW gets a fundamental rating of 6 out of 10. We evaluated TW against 210 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.

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.

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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