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Should Quality Investors Include NASDAQ:TW in Their Portfolio?

By Mill Chart

Last update: Jul 18, 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.


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

  • TRADEWEB MARKETS INC-CLASS A has shown strong performance in revenue growth over the past 5 years, with a 15.27% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a robust ROIC excluding cash and goodwill at 56.01%, TRADEWEB MARKETS INC-CLASS A showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • 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.
  • TRADEWEB MARKETS INC-CLASS A demonstrates consistent Profit Quality over the past 5 years, with a strong 233.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • The 5-year EBIT growth of TRADEWEB MARKETS INC-CLASS A has been remarkable, with 24.01% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • 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 else is there to say on the fundamentals of NASDAQ:TW?

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

Taking everything into account, TW scores 6 out of 10 in our fundamental rating. TW was compared to 213 industry peers in the Capital Markets industry. While TW has a great health rating, its profitability is only average at the moment. TW is valued quite expensively, but it does show have an excellent growth rating. These ratings could make TW a good candidate for growth investing.

Our latest full fundamental report of TW contains the most current fundamental analsysis.

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

Disclaimer

This article should in no way be interpreted as advice. 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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