MARKETAXESS HOLDINGS INC (MKTX) Stock Fundamental Analysis
NASDAQ:MKTX - Nasdaq - US57060D1081 - Common Stock
Overall MKTX gets a fundamental rating of 6 out of 10. We evaluated MKTX against 224 industry peers in the Capital Markets industry. Both the health and profitability get an excellent rating, making MKTX a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, MKTX is valued expensive at the moment. These ratings would make MKTX suitable for quality investing!
1. Profitability
1.1 Basic Checks
MKTX had positive earnings in the past year.
MKTX had a positive operating cash flow in the past year.
In the past 5 years MKTX has always been profitable.
MKTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.20%, MKTX belongs to the top of the industry, outperforming 95.89% of the companies in the same industry.
With an excellent Return On Equity value of 20.10%, MKTX belongs to the best of the industry, outperforming 87.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.40%, MKTX belongs to the top of the industry, outperforming 96.35% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MKTX is significantly above the industry average of 6.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.2% | ||
| ROE | 20.1% | ||
| ROIC | 18.4% |
ROA(3y)15.07%
ROA(5y)17.83%
ROE(3y)22.62%
ROE(5y)25.16%
ROIC(3y)21.88%
ROIC(5y)23.96%
1.3 Margins
Looking at the Profit Margin, with a value of 34.32%, MKTX is in the better half of the industry, outperforming 77.63% of the companies in the same industry.
MKTX's Profit Margin has declined in the last couple of years.
MKTX's Operating Margin of 41.62% is fine compared to the rest of the industry. MKTX outperforms 71.23% of its industry peers.
MKTX's Operating Margin has declined in the last couple of years.
The Gross Margin of MKTX (89.12%) is better than 91.32% of its industry peers.
MKTX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.62% | ||
| PM (TTM) | 34.32% | ||
| GM | 89.12% |
OM growth 3Y-8.36%
OM growth 5Y-3.03%
PM growth 3Y-7.58%
PM growth 5Y-2.88%
GM growth 3Y-2.02%
GM growth 5Y-1.1%
2. Health
2.1 Basic Checks
MKTX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MKTX has more shares outstanding
MKTX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
MKTX has an Altman-Z score of 13.80. This indicates that MKTX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MKTX (13.80) is better than 96.80% of its industry peers.
There is no outstanding debt for MKTX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 13.8 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.62 indicates that MKTX has no problem at all paying its short term obligations.
MKTX has a better Current ratio (2.62) than 73.06% of its industry peers.
MKTX has a Quick Ratio of 2.62. This indicates that MKTX is financially healthy and has no problem in meeting its short term obligations.
MKTX has a better Quick ratio (2.62) than 73.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.62 |
3. Growth
3.1 Past
MKTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.78%, which is quite good.
Measured over the past years, MKTX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.21% on average per year.
The Revenue has grown by 10.74% in the past year. This is quite good.
MKTX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.55% yearly.
EPS 1Y (TTM)15.78%
EPS 3Y-3.29%
EPS 5Y9.21%
EPS Q2Q%30.14%
Revenue 1Y (TTM)10.74%
Revenue growth 3Y2.97%
Revenue growth 5Y11.55%
Sales Q2Q%19.99%
3.2 Future
Based on estimates for the next years, MKTX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.47% on average per year.
Based on estimates for the next years, MKTX will show a quite strong growth in Revenue. The Revenue will grow by 8.67% on average per year.
EPS Next Y5.98%
EPS Next 2Y8.88%
EPS Next 3Y11.02%
EPS Next 5Y10.47%
Revenue Next Year9.66%
Revenue Next 2Y9.8%
Revenue Next 3Y10.23%
Revenue Next 5Y8.67%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.09, which means the current valuation is very expensive for MKTX.
70.32% of the companies in the same industry are cheaper than MKTX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.29. MKTX is around the same levels.
The Price/Forward Earnings ratio is 26.37, which means the current valuation is very expensive for MKTX.
Based on the Price/Forward Earnings ratio, MKTX is valued a bit more expensive than the industry average as 68.95% of the companies are valued more cheaply.
MKTX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.09 | ||
| Fwd PE | 26.37 |
4.2 Price Multiples
MKTX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MKTX is cheaper than 70.32% of the companies in the same industry.
MKTX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.68 | ||
| EV/EBITDA | 19.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MKTX does not grow enough to justify the current Price/Earnings ratio.
MKTX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.86
PEG (5Y)3.16
EPS Next 2Y8.88%
EPS Next 3Y11.02%
5. Dividend
5.1 Amount
MKTX has a Yearly Dividend Yield of 1.34%.
The stock price of MKTX dropped by -22.51% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
MKTX's Dividend Yield is slightly below the industry average, which is at 9.45.
Compared to an average S&P500 Dividend Yield of 2.28, MKTX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
The dividend of MKTX is nicely growing with an annual growth rate of 11.85%!
MKTX has paid a dividend for at least 10 years, which is a reliable track record.
MKTX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.85%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
MKTX pays out 40.39% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of MKTX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.39%
EPS Next 2Y8.88%
EPS Next 3Y11.02%
MARKETAXESS HOLDINGS INC
NASDAQ:MKTX (1/21/2025, 8:14:29 PM)
Premarket: 221 -0.96 (-0.43%)221.96
+1.46 (+0.66%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners102.17%
Inst Owner Change0.07%
Ins Owners2.24%
Ins Owner Change-6.36%
Market Cap8.37B
Analysts72
Price Target286.34 (29.01%)
Short Float %3.06%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend2.9
Dividend Growth(5Y)11.85%
DP40.39%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.65%
Min EPS beat(2)0.42%
Max EPS beat(2)0.88%
EPS beat(4)4
Avg EPS beat(4)5.16%
Min EPS beat(4)0.42%
Max EPS beat(4)18.71%
EPS beat(8)5
Avg EPS beat(8)2.16%
EPS beat(12)7
Avg EPS beat(12)1.45%
EPS beat(16)10
Avg EPS beat(16)1.34%
Revenue beat(2)0
Avg Revenue beat(2)-2.09%
Min Revenue beat(2)-2.44%
Max Revenue beat(2)-1.74%
Revenue beat(4)0
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-3.04%
Max Revenue beat(4)-1.74%
Revenue beat(8)0
Avg Revenue beat(8)-2.18%
Revenue beat(12)0
Avg Revenue beat(12)-2.2%
Revenue beat(16)0
Avg Revenue beat(16)-2.18%
PT rev (1m)-1.44%
PT rev (3m)14.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.85%
EPS NY rev (1m)0%
EPS NY rev (3m)6.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.09 | ||
| Fwd PE | 26.37 | ||
| P/S | 10.31 | ||
| P/FCF | 28.68 | ||
| P/OCF | 23.86 | ||
| P/B | 6.04 | ||
| P/tB | 8.01 | ||
| EV/EBITDA | 19.19 |
EPS(TTM)7.63
EY3.44%
EPS(NY)8.42
Fwd EY3.79%
FCF(TTM)7.74
FCFY3.49%
OCF(TTM)9.3
OCFY4.19%
SpS21.54
BVpS36.77
TBVpS27.72
PEG (NY)4.86
PEG (5Y)3.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.2% | ||
| ROE | 20.1% | ||
| ROCE | 24.29% | ||
| ROIC | 18.4% | ||
| ROICexc | 27.09% | ||
| ROICexgc | 42.39% | ||
| OM | 41.62% | ||
| PM (TTM) | 34.32% | ||
| GM | 89.12% | ||
| FCFM | 35.94% |
ROA(3y)15.07%
ROA(5y)17.83%
ROE(3y)22.62%
ROE(5y)25.16%
ROIC(3y)21.88%
ROIC(5y)23.96%
ROICexc(3y)37.81%
ROICexc(5y)41.63%
ROICexgc(3y)68.59%
ROICexgc(5y)76.23%
ROCE(3y)28.88%
ROCE(5y)31.63%
ROICexcg growth 3Y-24.06%
ROICexcg growth 5Y-1.85%
ROICexc growth 3Y-20.9%
ROICexc growth 5Y-8.61%
OM growth 3Y-8.36%
OM growth 5Y-3.03%
PM growth 3Y-7.58%
PM growth 5Y-2.88%
GM growth 3Y-2.02%
GM growth 5Y-1.1%
F-Score8
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 78.65% | ||
| Cap/Sales | 7.25% | ||
| Interest Coverage | 117.78 | ||
| Cash Conversion | 84.95% | ||
| Profit Quality | 104.71% | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.62 | ||
| Altman-Z | 13.8 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)84.54%
Cap/Depr(5y)101.86%
Cap/Sales(3y)7.15%
Cap/Sales(5y)6.97%
Profit Quality(3y)97.87%
Profit Quality(5y)105.27%
High Growth Momentum
Growth
EPS 1Y (TTM)15.78%
EPS 3Y-3.29%
EPS 5Y9.21%
EPS Q2Q%30.14%
EPS Next Y5.98%
EPS Next 2Y8.88%
EPS Next 3Y11.02%
EPS Next 5Y10.47%
Revenue 1Y (TTM)10.74%
Revenue growth 3Y2.97%
Revenue growth 5Y11.55%
Sales Q2Q%19.99%
Revenue Next Year9.66%
Revenue Next 2Y9.8%
Revenue Next 3Y10.23%
Revenue Next 5Y8.67%
EBIT growth 1Y7.04%
EBIT growth 3Y-5.63%
EBIT growth 5Y8.17%
EBIT Next Year31.88%
EBIT Next 3Y18.35%
EBIT Next 5Y14.39%
FCF growth 1Y14.2%
FCF growth 3Y-7.8%
FCF growth 5Y9.8%
OCF growth 1Y16.61%
OCF growth 3Y-6.21%
OCF growth 5Y8.31%