MARKETAXESS HOLDINGS INC (MKTX) Stock Fundamental Analysis
NASDAQ:MKTX - Nasdaq - US57060D1081 - Common Stock - Currency: USD
Overall MKTX gets a fundamental rating of 7 out of 10. We evaluated MKTX against 225 industry peers in the Capital Markets industry. MKTX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
In the past year MKTX had a positive cash flow from operations.
MKTX had positive earnings in each of the past 5 years.
MKTX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MKTX has a better Return On Assets (15.20%) than 95.89% of its industry peers.
Looking at the Return On Equity, with a value of 20.10%, MKTX belongs to the top of the industry, outperforming 86.76% of the companies in the same industry.
MKTX has a Return On Invested Capital of 18.65%. This is amongst the best in the industry. MKTX outperforms 96.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MKTX is significantly above the industry average of 6.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.2% | ||
| ROE | 20.1% | ||
| ROIC | 18.65% |
ROA(3y)14.56%
ROA(5y)16.61%
ROE(3y)20.95%
ROE(5y)23.79%
ROIC(3y)20.21%
ROIC(5y)23.08%
1.3 Margins
MKTX has a Profit Margin of 34.32%. This is in the better half of the industry: MKTX outperforms 75.34% of its industry peers.
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 72.60% of its industry peers.
In the last couple of years the Operating Margin of MKTX has declined.
Looking at the Gross Margin, with a value of 89.12%, MKTX belongs to the top of the industry, outperforming 91.32% of the companies in the same industry.
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-4.73%
OM growth 5Y-3.19%
PM growth 3Y-3.11%
PM growth 5Y-3.48%
GM growth 3Y-1.78%
GM growth 5Y-1.25%
2. Health
2.1 Basic Checks
Compared to 1 year ago, MKTX has less shares outstanding
Compared to 5 years ago, MKTX has less 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
An Altman-Z score of 12.17 indicates that MKTX is not in any danger for bankruptcy at the moment.
MKTX has a Altman-Z score of 12.17. This is amongst the best in the industry. MKTX outperforms 95.43% 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 | 12.17 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MKTX has a Current 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 Current ratio (2.62) than 73.97% of its industry peers.
A Quick Ratio of 2.62 indicates that MKTX has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.62, MKTX is doing good in the industry, outperforming 73.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.62 |
3. Growth
3.1 Past
MKTX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.39%.
MKTX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.13% yearly.
Looking at the last year, MKTX shows a quite strong growth in Revenue. The Revenue has grown by 8.58% in the last year.
The Revenue has been growing by 9.83% on average over the past years. This is quite good.
EPS 1Y (TTM)2.39%
EPS 3Y2.4%
EPS 5Y6.13%
EPS Q2Q%-17.22%
Revenue 1Y (TTM)8.58%
Revenue growth 3Y5.34%
Revenue growth 5Y9.83%
Sales Q2Q%2.61%
3.2 Future
The Earnings Per Share is expected to grow by 12.46% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.54% on average over the next years. This is quite good.
EPS Next Y8.76%
EPS Next 2Y10.83%
EPS Next 3Y12.22%
EPS Next 5Y12.46%
Revenue Next Year9.23%
Revenue Next 2Y10.02%
Revenue Next 3Y8.61%
Revenue Next 5Y8.54%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.68, MKTX can be considered very expensive at the moment.
Based on the Price/Earnings ratio, MKTX is valued a bit more expensive than the industry average as 64.38% of the companies are valued more cheaply.
MKTX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
MKTX is valuated rather expensively with a Price/Forward Earnings ratio of 24.53.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MKTX indicates a slightly more expensive valuation: MKTX is more expensive than 63.47% of the companies listed in the same industry.
MKTX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.68 | ||
| Fwd PE | 24.53 |
4.2 Price Multiples
78.54% of the companies in the same industry are more expensive than MKTX, based on the Enterprise Value to EBITDA ratio.
MKTX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.06 | ||
| EV/EBITDA | 16.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of MKTX may justify a higher PE ratio.
MKTX's earnings are expected to grow with 12.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.05
PEG (5Y)4.35
EPS Next 2Y10.83%
EPS Next 3Y12.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, MKTX has a reasonable but not impressive dividend return.
The stock price of MKTX dropped by -25.50% 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 10.00.
Compared to the average S&P500 Dividend Yield of 2.29, MKTX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
The dividend of MKTX is nicely growing with an annual growth rate of 11.85%!
MKTX has been paying a dividend for at least 10 years, so it has 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.
MKTX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP40.39%
EPS Next 2Y10.83%
EPS Next 3Y12.22%
193.96
+4.15 (+2.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners102.17%
Inst Owner Change2.51%
Ins Owners2.24%
Ins Owner Change-5.84%
Market Cap7.31B
Analysts72
Price Target264.46 (36.35%)
Short Float %3.97%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend2.9
Dividend Growth(5Y)11.85%
DP40.39%
Div Incr Years11
Div Non Decr Years11
Ex-Date
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)-7.64%
PT rev (3m)-7.34%
EPS NQ rev (1m)-9.65%
EPS NQ rev (3m)-8.23%
EPS NY rev (1m)-6.06%
EPS NY rev (3m)-5.67%
Revenue NQ rev (1m)-3.08%
Revenue NQ rev (3m)-2.58%
Revenue NY rev (1m)-1.23%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.68 | ||
| Fwd PE | 24.53 | ||
| P/S | 9.01 | ||
| P/FCF | 25.06 | ||
| P/OCF | 20.85 | ||
| P/B | 5.27 | ||
| P/tB | 7 | ||
| EV/EBITDA | 16.26 |
EPS(TTM)7.27
EY3.75%
EPS(NY)7.91
Fwd EY4.08%
FCF(TTM)7.74
FCFY3.99%
OCF(TTM)9.3
OCFY4.8%
SpS21.54
BVpS36.77
TBVpS27.72
PEG (NY)3.05
PEG (5Y)4.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.2% | ||
| ROE | 20.1% | ||
| ROCE | 24.29% | ||
| ROIC | 18.65% | ||
| ROICexc | 27.46% | ||
| ROICexgc | 42.97% | ||
| OM | 41.62% | ||
| PM (TTM) | 34.32% | ||
| GM | 89.12% | ||
| FCFM | 35.94% |
ROA(3y)14.56%
ROA(5y)16.61%
ROE(3y)20.95%
ROE(5y)23.79%
ROIC(3y)20.21%
ROIC(5y)23.08%
ROICexc(3y)32.65%
ROICexc(5y)40.75%
ROICexgc(3y)54.41%
ROICexgc(5y)74.52%
ROCE(3y)26.31%
ROCE(5y)30.05%
ROICexcg growth 3Y-19.01%
ROICexcg growth 5Y-4.65%
ROICexc growth 3Y-13.58%
ROICexc growth 5Y-4.12%
OM growth 3Y-4.73%
OM growth 5Y-3.19%
PM growth 3Y-3.11%
PM growth 5Y-3.48%
GM growth 3Y-1.78%
GM growth 5Y-1.25%
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 | 12.17 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.39%
EPS 3Y2.4%
EPS 5Y6.13%
EPS Q2Q%-17.22%
EPS Next Y8.76%
EPS Next 2Y10.83%
EPS Next 3Y12.22%
EPS Next 5Y12.46%
Revenue 1Y (TTM)8.58%
Revenue growth 3Y5.34%
Revenue growth 5Y9.83%
Sales Q2Q%2.61%
Revenue Next Year9.23%
Revenue Next 2Y10.02%
Revenue Next 3Y8.61%
Revenue Next 5Y8.54%
EBIT growth 1Y7.04%
EBIT growth 3Y0.36%
EBIT growth 5Y6.32%
EBIT Next Year34.63%
EBIT Next 3Y17.94%
EBIT Next 5Y16.04%
FCF growth 1Y8.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y7.46%
OCF growth 3YN/A
OCF growth 5YN/A