MARKETAXESS HOLDINGS INC (MKTX)
US57060D1081 - Common Stock
Overall MKTX gets a fundamental rating of 6 out of 10. We evaluated MKTX against 218 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. This makes MKTX very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year MKTX was profitable.
In the past year MKTX had a positive cash flow from operations.
Each year in the past 5 years MKTX has been profitable.
MKTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MKTX's Return On Assets of 15.20% is amongst the best of the industry. MKTX outperforms 95.81% of its industry peers.
MKTX has a better Return On Equity (20.10%) than 88.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.40%, MKTX belongs to the top of the industry, outperforming 95.35% 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 6.96%.
| 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
The Profit Margin of MKTX (34.32%) is better than 76.28% of its industry peers.
MKTX's Profit Margin has declined in the last couple of years.
MKTX has a Operating Margin of 41.62%. This is in the better half of the industry: MKTX outperforms 71.16% of its industry peers.
In the last couple of years the Operating Margin of MKTX has declined.
The Gross Margin of MKTX (89.12%) is better than 90.70% of its industry peers.
In the last couple of years the Gross Margin of MKTX has remained more or less at the same level.
| 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
The number of shares outstanding for MKTX has been increased compared to 1 year ago.
MKTX has more shares outstanding than it did 5 years ago.
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 15.74 indicates that MKTX is not in any danger for bankruptcy at the moment.
MKTX's Altman-Z score of 15.74 is amongst the best of the industry. MKTX outperforms 98.60% of its industry peers.
MKTX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 15.74 |
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's Current ratio of 2.62 is fine compared to the rest of the industry. MKTX outperforms 73.95% of its industry peers.
A Quick Ratio of 2.62 indicates that MKTX has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.62, MKTX is in the better half of the industry, outperforming 73.95% 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 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.
MKTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.74%.
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
The Earnings Per Share is expected to grow by 10.26% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.91% on average over the next years. This is quite good.
EPS Next Y5.38%
EPS Next 2Y8.65%
EPS Next 3Y10.57%
EPS Next 5Y10.26%
Revenue Next Year9.92%
Revenue Next 2Y9.97%
Revenue Next 3Y10.08%
Revenue Next 5Y8.91%
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
Based on the Price/Earnings ratio of 34.12, the valuation of MKTX can be described as expensive.
73.49% of the companies in the same industry are cheaper than MKTX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.96, MKTX is valued at the same level.
With a Price/Forward Earnings ratio of 31.06, MKTX can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, MKTX is valued a bit more expensive than the industry average as 72.56% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.82. MKTX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.12 | ||
| Fwd PE | 31.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MKTX indicates a somewhat cheap valuation: MKTX is cheaper than 66.98% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MKTX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.63 | ||
| EV/EBITDA | 22.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MKTX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.34
PEG (5Y)3.7
EPS Next 2Y8.65%
EPS Next 3Y10.57%
5. Dividend
5.1 Amount
MKTX has a Yearly Dividend Yield of 1.12%.
Compared to an average industry Dividend Yield of 9.01, MKTX is paying slightly less dividend.
With a Dividend Yield of 1.12, MKTX pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.85%
Div Incr Years10
Div Non Decr Years10
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 slower than its dividend. This means the dividend growth is not sustainable.
DP40.39%
EPS Next 2Y8.65%
EPS Next 3Y10.57%
MARKETAXESS HOLDINGS INC
NASDAQ:MKTX (11/21/2024, 8:00:01 PM)
Premarket: 258.92 -1.39 (-0.53%)260.31
-5.13 (-1.93%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.12 | ||
| Fwd PE | 31.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.34
PEG (5Y)3.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.2% | ||
| ROE | 20.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 41.62% | ||
| PM (TTM) | 34.32% | ||
| GM | 89.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.62 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)15.78%
EPS 3Y-3.29%
EPS 5Y
EPS Q2Q%
EPS Next Y5.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.74%
Revenue growth 3Y2.97%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y