MARKETAXESS HOLDINGS INC (MKTX)
US57060D1081 - Common Stock
We assign a fundamental rating of 6 out of 10 to MKTX. MKTX was compared to 218 industry peers in the Capital Markets industry. MKTX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MKTX is quite expensive at the moment. It does show a decent growth rate. With these ratings, MKTX could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year MKTX was profitable.
MKTX had a positive operating cash flow in the past year.
MKTX had positive earnings in each of the past 5 years.
Each year in the past 5 years MKTX had a positive operating cash flow.
1.2 Ratios
MKTX has a better Return On Assets (13.89%) than 94.39% of its industry peers.
MKTX has a Return On Equity of 19.72%. This is amongst the best in the industry. MKTX outperforms 88.78% of its industry peers.
The Return On Invested Capital of MKTX (17.92%) is better than 93.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MKTX is above the industry average of 17.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.89% | ||
| ROE | 19.72% | ||
| ROIC | 17.92% |
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 (33.71%) is better than 73.83% of its industry peers.
In the last couple of years the Profit Margin of MKTX has declined.
MKTX's Operating Margin of 40.87% is fine compared to the rest of the industry. MKTX outperforms 68.22% of its industry peers.
MKTX's Operating Margin has declined in the last couple of years.
MKTX's Gross Margin of 89.60% is amongst the best of the industry. MKTX outperforms 90.65% 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 | 40.87% | ||
| PM (TTM) | 33.71% | ||
| GM | 89.6% |
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.
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
MKTX has an Altman-Z score of 14.27. This indicates that MKTX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 14.27, MKTX belongs to the best of the industry, outperforming 98.13% of the companies in the same industry.
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 | 14.27 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.28 indicates that MKTX has no problem at all paying its short term obligations.
MKTX's Current ratio of 2.28 is fine compared to the rest of the industry. MKTX outperforms 72.90% of its industry peers.
A Quick Ratio of 2.28 indicates that MKTX has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.28, MKTX is in the better half of the industry, outperforming 72.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
MKTX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.15%.
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.
Looking at the last year, MKTX shows a small growth in Revenue. The Revenue has grown by 6.07% in the last year.
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)7.15%
EPS 3Y-3.29%
EPS 5Y9.21%
EPS Q2Q%8.18%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y2.97%
Revenue growth 5Y11.55%
Sales Q2Q%9.91%
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 10.26% on average per year.
MKTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.91% yearly.
EPS Next Y-0.28%
EPS Next 2Y6.49%
EPS Next 3Y9.14%
EPS Next 5Y10.26%
Revenue Next Year7.84%
Revenue Next 2Y9.11%
Revenue Next 3Y9.43%
Revenue Next 5Y8.91%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 40.84 indicates a quite expensive valuation of MKTX.
MKTX's Price/Earnings ratio is a bit more expensive when compared to the industry. MKTX is more expensive than 78.04% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.69, MKTX is valued a bit more expensive.
A Price/Forward Earnings ratio of 36.47 indicates a quite expensive valuation of MKTX.
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 75.23% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.55. MKTX is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.84 | ||
| Fwd PE | 36.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MKTX is valued a bit cheaper than the industry average as 62.62% of the companies are valued more expensively.
MKTX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.75 | ||
| EV/EBITDA | 27.09 |
4.3 Compensation for Growth
The decent profitability rating of MKTX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.43
EPS Next 2Y6.49%
EPS Next 3Y9.14%
5. Dividend
5.1 Amount
MKTX has a Yearly Dividend Yield of 1.02%.
MKTX's Dividend Yield is slightly below the industry average, which is at 8.69.
Compared to an average S&P500 Dividend Yield of 2.22, MKTX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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 Years10
Div Non Decr Years10
5.3 Sustainability
MKTX pays out 42.64% 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.
DP42.64%
EPS Next 2Y6.49%
EPS Next 3Y9.14%
MARKETAXESS HOLDINGS INC
NASDAQ:MKTX (10/30/2024, 8:20:37 PM)
After market: 293.61 0 (0%)293.61
+1.28 (+0.44%)
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 Cap11.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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)
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EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 40.84 | ||
| Fwd PE | 36.47 | ||
| 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)N/A
PEG (5Y)4.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.89% | ||
| ROE | 19.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 40.87% | ||
| PM (TTM) | 33.71% | ||
| GM | 89.6% | ||
| 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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.28 | ||
| 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)7.15%
EPS 3Y-3.29%
EPS 5Y
EPS Q2Q%
EPS Next Y-0.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.07%
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