MARKETAXESS HOLDINGS INC (MKTX)
US57060D1081 - Common Stock
We assign a fundamental rating of 6 out of 10 to MKTX. MKTX was compared to 220 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. With these ratings, MKTX could be worth investigating further 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.
Each year in the past 5 years MKTX has been profitable.
Each year in the past 5 years MKTX had a positive operating cash flow.
1.2 Ratios
MKTX has a better Return On Assets (15.20%) than 94.93% of its industry peers.
MKTX has a Return On Equity of 20.10%. This is amongst the best in the industry. MKTX outperforms 86.64% 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 95.39% 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 7.00%.
| 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
MKTX has a better Profit Margin (34.32%) than 76.50% 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 70.97% of its industry peers.
In the last couple of years the Operating Margin of MKTX has declined.
MKTX's Gross Margin of 89.12% is amongst the best of the industry. MKTX outperforms 90.78% 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
MKTX has more shares outstanding than it did 1 year ago.
MKTX has more shares outstanding than it did 5 years ago.
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.
2.2 Solvency
An Altman-Z score of 14.22 indicates that MKTX is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 14.22, MKTX belongs to the best of the industry, outperforming 98.62% of the companies in the same industry.
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 | 14.22 |
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.
Looking at the Current ratio, with a value of 2.62, MKTX is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
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 74.19% 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.
The Earnings Per Share has been growing by 9.21% on average over the past years. This is quite good.
The Revenue has grown by 10.74% in the past year. This is quite good.
Measured over the past years, MKTX shows a quite strong growth in Revenue. The Revenue has been growing by 11.55% on average per year.
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 10.47% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.67% on average over the next years. This is quite good.
EPS Next Y5.98%
EPS Next 2Y8.88%
EPS Next 3Y11.02%
EPS Next 5Y10.47%
Revenue Next Year9.88%
Revenue Next 2Y9.93%
Revenue Next 3Y10.3%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MKTX is valuated quite expensively with a Price/Earnings ratio of 30.16.
Based on the Price/Earnings ratio, MKTX is valued a bit more expensive than the industry average as 70.97% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of MKTX to the average of the S&P500 Index (27.73), we can say MKTX is valued inline with the index average.
The Price/Forward Earnings ratio is 27.34, 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 70.97% of the companies in the same industry.
MKTX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.16 | ||
| Fwd PE | 27.34 |
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 68.20% of the companies listed 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 | 29.74 | ||
| EV/EBITDA | 19.94 |
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)5.04
PEG (5Y)3.27
EPS Next 2Y8.88%
EPS Next 3Y11.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.30%, MKTX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 9.45, MKTX is paying slightly less dividend.
With a Dividend Yield of 1.30, MKTX pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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
40.39% of the earnings are spent on dividend by MKTX. 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 (12/20/2024, 8:24:44 PM)
After market: 230.15 0 (0%)230.15
+1.64 (+0.72%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners102.17%
Inst Owner Change-0.86%
Ins Owners2.24%
Ins Owner Change-6.39%
Market Cap8.68B
Analysts72
Price Target290.52 (26.23%)
Short Float %2.06%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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)1.79%
PT rev (3m)18.36%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)1.85%
EPS NY rev (1m)0.57%
EPS NY rev (3m)6.28%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.16 | ||
| Fwd PE | 27.34 | ||
| P/S | 10.69 | ||
| P/FCF | 29.74 | ||
| P/OCF | 24.74 | ||
| P/B | 6.26 | ||
| P/tB | 8.3 | ||
| EV/EBITDA | 19.94 |
EPS(TTM)7.63
EY3.32%
EPS(NY)8.42
Fwd EY3.66%
FCF(TTM)7.74
FCFY3.36%
OCF(TTM)9.3
OCFY4.04%
SpS21.54
BVpS36.77
TBVpS27.72
PEG (NY)5.04
PEG (5Y)3.27
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 | 14.22 |
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 Year9.88%
Revenue Next 2Y9.93%
Revenue Next 3Y10.3%
Revenue Next 5Y8.67%
EBIT growth 1Y7.04%
EBIT growth 3Y-5.63%
EBIT growth 5Y8.17%
EBIT Next Year33.57%
EBIT Next 3Y19.33%
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%