MARKETAXESS HOLDINGS INC (MKTX) Stock Fundamental Analysis
USA - NASDAQ:MKTX - US57060D1081 - Common Stock
169.62 USD
+1.48 (+0.88%)
We assign a fundamental rating of 6 out of 10 to MKTX. MKTX was compared to 238 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.
In the past year MKTX had a positive cash flow from operations.
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's Return On Assets of 11.28% is amongst the best of the industry. MKTX outperforms 90.76% of its industry peers.
Looking at the Return On Equity, with a value of 16.08%, MKTX is in the better half of the industry, outperforming 79.83% of the companies in the same industry.
MKTX has a better Return On Invested Capital (18.99%) than 95.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MKTX is significantly above the industry average of 7.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.28% | ||
| ROE | 16.08% | ||
| ROIC | 18.99% |
ROA(3y)14.56%
ROA(5y)16.61%
ROE(3y)20.95%
ROE(5y)23.79%
ROIC(3y)20.18%
ROIC(5y)23.06%
1.3 Margins
MKTX's Profit Margin of 26.62% is fine compared to the rest of the industry. MKTX outperforms 69.75% of its industry peers.
MKTX's Profit Margin has declined in the last couple of years.
MKTX's Operating Margin of 41.48% is fine compared to the rest of the industry. MKTX outperforms 72.69% of its industry peers.
In the last couple of years the Operating Margin of MKTX has declined.
MKTX has a better Gross Margin (89.02%) than 93.70% of its industry peers.
MKTX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.48% | ||
| PM (TTM) | 26.62% | ||
| GM | 89.02% |
OM growth 3Y-4.74%
OM growth 5Y-3.2%
PM growth 3Y-3.1%
PM growth 5Y-3.48%
GM growth 3Y-1.77%
GM growth 5Y-1.24%
2. Health
2.1 Basic Checks
Compared to 1 year ago, MKTX has less shares outstanding
MKTX has less 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 8.83 indicates that MKTX is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.83, MKTX belongs to the best of the industry, outperforming 92.44% 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 | 8.83 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MKTX has a Current Ratio of 2.16. This indicates that MKTX is financially healthy and has no problem in meeting its short term obligations.
MKTX has a Current ratio of 2.16. This is in the better half of the industry: MKTX outperforms 74.37% of its industry peers.
A Quick Ratio of 2.16 indicates that MKTX has no problem at all paying its short term obligations.
MKTX has a Quick ratio of 2.16. This is in the better half of the industry: MKTX outperforms 74.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
MKTX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.31%.
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 small growth in Revenue. The Revenue has grown by 7.67% in the last year.
The Revenue has been growing by 9.82% on average over the past years. This is quite good.
EPS 1Y (TTM)4.31%
EPS 3Y2.4%
EPS 5Y6.13%
EPS Q2Q%16.28%
Revenue 1Y (TTM)7.67%
Revenue growth 3Y5.33%
Revenue growth 5Y9.82%
Sales Q2Q%11.03%
3.2 Future
The Earnings Per Share is expected to grow by 10.29% on average over the next years. This is quite good.
MKTX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.43% yearly.
EPS Next Y5.19%
EPS Next 2Y8.17%
EPS Next 3Y9.89%
EPS Next 5Y10.29%
Revenue Next Year4.58%
Revenue Next 2Y6.7%
Revenue Next 3Y7.69%
Revenue Next 5Y7.43%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 22.62, which indicates a rather expensive current valuation of MKTX.
Compared to the rest of the industry, the Price/Earnings ratio of MKTX indicates a slightly more expensive valuation: MKTX is more expensive than 60.08% of the companies listed in the same industry.
MKTX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
MKTX is valuated rather expensively with a Price/Forward Earnings ratio of 19.94.
MKTX's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.21, MKTX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 19.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MKTX is valued cheaper than 82.35% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MKTX indicates a somewhat cheap valuation: MKTX is cheaper than 60.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.01 | ||
| EV/EBITDA | 13.79 |
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)4.36
PEG (5Y)3.69
EPS Next 2Y8.17%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.79%, MKTX has a reasonable but not impressive dividend return.
In the last 3 months the price of MKTX has falen by -22.18%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MKTX's Dividend Yield is slightly below the industry average, which is at 8.50.
MKTX's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
The dividend of MKTX is nicely growing with an annual growth rate of 8.13%!
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)8.13%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
50.76% 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 earnings are growing more, so the dividend growth is sustainable.
DP50.76%
EPS Next 2Y8.17%
EPS Next 3Y9.89%
NASDAQ:MKTX (10/8/2025, 12:27:35 PM)
169.62
+1.48 (+0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners101.33%
Inst Owner Change-0.01%
Ins Owners0.66%
Ins Owner Change2.85%
Market Cap6.34B
Analysts76.19
Price Target222.87 (31.39%)
Short Float %4.19%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend2.98
Dividend Growth(5Y)8.13%
DP50.76%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.75%
Min EPS beat(2)0.15%
Max EPS beat(2)1.35%
EPS beat(4)4
Avg EPS beat(4)0.86%
Min EPS beat(4)0.15%
Max EPS beat(4)1.35%
EPS beat(8)7
Avg EPS beat(8)2.52%
EPS beat(12)9
Avg EPS beat(12)1.95%
EPS beat(16)11
Avg EPS beat(16)1.38%
Revenue beat(2)0
Avg Revenue beat(2)-2.34%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)-2.19%
Revenue beat(4)0
Avg Revenue beat(4)-2.41%
Min Revenue beat(4)-3.23%
Max Revenue beat(4)-1.74%
Revenue beat(8)0
Avg Revenue beat(8)-2.69%
Revenue beat(12)0
Avg Revenue beat(12)-2.3%
Revenue beat(16)0
Avg Revenue beat(16)-2.4%
PT rev (1m)0%
PT rev (3m)-6.88%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-4.33%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 19.94 | ||
| P/S | 7.57 | ||
| P/FCF | 18.01 | ||
| P/OCF | 15.66 | ||
| P/B | 4.57 | ||
| P/tB | 6.47 | ||
| EV/EBITDA | 13.79 |
EPS(TTM)7.5
EY4.42%
EPS(NY)8.51
Fwd EY5.02%
FCF(TTM)9.42
FCFY5.55%
OCF(TTM)10.83
OCFY6.39%
SpS22.41
BVpS37.1
TBVpS26.2
PEG (NY)4.36
PEG (5Y)3.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.28% | ||
| ROE | 16.08% | ||
| ROCE | 24.73% | ||
| ROIC | 18.99% | ||
| ROICexc | 28.33% | ||
| ROICexgc | 49.95% | ||
| OM | 41.48% | ||
| PM (TTM) | 26.62% | ||
| GM | 89.02% | ||
| FCFM | 42.02% |
ROA(3y)14.56%
ROA(5y)16.61%
ROE(3y)20.95%
ROE(5y)23.79%
ROIC(3y)20.18%
ROIC(5y)23.06%
ROICexc(3y)32.58%
ROICexc(5y)40.71%
ROICexgc(3y)54.23%
ROICexgc(5y)74.41%
ROCE(3y)26.28%
ROCE(5y)30.03%
ROICexcg growth 3Y-19.3%
ROICexcg growth 5Y-4.85%
ROICexc growth 3Y-13.78%
ROICexc growth 5Y-4.25%
OM growth 3Y-4.74%
OM growth 5Y-3.2%
PM growth 3Y-3.1%
PM growth 5Y-3.48%
GM growth 3Y-1.77%
GM growth 5Y-1.24%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 70.81% | ||
| Cap/Sales | 6.32% | ||
| Interest Coverage | 288.92 | ||
| Cash Conversion | 95.9% | ||
| Profit Quality | 157.87% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | 8.83 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)78.49%
Cap/Depr(5y)91.38%
Cap/Sales(3y)7.04%
Cap/Sales(5y)7%
Profit Quality(3y)107.91%
Profit Quality(5y)106.67%
High Growth Momentum
Growth
EPS 1Y (TTM)4.31%
EPS 3Y2.4%
EPS 5Y6.13%
EPS Q2Q%16.28%
EPS Next Y5.19%
EPS Next 2Y8.17%
EPS Next 3Y9.89%
EPS Next 5Y10.29%
Revenue 1Y (TTM)7.67%
Revenue growth 3Y5.33%
Revenue growth 5Y9.82%
Sales Q2Q%11.03%
Revenue Next Year4.58%
Revenue Next 2Y6.7%
Revenue Next 3Y7.69%
Revenue Next 5Y7.43%
EBIT growth 1Y9.29%
EBIT growth 3Y0.33%
EBIT growth 5Y6.3%
EBIT Next Year25.77%
EBIT Next 3Y15.72%
EBIT Next 5Y12.33%
FCF growth 1Y26.32%
FCF growth 3Y12.39%
FCF growth 5Y7.29%
OCF growth 1Y21.82%
OCF growth 3Y10.95%
OCF growth 5Y7.7%