MARKETAXESS HOLDINGS INC (MKTX) Stock Fundamental Analysis
USA - NASDAQ:MKTX - US57060D1081 - Common Stock
182.94 USD
+1.26 (+0.69%)
182.94 USD
0 (0%)
Overall MKTX gets a fundamental rating of 6 out of 10. We evaluated MKTX against 237 industry peers in the Capital Markets industry. MKTX gets an excellent profitability rating and is at the same time showing great financial health properties. MKTX is valied quite expensively at the moment, while it does show a decent growth rate. This makes MKTX very considerable 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.
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 (11.28%) than 91.14% of its industry peers.
MKTX has a Return On Equity of 16.08%. This is amongst the best in the industry. MKTX outperforms 80.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.99%, MKTX belongs to the top of the industry, outperforming 95.78% 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 7.61%.
| 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 69.62% of its industry peers.
In the last couple of years the Profit Margin of MKTX has declined.
MKTX has a better Operating Margin (41.48%) than 72.15% of its industry peers.
MKTX's Operating Margin has declined in the last couple of years.
MKTX has a Gross Margin of 89.02%. This is amongst the best in the industry. MKTX outperforms 92.83% 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 | 41.48% | ||
| 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
The number of shares outstanding for MKTX has been reduced compared to 1 year ago.
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 9.39 indicates that MKTX is not in any danger for bankruptcy at the moment.
MKTX's Altman-Z score of 9.39 is amongst the best of the industry. MKTX outperforms 92.83% 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 | 9.39 |
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's Current ratio of 2.16 is fine compared to the rest of the industry. MKTX outperforms 74.26% of its industry peers.
MKTX has a Quick Ratio of 2.16. This indicates that MKTX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.16, MKTX is in the better half of the industry, outperforming 74.26% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing slightly by 6.13% on average over the past years.
MKTX shows a small growth in Revenue. In the last year, the Revenue has grown by 7.67%.
Measured over the past years, MKTX shows a quite strong growth in Revenue. The Revenue has been growing by 9.82% on average per year.
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 10.68% on average over the next years. This is quite good.
Based on estimates for the next years, MKTX will show a small growth in Revenue. The Revenue will grow by 7.37% on average per year.
EPS Next Y5.89%
EPS Next 2Y8.28%
EPS Next 3Y9.96%
EPS Next 5Y10.68%
Revenue Next Year4.76%
Revenue Next 2Y6.61%
Revenue Next 3Y7.65%
Revenue Next 5Y7.37%
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 accelerating.
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 24.39, which indicates a rather expensive current valuation of MKTX.
Based on the Price/Earnings ratio, MKTX is valued a bit more expensive than 62.03% of the companies in the same industry.
MKTX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
MKTX is valuated rather expensively with a Price/Forward Earnings ratio of 21.46.
The rest of the industry has a similar Price/Forward Earnings ratio as MKTX.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, MKTX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.39 | ||
| Fwd PE | 21.46 |
4.2 Price Multiples
MKTX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MKTX is cheaper than 81.43% of the companies in the same industry.
MKTX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.43 | ||
| EV/EBITDA | 14.74 |
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.
PEG (NY)4.14
PEG (5Y)3.98
EPS Next 2Y8.28%
EPS Next 3Y9.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.61%, MKTX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.96, MKTX is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.38, MKTX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
On average, the dividend of MKTX grows each year by 8.13%, which is quite nice.
MKTX has been paying a dividend for at least 10 years, so it has a reliable track record.
MKTX has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
MKTX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.76%
EPS Next 2Y8.28%
EPS Next 3Y9.96%
182.94
+1.26 (+0.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners101.62%
Inst Owner Change-1.18%
Ins Owners0.67%
Ins Owner Change-1.28%
Market Cap6.83B
Analysts76.19
Price Target222.87 (21.83%)
Short Float %3.29%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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)-8.1%
PT rev (3m)-6.91%
EPS NQ rev (1m)-1.18%
EPS NQ rev (3m)-8.79%
EPS NY rev (1m)1.95%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)-0.92%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.39 | ||
| Fwd PE | 21.46 | ||
| P/S | 8.16 | ||
| P/FCF | 19.43 | ||
| P/OCF | 16.89 | ||
| P/B | 4.93 | ||
| P/tB | 6.98 | ||
| EV/EBITDA | 14.74 |
EPS(TTM)7.5
EY4.1%
EPS(NY)8.52
Fwd EY4.66%
FCF(TTM)9.42
FCFY5.15%
OCF(TTM)10.83
OCFY5.92%
SpS22.41
BVpS37.1
TBVpS26.2
PEG (NY)4.14
PEG (5Y)3.98
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 | 62.25% | ||
| Cap/Sales | 6.32% | ||
| Interest Coverage | 288.92 | ||
| Cash Conversion | 93.62% | ||
| Profit Quality | 157.87% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | 9.39 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)74.49%
Cap/Depr(5y)88.98%
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 Y5.89%
EPS Next 2Y8.28%
EPS Next 3Y9.96%
EPS Next 5Y10.68%
Revenue 1Y (TTM)7.67%
Revenue growth 3Y5.33%
Revenue growth 5Y9.82%
Sales Q2Q%11.03%
Revenue Next Year4.76%
Revenue Next 2Y6.61%
Revenue Next 3Y7.65%
Revenue Next 5Y7.37%
EBIT growth 1Y9.29%
EBIT growth 3Y0.33%
EBIT growth 5Y6.3%
EBIT Next Year27.64%
EBIT Next 3Y17.52%
EBIT Next 5Y12.71%
FCF growth 1Y26.32%
FCF growth 3Y12.39%
FCF growth 5Y7.29%
OCF growth 1Y21.82%
OCF growth 3Y10.95%
OCF growth 5Y7.7%