MARKETAXESS HOLDINGS INC (MKTX) Stock Fundamental Analysis
NASDAQ:MKTX - US57060D1081 - Common Stock
188.73 USD
+1.88 (+1.01%)
189.5 USD
+0.77 (+0.41%)
MKTX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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. MKTX is quite expensive at the moment. It does show a decent growth rate. These ratings could make MKTX a good candidate 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.
In the past 5 years MKTX has always been profitable.
MKTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.28%, MKTX belongs to the top of the industry, outperforming 90.76% of the companies in the same industry.
MKTX has a better Return On Equity (16.08%) than 82.77% of its industry peers.
MKTX has a Return On Invested Capital of 18.99%. This is amongst the best in the industry. MKTX outperforms 95.38% of its industry peers.
MKTX had an Average Return On Invested Capital over the past 3 years of 20.18%. This is significantly above the industry average of 7.58%.
| 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 has a Profit Margin of 26.62%. This is in the better half of the industry: MKTX outperforms 69.33% of its industry peers.
In the last couple of years the Profit Margin of MKTX has declined.
With a decent Operating Margin value of 41.48%, MKTX is doing good in the industry, outperforming 72.27% of the companies in the same industry.
MKTX's Operating Margin has declined in the last couple of years.
MKTX's Gross Margin of 89.02% is amongst the best of the industry. MKTX outperforms 92.86% 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
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 9.61 indicates that MKTX is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.61, MKTX belongs to the best of the industry, outperforming 92.44% 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 | 9.61 |
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 73.95% of its industry peers.
A Quick Ratio of 2.16 indicates that MKTX has no problem at all paying its short term obligations.
MKTX's Quick ratio of 2.16 is fine compared to the rest of the industry. MKTX outperforms 73.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.31% over the past year.
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.
MKTX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.82% yearly.
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
Based on estimates for the next years, MKTX will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.03% on average per year.
Based on estimates for the next years, MKTX will show a small growth in Revenue. The Revenue will grow by 7.77% on average per year.
EPS Next Y5.89%
EPS Next 2Y8.28%
EPS Next 3Y9.96%
EPS Next 5Y11.03%
Revenue Next Year4.79%
Revenue Next 2Y6.58%
Revenue Next 3Y7.65%
Revenue Next 5Y7.77%
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
Based on the Price/Earnings ratio of 25.16, the valuation of MKTX can be described as expensive.
Based on the Price/Earnings ratio, MKTX is valued a bit more expensive than 62.60% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. MKTX is around the same levels.
Based on the Price/Forward Earnings ratio of 22.14, the valuation of MKTX can be described as rather expensive.
MKTX's Price/Forward Earnings ratio is in line with the industry average.
MKTX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.16 | ||
| Fwd PE | 22.14 |
4.2 Price Multiples
MKTX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MKTX is cheaper than 81.51% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MKTX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.04 | ||
| EV/EBITDA | 15.24 |
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)4.27
PEG (5Y)4.11
EPS Next 2Y8.28%
EPS Next 3Y9.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.63%, MKTX has a reasonable but not impressive dividend return.
MKTX's Dividend Yield is slightly below the industry average, which is at 8.00.
MKTX's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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
MKTX pays out 50.76% of its income as dividend. 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 2Y8.28%
EPS Next 3Y9.96%
188.73
+1.88 (+1.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners101.62%
Inst Owner Change-1.17%
Ins Owners0.67%
Ins Owner Change-1.44%
Market Cap7.05B
Analysts74.29
Price Target222.87 (18.09%)
Short Float %3.55%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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)-8.19%
PT rev (3m)-5.11%
EPS NQ rev (1m)-2.54%
EPS NQ rev (3m)-7.82%
EPS NY rev (1m)1.95%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)-1.49%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)-1.16%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.16 | ||
| Fwd PE | 22.14 | ||
| P/S | 8.42 | ||
| P/FCF | 20.04 | ||
| P/OCF | 17.42 | ||
| P/B | 5.09 | ||
| P/tB | 7.2 | ||
| EV/EBITDA | 15.24 |
EPS(TTM)7.5
EY3.97%
EPS(NY)8.52
Fwd EY4.52%
FCF(TTM)9.42
FCFY4.99%
OCF(TTM)10.83
OCFY5.74%
SpS22.41
BVpS37.1
TBVpS26.2
PEG (NY)4.27
PEG (5Y)4.11
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 | 9.61 |
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 5Y11.03%
Revenue 1Y (TTM)7.67%
Revenue growth 3Y5.33%
Revenue growth 5Y9.82%
Sales Q2Q%11.03%
Revenue Next Year4.79%
Revenue Next 2Y6.58%
Revenue Next 3Y7.65%
Revenue Next 5Y7.77%
EBIT growth 1Y9.29%
EBIT growth 3Y0.33%
EBIT growth 5Y6.3%
EBIT Next Year27.64%
EBIT Next 3Y17.52%
EBIT Next 5Y13.08%
FCF growth 1Y26.32%
FCF growth 3Y12.39%
FCF growth 5Y7.29%
OCF growth 1Y21.82%
OCF growth 3Y10.95%
OCF growth 5Y7.7%