MARKETAXESS HOLDINGS INC (MKTX) Stock Fundamental Analysis
NASDAQ:MKTX - Nasdaq - US57060D1081 - Common Stock - Currency: USD
MKTX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 230 industry peers in the Capital Markets industry. MKTX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
In the past year MKTX was profitable.
In the past year MKTX had a positive cash flow from operations.
MKTX had positive earnings in each of the past 5 years.
MKTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.53%, MKTX belongs to the best of the industry, outperforming 91.74% of the companies in the same industry.
MKTX has a Return On Equity of 16.08%. This is amongst the best in the industry. MKTX outperforms 80.87% of its industry peers.
MKTX has a Return On Invested Capital of 19.13%. This is amongst the best in the industry. MKTX outperforms 96.09% 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 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.53% | ||
| ROE | 16.08% | ||
| ROIC | 19.13% |
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
The Profit Margin of MKTX (26.57%) is better than 67.83% of its industry peers.
MKTX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 41.30%, MKTX is in the better half of the industry, outperforming 72.17% of the companies in the same industry.
MKTX's Operating Margin has declined in the last couple of years.
MKTX has a better Gross Margin (88.97%) than 92.61% 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 | 41.3% | ||
| PM (TTM) | 26.57% | ||
| GM | 88.97% |
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.
Compared to 5 years ago, MKTX has less shares outstanding
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
MKTX has an Altman-Z score of 11.74. This indicates that MKTX is financially healthy and has little risk of bankruptcy at the moment.
MKTX has a Altman-Z score of 11.74. This is amongst the best in the industry. MKTX outperforms 94.78% 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 | 11.74 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.31 indicates that MKTX has no problem at all paying its short term obligations.
The Current ratio of MKTX (2.31) is better than 77.39% of its industry peers.
A Quick Ratio of 2.31 indicates that MKTX has no problem at all paying its short term obligations.
MKTX's Quick ratio of 2.31 is fine compared to the rest of the industry. MKTX outperforms 77.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 2.31 |
3. Growth
3.1 Past
MKTX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.27%.
Measured over the past 5 years, MKTX shows a small growth in Earnings Per Share. The EPS has been growing by 6.13% on average per year.
The Revenue has been growing slightly by 7.33% in the past 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)2.27%
EPS 3Y2.4%
EPS 5Y6.13%
EPS Q2Q%-2.6%
Revenue 1Y (TTM)7.33%
Revenue growth 3Y5.33%
Revenue growth 5Y9.82%
Sales Q2Q%-0.83%
3.2 Future
The Earnings Per Share is expected to grow by 10.84% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.89% on average over the next years.
EPS Next Y4.74%
EPS Next 2Y9.7%
EPS Next 3Y12.55%
EPS Next 5Y10.84%
Revenue Next Year5.98%
Revenue Next 2Y7.89%
Revenue Next 3Y9.01%
Revenue Next 5Y7.89%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.23, the valuation of MKTX can be described as expensive.
70.43% of the companies in the same industry are cheaper than MKTX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MKTX to the average of the S&P500 Index (26.03), we can say MKTX is valued inline with the index average.
The Price/Forward Earnings ratio is 24.94, which indicates a rather expensive current valuation of MKTX.
64.35% of the companies in the same industry are cheaper than MKTX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MKTX to the average of the S&P500 Index (21.94), we can say MKTX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.23 | ||
| Fwd PE | 24.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MKTX is valued a bit cheaper than the industry average as 75.22% of the companies are valued more expensively.
MKTX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.46 | ||
| EV/EBITDA | 18.71 |
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.
MKTX's earnings are expected to grow with 12.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.38
PEG (5Y)4.93
EPS Next 2Y9.7%
EPS Next 3Y12.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.42%, MKTX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.20, MKTX is paying slightly less dividend.
MKTX's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
The dividend of MKTX is nicely growing with an annual growth rate of 8.13%!
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)8.13%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
MKTX pays out 52.02% of its income as dividend. 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.
DP52.02%
EPS Next 2Y9.7%
EPS Next 3Y12.55%
NASDAQ:MKTX (5/22/2025, 10:29:26 AM)
218.24
-1.4 (-0.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners103.17%
Inst Owner Change-0.17%
Ins Owners0.61%
Ins Owner Change0.47%
Market Cap8.12B
Analysts73
Price Target234.88 (7.62%)
Short Float %2.93%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Yearly Dividend2.98
Dividend Growth(5Y)8.13%
DP52.02%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.21%
Min EPS beat(2)1.08%
Max EPS beat(2)1.35%
EPS beat(4)4
Avg EPS beat(4)0.93%
Min EPS beat(4)0.42%
Max EPS beat(4)1.35%
EPS beat(8)6
Avg EPS beat(8)2.38%
EPS beat(12)9
Avg EPS beat(12)2.16%
EPS beat(16)11
Avg EPS beat(16)1.53%
Revenue beat(2)0
Avg Revenue beat(2)-2.86%
Min Revenue beat(2)-3.23%
Max Revenue beat(2)-2.49%
Revenue beat(4)0
Avg Revenue beat(4)-2.48%
Min Revenue beat(4)-3.23%
Max Revenue beat(4)-1.74%
Revenue beat(8)0
Avg Revenue beat(8)-2.64%
Revenue beat(12)0
Avg Revenue beat(12)-2.36%
Revenue beat(16)0
Avg Revenue beat(16)-2.43%
PT rev (1m)-0.67%
PT rev (3m)-11.19%
EPS NQ rev (1m)4.76%
EPS NQ rev (3m)3.22%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)-3.7%
Revenue NQ rev (1m)2.78%
Revenue NQ rev (3m)2.38%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.23 | ||
| Fwd PE | 24.94 | ||
| P/S | 9.96 | ||
| P/FCF | 22.46 | ||
| P/OCF | 19.34 | ||
| P/B | 6.03 | ||
| P/tB | 7.99 | ||
| EV/EBITDA | 18.71 |
EPS(TTM)7.22
EY3.31%
EPS(NY)8.75
Fwd EY4.01%
FCF(TTM)9.72
FCFY4.45%
OCF(TTM)11.29
OCFY5.17%
SpS21.92
BVpS36.22
TBVpS27.32
PEG (NY)6.38
PEG (5Y)4.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.53% | ||
| ROE | 16.08% | ||
| ROCE | 24.9% | ||
| ROIC | 19.13% | ||
| ROICexc | 29.86% | ||
| ROICexgc | 48.35% | ||
| OM | 41.3% | ||
| PM (TTM) | 26.57% | ||
| GM | 88.97% | ||
| FCFM | 44.33% |
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-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 79.02% | ||
| Cap/Sales | 7.16% | ||
| Interest Coverage | 226.92 | ||
| Cash Conversion | 102.24% | ||
| Profit Quality | 166.85% | ||
| Current Ratio | 2.31 | ||
| Quick Ratio | 2.31 | ||
| Altman-Z | 11.74 |
F-Score7
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)2.27%
EPS 3Y2.4%
EPS 5Y6.13%
EPS Q2Q%-2.6%
EPS Next Y4.74%
EPS Next 2Y9.7%
EPS Next 3Y12.55%
EPS Next 5Y10.84%
Revenue 1Y (TTM)7.33%
Revenue growth 3Y5.33%
Revenue growth 5Y9.82%
Sales Q2Q%-0.83%
Revenue Next Year5.98%
Revenue Next 2Y7.89%
Revenue Next 3Y9.01%
Revenue Next 5Y7.89%
EBIT growth 1Y7.89%
EBIT growth 3Y0.33%
EBIT growth 5Y6.3%
EBIT Next Year24.38%
EBIT Next 3Y16.57%
EBIT Next 5Y12.78%
FCF growth 1Y34.67%
FCF growth 3Y12.39%
FCF growth 5Y7.29%
OCF growth 1Y31.03%
OCF growth 3Y10.95%
OCF growth 5Y7.7%