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 gets an excellent profitability rating and is at the same time showing great financial health properties. MKTX is quite expensive at the moment. It does show a decent growth rate. 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.
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
MKTX has a Return On Assets of 15.32%. This is amongst the best in the industry. MKTX outperforms 96.96% of its industry peers.
MKTX's Return On Equity of 19.74% is amongst the best of the industry. MKTX outperforms 86.96% of its industry peers.
MKTX's Return On Invested Capital of 18.79% is amongst the best of the industry. MKTX outperforms 96.09% 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 7.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.32% | ||
| ROE | 19.74% | ||
| ROIC | 18.79% |
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 better Profit Margin (33.56%) than 74.78% of its industry peers.
In the last couple of years the Profit Margin of MKTX has declined.
Looking at the Operating Margin, with a value of 41.72%, MKTX is in the better half of the industry, outperforming 73.48% of the companies in the same industry.
MKTX's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 89.03%, MKTX belongs to the best of the industry, outperforming 92.61% of the companies in the same industry.
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 | 41.72% | ||
| PM (TTM) | 33.56% | ||
| GM | 89.03% |
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
The number of shares outstanding for MKTX has been reduced compared to 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 15.18 indicates that MKTX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 15.18, MKTX belongs to the top of the industry, outperforming 96.52% 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 | 15.18 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MKTX has a Current Ratio of 2.84. 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 2.84, MKTX belongs to the top of the industry, outperforming 81.30% of the companies in the same industry.
A Quick Ratio of 2.84 indicates that MKTX has no problem at all paying its short term obligations.
MKTX's Quick ratio of 2.84 is amongst the best of the industry. MKTX outperforms 81.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.39% over the past year.
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.
Looking at the last year, MKTX shows a quite strong growth in Revenue. The Revenue has grown by 8.58% in the last year.
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)2.39%
EPS 3Y2.4%
EPS 5Y6.13%
EPS Q2Q%-17.22%
Revenue 1Y (TTM)8.58%
Revenue growth 3Y5.33%
Revenue growth 5Y9.82%
Sales Q2Q%2.61%
3.2 Future
MKTX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.84% yearly.
Based on estimates for the next years, MKTX will show a small growth in Revenue. The Revenue will grow by 7.89% on average per year.
EPS Next Y6.34%
EPS Next 2Y9.9%
EPS Next 3Y12.27%
EPS Next 5Y10.84%
Revenue Next Year5.17%
Revenue Next 2Y7.66%
Revenue Next 3Y8.68%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.81, MKTX can be considered very expensive at the moment.
Based on the Price/Earnings ratio, MKTX is valued a bit more expensive than 71.74% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.85, MKTX is valued at the same level.
Based on the Price/Forward Earnings ratio of 28.97, the valuation of MKTX can be described as expensive.
Based on the Price/Forward Earnings ratio, MKTX is valued a bit more expensive than 71.30% of the companies in the same industry.
MKTX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.81 | ||
| Fwd PE | 28.97 |
4.2 Price Multiples
74.78% of the companies in the same industry are more expensive than MKTX, based on the Enterprise Value to EBITDA ratio.
MKTX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.68 | ||
| EV/EBITDA | 18.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MKTX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MKTX's earnings are expected to grow with 12.27% in the coming years.
PEG (NY)4.86
PEG (5Y)5.03
EPS Next 2Y9.9%
EPS Next 3Y12.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.39%, MKTX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.31, MKTX is paying slightly less dividend.
With a Dividend Yield of 1.39, MKTX pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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 41.10% 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.
DP41.1%
EPS Next 2Y9.9%
EPS Next 3Y12.27%
223.97
+2.38 (+1.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners103.17%
Inst Owner Change0.55%
Ins Owners0.61%
Ins Owner Change-5.09%
Market Cap8.44B
Analysts72
Price Target234.88 (4.87%)
Short Float %3.54%
Short Ratio1.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend2.98
Dividend Growth(5Y)8.13%
DP41.1%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.98%
Min EPS beat(2)0.88%
Max EPS beat(2)1.08%
EPS beat(4)4
Avg EPS beat(4)0.75%
Min EPS beat(4)0.42%
Max EPS beat(4)1.08%
EPS beat(8)6
Avg EPS beat(8)2.35%
EPS beat(12)8
Avg EPS beat(12)2%
EPS beat(16)10
Avg EPS beat(16)1.28%
Revenue beat(2)0
Avg Revenue beat(2)-2.49%
Min Revenue beat(2)-3.23%
Max Revenue beat(2)-1.74%
Revenue beat(4)0
Avg Revenue beat(4)-2.61%
Min Revenue beat(4)-3.23%
Max Revenue beat(4)-1.74%
Revenue beat(8)0
Avg Revenue beat(8)-2.41%
Revenue beat(12)0
Avg Revenue beat(12)-2.36%
Revenue beat(16)0
Avg Revenue beat(16)-2.35%
PT rev (1m)-0.67%
PT rev (3m)-17.97%
EPS NQ rev (1m)1.26%
EPS NQ rev (3m)-9.71%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-8.14%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-5.36%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.81 | ||
| Fwd PE | 28.97 | ||
| P/S | 10.33 | ||
| P/FCF | 25.68 | ||
| P/OCF | 21.91 | ||
| P/B | 6.08 | ||
| P/tB | 8.01 | ||
| EV/EBITDA | 18.83 |
EPS(TTM)7.27
EY3.25%
EPS(NY)7.73
Fwd EY3.45%
FCF(TTM)8.72
FCFY3.89%
OCF(TTM)10.22
OCFY4.56%
SpS21.68
BVpS36.84
TBVpS27.96
PEG (NY)4.86
PEG (5Y)5.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.32% | ||
| ROE | 19.74% | ||
| ROCE | 24.46% | ||
| ROIC | 18.79% | ||
| ROICexc | 30.83% | ||
| ROICexgc | 50.9% | ||
| OM | 41.72% | ||
| PM (TTM) | 33.56% | ||
| GM | 89.03% | ||
| FCFM | 40.22% |
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-Score8
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 76.62% | ||
| Cap/Sales | 6.92% | ||
| Interest Coverage | 198.53 | ||
| Cash Conversion | 92.9% | ||
| Profit Quality | 119.87% | ||
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.84 | ||
| Altman-Z | 15.18 |
F-Score8
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)2.39%
EPS 3Y2.4%
EPS 5Y6.13%
EPS Q2Q%-17.22%
EPS Next Y6.34%
EPS Next 2Y9.9%
EPS Next 3Y12.27%
EPS Next 5Y10.84%
Revenue 1Y (TTM)8.58%
Revenue growth 3Y5.33%
Revenue growth 5Y9.82%
Sales Q2Q%2.61%
Revenue Next Year5.17%
Revenue Next 2Y7.66%
Revenue Next 3Y8.68%
Revenue Next 5Y7.89%
EBIT growth 1Y8.2%
EBIT growth 3Y0.33%
EBIT growth 5Y6.3%
EBIT Next Year24.38%
EBIT Next 3Y16.57%
EBIT Next 5Y12.78%
FCF growth 1Y16.83%
FCF growth 3Y12.39%
FCF growth 5Y7.29%
OCF growth 1Y15.42%
OCF growth 3Y10.95%
OCF growth 5Y7.7%