MARKETAXESS HOLDINGS INC (MKTX) Stock Fundamental Analysis
USA - NASDAQ:MKTX - US57060D1081 - Common Stock
159.98 USD
+1.13 (+0.71%)
159.98 USD
0 (0%)
MKTX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 235 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
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.
MKTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MKTX's Return On Assets of 11.28% is amongst the best of the industry. MKTX outperforms 90.64% of its industry peers.
MKTX has a Return On Equity of 16.08%. This is in the better half of the industry: MKTX outperforms 79.57% of its industry peers.
The Return On Invested Capital of MKTX (18.99%) is better than 96.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
With a decent Profit Margin value of 26.62%, MKTX is doing good in the industry, outperforming 68.09% of the companies in the same industry.
In the last couple of years the Profit Margin of MKTX has declined.
MKTX's Operating Margin of 41.48% is fine compared to the rest of the industry. MKTX outperforms 72.77% of its industry peers.
In the last couple of years the Operating Margin of MKTX has declined.
The Gross Margin of MKTX (89.02%) is better than 93.62% 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
The number of shares outstanding for MKTX has been reduced compared to 1 year ago.
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
MKTX has an Altman-Z score of 8.47. This indicates that MKTX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.47, MKTX belongs to the top of the industry, outperforming 92.34% 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 | 8.47 |
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 74.47% 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 74.47% 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.
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 10.29% 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 7.43% on average per year.
EPS Next Y3.55%
EPS Next 2Y7.21%
EPS Next 3Y9.46%
EPS Next 5Y10.29%
Revenue Next Year4.16%
Revenue Next 2Y6.39%
Revenue Next 3Y7.45%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.33, which indicates a rather expensive current valuation of MKTX.
Compared to the rest of the industry, the Price/Earnings ratio of MKTX is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MKTX to the average of the S&P500 Index (26.19), we can say MKTX is valued inline with the index average.
A Price/Forward Earnings ratio of 19.14 indicates a rather expensive valuation of MKTX.
MKTX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.50. MKTX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.33 | ||
| Fwd PE | 19.14 |
4.2 Price Multiples
MKTX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MKTX is cheaper than 82.13% 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 | 16.99 | ||
| EV/EBITDA | 12.97 |
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.
PEG (NY)6
PEG (5Y)3.48
EPS Next 2Y7.21%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
MKTX has a Yearly Dividend Yield of 1.77%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of MKTX has falen by -22.99%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 8.34, MKTX is paying slightly less dividend.
MKTX's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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
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 2Y7.21%
EPS Next 3Y9.46%
159.98
+1.13 (+0.71%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners101.33%
Inst Owner Change-0.52%
Ins Owners0.66%
Ins Owner Change2.85%
Market Cap5.98B
Revenue(TTM)837.16M
Net Income(TTM)222.84M
Analysts76.19
Price Target222.87 (39.31%)
Short Float %4.41%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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)-8.19%
EPS NQ rev (1m)-5.94%
EPS NQ rev (3m)-9.89%
EPS NY rev (1m)-1.56%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)-1.5%
Revenue NQ rev (3m)-3.5%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.33 | ||
| Fwd PE | 19.14 | ||
| P/S | 7.14 | ||
| P/FCF | 16.99 | ||
| P/OCF | 14.77 | ||
| P/B | 4.31 | ||
| P/tB | 6.11 | ||
| EV/EBITDA | 12.97 |
EPS(TTM)7.5
EY4.69%
EPS(NY)8.36
Fwd EY5.22%
FCF(TTM)9.42
FCFY5.89%
OCF(TTM)10.83
OCFY6.77%
SpS22.41
BVpS37.1
TBVpS26.2
PEG (NY)6
PEG (5Y)3.48
Graham Number79.13
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%
ROICexgc growth 3Y-19.3%
ROICexgc 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 | 8.47 |
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 Y3.55%
EPS Next 2Y7.21%
EPS Next 3Y9.46%
EPS Next 5Y10.29%
Revenue 1Y (TTM)7.67%
Revenue growth 3Y5.33%
Revenue growth 5Y9.82%
Sales Q2Q%11.03%
Revenue Next Year4.16%
Revenue Next 2Y6.39%
Revenue Next 3Y7.45%
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%
MARKETAXESS HOLDINGS INC / MKTX FAQ
Can you provide the ChartMill fundamental rating for MARKETAXESS HOLDINGS INC?
ChartMill assigns a fundamental rating of 6 / 10 to MKTX.
Can you provide the valuation status for MARKETAXESS HOLDINGS INC?
ChartMill assigns a valuation rating of 3 / 10 to MARKETAXESS HOLDINGS INC (MKTX). This can be considered as Overvalued.
How profitable is MARKETAXESS HOLDINGS INC (MKTX) stock?
MARKETAXESS HOLDINGS INC (MKTX) has a profitability rating of 7 / 10.
How financially healthy is MARKETAXESS HOLDINGS INC?
The financial health rating of MARKETAXESS HOLDINGS INC (MKTX) is 9 / 10.
What is the earnings growth outlook for MARKETAXESS HOLDINGS INC?
The Earnings per Share (EPS) of MARKETAXESS HOLDINGS INC (MKTX) is expected to grow by 3.55% in the next year.