MARKETAXESS HOLDINGS INC (MKTX)

US57060D1081 - Common Stock

221.015  +3.26 (+1.5%)

Fundamental Rating

6

MKTX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 208 industry peers in the Capital Markets industry. MKTX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MKTX is quite expensive at the moment. It does show a decent growth rate. With these ratings, MKTX could be worth investigating further for quality investing!.



7

1. Profitability

1.1 Basic Checks

In the past year MKTX was profitable.
MKTX had a positive operating cash flow in the past year.
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 has a better Return On Assets (12.80%) than 92.23% of its industry peers.
Looking at the Return On Equity, with a value of 19.96%, MKTX belongs to the top of the industry, outperforming 87.38% of the companies in the same industry.
MKTX has a better Return On Invested Capital (18.39%) than 92.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MKTX is significantly above the industry average of 10.74%.
Industry RankSector Rank
ROA 12.8%
ROE 19.96%
ROIC 18.39%
ROA(3y)15.07%
ROA(5y)17.83%
ROE(3y)22.62%
ROE(5y)25.16%
ROIC(3y)21.88%
ROIC(5y)23.96%

1.3 Margins

Looking at the Profit Margin, with a value of 34.29%, MKTX is in the better half of the industry, outperforming 72.33% of the companies in the same industry.
MKTX's Profit Margin has declined in the last couple of years.
MKTX's Operating Margin of 41.86% is fine compared to the rest of the industry. MKTX outperforms 68.45% of its industry peers.
In the last couple of years the Operating Margin of MKTX has declined.
Looking at the Gross Margin, with a value of 91.65%, MKTX belongs to the top of the industry, outperforming 90.78% 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 RankSector Rank
OM 41.86%
PM (TTM) 34.29%
GM 91.65%
OM growth 3Y-8.36%
OM growth 5Y-3.03%
PM growth 3Y-7.58%
PM growth 5Y-2.88%
GM growth 3Y-1.2%
GM growth 5Y-0.61%

7

2. Health

2.1 Basic Checks

MKTX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MKTX has more shares outstanding
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

MKTX has an Altman-Z score of 8.97. This indicates that MKTX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.97, MKTX belongs to the best of the industry, outperforming 95.15% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 8.97
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

MKTX has a Current Ratio of 1.83. This is a normal value and indicates that MKTX is financially healthy and should not expect problems in meeting its short term obligations.
MKTX has a better Current ratio (1.83) than 67.48% of its industry peers.
MKTX has a Quick Ratio of 1.83. This is a normal value and indicates that MKTX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MKTX (1.83) is better than 67.48% of its industry peers.
Industry RankSector Rank
Current Ratio 1.83
Quick Ratio 1.83

6

3. Growth

3.1 Past

MKTX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.77%.
Measured over the past years, MKTX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.21% on average per year.
MKTX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.77%.
MKTX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.55% yearly.
EPS 1Y (TTM)6.77%
EPS 3Y-3.29%
EPS 5Y9.21%
EPS growth Q2Q32.28%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y2.97%
Revenue growth 5Y11.55%
Revenue growth Q2Q10.88%

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 11.63% on average per year.
Based on estimates for the next years, MKTX will show a quite strong growth in Revenue. The Revenue will grow by 9.71% on average per year.
EPS Next Y4.42%
EPS Next 2Y9.12%
EPS Next 3Y10.6%
EPS Next 5Y11.63%
Revenue Next Year10.71%
Revenue Next 2Y10.88%
Revenue Next 3Y10.83%
Revenue Next 5Y9.71%

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.

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 31.13, which means the current valuation is very expensive for MKTX.
Based on the Price/Earnings ratio, MKTX is valued a bit more expensive than the industry average as 76.21% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of MKTX to the average of the S&P500 Index (26.42), we can say MKTX is valued inline with the index average.
With a Price/Forward Earnings ratio of 29.81, MKTX can be considered very expensive at the moment.
MKTX's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MKTX is more expensive than 73.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.74, MKTX is valued a bit more expensive.
Industry RankSector Rank
PE 31.13
Fwd PE 29.81

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MKTX is valued a bit cheaper than 64.08% of the companies in the same industry.
MKTX's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 29.78
EV/EBITDA 20.24

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.
The decent profitability rating of MKTX may justify a higher PE ratio.
PEG (NY)7.05
PEG (5Y)3.38
EPS Next 2Y9.12%
EPS Next 3Y10.6%

5

5. Dividend

5.1 Amount

MKTX has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
The stock price of MKTX dropped by -25.64% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 7.69, MKTX is paying slightly less dividend.
With a Dividend Yield of 1.32, MKTX pays less dividend than the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 1.32%

5.2 History

On average, the dividend of MKTX grows each year by 11.85%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.85%
Div Incr Years10
Div Non Decr Years10

5.3 Sustainability

42.50% 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 slower than its dividend. This means the dividend growth is not sustainable.
DP42.5%
EPS Next 2Y9.12%
EPS Next 3Y10.6%

MARKETAXESS HOLDINGS INC

NASDAQ:MKTX (3/28/2024, 12:48:07 PM)

221.015

+3.26 (+1.5%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.38B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.32%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 31.13
Fwd PE 29.81
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)7.05
PEG (5Y)3.38
Profitability
Industry RankSector Rank
ROA 12.8%
ROE 19.96%
ROCE
ROIC
ROICexc
ROICexgc
OM 41.86%
PM (TTM) 34.29%
GM 91.65%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.83
Quick Ratio 1.83
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.77%
EPS 3Y-3.29%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.77%
Revenue growth 3Y2.97%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y