MARKETAXESS HOLDINGS INC (MKTX)
US57060D1081 - Common Stock
MKTX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 222 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. While showing a medium growth rate, MKTX is valued expensive at the moment. With these ratings, MKTX could be worth investigating further 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
The Return On Assets of MKTX (13.34%) is better than 93.52% of its industry peers.
MKTX's Return On Equity of 19.50% is amongst the best of the industry. MKTX outperforms 87.96% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.87%, MKTX belongs to the top of the industry, outperforming 93.06% of the companies in the same industry.
MKTX had an Average Return On Invested Capital over the past 3 years of 21.88%. This is significantly above the industry average of 7.96%.
The 3 year average ROIC (21.88%) for MKTX is well above the current ROIC(17.87%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.34% | ||
| ROE | 19.5% | ||
| ROIC | 17.87% |
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
MKTX has a better Profit Margin (33.84%) than 71.76% 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 41.09%, MKTX is in the better half of the industry, outperforming 67.59% of the companies in the same industry.
In the last couple of years the Operating Margin of MKTX has declined.
MKTX has a better Gross Margin (90.22%) than 90.74% of its industry peers.
MKTX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.09% | ||
| PM (TTM) | 33.84% | ||
| GM | 90.22% |
OM growth 3Y-8.36%
OM growth 5Y-3.03%
PM growth 3Y-7.58%
PM growth 5Y-2.88%
GM growth 3Y-2.02%
GM growth 5Y-1.1%
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
An Altman-Z score of 10.53 indicates that MKTX is not in any danger for bankruptcy at the moment.
MKTX has a better Altman-Z score (10.53) than 95.83% 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 | 10.53 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MKTX has a Current Ratio of 2.11. This indicates that MKTX is financially healthy and has no problem in meeting its short term obligations.
MKTX has a better Current ratio (2.11) than 71.30% of its industry peers.
A Quick Ratio of 2.11 indicates that MKTX has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.11, MKTX is in the better half of the industry, outperforming 71.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
MKTX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.32%.
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 3.30%.
Measured over the past years, MKTX shows a quite strong growth in Revenue. The Revenue has been growing by 11.55% on average per year.
EPS 1Y (TTM)2.32%
EPS 3Y-3.29%
EPS 5Y9.21%
EPS Q2Q%-2.04%
Revenue 1Y (TTM)3.3%
Revenue growth 3Y2.97%
Revenue growth 5Y11.55%
Sales Q2Q%3.5%
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 10.26% on average per year.
The Revenue is expected to grow by 8.91% on average over the next years. This is quite good.
EPS Next Y0.53%
EPS Next 2Y6.68%
EPS Next 3Y9.61%
EPS Next 5Y10.26%
Revenue Next Year8.65%
Revenue Next 2Y9.64%
Revenue Next 3Y10.08%
Revenue Next 5Y8.91%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
MKTX is valuated quite expensively with a Price/Earnings ratio of 31.96.
Based on the Price/Earnings ratio, MKTX is valued a bit more expensive than 74.07% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.41, MKTX is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 27.92, the valuation of MKTX can be described as expensive.
MKTX's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MKTX is more expensive than 71.76% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, MKTX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.96 | ||
| Fwd PE | 27.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MKTX is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as MKTX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.32 | ||
| EV/EBITDA | 20.8 |
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 excellent profitability rating of MKTX may justify a higher PE ratio.
PEG (NY)60.21
PEG (5Y)3.47
EPS Next 2Y6.68%
EPS Next 3Y9.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, MKTX has a reasonable but not impressive dividend return.
MKTX's Dividend Yield is slightly below the industry average, which is at 7.46.
Compared to an average S&P500 Dividend Yield of 2.30, MKTX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
The dividend of MKTX is nicely growing with an annual growth rate of 11.85%!
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
MKTX pays out 43.08% of its income as dividend. 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.
DP43.08%
EPS Next 2Y6.68%
EPS Next 3Y9.61%
MARKETAXESS HOLDINGS INC
NASDAQ:MKTX (7/26/2024, 7:00:01 PM)
After market: 225.63 0 (0%)225.63
+4.77 (+2.16%)
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 Cap8.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.96 | ||
| Fwd PE | 27.92 | ||
| 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)60.21
PEG (5Y)3.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.34% | ||
| ROE | 19.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 41.09% | ||
| PM (TTM) | 33.84% | ||
| GM | 90.22% | ||
| 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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)2.32%
EPS 3Y-3.29%
EPS 5Y
EPS Q2Q%
EPS Next Y0.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.3%
Revenue growth 3Y2.97%
Revenue growth 5Y
Sales 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