MARKETAXESS HOLDINGS INC (MKTX)

US57060D1081 - Common Stock

213.79  -1.21 (-0.56%)

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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make MKTX a good candidate for quality investing.



7

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 4 of the past 5 years.

1.2 Ratios

MKTX's Return On Assets of 14.25% is amongst the best of the industry. MKTX outperforms 95.57% of its industry peers.
MKTX has a Return On Equity of 20.79%. This is amongst the best in the industry. MKTX outperforms 86.21% of its industry peers.
MKTX's Return On Invested Capital of 20.02% is amongst the best of the industry. MKTX outperforms 95.07% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MKTX is significantly above the industry average of 9.80%.
Industry RankSector Rank
ROA 14.25%
ROE 20.79%
ROIC 20.02%
ROA(3y)15.07%
ROA(5y)17.83%
ROE(3y)22.62%
ROE(5y)25.16%
ROIC(3y)21.91%
ROIC(5y)23.98%

1.3 Margins

MKTX has a better Profit Margin (33.77%) than 73.89% of its industry peers.
MKTX's Profit Margin has declined in the last couple of years.
MKTX's Operating Margin of 43.06% is fine compared to the rest of the industry. MKTX outperforms 70.44% of its industry peers.
MKTX's Operating Margin has declined in the last couple of years.
MKTX has a better Gross Margin (91.86%) than 90.64% of its industry peers.
MKTX's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 43.06%
PM (TTM) 33.77%
GM 91.86%
OM growth 3Y-8.35%
OM growth 5Y-3.02%
PM growth 3Y-7.59%
PM growth 5Y-2.88%
GM growth 3Y-1.21%
GM growth 5Y-0.61%

8

2. Health

2.1 Basic Checks

The number of shares outstanding for MKTX has been increased compared to 1 year ago.
MKTX has more shares outstanding than it did 5 years ago.
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 11.36. This indicates that MKTX is financially healthy and has little risk of bankruptcy at the moment.
MKTX has a better Altman-Z score (11.36) than 95.57% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 11.36
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

A Current Ratio of 2.11 indicates that MKTX has no problem at all paying its short term obligations.
MKTX has a better Current ratio (2.11) than 69.95% of its industry peers.
A Quick Ratio of 2.11 indicates that MKTX has no problem at all paying its short term obligations.
MKTX's Quick ratio of 2.11 is fine compared to the rest of the industry. MKTX outperforms 69.95% of its industry peers.
Industry RankSector Rank
Current Ratio 2.11
Quick Ratio 2.11

6

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 2.33% over the past year.
The Earnings Per Share has been growing by 9.21% on average over the past years. This is quite good.
Looking at the last year, MKTX shows a small growth in Revenue. The Revenue has grown by 3.93% in the last year.
MKTX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.56% yearly.
EPS 1Y (TTM)2.33%
EPS 3Y-3.29%
EPS 5Y9.21%
EPS growth Q2Q-7.59%
Revenue 1Y (TTM)3.93%
Revenue growth 3Y2.98%
Revenue growth 5Y11.56%
Revenue growth Q2Q0.12%

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 11.63% yearly.
MKTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.71% yearly.
EPS Next Y9.5%
EPS Next 2Y11.48%
EPS Next 3Y11.87%
EPS Next 5Y11.63%
Revenue Next Year13.82%
Revenue Next 2Y12.11%
Revenue Next 3Y10.08%
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

With a Price/Earnings ratio of 32.44, MKTX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of MKTX indicates a slightly more expensive valuation: MKTX is more expensive than 79.80% of the companies listed in the same industry.
MKTX is valuated rather expensively when we compare the Price/Earnings ratio to 26.00, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 27.50, MKTX can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, MKTX is valued a bit more expensive than 73.89% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, MKTX is valued a bit more expensive.
Industry RankSector Rank
PE 32.44
Fwd PE 27.5

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MKTX is valued a bit cheaper than the industry average as 61.08% of the companies are valued more expensively.
MKTX's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 30.12
EV/EBITDA 20.21

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.
PEG (NY)3.41
PEG (5Y)3.52
EPS Next 2Y11.48%
EPS Next 3Y11.87%

5

5. Dividend

5.1 Amount

MKTX has a Yearly Dividend Yield of 1.34%. Purely for dividend investing, there may be better candidates out there.
MKTX's Dividend Yield is slightly below the industry average, which is at 7.98.
With a Dividend Yield of 1.34, MKTX pays less dividend than the S&P500 average, which is at 2.48.
Industry RankSector Rank
Dividend Yield 1.34%

5.2 History

The dividend of MKTX is nicely growing with an annual growth rate of 16.59%!
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)16.59%
Div Incr Years10
Div Non Decr Years10

5.3 Sustainability

43.66% 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.
DP43.66%
EPS Next 2Y11.48%
EPS Next 3Y11.87%

MARKETAXESS HOLDINGS INC

NASDAQ:MKTX (2/22/2024, 2:38:07 PM)

213.79

-1.21 (-0.56%)

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 Cap8.10B
Analysts
Price Target
Dividend
Industry RankSector 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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
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 32.44
Fwd PE 27.5
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)3.41
PEG (5Y)3.52
Profitability
Industry RankSector Rank
ROA 14.25%
ROE 20.79%
ROCE
ROIC
ROICexc
ROICexgc
OM 43.06%
PM (TTM) 33.77%
GM 91.86%
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 Turnover0.42
Health
Industry RankSector 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)
Growth
EPS 1Y (TTM)2.33%
EPS 3Y-3.29%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.93%
Revenue growth 3Y2.98%
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