MARKETAXESS HOLDINGS INC (MKTX) Stock Fundamental Analysis
USA - NASDAQ:MKTX - US57060D1081 - Common Stock
161 USD
-0.29 (-0.18%)
161 USD
0 (0%)
Taking everything into account, MKTX scores 6 out of 10 in our fundamental rating. MKTX was compared to 237 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. This makes MKTX very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year MKTX was profitable.
MKTX had a positive operating cash flow in the past year.
In the past 5 years MKTX has always been profitable.
Each year in the past 5 years MKTX had a positive operating cash flow.
1.2 Ratios
MKTX has a Return On Assets of 11.28%. This is amongst the best in the industry. MKTX outperforms 91.14% of its industry peers.
MKTX has a Return On Equity of 16.08%. This is amongst the best in the industry. MKTX outperforms 80.17% of its industry peers.
MKTX has a better Return On Invested Capital (18.99%) than 96.20% 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 7.63%.
| 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
MKTX has a Profit Margin of 26.62%. This is in the better half of the industry: MKTX outperforms 68.35% of its industry peers.
MKTX's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 41.48%, MKTX is doing good in the industry, outperforming 72.57% of the companies in the same industry.
MKTX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 89.02%, MKTX belongs to the top of the industry, outperforming 93.67% of the companies in the same industry.
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.
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 8.57 indicates that MKTX is not in any danger for bankruptcy at the moment.
MKTX has a better Altman-Z score (8.57) than 92.41% 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 | 8.57 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.16 indicates that MKTX has no problem at all paying its short term obligations.
MKTX has a better Current ratio (2.16) than 73.84% of its industry peers.
MKTX has a Quick Ratio of 2.16. This indicates that MKTX is financially healthy and has no problem in meeting its short term obligations.
MKTX has a Quick ratio of 2.16. This is in the better half of the industry: MKTX outperforms 73.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
MKTX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.31%.
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 small growth in Revenue. The Revenue has grown by 7.67% in the last year.
MKTX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.82% yearly.
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
MKTX is valuated rather expensively with a Price/Earnings ratio of 21.47.
MKTX's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of MKTX to the average of the S&P500 Index (26.13), we can say MKTX is valued inline with the index average.
The Price/Forward Earnings ratio is 19.27, which indicates a rather expensive current valuation of MKTX.
The rest of the industry has a similar Price/Forward Earnings ratio as MKTX.
MKTX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.47 | ||
| Fwd PE | 19.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MKTX indicates a rather cheap valuation: MKTX is cheaper than 82.28% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MKTX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.1 | ||
| EV/EBITDA | 13.18 |
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)6.04
PEG (5Y)3.5
EPS Next 2Y7.21%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
MKTX has a Yearly Dividend Yield of 1.90%. Purely for dividend investing, there may be better candidates out there.
MKTX's Dividend Yield is slightly below the industry average, which is at 8.57.
MKTX's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
On average, the dividend of MKTX grows each year by 8.13%, which is quite nice.
MKTX has paid a dividend for at least 10 years, which is a reliable track record.
MKTX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.13%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
MKTX pays out 50.76% of its income as dividend. 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%
161
-0.29 (-0.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners101.33%
Inst Owner Change-1.97%
Ins Owners0.66%
Ins Owner Change2.85%
Market Cap6.01B
Revenue(TTM)837.16M
Net Income(TTM)222.84M
Analysts76.19
Price Target206.39 (28.19%)
Short Float %4.41%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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)-7.39%
PT rev (3m)-14.98%
EPS NQ rev (1m)-5.49%
EPS NQ rev (3m)-8.86%
EPS NY rev (1m)-1.56%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)-2.04%
Revenue NQ rev (3m)-3.74%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.47 | ||
| Fwd PE | 19.27 | ||
| P/S | 7.18 | ||
| P/FCF | 17.1 | ||
| P/OCF | 14.86 | ||
| P/B | 4.34 | ||
| P/tB | 6.15 | ||
| EV/EBITDA | 13.18 |
EPS(TTM)7.5
EY4.66%
EPS(NY)8.36
Fwd EY5.19%
FCF(TTM)9.42
FCFY5.85%
OCF(TTM)10.83
OCFY6.73%
SpS22.41
BVpS37.1
TBVpS26.2
PEG (NY)6.04
PEG (5Y)3.5
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 | 8.57 |
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.