TRADEWEB MARKETS INC-CLASS A (TW) Stock Fundamental Analysis
NASDAQ:TW - Nasdaq - US8926721064 - Common Stock - Currency: USD
Overall TW gets a fundamental rating of 7 out of 10. We evaluated TW against 232 industry peers in the Capital Markets industry. TW scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TW shows excellent growth, but is valued quite expensive already. This makes TW very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year TW was profitable.
TW had a positive operating cash flow in the past year.
Each year in the past 5 years TW has been profitable.
In the past 5 years TW always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TW (7.10%) is better than 83.62% of its industry peers.
The Return On Equity of TW (8.81%) is comparable to the rest of the industry.
TW's Return On Invested Capital of 7.80% is fine compared to the rest of the industry. TW outperforms 79.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TW is in line with the industry average of 7.85%.
The last Return On Invested Capital (7.80%) for TW is above the 3 year average (6.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.1% | ||
| ROE | 8.81% | ||
| ROIC | 7.8% |
ROA(3y)5.66%
ROA(5y)4.74%
ROE(3y)7.22%
ROE(5y)6.08%
ROIC(3y)6.25%
ROIC(5y)5.43%
1.3 Margins
Looking at the Profit Margin, with a value of 28.65%, TW is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
TW's Profit Margin has improved in the last couple of years.
The Operating Margin of TW (39.34%) is better than 69.83% of its industry peers.
In the last couple of years the Operating Margin of TW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.34% | ||
| PM (TTM) | 28.65% | ||
| GM | N/A |
OM growth 3Y5.86%
OM growth 5Y10.07%
PM growth 3Y11.28%
PM growth 5Y21.86%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
TW has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TW has more shares outstanding
There is no outstanding debt for TW. 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
TW has an Altman-Z score of 13.48. This indicates that TW is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.48, TW belongs to the top of the industry, outperforming 96.12% of the companies in the same industry.
TW 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 | 13.48 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 5.00 indicates that TW has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.00, TW belongs to the best of the industry, outperforming 85.78% of the companies in the same industry.
A Quick Ratio of 5.00 indicates that TW has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 5.00, TW belongs to the top of the industry, outperforming 85.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5 | ||
| Quick Ratio | 5 |
3. Growth
3.1 Past
TW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.86%, which is quite impressive.
TW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.66% yearly.
The Revenue has grown by 28.86% in the past year. This is a very strong growth!
TW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.35% yearly.
EPS 1Y (TTM)26.86%
EPS 3Y21.45%
EPS 5Y23.66%
EPS Q2Q%21.13%
Revenue 1Y (TTM)28.86%
Revenue growth 3Y17.04%
Revenue growth 5Y17.35%
Sales Q2Q%24.69%
3.2 Future
The Earnings Per Share is expected to grow by 15.79% on average over the next years. This is quite good.
Based on estimates for the next years, TW will show a quite strong growth in Revenue. The Revenue will grow by 10.70% on average per year.
EPS Next Y21.4%
EPS Next 2Y16.77%
EPS Next 3Y15.12%
EPS Next 5Y15.79%
Revenue Next Year18.69%
Revenue Next 2Y14.82%
Revenue Next 3Y13.3%
Revenue Next 5Y10.7%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 45.39, TW can be considered very expensive at the moment.
77.16% of the companies in the same industry are cheaper than TW, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.34. TW is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 34.99, which means the current valuation is very expensive for TW.
72.84% of the companies in the same industry are cheaper than TW, based on the Price/Forward Earnings ratio.
TW is valuated expensively when we compare the Price/Forward Earnings ratio to 21.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.39 | ||
| Fwd PE | 34.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TW is valued a bit cheaper than 64.22% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.67 | ||
| EV/EBITDA | 29.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TW has a very decent profitability rating, which may justify a higher PE ratio.
TW's earnings are expected to grow with 15.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.12
PEG (5Y)1.92
EPS Next 2Y16.77%
EPS Next 3Y15.12%
5. Dividend
5.1 Amount
TW has a yearly dividend return of 0.35%, which is pretty low.
TW's Dividend Yield is slightly below the industry average, which is at 8.07.
Compared to an average S&P500 Dividend Yield of 2.44, TW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
On average, the dividend of TW grows each year by 10.06%, which is quite nice.
TW has been paying a dividend for at least 10 years, so it has a reliable track record.
As TW did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)10.06%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
17.11% of the earnings are spent on dividend by TW. This is a low number and sustainable payout ratio.
TW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.11%
EPS Next 2Y16.77%
EPS Next 3Y15.12%
139.34
+0.62 (+0.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners100.57%
Inst Owner Change1.81%
Ins Owners0.1%
Ins Owner Change-0.19%
Market Cap29.73B
Analysts80.87
Price Target157.63 (13.13%)
Short Float %2.54%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly Dividend0.36
Dividend Growth(5Y)10.06%
DP17.11%
Div Incr Years2
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.59%
Min EPS beat(2)-2.43%
Max EPS beat(2)-0.75%
EPS beat(4)0
Avg EPS beat(4)-2.21%
Min EPS beat(4)-4.05%
Max EPS beat(4)-0.75%
EPS beat(8)1
Avg EPS beat(8)-2.11%
EPS beat(12)3
Avg EPS beat(12)-1.26%
EPS beat(16)3
Avg EPS beat(16)-1.81%
Revenue beat(2)0
Avg Revenue beat(2)-3.06%
Min Revenue beat(2)-3.46%
Max Revenue beat(2)-2.67%
Revenue beat(4)0
Avg Revenue beat(4)-3.23%
Min Revenue beat(4)-3.78%
Max Revenue beat(4)-2.67%
Revenue beat(8)0
Avg Revenue beat(8)-3.17%
Revenue beat(12)0
Avg Revenue beat(12)-3.06%
Revenue beat(16)0
Avg Revenue beat(16)-2.96%
PT rev (1m)0.4%
PT rev (3m)4.15%
EPS NQ rev (1m)0.64%
EPS NQ rev (3m)2.52%
EPS NY rev (1m)0.33%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)0.55%
Revenue NQ rev (3m)2.62%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.39 | ||
| Fwd PE | 34.99 | ||
| P/S | 16.27 | ||
| P/FCF | 35.67 | ||
| P/OCF | 32.32 | ||
| P/B | 5.01 | ||
| P/tB | 23.71 | ||
| EV/EBITDA | 29.75 |
EPS(TTM)3.07
EY2.2%
EPS(NY)3.98
Fwd EY2.86%
FCF(TTM)3.91
FCFY2.8%
OCF(TTM)4.31
OCFY3.09%
SpS8.56
BVpS27.83
TBVpS5.88
PEG (NY)2.12
PEG (5Y)1.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.1% | ||
| ROE | 8.81% | ||
| ROCE | 10.26% | ||
| ROIC | 7.8% | ||
| ROICexc | 9.76% | ||
| ROICexgc | 70.03% | ||
| OM | 39.34% | ||
| PM (TTM) | 28.65% | ||
| GM | N/A | ||
| FCFM | 45.63% |
ROA(3y)5.66%
ROA(5y)4.74%
ROE(3y)7.22%
ROE(5y)6.08%
ROIC(3y)6.25%
ROIC(5y)5.43%
ROICexc(3y)8.1%
ROICexc(5y)6.86%
ROICexgc(3y)62.43%
ROICexgc(5y)54.31%
ROCE(3y)8.23%
ROCE(5y)7.14%
ROICexcg growth 3Y21.61%
ROICexcg growth 5Y6.29%
ROICexc growth 3Y18.56%
ROICexc growth 5Y23.81%
OM growth 3Y5.86%
OM growth 5Y10.07%
PM growth 3Y11.28%
PM growth 5Y21.86%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 37.03% | ||
| Cap/Sales | 4.73% | ||
| Interest Coverage | 264.5 | ||
| Cash Conversion | 96.64% | ||
| Profit Quality | 159.29% | ||
| Current Ratio | 5 | ||
| Quick Ratio | 5 | ||
| Altman-Z | 13.48 |
F-Score9
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)35.77%
Cap/Depr(5y)32.98%
Cap/Sales(3y)4.94%
Cap/Sales(5y)4.87%
Profit Quality(3y)178.16%
Profit Quality(5y)201.53%
High Growth Momentum
Growth
EPS 1Y (TTM)26.86%
EPS 3Y21.45%
EPS 5Y23.66%
EPS Q2Q%21.13%
EPS Next Y21.4%
EPS Next 2Y16.77%
EPS Next 3Y15.12%
EPS Next 5Y15.79%
Revenue 1Y (TTM)28.86%
Revenue growth 3Y17.04%
Revenue growth 5Y17.35%
Sales Q2Q%24.69%
Revenue Next Year18.69%
Revenue Next 2Y14.82%
Revenue Next 3Y13.3%
Revenue Next 5Y10.7%
EBIT growth 1Y30.31%
EBIT growth 3Y23.91%
EBIT growth 5Y29.17%
EBIT Next Year28.25%
EBIT Next 3Y18.01%
EBIT Next 5Y12.98%
FCF growth 1Y39.03%
FCF growth 3Y15.37%
FCF growth 5Y24.86%
OCF growth 1Y39.74%
OCF growth 3Y15.81%
OCF growth 5Y23.62%