TRADEWEB MARKETS INC-CLASS A (TW)
US8926721064 - Common Stock
TW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 212 industry peers in the Capital Markets industry. TW has an excellent financial health rating, but there are some minor concerns on its profitability. TW is valued quite expensive, but it does show an excellent growth. This makes TW very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year TW was profitable.
In the past year TW had a positive cash flow from operations.
TW had positive earnings in each of the past 5 years.
TW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.45%, TW is doing good in the industry, outperforming 65.55% of the companies in the same industry.
With a Return On Equity value of 7.31%, TW perfoms like the industry average, outperforming 40.19% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.67%, TW is in the better half of the industry, outperforming 70.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TW is significantly below the industry average of 10.84%.
The last Return On Invested Capital (6.67%) for TW is above the 3 year average (5.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | 7.31% | ||
| ROIC | 6.67% |
ROA(3y)4.63%
ROA(5y)3.69%
ROE(3y)5.97%
ROE(5y)4.85%
ROIC(3y)5.53%
ROIC(5y)4.7%
1.3 Margins
TW's Profit Margin of 28.41% is fine compared to the rest of the industry. TW outperforms 66.03% of its industry peers.
TW's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 38.82%, TW is doing good in the industry, outperforming 62.20% of the companies in the same industry.
TW's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.82% | ||
| PM (TTM) | 28.41% | ||
| GM | N/A |
OM growth 3Y8.57%
OM growth 5Y7.58%
PM growth 3Y13.49%
PM growth 5Y2.34%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, TW has more shares outstanding
TW has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TW has a worse debt to assets ratio.
2.2 Solvency
TW has an Altman-Z score of 8.25. This indicates that TW is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.25, TW belongs to the best of the industry, outperforming 93.30% 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 | 8.25 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TW has a Current Ratio of 3.01. This indicates that TW is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.01, TW is doing good in the industry, outperforming 78.95% of the companies in the same industry.
A Quick Ratio of 3.01 indicates that TW has no problem at all paying its short term obligations.
TW has a Quick ratio of 3.01. This is in the better half of the industry: TW outperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.01 | ||
| Quick Ratio | 3.01 |
3. Growth
3.1 Past
TW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.10%, which is quite impressive.
Measured over the past years, TW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.93% on average per year.
The Revenue has grown by 17.52% in the past year. This is quite good.
TW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.27% yearly.
EPS 1Y (TTM)24.1%
EPS 3Y19.76%
EPS 5Y18.93%
EPS growth Q2Q31.48%
Revenue 1Y (TTM)17.52%
Revenue growth 3Y14.45%
Revenue growth 5Y15.27%
Revenue growth Q2Q24.16%
3.2 Future
TW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.83% yearly.
TW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.61% yearly.
EPS Next Y22.89%
EPS Next 2Y17.73%
EPS Next 3Y14.78%
EPS Next 5Y15.83%
Revenue Next Year17.2%
Revenue Next 2Y14.29%
Revenue Next 3Y12.77%
Revenue Next 5Y10.61%
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.
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
A Price/Earnings ratio of 45.61 indicates a quite expensive valuation of TW.
Based on the Price/Earnings ratio, TW is valued expensively inside the industry as 82.30% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of TW to the average of the S&P500 Index (28.11), we can say TW is valued expensively.
With a Price/Forward Earnings ratio of 35.39, TW can be considered very expensive at the moment.
75.60% of the companies in the same industry are cheaper than TW, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TW to the average of the S&P500 Index (20.39), we can say TW is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.61 | ||
| Fwd PE | 35.39 |
4.2 Price Multiples
TW's Enterprise Value to EBITDA ratio is in line with the industry average.
TW's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.14 | ||
| EV/EBITDA | 29.23 |
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 14.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.99
PEG (5Y)2.41
EPS Next 2Y17.73%
EPS Next 3Y14.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, TW is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.31, TW is paying slightly less dividend.
With a Dividend Yield of 0.38, TW pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
5.2 History
The dividend of TW is nicely growing with an annual growth rate of 10.06%!
TW has been paying a dividend for over 5 years, so it has already some track record.
TW has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.06%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
TW pays out 19.49% of its income as dividend. This is a sustainable payout ratio.
The dividend of TW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP19.49%
EPS Next 2Y17.73%
EPS Next 3Y14.78%
TRADEWEB MARKETS INC-CLASS A
NASDAQ:TW (5/7/2024, 7:27:58 PM)
After market: 110.38 0 (0%)110.38
+1.13 (+1.03%)
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 Cap23.52B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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)
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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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 | 45.61 | ||
| Fwd PE | 35.39 | ||
| 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)1.99
PEG (5Y)2.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | 7.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 38.82% | ||
| PM (TTM) | 28.41% | ||
| GM | N/A | ||
| 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 Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.01 | ||
| Quick Ratio | 3.01 | ||
| 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)24.1%
EPS 3Y19.76%
EPS 5Y
EPS growth Q2Q
EPS Next Y22.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.52%
Revenue growth 3Y14.45%
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