TRADEWEB MARKETS INC-CLASS A (TW) Stock Fundamental Analysis
USA - NASDAQ:TW - US8926721064 - Common Stock
109.98 USD
+1.99 (+1.84%)
109.98 USD
0 (0%)
Overall TW gets a fundamental rating of 7 out of 10. We evaluated TW against 238 industry peers in the Capital Markets industry. TW has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TW is valued quite expensively, but it does show have an excellent growth rating. These ratings would make TW suitable for growth and quality 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.
Each year in the past 5 years TW has been profitable.
Each year in the past 5 years TW had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.92%, TW belongs to the best of the industry, outperforming 81.09% of the companies in the same industry.
TW has a Return On Equity (9.15%) which is in line with its industry peers.
With an excellent Return On Invested Capital value of 8.04%, TW belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TW is in line with the industry average of 7.64%.
The 3 year average ROIC (6.25%) for TW is below the current ROIC(8.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.92% | ||
| ROE | 9.15% | ||
| ROIC | 8.04% |
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
TW's Profit Margin of 28.83% is fine compared to the rest of the industry. TW outperforms 73.53% of its industry peers.
TW's Profit Margin has improved in the last couple of years.
TW's Operating Margin of 39.12% is fine compared to the rest of the industry. TW outperforms 69.33% of its industry peers.
In the last couple of years the Operating Margin of TW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.12% | ||
| PM (TTM) | 28.83% | ||
| 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
TW 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 8.20 indicates that TW is not in any danger for bankruptcy at the moment.
TW has a better Altman-Z score (8.20) than 91.60% of its industry peers.
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 | 8.2 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TW has a Current Ratio of 2.80. This indicates that TW is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.80, TW is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
TW has a Quick Ratio of 2.80. This indicates that TW is financially healthy and has no problem in meeting its short term obligations.
TW's Quick ratio of 2.80 is fine compared to the rest of the industry. TW outperforms 79.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.8 | ||
| Quick Ratio | 2.8 |
3. Growth
3.1 Past
TW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.62%, 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 27.96% 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)24.62%
EPS 3Y21.45%
EPS 5Y23.66%
EPS Q2Q%24.29%
Revenue 1Y (TTM)27.96%
Revenue growth 3Y17.04%
Revenue growth 5Y17.35%
Sales Q2Q%26.67%
3.2 Future
The Earnings Per Share is expected to grow by 15.59% on average over the next years. This is quite good.
TW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.48% yearly.
EPS Next Y21.27%
EPS Next 2Y16.42%
EPS Next 3Y14.54%
EPS Next 5Y15.59%
Revenue Next Year18.69%
Revenue Next 2Y14.9%
Revenue Next 3Y13.14%
Revenue Next 5Y11.48%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 33.94, the valuation of TW can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TW indicates a slightly more expensive valuation: TW is more expensive than 73.95% of the companies listed in the same industry.
TW is valuated rather expensively when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 27.79, which means the current valuation is very expensive for TW.
Based on the Price/Forward Earnings ratio, TW is valued a bit more expensive than the industry average as 69.33% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of TW to the average of the S&P500 Index (23.32), we can say TW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.94 | ||
| Fwd PE | 27.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TW indicates a somewhat cheap valuation: TW is cheaper than 71.01% of the companies listed in the same industry.
TW's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.66 | ||
| EV/EBITDA | 21.7 |
4.3 Compensation for Growth
TW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of TW may justify a higher PE ratio.
TW's earnings are expected to grow with 14.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.6
PEG (5Y)1.43
EPS Next 2Y16.42%
EPS Next 3Y14.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.44%, TW is not a good candidate for dividend investing.
In the last 3 months the price of TW has falen by -20.87%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 8.50, TW is paying slightly less dividend.
With a Dividend Yield of 0.44, TW pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
5.2 History
On average, the dividend of TW grows each year by 10.06%, which is quite nice.
TW has paid a dividend for at least 10 years, which is 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
TW pays out 16.82% of its income as dividend. This is a sustainable payout ratio.
TW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.82%
EPS Next 2Y16.42%
EPS Next 3Y14.54%
109.98
+1.99 (+1.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners104.09%
Inst Owner Change-0.01%
Ins Owners0.1%
Ins Owner Change0.04%
Market Cap23.47B
Analysts79.13
Price Target155.98 (41.83%)
Short Float %1.92%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Yearly Dividend0.36
Dividend Growth(5Y)10.06%
DP16.82%
Div Incr Years2
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.02%
Min EPS beat(2)-2.43%
Max EPS beat(2)-1.62%
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)0
Avg EPS beat(8)-2.36%
EPS beat(12)3
Avg EPS beat(12)-1.36%
EPS beat(16)3
Avg EPS beat(16)-1.69%
Revenue beat(2)0
Avg Revenue beat(2)-3.05%
Min Revenue beat(2)-3.28%
Max Revenue beat(2)-2.82%
Revenue beat(4)0
Avg Revenue beat(4)-2.95%
Min Revenue beat(4)-3.28%
Max Revenue beat(4)-2.67%
Revenue beat(8)0
Avg Revenue beat(8)-3.2%
Revenue beat(12)0
Avg Revenue beat(12)-3.01%
Revenue beat(16)0
Avg Revenue beat(16)-3%
PT rev (1m)-2.36%
PT rev (3m)-1.05%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.94 | ||
| Fwd PE | 27.79 | ||
| P/S | 12.13 | ||
| P/FCF | 24.66 | ||
| P/OCF | 22.49 | ||
| P/B | 3.85 | ||
| P/tB | 16.15 | ||
| EV/EBITDA | 21.7 |
EPS(TTM)3.24
EY2.95%
EPS(NY)3.96
Fwd EY3.6%
FCF(TTM)4.46
FCFY4.06%
OCF(TTM)4.89
OCFY4.45%
SpS9.07
BVpS28.58
TBVpS6.81
PEG (NY)1.6
PEG (5Y)1.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.92% | ||
| ROE | 9.15% | ||
| ROCE | 10.57% | ||
| ROIC | 8.04% | ||
| ROICexc | 10.54% | ||
| ROICexgc | 90.38% | ||
| OM | 39.12% | ||
| PM (TTM) | 28.83% | ||
| GM | N/A | ||
| FCFM | 49.19% |
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-Score8
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 37.26% | ||
| Cap/Sales | 4.75% | ||
| Interest Coverage | 296.48 | ||
| Cash Conversion | 104% | ||
| Profit Quality | 170.61% | ||
| Current Ratio | 2.8 | ||
| Quick Ratio | 2.8 | ||
| Altman-Z | 8.2 |
F-Score8
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)24.62%
EPS 3Y21.45%
EPS 5Y23.66%
EPS Q2Q%24.29%
EPS Next Y21.27%
EPS Next 2Y16.42%
EPS Next 3Y14.54%
EPS Next 5Y15.59%
Revenue 1Y (TTM)27.96%
Revenue growth 3Y17.04%
Revenue growth 5Y17.35%
Sales Q2Q%26.67%
Revenue Next Year18.69%
Revenue Next 2Y14.9%
Revenue Next 3Y13.14%
Revenue Next 5Y11.48%
EBIT growth 1Y26.47%
EBIT growth 3Y23.91%
EBIT growth 5Y29.17%
EBIT Next Year27.68%
EBIT Next 3Y16.29%
EBIT Next 5Y13.68%
FCF growth 1Y49.95%
FCF growth 3Y15.37%
FCF growth 5Y24.86%
OCF growth 1Y50.5%
OCF growth 3Y15.81%
OCF growth 5Y23.62%