TRADEWEB MARKETS INC-CLASS A (TW) Stock Fundamental Analysis
USA - NASDAQ:TW - US8926721064 - Common Stock
109.11 USD
+2.23 (+2.09%)
109.11 USD
0 (0%)
Overall TW gets a fundamental rating of 6 out of 10. We evaluated TW against 237 industry peers in the Capital Markets industry. Both the health and profitability get an excellent rating, making TW a very profitable company, without any liquidiy or solvency issues. TW is valued quite expensively, but it does show have an excellent growth rating. This makes TW very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
TW had positive earnings in the past year.
In the past year TW had a positive cash flow from operations.
Each year in the past 5 years TW has been profitable.
TW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TW's Return On Assets of 7.85% is amongst the best of the industry. TW outperforms 84.81% of its industry peers.
Looking at the Return On Equity, with a value of 9.99%, TW is in line with its industry, outperforming 56.54% of the companies in the same industry.
TW has a Return On Invested Capital of 8.26%. This is amongst the best in the industry. TW outperforms 83.12% 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 7.63%.
The last Return On Invested Capital (8.26%) for TW is above the 3 year average (6.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 9.99% | ||
| ROIC | 8.26% |
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 31.45%, TW is in the better half of the industry, outperforming 77.22% of the companies in the same industry.
TW's Profit Margin has improved in the last couple of years.
TW has a better Operating Margin (40.10%) than 71.31% of its industry peers.
TW's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.1% | ||
| PM (TTM) | 31.45% | ||
| 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
Compared to 1 year ago, TW has more shares outstanding
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
TW has an Altman-Z score of 9.06. This indicates that TW is financially healthy and has little risk of bankruptcy at the moment.
TW's Altman-Z score of 9.06 is amongst the best of the industry. TW outperforms 93.67% 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 | 9.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TW has a Current Ratio of 3.71. This indicates that TW is financially healthy and has no problem in meeting its short term obligations.
TW's Current ratio of 3.71 is amongst the best of the industry. TW outperforms 83.12% of its industry peers.
A Quick Ratio of 3.71 indicates that TW has no problem at all paying its short term obligations.
The Quick ratio of TW (3.71) is better than 83.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.71 | ||
| Quick Ratio | 3.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 20.00% over the past year.
TW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.66% yearly.
TW shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.17%.
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)20%
EPS 3Y21.45%
EPS 5Y23.66%
EPS Q2Q%16%
Revenue 1Y (TTM)22.17%
Revenue growth 3Y17.04%
Revenue growth 5Y17.35%
Sales Q2Q%13.29%
3.2 Future
Based on estimates for the next years, TW will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.56% on average per year.
The Revenue is expected to grow by 11.36% on average over the next years. This is quite good.
EPS Next Y20.99%
EPS Next 2Y15.89%
EPS Next 3Y14.31%
EPS Next 5Y16.56%
Revenue Next Year18.52%
Revenue Next 2Y14.68%
Revenue Next 3Y13.1%
Revenue Next 5Y11.36%
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
The Price/Earnings ratio is 32.47, which means the current valuation is very expensive for TW.
Based on the Price/Earnings ratio, TW is valued a bit more expensive than the industry average as 73.00% of the companies are valued more cheaply.
TW's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.83.
The Price/Forward Earnings ratio is 27.82, which means the current valuation is very expensive for TW.
68.35% of the companies in the same industry are cheaper than TW, based on the Price/Forward Earnings ratio.
TW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.47 | ||
| Fwd PE | 27.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TW is valued a bit cheaper than the industry average as 73.00% of the companies are valued more expensively.
TW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.58 | ||
| EV/EBITDA | 19.79 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as TW's earnings are expected to grow with 14.31% in the coming years.
PEG (NY)1.55
PEG (5Y)1.37
EPS Next 2Y15.89%
EPS Next 3Y14.31%
5. Dividend
5.1 Amount
TW has a yearly dividend return of 0.45%, which is pretty low.
TW's Dividend Yield is slightly below the industry average, which is at 8.39.
With a Dividend Yield of 0.45, TW pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
The dividend of TW is nicely growing with an annual growth rate of 10.06%!
TW has paid a dividend for at least 10 years, which is a reliable track record.
TW has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)10.06%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
TW pays out 15.64% 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.
DP15.64%
EPS Next 2Y15.89%
EPS Next 3Y14.31%
109.11
+2.23 (+2.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners104.09%
Inst Owner Change-2.63%
Ins Owners0.1%
Ins Owner Change0.05%
Market Cap23.28B
Revenue(TTM)1.99B
Net Income(TTM)627.35M
Analysts79.13
Price Target137.12 (25.67%)
Short Float %1.73%
Short Ratio1.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend0.36
Dividend Growth(5Y)10.06%
DP15.64%
Div Incr Years2
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.14%
Min EPS beat(2)-1.62%
Max EPS beat(2)1.9%
EPS beat(4)1
Avg EPS beat(4)-0.72%
Min EPS beat(4)-2.43%
Max EPS beat(4)1.9%
EPS beat(8)1
Avg EPS beat(8)-1.68%
EPS beat(12)3
Avg EPS beat(12)-1.25%
EPS beat(16)4
Avg EPS beat(16)-1.39%
Revenue beat(2)0
Avg Revenue beat(2)-3.08%
Min Revenue beat(2)-3.34%
Max Revenue beat(2)-2.82%
Revenue beat(4)0
Avg Revenue beat(4)-3.03%
Min Revenue beat(4)-3.34%
Max Revenue beat(4)-2.67%
Revenue beat(8)0
Avg Revenue beat(8)-3.22%
Revenue beat(12)0
Avg Revenue beat(12)-3.05%
Revenue beat(16)0
Avg Revenue beat(16)-3.07%
PT rev (1m)-13.31%
PT rev (3m)-13.44%
EPS NQ rev (1m)-3.61%
EPS NQ rev (3m)-4.5%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-0.94%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.47 | ||
| Fwd PE | 27.82 | ||
| P/S | 11.67 | ||
| P/FCF | 23.58 | ||
| P/OCF | 21.29 | ||
| P/B | 3.71 | ||
| P/tB | 13.9 | ||
| EV/EBITDA | 19.79 |
EPS(TTM)3.36
EY3.08%
EPS(NY)3.92
Fwd EY3.59%
FCF(TTM)4.63
FCFY4.24%
OCF(TTM)5.13
OCFY4.7%
SpS9.35
BVpS29.43
TBVpS7.85
PEG (NY)1.55
PEG (5Y)1.37
Graham Number47.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 9.99% | ||
| ROCE | 10.86% | ||
| ROIC | 8.26% | ||
| ROICexc | 11.28% | ||
| ROICexgc | 106.06% | ||
| OM | 40.1% | ||
| PM (TTM) | 31.45% | ||
| GM | N/A | ||
| FCFM | 49.51% |
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%
ROICexgc growth 3Y21.61%
ROICexgc 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 | 42% | ||
| Cap/Sales | 5.33% | ||
| Interest Coverage | 313.39 | ||
| Cash Conversion | 103.9% | ||
| Profit Quality | 157.4% | ||
| Current Ratio | 3.71 | ||
| Quick Ratio | 3.71 | ||
| Altman-Z | 9.06 |
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)20%
EPS 3Y21.45%
EPS 5Y23.66%
EPS Q2Q%16%
EPS Next Y20.99%
EPS Next 2Y15.89%
EPS Next 3Y14.31%
EPS Next 5Y16.56%
Revenue 1Y (TTM)22.17%
Revenue growth 3Y17.04%
Revenue growth 5Y17.35%
Sales Q2Q%13.29%
Revenue Next Year18.52%
Revenue Next 2Y14.68%
Revenue Next 3Y13.1%
Revenue Next 5Y11.36%
EBIT growth 1Y26.14%
EBIT growth 3Y23.91%
EBIT growth 5Y29.17%
EBIT Next Year27.68%
EBIT Next 3Y16.29%
EBIT Next 5Y13.59%
FCF growth 1Y53.1%
FCF growth 3Y15.37%
FCF growth 5Y24.86%
OCF growth 1Y54.2%
OCF growth 3Y15.81%
OCF growth 5Y23.62%
TRADEWEB MARKETS INC-CLASS A / TW FAQ
Can you provide the ChartMill fundamental rating for TRADEWEB MARKETS INC-CLASS A?
ChartMill assigns a fundamental rating of 6 / 10 to TW.
What is the valuation status of TRADEWEB MARKETS INC-CLASS A (TW) stock?
ChartMill assigns a valuation rating of 2 / 10 to TRADEWEB MARKETS INC-CLASS A (TW). This can be considered as Overvalued.
What is the profitability of TW stock?
TRADEWEB MARKETS INC-CLASS A (TW) has a profitability rating of 7 / 10.
What is the earnings growth outlook for TRADEWEB MARKETS INC-CLASS A?
The Earnings per Share (EPS) of TRADEWEB MARKETS INC-CLASS A (TW) is expected to grow by 20.99% in the next year.
Is the dividend of TRADEWEB MARKETS INC-CLASS A sustainable?
The dividend rating of TRADEWEB MARKETS INC-CLASS A (TW) is 5 / 10 and the dividend payout ratio is 15.64%.