TRADEWEB MARKETS INC-CLASS A (TW) Stock Fundamental Analysis
NASDAQ:TW - US8926721064 - Common Stock
127.99 USD
-1.46 (-1.13%)
127.99 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to TW. TW was compared to 238 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. 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.
TW had positive earnings in each of the past 5 years.
Each year in the past 5 years TW had a positive operating cash flow.
1.2 Ratios
TW has a Return On Assets of 6.92%. This is amongst the best in the industry. TW outperforms 85.23% of its industry peers.
Looking at the Return On Equity, with a value of 9.15%, TW is in line with its industry, outperforming 53.59% of the companies in the same industry.
TW has a Return On Invested Capital of 8.04%. This is amongst the best in the industry. TW outperforms 83.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TW is in line with the industry average of 7.58%.
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 has a better Profit Margin (28.83%) than 73.42% of its industry peers.
In the last couple of years the Profit Margin of TW has grown nicely.
Looking at the Operating Margin, with a value of 39.12%, TW is in the better half of the industry, outperforming 68.78% of the companies in the same industry.
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
Compared to 1 year ago, TW has more shares outstanding
The number of shares outstanding for TW has been increased compared to 5 years ago.
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 9.37. This indicates that TW is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.37, TW belongs to the best of the industry, outperforming 91.98% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.37 |
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.
TW's Current ratio of 2.80 is fine compared to the rest of the industry. TW outperforms 79.75% of its industry peers.
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.
The Quick ratio of TW (2.80) is better than 79.75% 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.
Measured over the past years, TW shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.66% on average per year.
TW shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.96%.
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
TW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.59% yearly.
TW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.66% yearly.
EPS Next Y21.35%
EPS Next 2Y16.47%
EPS Next 3Y14.49%
EPS Next 5Y15.59%
Revenue Next Year18.52%
Revenue Next 2Y14.92%
Revenue Next 3Y13.07%
Revenue Next 5Y10.66%
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.
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
The Price/Earnings ratio is 39.50, which means the current valuation is very expensive for TW.
75.95% of the companies in the same industry are cheaper than TW, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TW to the average of the S&P500 Index (27.24), we can say TW is valued slightly more expensively.
TW is valuated quite expensively with a Price/Forward Earnings ratio of 32.31.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TW indicates a slightly more expensive valuation: TW is more expensive than 71.73% of the companies listed in the same industry.
TW's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.5 | ||
| Fwd PE | 32.31 |
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 67.51% of the companies listed in the same industry.
TW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.7 | ||
| EV/EBITDA | 25.53 |
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.
A more expensive valuation may be justified as TW's earnings are expected to grow with 14.49% in the coming years.
PEG (NY)1.85
PEG (5Y)1.67
EPS Next 2Y16.47%
EPS Next 3Y14.49%
5. Dividend
5.1 Amount
TW has a yearly dividend return of 0.37%, which is pretty low.
TW's Dividend Yield is slightly below the industry average, which is at 8.00.
With a Dividend Yield of 0.37, TW pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
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 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
16.82% 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.
DP16.82%
EPS Next 2Y16.47%
EPS Next 3Y14.49%
127.99
-1.46 (-1.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners102.86%
Inst Owner Change0.55%
Ins Owners0.1%
Ins Owner Change0.08%
Market Cap27.31B
Analysts80
Price Target159.75 (24.81%)
Short Float %2.55%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
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)0.84%
PT rev (3m)1.75%
EPS NQ rev (1m)-1%
EPS NQ rev (3m)-1.95%
EPS NY rev (1m)1.17%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.5 | ||
| Fwd PE | 32.31 | ||
| P/S | 14.12 | ||
| P/FCF | 28.7 | ||
| P/OCF | 26.17 | ||
| P/B | 4.48 | ||
| P/tB | 18.8 | ||
| EV/EBITDA | 25.53 |
EPS(TTM)3.24
EY2.53%
EPS(NY)3.96
Fwd EY3.1%
FCF(TTM)4.46
FCFY3.48%
OCF(TTM)4.89
OCFY3.82%
SpS9.07
BVpS28.58
TBVpS6.81
PEG (NY)1.85
PEG (5Y)1.67
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 | 9.37 |
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 Y21.35%
EPS Next 2Y16.47%
EPS Next 3Y14.49%
EPS Next 5Y15.59%
Revenue 1Y (TTM)27.96%
Revenue growth 3Y17.04%
Revenue growth 5Y17.35%
Sales Q2Q%26.67%
Revenue Next Year18.52%
Revenue Next 2Y14.92%
Revenue Next 3Y13.07%
Revenue Next 5Y10.66%
EBIT growth 1Y26.47%
EBIT growth 3Y23.91%
EBIT growth 5Y29.17%
EBIT Next Year28.36%
EBIT Next 3Y16.93%
EBIT Next 5Y12.95%
FCF growth 1Y49.95%
FCF growth 3Y15.37%
FCF growth 5Y24.86%
OCF growth 1Y50.5%
OCF growth 3Y15.81%
OCF growth 5Y23.62%