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 230 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 expensive, but it does show an excellent growth. These ratings would make TW suitable 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.
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 6.89%. This is amongst the best in the industry. TW outperforms 83.04% of its industry peers.
The Return On Equity of TW (8.64%) is comparable to the rest of the industry.
TW's Return On Invested Capital of 7.58% is amongst the best of the industry. TW outperforms 80.87% 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 7.10%.
The last Return On Invested Capital (7.58%) for TW is above the 3 year average (6.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.89% | ||
| ROE | 8.64% | ||
| ROIC | 7.58% |
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
With a decent Profit Margin value of 29.03%, TW is doing good in the industry, outperforming 69.13% of the companies in the same industry.
In the last couple of years the Profit Margin of TW has grown nicely.
TW has a better Operating Margin (39.55%) than 69.57% of its industry peers.
In the last couple of years the Operating Margin of TW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.55% | ||
| PM (TTM) | 29.03% | ||
| 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.
TW has more shares outstanding than it did 5 years ago.
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 12.99 indicates that TW is not in any danger for bankruptcy at the moment.
TW's Altman-Z score of 12.99 is amongst the best of the industry. TW outperforms 95.65% of its industry peers.
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 | 12.99 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 3.99 indicates that TW has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.99, TW belongs to the top of the industry, outperforming 84.35% of the companies in the same industry.
TW has a Quick Ratio of 3.99. This indicates that TW is financially healthy and has no problem in meeting its short term obligations.
TW has a Quick ratio of 3.99. This is amongst the best in the industry. TW outperforms 84.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.99 | ||
| Quick Ratio | 3.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.86% over the past year.
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.
Looking at the last year, TW shows a very strong growth in Revenue. The Revenue has grown by 28.97%.
Measured over the past years, TW shows a quite strong growth in Revenue. The Revenue has been growing by 17.35% on average per year.
EPS 1Y (TTM)26.86%
EPS 3Y21.45%
EPS 5Y23.66%
EPS Q2Q%21.13%
Revenue 1Y (TTM)28.97%
Revenue growth 3Y17.04%
Revenue growth 5Y17.35%
Sales Q2Q%24.7%
3.2 Future
The Earnings Per Share is expected to grow by 15.79% 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 10.69% yearly.
EPS Next Y20.32%
EPS Next 2Y16.33%
EPS Next 3Y14.15%
EPS Next 5Y15.79%
Revenue Next Year18.13%
Revenue Next 2Y14.58%
Revenue Next 3Y12.93%
Revenue Next 5Y10.69%
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.
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 46.21, TW can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TW is valued a bit more expensive than the industry average as 76.52% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 28.22. TW is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 35.90, 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 73.48% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 20.86. TW is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.21 | ||
| Fwd PE | 35.9 |
4.2 Price Multiples
65.65% of the companies in the same industry are more expensive than TW, based on the Enterprise Value to EBITDA ratio.
TW's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.42 | ||
| EV/EBITDA | 31.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TW may justify a higher PE ratio.
TW's earnings are expected to grow with 14.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.27
PEG (5Y)1.95
EPS Next 2Y16.33%
EPS Next 3Y14.15%
5. Dividend
5.1 Amount
TW has a yearly dividend return of 0.35%, which is pretty low.
Compared to an average industry Dividend Yield of 8.37, TW is paying slightly less dividend.
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
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
17.01% of the earnings are spent on dividend by TW. This is a low number and sustainable payout ratio.
The dividend of TW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP17.01%
EPS Next 2Y16.33%
EPS Next 3Y14.15%
141.86
+3.79 (+2.74%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners98.85%
Inst Owner Change1.12%
Ins Owners0.07%
Ins Owner Change-0.45%
Market Cap30.27B
Analysts80.87
Price Target157.55 (11.06%)
Short Float %1.44%
Short Ratio1.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly Dividend0.36
Dividend Growth(5Y)10.06%
DP17.01%
Div Incr Years2
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.4%
Min EPS beat(2)-4.05%
Max EPS beat(2)-0.75%
EPS beat(4)0
Avg EPS beat(4)-2.22%
Min EPS beat(4)-4.05%
Max EPS beat(4)-0.75%
EPS beat(8)1
Avg EPS beat(8)-2.04%
EPS beat(12)3
Avg EPS beat(12)-1.39%
EPS beat(16)3
Avg EPS beat(16)-1.7%
Revenue beat(2)0
Avg Revenue beat(2)-2.85%
Min Revenue beat(2)-3.04%
Max Revenue beat(2)-2.67%
Revenue beat(4)0
Avg Revenue beat(4)-3.25%
Min Revenue beat(4)-3.78%
Max Revenue beat(4)-2.67%
Revenue beat(8)0
Avg Revenue beat(8)-3.04%
Revenue beat(12)0
Avg Revenue beat(12)-3.01%
Revenue beat(16)0
Avg Revenue beat(16)-2.84%
PT rev (1m)4.1%
PT rev (3m)3.52%
EPS NQ rev (1m)1.63%
EPS NQ rev (3m)2.28%
EPS NY rev (1m)0.53%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)1.61%
Revenue NQ rev (3m)1.98%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.21 | ||
| Fwd PE | 35.9 | ||
| P/S | 17.54 | ||
| P/FCF | 37.42 | ||
| P/OCF | 33.72 | ||
| P/B | 5.22 | ||
| P/tB | 28.22 | ||
| EV/EBITDA | 31.1 |
EPS(TTM)3.07
EY2.16%
EPS(NY)3.95
Fwd EY2.79%
FCF(TTM)3.79
FCFY2.67%
OCF(TTM)4.21
OCFY2.97%
SpS8.09
BVpS27.18
TBVpS5.03
PEG (NY)2.27
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.89% | ||
| ROE | 8.64% | ||
| ROCE | 9.97% | ||
| ROIC | 7.58% | ||
| ROICexc | 9.52% | ||
| ROICexgc | 84.36% | ||
| OM | 39.55% | ||
| PM (TTM) | 29.03% | ||
| GM | N/A | ||
| FCFM | 46.87% |
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 Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 40.4% | ||
| Cap/Sales | 5.15% | ||
| Interest Coverage | 265.16 | ||
| Cash Conversion | 99.47% | ||
| Profit Quality | 161.41% | ||
| Current Ratio | 3.99 | ||
| Quick Ratio | 3.99 | ||
| Altman-Z | 12.99 |
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 Y20.32%
EPS Next 2Y16.33%
EPS Next 3Y14.15%
EPS Next 5Y15.79%
Revenue 1Y (TTM)28.97%
Revenue growth 3Y17.04%
Revenue growth 5Y17.35%
Sales Q2Q%24.7%
Revenue Next Year18.13%
Revenue Next 2Y14.58%
Revenue Next 3Y12.93%
Revenue Next 5Y10.69%
EBIT growth 1Y35.09%
EBIT growth 3Y23.91%
EBIT growth 5Y29.17%
EBIT Next Year27.68%
EBIT Next 3Y16.95%
EBIT Next 5Y13.03%
FCF growth 1Y18.2%
FCF growth 3Y15.37%
FCF growth 5Y24.86%
OCF growth 1Y20.33%
OCF growth 3Y15.81%
OCF growth 5Y23.62%