NasdaqGS:MKTX

Stock Analysis Report

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Executive Summary

MarketAxess Holdings Inc., together with its subsidiaries, operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments worldwide.

Rewards

Earnings are forecast to grow 10.06% per year

Earnings grew by 42% over the past year

Risk Analysis

No risks detected for MKTX from our risk checks.


Snowflake Analysis

Flawless balance sheet with outstanding track record.


Similar Companies

Share Price & News

How has MarketAxess Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MKTX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

MKTX

1.5%

US Capital Markets

3.0%

US Market


1 Year Return

39.1%

MKTX

5.5%

US Capital Markets

15.8%

US Market

Return vs Industry: MKTX exceeded the US Capital Markets industry which returned 6.3% over the past year.

Return vs Market: MKTX exceeded the US Market which returned 15.4% over the past year.


Shareholder returns

MKTXIndustryMarket
7 Day-2.5%1.5%3.0%
30 Day-7.5%1.0%6.0%
90 Day4.0%11.2%16.4%
1 Year39.8%39.1%7.7%5.5%18.4%15.8%
3 Year167.4%161.7%24.7%17.2%44.8%35.4%
5 Year441.9%422.6%56.2%41.1%75.7%56.7%

Price Volatility Vs. Market

How volatile is MarketAxess Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MarketAxess Holdings undervalued compared to its fair value and its price relative to the market?

71.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MKTX ($503.65) is trading above our estimate of fair value ($161.07)

Significantly Below Fair Value: MKTX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MKTX is poor value based on its PE Ratio (71.3x) compared to the US Capital Markets industry average (28.2x).

PE vs Market: MKTX is poor value based on its PE Ratio (71.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: MKTX is poor value based on its PEG Ratio (7.1x)


Price to Book Ratio

PB vs Industry: MKTX is overvalued based on its PB Ratio (22.4x) compared to the US Capital Markets industry average (8.7x).


Next Steps

Future Growth

How is MarketAxess Holdings forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MKTX's forecast earnings growth (10.1% per year) is above the savings rate (2.2%).

Earnings vs Market: MKTX's earnings (10.1% per year) are forecast to grow slower than the US market (22.6% per year).

High Growth Earnings: MKTX's earnings are forecast to grow, but not significantly.

Revenue vs Market: MKTX's revenue (9.9% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: MKTX's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MKTX's Return on Equity is forecast to be high in 3 years time (29.6%)


Next Steps

Past Performance

How has MarketAxess Holdings performed over the past 5 years?

18.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MKTX has high quality earnings.

Growing Profit Margin: MKTX's current net profit margins (42.7%) are higher than last year (39.9%).


Past Earnings Growth Analysis

Earnings Trend: MKTX's earnings have grown by 18.9% per year over the past 5 years.

Accelerating Growth: MKTX's earnings growth over the past year (42%) exceeds its 5-year average (18.9% per year).

Earnings vs Industry: MKTX earnings growth over the past year (42%) exceeded the Capital Markets industry 16.6%.


Return on Equity

High ROE: MKTX's Return on Equity (30.8%) is considered high.


Next Steps

Financial Health

How is MarketAxess Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MKTX's short term assets ($573.7M) exceed its short term liabilities ($92.3M).

Long Term Liabilities: MKTX's short term assets ($573.7M) exceed its long term liabilities ($93.5M).


Debt to Equity History and Analysis

Debt Level: MKTX is debt free.

Reducing Debt: MKTX has not had any debt for past 5 years.

Debt Coverage: MKTX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MKTX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is MarketAxess Holdings's current dividend yield, its reliability and sustainability?

0.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MKTX's dividend (0.48%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: MKTX's dividend (0.48%) is low compared to the top 25% of dividend payers in the US market (4.45%).


Stability and Growth of Payments

Stable Dividend: MKTX is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: MKTX is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: MKTX is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MKTX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.4yrs

Average management tenure


CEO

Rick McVey (60 yo)

20.33yrs

Tenure

US$3,222,708

Compensation

Mr. Richard Mitchell McVey, also known as Rick, founded MarketAxess Holdings Inc. in April 11, 2000 and has been its Chairman and Chief Executive Officer since its inception. Mr. McVey also serves Chairman ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD3.22M) is below average for companies of similar size in the US market ($USD11.29M).

Compensation vs Earnings: Rick's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard McVey
Chairman & CEO20.33yrsUS$3.22m2.63%
$ 503.8m
Christopher Concannon
President1.58yrsUS$13.87m0.061%
$ 11.6m
Antonio DeLise
Chief Financial Officer10.42yrsUS$1.57m0.089%
$ 17.0m
Nicholas Themelis
Chief Information Officer15.42yrsUS$1.92m0.084%
$ 16.0m
Kevin McPherson
Global Head of Sales6.17yrsUS$1.75m0.22%
$ 43.0m
Michael Baker
Chief Technology Officer1.33yrsno datano data
David Cresci
Investor Relations Managerno datano datano data
Scott Pintoff
General Counsel & Corporate Secretary6.5yrsno data0.021%
$ 4.1m
Mary Sedarat
Global Head of Marketing & Communications4.25yrsno datano data
Cordelia Boise
Head of Human Resources18.5yrsno datano data
Richard Schiffman
Head of Open Trading18.42yrsno datano data
James Nevil Rucker
Global Head of Operations Services20.33yrsUS$944.00kno data

10.4yrs

Average Tenure

54yo

Average Age

Experienced Management: MKTX's management team is seasoned and experienced (10.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard McVey
Chairman & CEO20.33yrsUS$3.22m2.63%
$ 503.8m
Christopher Concannon
President1.58yrsUS$13.87m0.061%
$ 11.6m
William Cruger
Independent Director6.75yrsUS$219.41k0.015%
$ 3.0m
Stephen Paul Casper
Lead Independent Director8.58yrsUS$252.15k0.14%
$ 27.5m
Nancy Altobello
Independent Director1.33yrsUS$197.33k0.00097%
$ 185.5k
Richard Ketchum
Independent Director3.33yrsUS$199.48k0.0046%
$ 887.4k
Richard Prager
Independent Director1.08yrsUS$142.90k0.0040%
$ 768.8k
John Steinhardt
Independent Director20.33yrsUS$221.98k0.059%
$ 11.2m
Steven Begleiter
Independent Director8.33yrsUS$200.91k0.021%
$ 4.0m
Justin Gmelich
Independent Director0.83yrUS$93.37k0.00055%
$ 105.2k
Emily Portney
Independent Director2.83yrsUS$206.63k0.0039%
$ 753.5k
Jane Chwick
Independent Director6.83yrsUS$218.23k0.015%
$ 3.0m

5.0yrs

Average Tenure

60yo

Average Age

Experienced Board: MKTX's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MarketAxess Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MarketAxess Holdings Inc.
  • Ticker: MKTX
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: US$19.124b
  • Shares outstanding: 37.97m
  • Website: https://www.marketaxess.com

Number of Employees


Location

  • MarketAxess Holdings Inc.
  • 55 Hudson Yards
  • Floor 15
  • New York
  • New York
  • 10001
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MKTXNasdaqGS (Nasdaq Global Select)YesCommon Stock VotingUSUSDNov 2004
MWIDB (Deutsche Boerse AG)YesCommon Stock VotingDEEURNov 2004
MKTX *BMV (Bolsa Mexicana de Valores)YesCommon Stock VotingMXMXNNov 2004

Biography

MarketAxess Holdings Inc., together with its subsidiaries, operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income ins ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 00:19
End of Day Share Price2020/08/06 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.