NasdaqGS:MKTX

Stock Analysis Report

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 11.66% per year

Earnings grew by 24.9% over the past year

Risk Analysis

No risks detected for MKTX from our risk checks.


Snowflake Analysis

Outstanding track record with moderate growth potential.


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

-0.7%

MKTX

-0.2%

US Capital Markets

-0.09%

US Market


1 Year Return

67.9%

MKTX

19.1%

US Capital Markets

23.9%

US Market

Return vs Industry: MKTX exceeded the US Capital Markets industry which returned 21.7% over the past year.

Return vs Market: MKTX exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

MKTXIndustryMarket
7 Day-0.7%-0.2%-0.09%
30 Day-1.8%3.5%3.1%
90 Day6.7%12.5%10.4%
1 Year69.1%67.9%21.5%19.1%26.6%23.9%
3 Year108.2%103.6%44.0%36.0%50.9%41.2%
5 Year402.9%383.6%98.7%80.4%78.1%58.5%

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?

67.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MKTX ($366.61) is trading above our estimate of fair value ($82.82)

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 (67.7x) compared to the Capital Markets industry average (36.1x).

PE vs Market: MKTX is poor value based on its PE Ratio (67.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: MKTX is poor value based on its PEG Ratio (5.8x)


Price to Book Ratio

PB vs Industry: MKTX is overvalued based on its PB Ratio (19.9x) compared to the US Capital Markets industry average (6.6x).


Next Steps

Future Growth

How is MarketAxess Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MKTX's forecast earnings growth (11.7% per year) is above the savings rate (1.7%).

Earnings vs Market: MKTX's earnings (11.7% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: MKTX's revenue (10.9% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: MKTX's revenue (10.9% 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 (32.1%)


Next Steps

Past Performance

How has MarketAxess Holdings performed over the past 5 years?

19.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MKTX has high quality earnings.

Growing Profit Margin: MKTX's current net profit margins (40.6%) are higher than last year (38.1%).


Past Earnings Growth Analysis

Earnings Trend: MKTX's earnings have grown by 19% per year over the past 5 years.

Accelerating Growth: MKTX's earnings growth over the past year (24.9%) exceeds its 5-year average (19% per year).

Earnings vs Industry: MKTX earnings growth over the past year (24.9%) exceeded the Capital Markets industry 20.6%.


Return on Equity

High ROE: MKTX's Return on Equity (28.9%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MarketAxess Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MKTX has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if MKTX's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: MKTX's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MKTX has a sufficient allowance for bad loans.

Low Risk Liabilities: MKTX reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MKTX has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MKTX has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MKTX has an appropriate level of bad loans.


Next Steps

Dividend

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

0.56%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: MKTX's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: MKTX's dividend (0.56%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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

What is the CEO of MarketAxess Holdings's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

Rick McVey (59yo)

19.8yrs

Tenure

US$16,625,183

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 ($USD16.63M) is above average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Rick's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.6yrs

Average Tenure

53yo

Average Age

Experienced Management: MKTX's management team is seasoned and experienced (5.6 years average tenure).


Board Age and Tenure

6.2yrs

Average Tenure

59.5yo

Average Age

Experienced Board: MKTX's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$402,82005 Sep 19
Stephen Paul Casper
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares1,000
Max PriceUS$402.82
BuyUS$358,49019 Aug 19
Richard Prager
EntityIndividual
Shares1,000
Max PriceUS$358.49
SellUS$1,113,98401 May 19
Kevin McPherson
EntityIndividual
Role
Head of Sales
Global Head of Sales
Shares4,000
Max PriceUS$282.50
SellUS$395,49529 Apr 19
Nicholas Themelis
EntityIndividual
Role
Chief Information Officer
Chief Information Officer
Shares1,489
Max PriceUS$265.61
SellUS$1,855,92522 Feb 19
Antonio DeLise
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares8,000
Max PriceUS$231.99
SellUS$687,85006 Feb 19
David Gomach
EntityIndividual
Shares3,187
Max PriceUS$215.83

Ownership Breakdown

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


Management Team

  • Tony DeLise (57yo)

    Chief Financial Officer

    • Tenure: 9.8yrs
    • Compensation: US$1.51m
  • Nick Themelis (55yo)

    Chief Information Officer

    • Tenure: 14.8yrs
    • Compensation: US$1.98m
  • Rick McVey (59yo)

    Chairman & CEO

    • Tenure: 19.8yrs
    • Compensation: US$16.63m
  • Chris Concannon (51yo)

    President

    • Tenure: 1yrs
  • Scott Pintoff (48yo)

    General Counsel & Corporate Secretary

    • Tenure: 5.9yrs
  • Christophe P. Roupie (53yo)

    Head of Europe and Asia - Marketaxess Europe Limited & Trax

    • Tenure: 2.9yrs
    • Compensation: US$1.13m
  • Mary Sedarat

    Global Head of Marketing & Communications

    • Tenure: 3.7yrs
  • Kevin McPherson (48yo)

    Global Head of Sales

    • Tenure: 5.6yrs
    • Compensation: US$1.77m
  • Dave Cresci

    Investor Relations Manager

    • Mike Baker

      Chief Technology Officer

      • Tenure: 0.8yrs

    Board Members

    • Rick McVey (59yo)

      Chairman & CEO

      • Tenure: 19.8yrs
      • Compensation: US$16.63m
    • Bill Cruger (61yo)

      Independent Director

      • Tenure: 6.2yrs
      • Compensation: US$215.18k
    • Stephen Paul Casper (69yo)

      Lead Independent Director

      • Tenure: 8yrs
      • Compensation: US$242.49k
    • Nancy Altobello (60yo)

      Independent Director

      • Tenure: 0.8yrs
    • Rick Ketchum (68yo)

      Independent Director

      • Tenure: 2.8yrs
      • Compensation: US$202.47k
    • Chris Concannon (51yo)

      President

      • Tenure: 1yrs
    • John Steinhardt (65yo)

      Independent Director

      • Tenure: 19.8yrs
      • Compensation: US$219.57k
    • Steve Begleiter (57yo)

      Independent Director

      • Tenure: 7.8yrs
      • Compensation: US$204.20k
    • Emily Portney (47yo)

      Independent Director

      • Tenure: 2.3yrs
      • Compensation: US$197.51k
    • Jane Chwick (56yo)

      Independent Director

      • Tenure: 6.3yrs
      • Compensation: US$215.13k

    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$13.929b
    • Shares outstanding: 37.92m
    • 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 instruments worldwide. It offers institutional investor and broker-dealer firms the access to global liquidity in U.S. high-grade corporate bonds, emerging markets and high-yield bonds, European bonds, U.S. agency bonds, municipal bonds, leveraged loans, credit default swaps, and other fixed-income securities. The company, through its Open Trading protocols, executes bond trades between and among institutional investor and broker-dealer clients in an all-to-all anonymous trading environment in which it acts as the matched principal counterparty. It also offers trading-related products and services, including Composite+ pricing and other market data products to assist clients with trading decisions; auto-execution and other execution services for clients requiring specialized workflow solutions; connectivity solutions that facilitate straight-through processing; and technology services to optimize trading environments. In addition, the company, through its Trax division, offers a range of pre-and post-trade services, such as trade matching, trade publication, regulatory transaction reporting, and market and reference data across a range of fixed-income and other products. MarketAxess Holdings Inc. was founded in 2000 and is headquartered in New York, New York. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 23:56
    End of Day Share Price2020/01/23 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.