NasdaqGS:MKTX

Stock Analysis Report

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Market Cap

US$17.4b

Last Updated

2021/06/24 03:14 UTC

Data Sources

Company Financials +

Executive Summary

MarketAxess Holdings Inc., together with its subsidiaries, operates an electronic trading platform for institutional investor and broker-dealer firms worldwide. More Details


Snowflake Analysis

Solid track record with excellent balance sheet.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MKTX's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.9%

MKTX

-0.8%

US Capital Markets

0.5%

US Market


1 Year Return

-9.4%

MKTX

59.1%

US Capital Markets

42.6%

US Market

Return vs Industry: MKTX underperformed the US Capital Markets industry which returned 59.1% over the past year.

Return vs Market: MKTX underperformed the US Market which returned 42.6% over the past year.


Shareholder returns

MKTXIndustryMarket
7 Day1.9%-0.8%0.5%
30 Day0.3%1.4%1.9%
90 Day-8.0%11.4%7.9%
1 Year-8.9%-9.4%62.5%59.1%44.9%42.6%
3 Year132.9%128.6%71.0%58.6%64.4%54.1%
5 Year233.4%222.4%188.4%153.6%128.3%102.7%

Long-Term 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?

56.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MKTX ($457.82) is trading above our estimate of fair value ($226.09)

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 (56.1x) compared to the US Capital Markets industry average (15x).

PE vs Market: MKTX is poor value based on its PE Ratio (56.1x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: MKTX is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: MKTX is good value based on its PB Ratio (17.6x) compared to the US Capital Markets industry average (65.9x).


Future Growth

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

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MKTX's forecast earnings growth (12.3% per year) is above the savings rate (2%).

Earnings vs Market: MKTX's earnings (12.3% per year) are forecast to grow slower than the US market (15.7% per year).

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

Revenue vs Market: MKTX's revenue (10.8% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: MKTX's revenue (10.8% 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 (30%)


Past Performance

How has MarketAxess Holdings performed over the past 5 years?

20.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MKTX has high quality earnings.

Growing Profit Margin: MKTX's current net profit margins (42.6%) are higher than last year (40.9%).


Past Earnings Growth Analysis

Earnings Trend: MKTX's earnings have grown significantly by 20.6% per year over the past 5 years.

Accelerating Growth: MKTX's earnings growth over the past year (34.3%) exceeds its 5-year average (20.6% per year).

Earnings vs Industry: MKTX earnings growth over the past year (34.3%) underperformed the Capital Markets industry 48.4%.


Return on Equity

High ROE: MKTX's Return on Equity (30.9%) is considered high.


Financial Health

How is MarketAxess Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MKTX's short term assets ($1.1B) exceed its short term liabilities ($165.8M).

Long Term Liabilities: MKTX's short term assets ($1.1B) exceed its long term liabilities ($391.8M).


Debt to Equity History and Analysis

Debt Level: MKTX's debt to equity ratio (0%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if MKTX's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MKTX's debt is well covered by operating cash flow (760819.2%).

Interest Coverage: MKTX's interest payments on its debt are well covered by EBIT (7923.1x coverage).


Balance Sheet


Dividend

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

0.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MKTX's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: MKTX's dividend (0.58%) is low compared to the top 25% of dividend payers in the US market (3.46%).


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?

7.3yrs

Average management tenure


CEO

Rick McVey (60 yo)

21.17yrs

Tenure

US$6,143,686

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 ($USD6.14M) is below average for companies of similar size in the US market ($USD11.28M).

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


Leadership Team

Experienced Management: MKTX's management team is seasoned and experienced (7.3 years average tenure).


Board Members

Experienced Board: MKTX's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MKTX insiders have only sold shares 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$17.389b
  • Shares outstanding: 37.98m
  • Website: https://www.marketaxess.com

Number of Employees


Location

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

Listings


Biography

MarketAxess Holdings Inc., together with its subsidiaries, operates an electronic trading platform for institutional investor and broker-dealer firms worldwide. It offers the access to global liquidity in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 03:14
End of Day Share Price2021/06/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.