NasdaqGS:TW

Stock Analysis Report

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Executive Summary

Tradeweb Markets Inc. builds and operates electronic marketplaces in the United States and internationally.


Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Tradeweb Markets's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.7%

TW

7.1%

US Capital Markets

3.8%

US Market


1 Year Return

44.9%

TW

9.8%

US Capital Markets

9.7%

US Market

Return vs Industry: TW exceeded the US Capital Markets industry which returned 9.8% over the past year.

Return vs Market: TW exceeded the US Market which returned 9.7% over the past year.


Shareholder returns

TWIndustryMarket
7 Day-5.7%7.1%3.8%
30 Day12.5%16.4%11.4%
90 Day25.4%10.7%6.8%
1 Year45.9%44.9%12.0%9.8%12.1%9.7%
3 Yearn/a32.4%24.7%36.2%27.2%
5 Yearn/a59.9%44.8%63.7%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tradeweb Markets undervalued compared to its fair value and its price relative to the market?

112.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TW ($62.17) is trading above our estimate of fair value ($22.3)

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


Price To Earnings Ratio

PE vs Industry: TW is poor value based on its PE Ratio (112.1x) compared to the Capital Markets industry average (32.9x).

PE vs Market: TW is poor value based on its PE Ratio (112.1x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: TW is poor value based on its PEG Ratio (8.3x)


Price to Book Ratio

PB vs Industry: TW is good value based on its PB Ratio (3x) compared to the US Capital Markets industry average (9.1x).


Next Steps

Future Growth

How is Tradeweb Markets forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TW's forecast earnings growth (13.5% per year) is above the savings rate (2.2%).

Earnings vs Market: TW's earnings (13.5% per year) are forecast to grow slower than the US market (22.4% per year).

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

Revenue vs Market: TW's revenue (5.8% per year) is forecast to grow slower than the US market (8.7% per year).

High Growth Revenue: TW's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TW's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has Tradeweb Markets performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TW has high quality earnings.

Growing Profit Margin: TW's current net profit margins (10.4%) are lower than last year (22.3%).


Past Earnings Growth Analysis

Earnings Trend: TW's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: TW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TW had negative earnings growth (-45.4%) over the past year, making it difficult to compare to the Capital Markets industry average (16.6%).


Return on Equity

High ROE: TW's Return on Equity (4.1%) is considered low.


Next Steps

Financial Health

How is Tradeweb Markets's financial position?


Financial Position Analysis

Short Term Liabilities: TW's short term assets ($667.5M) exceed its short term liabilities ($162.6M).

Long Term Liabilities: TW's short term assets ($667.5M) exceed its long term liabilities ($333.2M).


Debt to Equity History and Analysis

Debt Level: TW is debt free.

Reducing Debt: TW had no debt 5 years ago.

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

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


Balance Sheet


Next Steps

Dividend

What is Tradeweb Markets's current dividend yield, its reliability and sustainability?

0.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TW's dividend (0.51%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: TW's dividend (0.51%) is low compared to the top 25% of dividend payers in the US market (4.22%).


Stability and Growth of Payments

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

Growing Dividend: TW 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: TW is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TW'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?

1.6yrs

Average management tenure


CEO

Lee Olesky (57yo)

1.58yrs

Tenure

US$11,210,498

Compensation

Mr. Lee Olesky co-founded Tradeweb Markets LLC and serves as its Chief Executive Officer. He is Chief Executive Officer and Director of Tradeweb Markets Inc. since November 7, 2018. He is experienced in ma ...


CEO Compensation Analysis

Compensation vs Market: Lee's total compensation ($USD11.21M) is about average for companies of similar size in the US market ($USD11.49M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lee Olesky
CEO & Director1.58yrsUS$11.21m0.011% $1.2m
William Hult
President & Director1.25yrsUS$9.77m0.0066% $745.6k
Enrico Bruni
MD and Head of Europe & Asia Business1.25yrsUS$2.65mno data
Robert Warshaw
Chief Financial Officer1.58yrsno data0.0044% $497.0k
Justin Peterson
Chief Technology Officer0.17yrno data0.051% $5.7m
Scott Zucker
Chief Risk & Administrative Officer1.58yrsno data0.0022% $248.5k
Ashley Serrao
MD, Head of US Corporate Development & Investor Relationsno datano datano data
Douglas Friedman
General Counsel & Secretary1.58yrsno data0.0017% $186.7k
Michael Cohen
Managing Director of Global Marketing & Communicationsno datano datano data
Simon Maisey
MD & Global Head of Corporate Development1.17yrsno data0.0030% $341.9k

1.6yrs

Average Tenure

51yo

Average Age

Experienced Management: TW's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Lee Olesky
CEO & Director1.58yrsUS$11.21m0.011% $1.2m
William Hult
President & Director1.25yrsUS$9.77m0.0066% $745.6k
Debra Walton-Collings
Director1.25yrsno datano data
Steven Berns
Independent Director0.17yrno datano data
Martin Brand
Chairman of the Board1.25yrsno datano data
Brian West
Director1.25yrsno datano data
Scott Ganeles
Independent Director1.25yrsUS$190.89k0.0021% $230.5k
John Finley
Director1.25yrsno datano data
Thomas Pluta
Director1.25yrsUS$178.01k0.0021% $230.5k
Paula Madoff
Independent Director1.25yrsUS$187.77kno data

1.3yrs

Average Tenure

53yo

Average Age

Experienced Board: TW's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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

Tradeweb Markets Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tradeweb Markets Inc.
  • Ticker: TW
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: US$11.245b
  • Shares outstanding: 225.89m
  • Website: https://www.tradeweb.com

Number of Employees


Location

  • Tradeweb Markets Inc.
  • 1177 Avenue of the Americas
  • New York
  • New York
  • 10036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TWNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDApr 2019

Biography

Tradeweb Markets Inc. builds and operates electronic marketplaces in the United States and internationally. The company’s marketplaces facilitate trading in a range of asset classes, including rates, credit, money markets, and equities. It offers pre-trade data and analytics, trade execution, and trade processing, as well as post-trade data, analytics, and reporting services. The company provides flexible order and trading systems to institutional investors in 37 markets across 24 currencies. It also offers a range of electronic, voice, and hybrid platforms to approximately 300 dealers and financial institutions on electronic or hybrid markets with Dealerweb platform; and trading solutions for financial advisory companies and traders with Tradeweb Direct platform. The company serves a network of approximately 2,500 clients in the institutional, wholesale, and retail client sectors. Its customers include asset managers, hedge funds, insurance companies, central banks, banks and dealers, proprietary trading companies, retail brokerage and financial advisory companies, and regional dealers. The company was founded in 1996 and is headquartered in New York, New York. Tradeweb Markets Inc. operates as a subsidiary of Refinitiv US Holdings Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 06:31
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
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.