NasdaqGS:TW

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Tradeweb Markets Inc. builds and operates electronic marketplaces in the United States, Europe, Asia, and internationally. More Details


Snowflake Analysis

Flawless balance sheet with solid 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

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


Market Performance


7 Day Return

0.5%

TW

-1.2%

US Capital Markets

-3.4%

US Market


1 Year Return

37.3%

TW

34.4%

US Capital Markets

29.4%

US Market

Return vs Industry: TW exceeded the US Capital Markets industry which returned 34.4% over the past year.

Return vs Market: TW exceeded the US Market which returned 29.4% over the past year.


Shareholder returns

TWIndustryMarket
7 Day0.5%-1.2%-3.4%
30 Day10.0%7.2%0.6%
90 Day17.8%15.9%6.3%
1 Year38.0%37.3%37.6%34.4%32.2%29.4%
3 Yearn/a39.9%29.5%51.3%41.7%
5 Yearn/a152.5%121.3%119.6%95.2%

Long-Term 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?

76.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TW ($70.97) is trading above our estimate of fair value ($28.54)

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 (77x) compared to the US Capital Markets industry average (23.7x).

PE vs Market: TW is poor value based on its PE Ratio (77x) compared to the US market (21.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TW is good value based on its PB Ratio (3.2x) compared to the US Capital Markets industry average (16.9x).


Next Steps

Future Growth

How is Tradeweb Markets forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TW's forecast earnings growth (16.6% per year) is above the savings rate (2%).

Earnings vs Market: TW's earnings (16.6% per year) are forecast to grow slower than the US market (19.6% per year).

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

Revenue vs Market: TW's revenue (7.6% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: TW's revenue (7.6% 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 (7.7%).


Next Steps

Past Performance

How has Tradeweb Markets performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TW has high quality earnings.

Growing Profit Margin: TW's current net profit margins (18.6%) are higher than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: TW's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: TW's earnings growth over the past year (98.5%) exceeds its 5-year average (9.7% per year).

Earnings vs Industry: TW earnings growth over the past year (98.5%) exceeded the Capital Markets industry 10.4%.


Return on Equity

High ROE: TW's Return on Equity (4.4%) 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 ($909.7M) exceed its short term liabilities ($190.9M).

Long Term Liabilities: TW's short term assets ($909.7M) exceed its long term liabilities ($469.8M).


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?

0.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TW's dividend (0.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: TW's dividend (0.45%) is low compared to the top 25% of dividend payers in the US market (3.69%).


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?

2.3yrs

Average management tenure


CEO

Lee Olesky (58 yo)

2.33yrs

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 ($USD11.21M) is about average for companies of similar size in the US market ($USD10.53M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lee Olesky
CEO & Director2.33yrsUS$11.21m0.010%
$ 1.7m
William Hult
President & Director2yrsUS$9.77m0.0060%
$ 1.0m
Enrico Bruni
MD and Head of Europe & Asia Business2yrsUS$2.65m0%
$ 0
Robert Warshaw
Chief Financial Officer2.33yrsno data0.0040%
$ 676.9k
Justin Peterson
Chief Technology Officer0.92yrno data0.0010%
$ 169.6k
Scott Zucker
Chief Risk & Administrative Officer2.33yrsno data0.0020%
$ 337.6k
Ashley Serrao
MD, Head of US Corporate Development & Investor Relationsno datano datano data
Douglas Friedman
General Counsel & Secretary2.33yrsno data0.0015%
$ 253.6k
Michael Cohen
Managing Director of Global Marketing & Communicationsno datano datano data
Li Tsai
MD and Head of Product & Salesno datano datano data
Steve Hall
Managing Director of Europe and Asiano datano datano data
Alfred McKeon
Managing Director and Head of US Inter-Dealer Brokerageno datano datano data

2.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: TW's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lee Olesky
CEO & Director2.33yrsUS$11.21m0.010%
$ 1.7m
William Hult
President & Director2yrsUS$9.77m0.0060%
$ 1.0m
Debra Walton-Collings
Director2yrsno datano data
Steven Berns
Independent Director0.92yrno datano data
Von Hughes
Independent Directorno datano datano data
Martin Brand
Chairman of the Board2yrsno datano data
Brian West
Director2yrsno datano data
Scott Ganeles
Independent Director2yrsUS$190.89k0.0019%
$ 312.4k
John Finley
Director2yrsno datano data
Thomas Pluta
Director2yrsUS$178.01k0.0019%
$ 312.4k
Paula Madoff
Independent Director2yrsUS$187.77kno data

2.0yrs

Average Tenure

53yo

Average Age

Experienced Board: TW's board of directors are not considered experienced ( 2 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.9%.


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
  • Implied Market Cap: US$16.796b
  • Market Cap: US$14.095b
  • Shares outstanding: 229.15m
  • 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, Europe, Asia, and internationally. The company’s marketplaces facilitate trading in a range of asset classes, includi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 00:20
End of Day Share Price2021/03/03 00:00
Earnings2020/12/31
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.