MarketAxess Holdings Inc
Exchange: NASDAQSector: Financial ServicesIndustry: Capital Markets
MarketAxess operates a leading electronic trading platform that delivers greater trading efficiency, a diversified pool of liquidity and significant cost savings to institutional investors and broker-dealers across the global fixed-income markets. Approximately 2,100 firms leverage MarketAxess’ patented technology to efficiently trade fixed-income securities. Our automated and algorithmic trading solutions, combined with our integrated and actionable data offerings, help our clients make faster, better-informed decisions on when and how to trade on our platform. MarketAxess’ award-winning Open Trading ® marketplace is widely regarded as the preferred all-to-all trading solution in the global credit markets. Founded in 2000, MarketAxess connects a robust network of market participants through an advanced full trading lifecycle solution that includes automated trading solutions, intelligent data and index products and a range of post-trade services.
Did you know?
Generated $5.6 in free cash flow for every $1 of capital expenditure in FY25.
Current Price
$172.77
-2.31%GoodMoat Value
$123.87
28.3% overvaluedProfile
Valuation (TTM)
Market Cap$6.42B
P/E26.04
EV$6.06B
P/B5.61
Shares Out37.17M
P/Sales7.59
Revenue$846.27M
EV/EBITDA13.57
MarketAxess Holdings Inc (MKTX) Stock Analysis
GoodMoat Analysis
MarketAxess operates a leading electronic trading platform for fixed-income securities. While it possesses a strong moat, its current valuation appears unfavourable relative to its intrinsic value and growth profile, warranting a cautious stance.
Read full analysis
MarketAxess Holdings Inc operates an electronic trading platform for institutional credit markets, primarily focused on corporate and government bonds. Its competitive advantages, or moat, are significant. Based on the framework, it likely scores well on criteria like network effects (a critical mass of institutional buyers and sellers), switching costs (integration into client workflows), and niche dominance as a mission-critical platform in a specialized market. This is supported by strong profitability metrics, including an operating margin of 40.4% and an ROE of 21.5%, which indicate a quality business. However, the valuation assessment presents a challenge. The stock trades at a P/E of 25x with a modest revenue growth rate of 3.5% YoY. More critically, the GoodMoat Target price of $123.87 suggests the current price of $166.11 is at a premium, indicating a negative margin of safety. Applying the Decision Framework, the business likely passes the Moat & Quality Gate but fails the Valuation & Risk Gate. The combination of a high multiple, low growth, and a price above the target intrinsic value places this analysis in the 'Unfavourable' or 'With Caution' zone. For a value investor, this suggests the company is not attractively priced for entry at current levels, though its underlying business strength makes it a candidate for a watchlist in case of a significant price correction. Analysis based on data as of 2024-05-15.
Market Cap$6.42B
Current Price$172.77
P/E Ratio26.04
Forward P/E—
PEG Ratio0.59
EPS$6.64
Book Value$30.82
P/B Ratio5.61
MKTX Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 5.8% FCF growth (CAGR)
Cash vs Debt
Net Cash: 284M
Revenue
511M
FY19
689M
FY20
699M
FY21
718M
FY22
753M
FY23
817M
FY24
846M
FY25
Net Income
205M
FY19
299M
FY20
258M
FY21
250M
FY22
258M
FY23
274M
FY24
247M
FY25
MKTX 52-Week Range
$157.43
$227.33
50-Day MA: $175.37200-Day MA: $180.12
Did you know?
Pays a 1.79% dividend yield.
MarketAxess Holdings Inc (MKTX) Financial Summary
MarketAxess Holdings Inc (MKTX) is a Financial Services company in the Capital Markets industry, listed on NASDAQ. The stock currently trades at $172.77 with a market capitalization of $6.42B.
Key valuation metrics include a P/E ratio of 26.04, price-to-book ratio of 5.61, and EPS of $6.64. The company reports a profit margin of 29.1% and return on equity of 21.5%.
MKTX Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $6.42B |
| P/E Ratio | 26.04 |
| EPS | $6.64 |
| P/B Ratio | 5.61 |
| P/S Ratio | 7.59 |
| EV/EBITDA | 13.57 |
| Dividend Yield | 1.79% |
| Profit Margin | 29.1% |
| Return on Equity | 21.5% |
| Debt/Equity | 0.25 |
MKTX Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $511.35M | $204.90M |
| FY20 | $689.13M | $299.38M |
| FY21 | $698.95M | $257.89M |
| FY22 | $718.30M | $250.22M |
| FY23 | $752.55M | $258.06M |
| FY24 | $817.10M | $274.18M |
| FY25 | $846.27M | $246.63M |
MarketAxess Holdings Inc (MKTX) Valuation
Based on GoodMoat's DCF model, MarketAxess Holdings Inc has a fair value estimate of $123.87. At the current price of $172.77, the stock appears 39.5% overvalued relative to our intrinsic value estimate.
MKTX Quality Indicators
MarketAxess Holdings Inc maintains a profit margin of 29.1% and an operating margin of 40.4%. Return on equity stands at 21.5%. Debt-to-equity ratio is 0.25.
About MarketAxess Holdings Inc
MarketAxess operates a leading electronic trading platform that delivers greater trading efficiency, a diversified pool of liquidity and significant cost savings to institutional investors and broker-dealers across the global fixed-income markets. Approximately 2,100 firms leverage MarketAxess’ patented technology to efficiently trade fixed-income securities. Our automated and algorithmic trading solutions, combined with our integrated and actionable data offerings, help our clients make faster, better-informed decisions on when and how to trade on our platform. MarketAxess’ award-winning Open Trading ® marketplace is widely regarded as the preferred all-to-all trading solution in the global credit markets. Founded in 2000, MarketAxess connects a robust network of market participants through an advanced full trading lifecycle solution that includes automated trading solutions, intelligent data and index products and a range of post-trade services.
MKTX Free Cash Flow
MarketAxess Holdings Inc generated $324.13M in trailing twelve-month free cash flow, representing an FCF yield of 5.05%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
MKTX Shares Outstanding
MarketAxess Holdings Inc has 0.04 billion shares outstanding at a share price of $172.77, giving it a market capitalization of $6.42B.