MarketAxess Holdings, Inc. (MKTX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nasdaq, Inc.

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Ameriprise Financial, Inc.

Cboe Global Markets, Inc.

Coinbase Global, Inc.

Intercontinental Exchange, Inc.

Tradeweb Markets, Inc.

MarketAxess Holdings, Inc.

LPL Financial Holdings, Inc.

The Bank of New York Mellon Corp.

State Street Corp.

Why is MarketAxess Holdings, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 22.62%

Poor long term growth as Net Sales has grown by an annual rate of 6.45% and Operating profit at 2.72%

Flat results in Jun 25

NET PROFIT(HY) At USD 86.21 MM has Grown at -37.32%
ROCE(HY) Lowest at 16.41%

With ROE of 16.08%, it has a very expensive valuation with a 6.66 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -37.88%, its profits have fallen by -15.7%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -37.88% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to MarketAxess Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is MarketAxess Holdings, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

MarketAxess Holdings, Inc.

-36.36%

-0.62

27.19%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.45%

EBIT Growth (5y)

2.72%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

39.82%

Dividend Payout Ratio

40.67%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

50.58%

ROE (avg)

22.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.66

EV to EBIT

24.95

EV to EBITDA

20.14

EV to Capital Employed

10.47

EV to Sales

10.36

PEG Ratio

Dividend Yield

3.78%

ROCE (Latest)

41.98%

ROE (Latest)

16.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 414.8 MM

DIVIDEND PER SHARE(HY)

Highest at USD 1.25

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -1.54% (YoY

CASH AND EQV(HY)

Highest at USD 1,061.88 MM

NET SALES(Q)

Highest at USD 224.29 MM

PRE-TAX PROFIT(Q)

Highest at USD 97.42 MM

EPS(Q)

Highest at USD 1.91

-7What is not working for the Company

NET PROFIT(HY)

At USD 86.21 MM has Grown at -37.32%

ROCE(HY)

Lowest at 16.41%

Here's what is working for MarketAxess Holdings, Inc.

Dividend per share

Highest at USD 1.25 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 414.8 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 224.29 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 97.42 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

EPS

Highest at USD 1.91

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 1,061.88 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.54% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 21.06 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for MarketAxess Holdings, Inc.

Net Profit

At USD 86.21 MM has Grown at -37.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)