Now trading at a price of $234.63, MarketAxess has moved 6.1% so far today.
Over the last year, MarketAxess logged a -4.0% change, with its stock price reaching a high of $297.97 and a low of $192.42. Over the same period, the stock underperformed the S&P 500 index by -22.3%. AThe company's 50-day average price was $207.98. MarketAxess Holdings Inc., together with its subsidiaries, operates an electronic trading platform for institutional investor and broker-dealer companies worldwide. Based in New York, NY, the Mid-Cap Finance company has 881 full time employees. MarketAxess has offered a 1.3% dividend yield over the last 12 months.
Generally Positive Cash Flows but Growing Revenues:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $435,565 | $511,352 | $689,125 | $698,951 | $718,300 | $752,547 |
| Interest Income (k) | $5,502 | $6,542 | $1,142 | $842 | $700 | $1,983 |
| Operating Margins | 49% | 49% | 54% | 48% | 46% | 42% |
| Net Margins | 40% | 40% | 43% | 37% | 35% | 34% |
| Net Income (k) | $172,852 | $204,902 | $299,377 | $257,888 | $250,224 | $258,055 |
| Depreciation & Amort. (k) | $23,080 | $26,857 | $35,996 | $53,447 | $61,446 | $70,557 |
| Diluted Shares (k) | 37,855 | 37,956 | 38,144 | 38,097 | 37,643 | 37,654 |
| Earnings Per Share | $4.57 | $5.4 | $7.85 | $6.77 | $6.65 | $6.85 |
| EPS Growth | n/a | 18.16% | 45.37% | -13.76% | -1.77% | 3.01% |
| Avg. Price | $195.76 | $302.57 | $454.06 | $456.77 | $312.02 | $234.63 |
| P/E Ratio | 41.83 | 54.71 | 56.69 | 66.39 | 46.71 | 34.15 |
| Free Cash Flow (k) | $188,029 | $253,643 | $389,479 | $264,598 | $276,089 | $324,441 |
| CAPEX (k) | $35,888 | $12,292 | $15,010 | $17,493 | $13,142 | $9,326 |
MarketAxess has generally positive cash flows, strong operating margins with a stable trend, and positive EPS growth. Furthermore, MarketAxess has growing revenues and decreasing reinvestment in the business.
MarketAxess Has Elevated P/B and P/E Ratios:
MarketAxess has a trailing twelve month P/E ratio of 30.6, compared to an average of 19.48 for the Finance sector. Based on its EPS guidance of $7.92, the company has a forward P/E ratio of 26.3. The 8.2% compound average growth rate of MarketAxess's historical and projected earnings per share yields a PEG ratio of 3.74. This suggests that these shares are overvalued. Furthermore, MarketAxess is likely overvalued compared to the book value of its equity, since its P/B ratio of 6.75 is higher than the sector average of 1.85. The company's shares are currently trading 222.5% below their Graham number. Overall, MarketAxess's lofty valuation in terms of earnings and assets is to some extent attenuated by its strong cash flow trend and reasonable levels of debt.
MarketAxess Has an Average Rating of Hold:
The 11 analysts following MarketAxess have set target prices ranging from $186.0 to $310.0 per share, for an average of $235.0 with a hold rating. The company is trading -0.2% away from its average target price, indicating that there is an analyst consensus of some upside potential.
MarketAxess has an average amount of shares sold short because 2.8% of the company's shares are sold short. Institutions own 100.5% of the company's shares, and the insider ownership rate stands at 2.31%, suggesting a decent amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $1,065,088,829.
