Tradeweb Markets logged a 0.6% change during today's morning session, and is now trading at a price of $108.03 per share.
Tradeweb Markets returned losses of -20.5% last year, with its stock price reaching a high of $152.65 and a low of $101.7. Over the same period, the stock underperformed the S&P 500 index by -32.1%. AThe company's 50-day average price was $109.51. Tradeweb Markets Inc., together with its subsidiaries, builds and operates electronic marketplaces worldwide. Based in New York, NY, the Large-Cap Finance company has 1,412 full time employees. Tradeweb Markets has offered a 0.4% dividend yield over the last 12 months.
Strong Revenue Growth and Generally Positive Cash Flows:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $776 | $893 | $1,076 | $1,189 | $1,338 | $1,726 |
| Interest Income (M) | $2 | -$0 | -$2 | $12 | $65 | $3 |
| Operating Margins | 24% | 30% | 33% | 35% | 38% | 39% |
| Net Margins | 11% | 19% | 21% | 26% | 27% | 28% |
| Net Income (M) | $84 | $166 | $227 | $309 | $365 | $502 |
| Depreciation & Amort. (M) | $139 | $154 | $171 | $179 | $185 | $220 |
| Diluted Shares (M) | 167 | 198 | 207 | 208 | 213 | 215 |
| Earnings Per Share | $0.5 | $0.84 | $1.09 | $1.48 | $1.72 | $2.33 |
| EPS Growth | n/a | 68.0% | 29.76% | 35.78% | 16.22% | 35.47% |
| Avg. Price | $42.21 | $54.02 | $81.64 | $78.81 | $90.88 | $107.43 |
| P/E Ratio | 84.42 | 73.0 | 82.46 | 59.7 | 58.26 | 50.44 |
| Free Cash Flow (M) | $295 | $432 | $561 | $610 | $728 | $857 |
| CAPEX (M) | $16 | $11 | $17 | $23 | $19 | $41 |
Tradeweb Markets has rapidly growing revenues and increasing reinvestment in the business and strong operating margins with a positive growth rate. Additionally, the company's financial statements display exceptional EPS growth and generally positive cash flows.
Tradeweb Markets's Valuation Is in Line With Its Sector Averages:
Tradeweb Markets has a trailing twelve month P/E ratio of 37.4, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $3.32, the company has a forward P/E ratio of 33.0. According to the 31.1% compound average growth rate of Tradeweb Markets's historical and projected earnings per share, the company's PEG ratio is 1.2. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 17.0%. On this basis, the company's PEG ratio is 2.2. This suggests that these shares are overvalued. Furthermore, Tradeweb Markets is likely overvalued compared to the book value of its equity, since its P/B ratio of 3.67 is higher than the sector average of 1.78. The company's shares are currently trading 187.2% below their Graham number. In conclusion, Tradeweb Markets's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.
Tradeweb Markets Has an Analyst Consensus of Some Upside Potential:
The 15 analysts following Tradeweb Markets have set target prices ranging from $110.0 to $192.0 per share, for an average of $131.0 with a buy rating. The company is trading -17.5% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Tradeweb Markets has a very low short interest because 1.9% of the company's shares are sold short. Institutions own 101.9% of the company's shares, and the insider ownership rate stands at 0.09%, suggesting a small amount of insider investors. The largest shareholder is Price (T.Rowe) Associates Inc, whose 11% stake in the company is worth $1,391,989,868.
