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Tradeweb Markets Inc TW

Morningstar Rating
$104.17 −0.23 (0.22%)
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Company Report

Tradeweb Benefits From Long-Term Tailwinds as Bond Markets Become Increasingly Electronic

Tradeweb operates one of the leading platforms for the electronic trading of fixed-income products and derivatives. Unlike many of its competitors, which tend to focus on a particular bond type or market segment, Tradeweb operates with a broad scope, offering trading in just about anything related to fixed income, including derivatives, as well as some equity exchange-traded funds. That said, Tradeweb’s interest-rate and credit segments are the heart of the company, making up 79% of its revenue in 2023.

Price vs Fair Value

TW is trading at a 14% premium.
Price
$104.86
Fair Value
$51.00
Uncertainty
Medium
1-Star Price
$664.40
5-Star Price
$89.60
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Tradeweb benefits from the secular transition away from voice negotiations toward its electronic trading platforms in fixed-income markets, providing the firm with an easy path for continued market share and revenue growth.

Bears

Tradeweb’s revenue base has become increasingly transactional, as growth in its transaction fees outpaces its fixed fees, creating more room for volatility in the firm’s results.

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News

Trading Information

Previous Close Price
$104.40
Day Range
$104.12105.21
52-Week Range
$64.83108.04
Bid/Ask
$102.68 / $105.60
Market Cap
$22.15 Bil
Volume/Avg
717,822 / 909,116

Key Statistics

Price/Earnings (Normalized)
46.39
Price/Sales
16.59
Dividend Yield (Trailing)
0.35%
Dividend Yield (Forward)
0.35%
Total Yield
0.51%

Company Profile

Founded in 1998 and headquartered in New York City, Tradeweb Markets is a leading fixed-income trading platform. While it does offer electronic processing for some voice-negotiated trades, the company focuses primarily on providing electronic trading networks that connect broker/dealers, institutional clients, and retail customers. While the company offers trading in a wide variety of products, the bulk of its business is in U.S. and European government debt, mortgage-backed securities, interest-rate swaps, and U.S. and international corporate bonds. The firm also sells fixed-income trading and price data, primarily through a deal with Refinitiv’s Eikon service.
Sector
Financial Services
Industry
Capital Markets
Stock Style Box
Mid Growth
Total Number of Employees
1,179

Competitors

Valuation

Metric
TW
ICE
CME
Price/Earnings (Normalized)
46.3924.3323.09
Price/Book Value
4.123.052.90
Price/Sales
16.597.8213.89
Price/Cash Flow
28.3719.6921.84
Price/Earnings
TW
ICE
CME

Financial Strength

Metric
TW
ICE
CME
Quick Ratio
2.520.050.04
Current Ratio
2.571.001.02
Interest Coverage
4.1927.06
Quick Ratio
TW
ICE
CME

Profitability

Metric
TW
ICE
CME
Return on Assets (Normalized)
8.22%2.10%2.25%
Return on Equity (Normalized)
10.39%13.14%12.26%
Return on Invested Capital (Normalized)
8.45%8.05%11.30%
Return on Assets
TW
ICE
CME
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