We see strong strategic and financial logic to Tradeweb’s purchase of Trumid. The acquisition will likely make Tradeweb the market-share leader in US corporate bonds and extend the firm's reach into new-issue trading, an area where it has historically been underpenetrated.
Tradeweb benefits from the secular transition away from voice negotiations toward its electronic trading platforms in fixed-income markets. If this trend accelerates, Tradeweb would enjoy rapid secular volume growth.
Tradeweb’s revenue base has become increasingly transactional, as growth in its transaction fees outpaces that of its fixed fees, potentially increasing volatility in results.
|
Metric
|
TW
|
ICE
|
MKTX
|
|---|---|---|---|
Price/Earnings (Normalized) | 31.66 | 20.56 | 21.28 |
Price/Book Value | 3.82 | 2.99 | 4.67 |
Price/Sales | 11.64 | 6.71 | 6.82 |
Price/Cash Flow | 21.21 | 15.82 | 13.08 |
|
Metric
|
TW
|
ICE
|
MKTX
|
|---|---|---|---|
Quick Ratio | 4.34 | 0.04 | 1.57 |
Current Ratio | 4.44 | 1.01 | 1.76 |
Interest Coverage | 597.03 | 7.50 | 59.93 |
|
Metric
|
TW
|
ICE
|
MKTX
|
|---|---|---|---|
Return on Assets (Normalized) | 10.99% | 2.82% | 15.69% |
Return on Equity (Normalized) | 13.95% | 15.06% | 26.35% |
Return on Invested Capital (Normalized) | 11.63% | 9.95% | 22.06% |
|
1-Day Chart
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Price
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Morningstar Rating for Stocks
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United States