Analyst Note
| Michael Miller |Following a string of weak trading volume reports, we are reducing our fair value estimate for MarketAxess to $305 from $350, which is 44 times our 2023 earnings estimate.
NASDAQ: MKTX
- Last Close 213.64
- Sector Financial Services
- Industry Capital Markets
- Investment Style Mid Growth
- Day Range 210.07 – 216.81
- Year Range 200.01 – 399.78
- Market Cap 8.0494 Bil
- Volume / Avg 950,212.0 / 418,091.5
- Price / Sales 10.96
- Price / Book 6.91
- Forward Div Yield 1.12%
- Trailing Div Yield 1.34%
Morningstar‘s Stock Analysis MKTX
Valuation
Currency in —
Is it the right time to buy or sell?
Is it the right time to buy or sell?
1-Star Price
INVESTOR
5-Star Price
INVESTOR
Economic Moat
INVESTOR
Capital Allocation
INVESTOR
Reducing Our Fair Value Estimate for MarketAxess 13% to $305 as Trading Market Share Disappoints
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Company Profile MKTX
Business Description
Founded in 2000, MarketAxess is a leading electronic fixed-income trading platform that connects broker/dealers and institutional investors. The company is primarily focused on credit based fixed income securities with its main trading products being U.S. investment-grade and high-yield bonds, Eurobonds, and Emerging Market corporate debt. Recently the company has expanded more aggressively into Treasuries and municipal bonds with the acquisitions of LiquidityEdge and MuniBrokers in 2019 and 2021, respectively. The company also provides pre- and post-trade services with its acquisition of Regulatory Reporting Hub from Deutsche Börse Group in 2020 adding to its product offerings.
Related Articles MKTX
Morningstar analysts hand-select direct competitors or comparable companies to provide context on the strength and durability of MKTX’s competitive advantage.
MarketAxess Holdings Inc
XNAS: MKTX
| CME Group Inc Class A
XNAS: CME
| Intercontinental Exchange Inc
XNYS: ICE
| Tradeweb Markets Inc
XNAS: TW
| |
Price
| 213.64 | 200.22 | 110.02 | 80.20 |
Currency
| USD | USD | USD | USD |
Change
| +$4.21 (2.01%) | −$1.44 (0.71%) | −$0.80 (0.72%) | −$0.38 (0.47%) |
Market Cap
| 8.05 Bil | 72.03 Bil | 62.84 Bil | 16.97 Bil |
Industry
| Capital Markets | Financial Data & Stock Exchanges | Financial Data & Stock Exchanges | Capital Markets |
Sector
|
Financial Services
|
Financial Services
|
Financial Services
|
Financial Services
|
* Trading data in this section is delayed by at least 15 minutes.
FAQs for MarketAxess Holdings Inc Stock
Yes. MKTX has a forward dividend yield of 1.35%.
See
MKTX’s full dividends and stock split history
on the Dividend tab.
Dividend yield allows investors, particularly those interested in dividend-paying stocks,
to compare the relationship between a stock’s price and how it rewards stockholders through dividends.
The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.
Learn more about dividend yield.
MKTX’s market cap is 8.05 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares.
It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the
largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.
Learn more about market capitalization.
MKTX’s stock style is Mid Growth.
Style is an investment factor that has a meaningful impact on investment risk and returns.
Style is calculated by combining value and growth scores, which are first individually calculated.
High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.
Learn more about style.
MKTX’s price/sales is 10.96.
Price/sales represents the amount an investor is willing to pay for a dollar generated from
a particular company’s sales or revenues.
MKTX’s price/forward earnings is 31.84.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates.
The lower the Forward P/E, the cheaper the stock.
MKTX’s price/book is 6.91.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets,
based on historical, rather than current, valuations. Historical valuations generally do not reflect
a company’s current market value. Value investors frequently look for companies that have low price/book ratios.
See MKTX’s valuation ratios compared to the Market Index.
MKTX’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.
Compare MKTX’s historical performance against its industry peers and the overall market.