Marketaxess Holdings (MKTX) AI Stock Analysis

• Market Cap: $8.13B
• Dividend Yield: 1.39%
• Average Volume (3M): 457.60K
• Price to Earnings (P/E): 37.6
• Beta (1Y): 0.22
• Revenue Growth: 7.22%
• EPS Growth: -15.53%
• Country: US
• Employees: 891
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Capital Markets
• EPS (TTM): 1.87
• Shares Outstanding: 37,501,660
• 10 Day Avg. Volume: 427,587
• 30 Day Avg. Volume: 457,600
• PEG Ratio: -14.37
• Price to Book (P/B): 9.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.02
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 3.13
• Enterprise Value/Gross Profit: 17.89
• Enterprise Value/Ebitda: 6.04
• 1Y Price Target: $238.75
• Price Target Upside: 10.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: $243.00 ▲(12.12%Upside)

Marketaxess Holdings has a strong financial foundation with robust profitability and low leverage. Technical indicators suggest neutral to slightly bearish momentum, while valuation metrics indicate the stock may be overvalued. The recent earnings call and corporate events highlight strategic growth initiatives, although challenges in revenue growth and tax reserves pose risks. Overall, the stock is positioned for potential growth, supported by strategic investments and market share expansion.

Positive Factors

Product Innovation

MKTX is bringing new products, protocols, and innovation to the marketplace at an accelerating pace that can support structural market share gains as they electronify credit markets.

Strategic Initiatives

New block trading solutions in emerging markets and Eurobonds showed substantial growth, highlighting successful strategic initiatives.

Trading Volumes

MarketAxess reported monthly volumes with credit volumes 8% above certain estimates and 3% above consensus, indicating strong performance.

Negative Factors

Credit Fee Rate

On the credit fee rate, it remains weak relative to prior-year levels largely from protocol mix and increasing usage.

Fee Capture

Lower fee capture is expected due to a protocol and product mix shift towards lower-fee products, as well as lower duration across the platform.

Market Share

US HG and HY market share declined year-over-year, indicating challenges in maintaining market position.

Marketaxess Holdings Business Overview & Revenue Model

Company Description

MarketAxess Holdings Inc., together with its subsidiaries, operates an electronic trading platform for institutional investor and broker-dealer companies worldwide. It offers the access to liquidity in the U.S. investment-grade bonds, U.S. high-yield bonds, and U.S. Treasuries, as well as municipal bonds, emerging market debts, Eurobonds, and other fixed income securities. The company, through its Open Trading protocols, executes bond trades between and among institutional investor and broker-dealer clients in an all-to-all anonymous trading environment for corporate bonds. It also offers trading-related products and services, including composite+ pricing and other market data products to assist clients with trading decisions; auto-execution and other execution services for clients requiring specialized workflow solutions; connectivity solutions that facilitate straight-through processing; and technology services to optimize trading environments. In addition, the company provides various pre-and post-trade services, such as trade matching, trade publication, regulatory transaction reporting, and market and reference data across a range of fixed-income and other products. MarketAxess Holdings Inc. was incorporated in 2000 and is headquartered in New York, New York.

How the Company Makes Money

MarketAxess generates revenue through its electronic trading platform by charging commission fees on the trades executed by its clients. The company offers a range of trading protocols, including request-for-quote (RFQ) and all-to-all trading, allowing participants to trade directly with one another. These commissions are typically charged based on the volume and value of the trades. Additionally, MarketAxess earns revenue from its post-trade services, which include trade matching, regulatory reporting, and data analytics. The company's robust data and analytics tools provide valuable insights for clients, contributing to its revenue streams. Strategic partnerships with financial institutions and technology providers also play a significant role in its earnings by enhancing platform capabilities and expanding its client base.

Marketaxess Holdings Financial Statement Overview

Summary

Marketaxess Holdings shows strong profitability and financial stability with low leverage and efficient cash flow management. However, there are challenges in revenue growth and net profit margins, which slightly decreased.

Income Statement

Marketaxess Holdings shows a solid gross profit margin of approximately 69% and an EBIT margin of 41% TTM, indicating strong profitability. However, the net profit margin decreased to 27% TTM from 34% in the previous year, reflecting a slight decline in net efficiency. Revenue growth is modest, with a recent decline of 0.3% TTM, suggesting potential revenue stabilization challenges.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.05 and a high equity ratio of 72% TTM, indicating financial stability and low leverage. Return on equity of 16% TTM shows effective utilization of equity to generate profits, although slightly lower than 20% last year.

Cash Flow

Marketaxess Holdings demonstrates robust cash flow management, with an operating cash flow to net income ratio of 1.9 TTM, indicating efficient cash generation. Free cash flow decreased slightly by 2.1% TTM, pointing to stable but slightly declining cash availability for reinvestment or shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	814.94M	817.10M	752.55M	718.30M	698.95M	689.13M
Gross Profit	564.50M	566.53M	482.92M	536.20M	528.03M	532.24M
EBITDA	424.31M	432.77M	395.10M	393.97M	397.51M	417.57M
Net Income	216.63M	274.18M	258.06M	250.22M	257.89M	299.38M
Balance Sheet
Total Assets	1.88B	1.79B	2.02B	1.61B	1.53B	1.33B
Cash, Cash Equivalents and Short-Term Investments	486.22M	649.25M	550.96M	430.75M	506.74M	460.86M
Total Debt	70.80M	72.65M	79.68M	82.68M	88.42M	93.61M
Total Liabilities	530.78M	400.56M	722.10M	526.68M	489.14M	376.37M
Stockholders Equity	1.35B	1.39B	1.29B	1.08B	1.04B	955.06M
Cash Flow
Free Cash Flow	367.58M	375.30M	281.32M	237.36M	231.47M	358.86M
Operating Cash Flow	410.95M	385.24M	333.77M	289.23M	282.09M	404.49M
Investing Cash Flow	-79.19M	-86.94M	-155.29M	-86.27M	-67.69M	68.87M
Financing Cash Flow	-225.90M	-201.38M	-147.06M	-242.38M	-189.78M	-145.11M

Marketaxess Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 216.73
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKTX, the sentiment is Negative. The current price of 216.73 is below the 20-day moving average (MA) of 222.57, below the 50-day MA of 220.54, and below the 200-day MA of 231.47, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 42.61 is Neutral, neither overbought nor oversold. The STOCH value of 40.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MKTX.

Marketaxess Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIRT	81 Outperform	$6.86B	12.84	23.87%	2.16%	26.02%	142.79%
IBKR	79 Outperform	$25.27B	32.01	19.26%	0.55%	14.67%	23.60%
TW	76 Outperform	$32.86B	57.09	9.14%	0.34%	28.86%	29.26%
SF	73 Outperform	$11.22B	20.81	11.48%	1.68%	12.85%	20.21%
MKTX	72 Outperform	$8.13B	37.64	16.25%	1.39%	7.22%	-15.53%
JEF	67 Neutral	$11.74B	21.56	5.86%	2.81%	0.84%	46.98%
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%

Marketaxess Holdings Corporate Events

MarketAxess Holds 2025 Annual Stockholders Meeting

On June 2, 2025, MarketAxess Holdings Inc. announced the appointment of Nitin A. Mirwani as Chief Accounting Officer, effective June 23, 2025. This strategic move is expected to strengthen the company’s financial leadership. Additionally, on June 4, 2025, the company held its 2025 Annual Meeting of Stockholders, where key proposals, including the election of directors and the ratification of PricewaterhouseCoopers LLP as the independent auditor, were voted upon. The meeting saw a significant shareholder turnout, with 88.3% of shares represented.

The most recent analyst rating on (MKTX) stock is a Hold with a $202.00 price target. To see the full list of analyst forecasts on Marketaxess Holdings stock, see the MKTX Stock Forecast page.

MarketAxess Appoints Dean Berry as COO and CEO

On May 21, 2025, MarketAxess Holdings Inc. announced the appointment of Dean Berry as Group Chief Operating Officer and Chief Executive Officer for EMEA & APAC, effective in the fourth quarter of 2025. Berry, with extensive experience in electronic trading and financial markets, is expected to drive innovation and efficiency across MarketAxess’s global operations, enhancing its industry positioning and potentially benefiting stakeholders through improved trading solutions.

The most recent analyst rating on (MKTX) stock is a Hold with a $223.00 price target. To see the full list of analyst forecasts on Marketaxess Holdings stock, see the MKTX Stock Forecast page.

MarketAxess Reports Q1 2025 Financial Results

On May 7, 2025, MarketAxess Holdings announced its financial results for the first quarter of 2025, highlighting record trading volumes across various product areas despite a slight decline in total revenues compared to the previous year. The company reported a decrease in U.S. credit commission revenue, offset by growth in emerging markets and Eurobonds, and emphasized its strategic advancements in trading capabilities to enhance market share in U.S. credit.