Tradeweb Markets (TW) AI Stock Analysis

• Market Cap: $24.63B
• Dividend Yield: 0.44%
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 40.6
• Beta (1Y): 0.48
• Revenue Growth: 27.97%
• EPS Growth: 28.39%
• Country: US
• Employees: 1,412
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.87
• Shares Outstanding: 116,453,680
• 10 Day Avg. Volume: 1,469,885
• 30 Day Avg. Volume: 1,676,086
• PEG Ratio: 1.53
• Price to Book (P/B): 4.81
• Price to Sales (P/S): 16.16
• P/FCF Ratio: 32.55
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $138.42
• Price Target Upside: 32.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 68 Neutral
• Price Target: $114.00 ▲(9.46% Upside)

Tradeweb Markets presents a strong financial position with consistent revenue growth and robust profitability. However, technical indicators suggest bearish momentum, and the stock appears overvalued based on its P/E ratio. Despite challenges in certain segments, the company remains optimistic about future growth, particularly in digital initiatives.

Positive Factors

Revenue Growth

Tradeweb's consistent revenue growth, driven by strong performance across various sectors, indicates a robust business model and expanding market presence.

International Expansion

Strong international growth reflects Tradeweb's successful global strategy, enhancing its competitive position and diversifying revenue streams.

Technological Advancements

Innovative trading solutions like AiEX and Portfolio Trading strengthen Tradeweb's market position, driving efficiency and client engagement.

Negative Factors

U.S. Treasuries Market Share Decline

A decline in U.S. Treasuries market share could impact Tradeweb's dominance in a key segment, potentially affecting future revenue.

ICD Business Volatility

Volatility in the ICD business may lead to revenue instability, posing a risk to consistent cash flow and financial predictability.

Fee Per Million Decrease

A decrease in fees per million in cash credit could pressure margins, affecting profitability in a competitive market environment.

Tradeweb Markets Business Overview & Revenue Model

Company Description

Tradeweb Markets Inc. is a leading global operator of electronic marketplaces for fixed income, derivatives, and equities. The company provides a platform that facilitates trading in various financial instruments, serving a diverse clientele that includes institutional investors, dealers, and other financial market participants. Tradeweb's core products include trading solutions for government bonds, corporate bonds, mortgage-backed securities, and interest rate derivatives, among others, enabling clients to execute trades efficiently and transparently in a rapidly evolving market environment.

How the Company Makes Money

Tradeweb generates revenue primarily through transaction-based fees, which are charged each time a trade is executed on its platform. The company also earns revenue from subscription fees for access to its trading technology and services, which are used by clients to streamline their trading operations. Key revenue streams include fees from trading in fixed income products, derivatives, and equities, as well as additional services such as data analytics and post-trade processing. Significant partnerships with financial institutions and market participants enhance Tradeweb's liquidity and trading volumes, further contributing to its earnings.

Tradeweb Markets Financial Statement Overview

Summary

Tradeweb Markets demonstrates strong financial health with impressive revenue growth, robust profit margins, low leverage, and strong cash flow generation. These factors collectively position the company as financially sound in the capital markets industry.

Income Statement

Tradeweb Markets has demonstrated impressive growth in its revenue, with a notable increase of 11.58% in the TTM (Trailing-Twelve-Months) compared to the previous annual period. The gross profit margin remains strong at 65.63%, reflecting efficient cost management and a robust business model. The net profit margin has also improved to 28.85% in the TTM, highlighting enhanced profitability. EBIT and EBITDA margins are healthy at 38.86% and 49.44% respectively, indicating strong operational efficiency.

Balance Sheet

The balance sheet of Tradeweb Markets is notably strong, with a low debt-to-equity ratio of 0.0053, signifying minimal leverage and financial risk. The return on equity (ROE) is robust at 9.16%, demonstrating effective use of shareholder equity to generate profits. The equity ratio is high at 75.67%, confirming a solid capital structure with minimal reliance on debt financing.

Cash Flow

Cash flow analysis reveals a substantial growth in free cash flow of 14.54% in the TTM, indicating effective cash management and operational efficiency. The operating cash flow to net income ratio stands at 1.87, and the free cash flow to net income ratio is 1.76, both reflecting strong cash generation capabilities relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.99B	1.73B	1.34B	1.19B	1.08B	892.66M
Gross Profit	1.32B	1.11B	877.91M	756.36M	669.19M	543.00M
EBITDA	1.04B	978.68M	733.33M	616.01M	542.88M	428.57M
Net Income	654.92M	501.51M	364.87M	309.34M	226.83M	166.30M
Balance Sheet
Total Assets	8.00B	7.27B	7.06B	6.26B	5.99B	5.68B
Cash, Cash Equivalents and Short-Term Investments	1.91B	1.34B	1.71B	1.26B	973.05M	792.28M
Total Debt	135.63M	35.75M	49.08M	27.94M	24.33M	34.46M
Total Liabilities	1.06B	869.11M	1.13B	713.82M	681.24M	660.69M
Stockholders Equity	6.28B	5.80B	5.37B	4.95B	4.65B	4.30B
Cash Flow
Free Cash Flow	1.03B	856.78M	684.33M	572.73M	526.67M	400.70M
Operating Cash Flow	1.09B	897.74M	746.09M	632.82M	578.02M	443.23M
Investing Cash Flow	-138.01M	-969.19M	-132.76M	-60.10M	-259.11M	-62.54M
Financing Cash Flow	-222.56M	-290.26M	-168.17M	-276.70M	-136.10M	-52.69M

Tradeweb Markets Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 104.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TW, the sentiment is Negative. The current price of 104.15 is below the 20-day moving average (MA) of 107.59, below the 50-day MA of 113.48, and below the 200-day MA of 130.54, indicating a bearish trend. The MACD of -1.88 indicates Negative momentum. The RSI at 38.21 is Neutral, neither overbought nor oversold. The STOCH value of 12.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TW.

Tradeweb Markets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FUTU	―	$26.41B	26.27	26.43%	―	66.97%	86.46%
IBKR	―	$30.81B	33.06	19.82%	0.73%	12.42%	28.96%
RJF	―	$31.51B	15.36	17.72%	1.27%	6.55%	5.90%
MKTX	―	$5.98B	26.73	16.41%	1.89%	8.30%	-14.39%
TW	―	$24.63B	40.64	9.51%	0.44%	27.97%	28.39%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JEF	―	$10.94B	18.23	6.29%	2.92%	-5.41%	25.28%

Tradeweb Markets Corporate Events

Tradeweb Markets Reports Strong Q3 2025 Results

Tradeweb Markets Inc., a prominent global operator of electronic marketplaces, specializes in facilitating trading across rates, credit, equities, and money markets. The company, headquartered in New York, is known for its advanced trading technologies and extensive client base spanning over 85 countries.

Tradeweb Markets Renews Data Agreement with Refinitiv

Tradeweb Markets LLC has reached an agreement-in-principle with Refinitiv US LLC and Refinitiv US Organization LLC to renew their current data schedules under the master data license agreement for an additional three-year term, effective retrospectively from November 1, 2025. This renewal reflects the enhanced quality of data provided by Tradeweb Markets and is subject to final documentation and board approval. Additionally, Tradeweb Markets reported strong financial results for the third quarter of 2025, with a 13.3% increase in quarterly revenues and a 61.7% rise in net income compared to the previous year. The company achieved record trading volumes and average daily volume, driven by growth across rates, equities, and money markets. Tradeweb continues to innovate and expand its market presence, including advancements in electronic trading and global settlement networks.

The most recent analyst rating on (TW) stock is a Buy with a $122.00 price target. To see the full list of analyst forecasts on Tradeweb Markets stock, see the TW Stock Forecast page.

Tradeweb Markets Reports Strong Q2 2025 Growth

Tradeweb Markets Inc., a global leader in electronic marketplaces for rates, credit, equities, and money markets, has reported a robust financial performance for the second quarter of 2025, showcasing significant growth across various metrics. The company, known for its advanced trading technologies, continues to enhance market access and trading efficiency for its clients worldwide.

Tradeweb Markets’ Earnings Call Highlights Robust Growth

Tradeweb Markets’ recent earnings call painted a picture of robust growth and strategic expansion, despite some challenges in specific market segments. The overall sentiment was positive, driven by record-breaking revenues and successful integration of acquisitions, which overshadowed the hurdles faced in the U.S. Treasuries market and the ICD business.