Marketaxess Holdings (MKTX) AI Stock Analysis

• Market Cap: $6.10B
• Dividend Yield: 1.85%
• Average Volume (3M): 629.90K
• Price to Earnings (P/E): 27.9
• Beta (1Y): -0.12
• Revenue Growth: 3.96%
• EPS Growth: -20.33%
• Country: US
• Employees: 891
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 1.84
• Shares Outstanding: 37,171,510
• 10 Day Avg. Volume: 613,773
• 30 Day Avg. Volume: 629,899
• PEG Ratio: 5.07
• Price to Book (P/B): 6.12
• Price to Sales (P/S): 10.40
• P/FCF Ratio: 22.65
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 7.17
• Enterprise Value/Gross Profit: 10.82
• Enterprise Value/Ebitda: 13.20
• 1Y Price Target: $197.00
• Price Target Upside: 19.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 7.39
• Revenue Forecast (FY): $851.05M

• Rating: 73 Outperform
• Price Target: $187.00 ▲(13.89% Upside)

Marketaxess Holdings shows strong financial performance with robust revenue growth and efficient cash flow management. However, the technical analysis indicates a bearish trend, and the valuation suggests the stock is relatively expensive. The earnings call provided a balanced view with both growth opportunities and challenges. Overall, the company is well-positioned in the capital markets industry, but investors should be cautious of the current market conditions and valuation.

Positive Factors

Global Expansion

The increase in global credit trading volume indicates successful international expansion, diversifying revenue sources and reducing dependence on the U.S. market.

Innovative Trading Solutions

New trading protocols like closing auctions enhance liquidity and market efficiency, potentially attracting more participants and increasing trading volume.

Strong Financial Health

A strong balance sheet with low leverage provides financial stability, allowing for strategic investments and resilience in economic downturns.

Negative Factors

Challenges in U.S. Credit Revenue

The shift to new trading protocols at lower capture rates challenges traditional revenue streams, potentially impacting profitability in the U.S. market.

Flat Commission Revenue

Flat commission revenue suggests difficulty in increasing transaction fees, which may pressure margins if not offset by volume growth.

Increased Effective Tax Rate

A higher tax rate reduces net income, potentially affecting cash flow and the ability to reinvest in growth initiatives or return capital to shareholders.

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 primarily through transaction fees charged on trades executed on its platform. The company earns a commission for each transaction conducted by its clients, which includes institutional investors and broker-dealers. Additionally, MarketAxess provides subscription-based services for market data and analytics, offering valuable insights to its users. The firm also benefits from partnerships with various financial institutions, enhancing its market reach and trading volume. Factors contributing to its earnings include the growth of electronic trading in fixed-income markets, increased trading activity, and the expansion of its product offerings and client base.

Marketaxess Holdings Financial Statement Overview

Summary

Marketaxess Holdings demonstrates strong financial health with robust revenue growth and efficient cash flow management. The company maintains a conservative leverage position, which supports financial stability. While profitability metrics remain strong, the slight decline in net profit margin and return on equity indicates potential areas for improvement.

Income Statement

Marketaxess Holdings shows strong revenue growth with a 25% increase in TTM, supported by a solid gross profit margin of 71.94%. The net profit margin is healthy at 26.02%, although it has decreased from the previous year. The EBIT and EBITDA margins are robust, indicating efficient operations. However, the decline in net profit margin suggests rising costs or other financial pressures.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.048, reflecting conservative leverage. The return on equity is strong at 15.97%, although it has decreased compared to previous years, indicating potential challenges in generating returns. The equity ratio is stable, suggesting a solid capital structure.

Cash Flow

Free cash flow growth is positive at 4.70%, indicating good cash generation capabilities. The operating cash flow to net income ratio is strong at 2.44, showing efficient cash conversion. The free cash flow to net income ratio is high at 0.91, suggesting effective cash management. However, the growth rate has slowed compared to previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	839.26M	817.10M	752.55M	718.30M	698.95M	689.13M
Gross Profit	555.75M	563.35M	528.62M	518.53M	511.96M	511.18M
EBITDA	455.44M	442.61M	411.09M	406.14M	395.01M	418.34M
Net Income	219.56M	274.18M	258.06M	250.22M	257.89M	299.38M
Balance Sheet
Total Assets	2.01B	1.79B	2.02B	1.61B	1.53B	1.33B
Cash, Cash Equivalents and Short-Term Investments	473.30M	649.25M	522.25M	464.75M	517.93M	479.15M
Total Debt	66.87M	72.65M	79.68M	82.68M	88.42M	93.61M
Total Liabilities	623.73M	400.56M	722.10M	526.68M	489.14M	376.37M
Stockholders Equity	1.38B	1.39B	1.29B	1.08B	1.04B	955.06M
Cash Flow
Free Cash Flow	346.04M	375.30M	281.32M	237.36M	231.47M	358.86M
Operating Cash Flow	399.75M	385.24M	333.77M	289.23M	282.09M	404.49M
Investing Cash Flow	-91.66M	-86.94M	-155.29M	-86.27M	-67.69M	68.87M
Financing Cash Flow	-268.83M	-201.38M	-147.06M	-242.38M	-189.78M	-145.11M

Marketaxess Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 164.20
• 50DMA: Negative
• 100DMA: Negative
• 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 164.2 is below the 20-day moving average (MA) of 165.52, below the 50-day MA of 169.33, and below the 200-day MA of 197.29, indicating a bearish trend. The MACD of -1.42 indicates Positive momentum. The RSI at 44.04 is Neutral, neither overbought nor oversold. The STOCH value of 21.08 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	77 Outperform	$5.41B	7.65	29.43%	2.75%	27.66%	131.25%
SF	76 Outperform	$12.42B	21.54	11.73%	1.51%	7.54%	2.73%
IBKR	75 Outperform	$28.59B	30.92	19.82%	0.44%	11.88%	28.96%
MKTX	73 Outperform	$6.10B	27.93	15.88%	1.85%	3.96%	-20.33%
TW	68 Neutral	$25.52B	36.86	10.51%	0.44%	22.17%	40.13%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JEF	52 Neutral	$11.81B	19.71	6.29%	2.78%	-5.41%	25.28%

Marketaxess Holdings Corporate Events

MarketAxess Reports Growth Amid U.S. Credit Challenges

MarketAxess Holdings Inc., a prominent electronic trading platform for fixed-income securities, has announced its financial results for the third quarter of 2025, showcasing growth in several strategic areas. The company operates in the financial services sector, providing innovative trading solutions to institutional investors and broker-dealers globally.

MarketAxess Holdings Announces Quarterly Dividend

On November 7, 2025, MarketAxess Holdings announced a regular quarterly dividend of $0.76 per share, payable on December 3, 2025, to shareholders as of November 19, 2025. The company reported its third-quarter financial results, highlighting a 10% revenue growth outside U.S. credit and record trading volumes in its U.S. credit portfolio. Despite a slight decline in diluted EPS and net income, MarketAxess is making significant progress with new initiatives aimed at increasing market share and revenue growth in U.S. credit.

The most recent analyst rating on (MKTX) stock is a Hold with a $179.00 price target. To see the full list of analyst forecasts on Marketaxess Holdings stock, see the MKTX Stock Forecast page.