Marketaxess Holdings (MKTX) AI Stock Analysis

• Market Cap: $6.32B
• Dividend Yield: 1.66%
• Average Volume (3M): 641.73K
• Price to Earnings (P/E): 29.0
• Beta (1Y): -0.19
• 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: 485,055
• 30 Day Avg. Volume: 641,733
• 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: 0.95
• Enterprise Value/Revenue: 7.17
• Enterprise Value/Gross Profit: 10.82
• Enterprise Value/Ebitda: 13.20
• 1Y Price Target: $193.71
• Price Target Upside: 13.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $180.00 ▲(5.65% Upside)

Marketaxess Holdings shows strong financial performance with robust revenue growth and profitability, which is the most significant factor in its score. However, technical indicators suggest a bearish trend, and the valuation appears high, which could limit upside potential. The earnings call and corporate events provide a mixed outlook, with strategic initiatives and shareholder returns being positive, but challenges in U.S. credit revenue and tax rates pose risks.

Positive Factors

Revenue Growth

Strong revenue growth highlights MarketAxess's expanding market reach and product adoption, supporting long-term business sustainability.

Market Position

Increased global trading volume indicates successful international expansion, strengthening MarketAxess's competitive position.

Stock Repurchase Program

The expanded stock repurchase program reflects confidence in the company's long-term strategy and enhances shareholder value.

Negative Factors

U.S. Credit Revenue Challenges

Challenges in U.S. credit revenue due to competitive pressures could limit growth in a key market segment, impacting overall performance.

Flat Commission Revenue

Flat commission revenue suggests potential issues in monetizing trading activities, which could affect profitability if not addressed.

Increased Tax Rate

A higher tax rate reduces net income, potentially impacting cash flow and investment capacity, posing a challenge to financial performance.

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 to clients for trades executed on its platform. The company earns a commission for each trade, which varies based on the type of security and the volume traded. Additionally, MarketAxess generates revenue from subscription fees for its market data services, which provide clients with access to real-time pricing and analytics. Moreover, the company may also benefit from strategic partnerships with broker-dealers and financial institutions that enhance its platform offerings and expand its user base. Overall, its revenue model is heavily reliant on the volume of trading activity on its platform and the demand for fixed-income securities.

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: 170.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 170.37 is below the 20-day moving average (MA) of 178.63, below the 50-day MA of 171.46, and below the 200-day MA of 193.20, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 40.90 is Neutral, neither overbought nor oversold. The STOCH value of 9.35 is Positive, 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
TW	73 Outperform	$24.81B	35.44	10.51%	0.45%	22.17%	40.13%
MKTX	68 Neutral	$6.32B	28.98	15.88%	1.66%	3.96%	-20.33%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PIPR	67 Neutral	$6.40B	26.93	19.30%	1.63%	12.77%	36.43%
LAZ	66 Neutral	$4.98B	20.37	36.41%	4.06%	1.58%	1.93%
VIRT	64 Neutral	$5.19B	7.37	29.43%	2.88%	27.66%	131.25%
SNEX	58 Neutral	$5.44B	17.50	14.47%	―	32.53%	13.38%

Marketaxess Holdings Corporate Events

MarketAxess Announces Stock Repurchase Increase

On December 9, 2025, MarketAxess Holdings Inc. announced new medium-term financial targets and an increase in its stock repurchase authorization to $505 million, reflecting the Board’s confidence in its long-term strategy and commitment to stockholder value creation. The company plans to enter into an Accelerated Stock Repurchase agreement with JPMorgan Chase Bank to repurchase $300 million of its common stock, funded by cash on hand and borrowings, with the remaining $205 million available for future repurchases.

The most recent analyst rating on (MKTX) stock is a Hold with a $183.00 price target. To see the full list of analyst forecasts on Marketaxess Holdings stock, see the MKTX Stock Forecast page.

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.