Marketaxess Holdings (MKTX) AI Stock Analysis

• Market Cap: $6.69B
• Dividend Yield: 1.7%
• Average Volume (3M): 968.56K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.10
• Revenue Growth: 8.30%
• EPS Growth: -14.39%
• Country: US
• Employees: 891
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 2.00
• Shares Outstanding: 37,363,773
• 10 Day Avg. Volume: 1,579,733
• 30 Day Avg. Volume: 968,564
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 9.38
• Enterprise Value/Gross Profit: 13.02
• Enterprise Value/Ebitda: 17.41
• 1Y Price Target: $216.90
• Price Target Upside: 21.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 67 Neutral
• Price Target: $199.00 ▲(11.69% Upside)

Marketaxess Holdings shows strong financial performance and positive earnings call results, indicating robust operational strategies and growth potential. However, technical analysis suggests bearish trends, and the high P/E ratio indicates potential overvaluation. These factors balance out to an overall moderate stock score.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong demand for MarketAxess's services, reflecting its ability to expand its market presence and enhance client engagement.

Strategic Channel Growth

Significant growth in strategic trading channels highlights MarketAxess's successful expansion efforts, enhancing its competitive position in the market.

Strong Balance Sheet

A strong balance sheet with low leverage provides MarketAxess with financial stability and flexibility to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Decline in U.S. Market Share

A decline in U.S. high-grade market share indicates competitive pressure and challenges in maintaining dominance, potentially impacting future revenue streams.

Challenges with Fee Capture

Reduced fee capture suggests pressure on profitability, as the company may struggle to maintain margins amidst changing trading protocols and competitive dynamics.

Net Profit Margin Pressure

Decreasing net profit margins indicate rising costs or pricing pressures, which could affect long-term profitability if not addressed through operational efficiencies or pricing strategies.

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 profitability, a solid balance sheet, and positive cash flow generation. While revenue growth is moderate, the company maintains efficient operations and a conservative financial structure, positioning it well for stability in the capital markets industry.

Income Statement

Marketaxess Holdings shows strong profitability with consistent gross and net profit margins. The TTM data indicates a slight revenue growth rate of 2.67%, which is stable but not aggressive. EBIT and EBITDA margins remain robust, reflecting efficient operations. However, the net profit margin has decreased compared to the previous year, suggesting some pressure on net earnings.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.05, indicating conservative leverage. Return on equity is solid at 16.18%, showing effective use of shareholder funds. The equity ratio is strong, suggesting a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow metrics are positive, with a free cash flow growth rate of 2.92% in the TTM period. The operating cash flow to net income ratio is strong, indicating good cash conversion. However, the free cash flow to net income ratio has slightly decreased, which could suggest some challenges in maintaining free cash flow levels relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	841.99M	817.10M	752.55M	718.30M	698.95M	689.13M
Gross Profit	606.17M	563.35M	528.62M	536.20M	528.03M	532.24M
EBITDA	453.50M	442.61M	411.09M	393.97M	397.51M	417.57M
Net Income	222.84M	274.18M	258.06M	250.22M	257.89M	299.38M
Balance Sheet
Total Assets	1.97B	1.79B	2.02B	1.61B	1.53B	1.33B
Cash, Cash Equivalents and Short-Term Investments	462.84M	649.25M	550.96M	430.75M	506.74M	460.86M
Total Debt	69.23M	72.65M	79.68M	82.68M	88.42M	93.61M
Total Liabilities	574.04M	400.56M	722.10M	526.68M	489.14M	376.37M
Stockholders Equity	1.39B	1.39B	1.29B	1.08B	1.04B	955.06M
Cash Flow
Free Cash Flow	367.91M	375.30M	281.32M	237.36M	231.47M	358.86M
Operating Cash Flow	405.80M	385.24M	333.77M	289.23M	282.09M	404.49M
Investing Cash Flow	-121.42M	-86.94M	-155.29M	-86.27M	-67.69M	68.87M
Financing Cash Flow	-229.68M	-201.38M	-147.06M	-242.38M	-189.78M	-145.11M

Marketaxess Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 178.17
• 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 MKTX, the sentiment is Negative. The current price of 178.17 is below the 20-day moving average (MA) of 182.50, below the 50-day MA of 191.38, and below the 200-day MA of 209.48, indicating a bearish trend. The MACD of -3.53 indicates Negative momentum. The RSI at 37.21 is Neutral, neither overbought nor oversold. The STOCH value of 18.09 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
VIRT	78 Outperform	5.39B	8.00	22.04%	2.74%	25.12%	122.80%
IBKR	78 Outperform	28.70B	33.81	17.37%	0.77%	12.30%	20.76%
SF	77 Outperform	11.48B	21.72	12.86%	1.61%	8.76%	10.32%
TW	73 Outperform	26.18B	42.67	9.16%	0.42%	27.97%	28.39%
JEF	68 Neutral	13.76B	25.29	7.32%	2.35%	1.00%	46.98%
MKTX	67 Neutral	$6.69B	30.13	16.41%	1.70%	8.30%	-14.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Marketaxess Holdings Corporate Events

MarketAxess Holdings Announces Quarterly Dividend and Growth

On August 6, 2025, MarketAxess Holdings announced a regular quarterly dividend of $0.76 per share to be paid on September 3, 2025. The company reported strong financial results for the second quarter of 2025, with an 11% increase in revenue to $219.5 million, driven by record commission revenues and growth across various trading channels. The company also highlighted significant progress in its strategic initiatives aimed at enhancing client engagement and driving growth.

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.