Marketaxess Holdings (MKTX) AI Stock Analysis

• Market Cap: $6.04B
• Dividend Yield: 1.66%
• Average Volume (3M): 464.38K
• Price to Earnings (P/E): 27.3
• Beta (1Y): -0.20
• 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: 432,407
• 30 Day Avg. Volume: 464,377
• 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: 0.94
• Enterprise Value/Revenue: 6.76
• Enterprise Value/Gross Profit: 10.22
• Enterprise Value/Ebitda: 12.47
• 1Y Price Target: $194.14
• Price Target Upside: 19.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 8.15
• Revenue Forecast (FY): $915.65M

• Rating: 70 Outperform
• Price Target: $189.00 ▲(16.40% Upside)

The score is driven primarily by strong financial performance (high margins, strong revenue growth, low leverage), tempered by weakening free-cash-flow growth and softer technical momentum. Valuation remains on the expensive side for the current setup, while earnings-call execution highlights and capital return actions provide incremental support.

Positive Factors

Profitability & margins

Sustained high gross and net margins reflect a capital-light, software-driven marketplace model with recurring data and transaction fees. Durable margin structure supports reinvestment in product and shareholder returns while insulating profitability from cyclical volume swings.

Cash generation & capital returns

Consistent free cash flow generation funds dividend payments and sizable buybacks, demonstrating healthy internal funding for capital allocation. Reliable FCF provides flexibility for strategic investment, buybacks/ASR and cushioning against slower trading volumes.

Low financial leverage

Extremely low leverage affords balance sheet flexibility to invest in technology, pursue M&A, or fund repurchases without stressing liquidity. A conservative capital structure reduces bankruptcy risk and preserves optionality through economic cycles.

Negative Factors

Weakening free cash flow and ROE

A slight decline in free-cash-flow growth and falling ROE signal slowing efficiency in converting earnings to cash and returns on equity. If the trends persist, they could limit reinvestment, reduce buyback capacity, and pressure long-term shareholder returns.

Pressure in U.S. credit commissions

Structural shifts—growth of portfolio trading and smaller-sized trades—are compressing commission capture in core U.S. credit. Sustained lower commission capture reduces revenue resilience and requires product strategy to offset declines in the firm’s largest market.

Technology and product execution risk

Management cited the need for faster tech enhancements to boost growth; slower product rollout risks losing share as fixed-income markets adopt new protocols. Execution lag on platform features could materially limit long-term revenue capture and competitiveness.

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

Strong profitability and growth (TTM revenue growth 25.2%, gross margin 71.94%, net margin 26.02%) supported by a solid balance sheet (debt-to-equity 0.048). Offsetting factors include declining ROE versus prior years and slightly weakening free cash flow trend (FCF growth -1.63%).

Income Statement

Marketaxess Holdings shows strong revenue growth with a TTM revenue growth rate of 25.2%, indicating robust expansion. The gross profit margin is healthy at 71.94%, and the net profit margin is solid at 26.02%. However, there is a slight decline in net profit margin compared to the previous year. The EBIT and EBITDA margins remain strong, reflecting efficient operations.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.048, indicating prudent financial leverage. Return on equity is decent at 15.97%, though it has decreased from previous years. The equity ratio is strong, suggesting a stable financial position with a good proportion of equity financing.

Cash Flow

Operating cash flow is robust, with a high operating cash flow to net income ratio of 2.44. However, the free cash flow has declined, with a negative growth rate of -1.63%. The free cash flow to net income ratio remains strong at 0.91, indicating good cash generation relative to net income.

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: 162.37
• 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 162.37 is below the 20-day moving average (MA) of 170.06, below the 50-day MA of 172.40, and below the 200-day MA of 189.96, indicating a bearish trend. The MACD of -2.87 indicates Positive momentum. The RSI at 33.04 is Neutral, neither overbought nor oversold. The STOCH value of 14.71 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	$23.84B	33.97	10.51%	0.45%	22.17%	40.13%
MKTX	70 Outperform	$6.04B	27.26	15.88%	1.66%	3.96%	-20.33%
SNEX	70 Outperform	$6.15B	19.91	14.47%	―	32.53%	13.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VIRT	67 Neutral	$5.79B	7.47	27.69%	2.88%	27.66%	131.25%
LAZ	66 Neutral	$5.24B	21.55	30.80%	4.06%	1.58%	1.93%
PIPR	62 Neutral	$6.09B	25.25	19.30%	1.63%	12.77%	36.43%

Marketaxess Holdings Corporate Events

MarketAxess Adds Independent Directors to Strengthen Board

On January 22, 2026, MarketAxess Holdings Inc. elected Douglas A. Cifu, co-founder and former CEO of Virtu Financial, and Kenneth T. Schiciano, a senior advisor and longtime executive at private equity firm TA Associates, to its board of directors, with their appointments effective March 1, 2026. Announced publicly on January 26, 2026, the additions bring substantial experience in financial technology, market structure and private equity to the MarketAxess board, reinforcing the company’s strategic focus on next-generation trading protocols, data-driven solutions and the ongoing digital transformation of fixed-income markets; both directors have been deemed independent under Nasdaq rules and will receive the same compensation as other non-employee directors, with committee assignments to be determined later.

The most recent analyst rating on (MKTX) stock is a Hold with a $195.00 price target. To see the full list of analyst forecasts on Marketaxess Holdings stock, see the MKTX Stock Forecast page.

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.