Marketaxess Holdings (MKTX) AI Stock Analysis

• Market Cap: $6.22B
• Dividend Yield: 1.82%
• Average Volume (3M): 627.62K
• Price to Earnings (P/E): 28.4
• 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: 508,542
• 30 Day Avg. Volume: 627,618
• 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: 0.97
• Enterprise Value/Revenue: 7.17
• Enterprise Value/Gross Profit: 10.82
• Enterprise Value/Ebitda: 13.20
• 1Y Price Target: $197.00
• Price Target Upside: 17.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 7.39
• Revenue Forecast (FY): $851.46M

• Rating: 69 Neutral
• Price Target: $183.00 ▲(9.42% Upside)

Marketaxess Holdings has a strong financial foundation with impressive revenue growth and profitability. However, technical indicators suggest potential resistance, and valuation metrics indicate the stock is fairly valued. The earnings call provided a balanced view with both growth opportunities and challenges, particularly in U.S. credit revenue. These factors combined result in a moderate overall stock score.

Positive Factors

Revenue Growth

The company's ability to grow revenue outside the U.S. credit market by 10% indicates successful diversification and potential for sustained growth.

Global Expansion

Increasing global trading volume from non-North American clients enhances market reach and reduces dependency on a single region, supporting long-term stability.

Cash Flow and Share Repurchase

Strong cash flow generation and share repurchase demonstrate financial strength and commitment to returning value to shareholders.

Negative Factors

Challenges in U.S. Credit Revenue

The impact of new trading protocols on U.S. credit revenue suggests potential challenges in maintaining growth in this key market segment.

Flat Commission Revenue

Flat commission revenue indicates potential stagnation in core revenue streams, which could affect long-term profitability if not addressed.

Increased Tax Rate

A higher effective tax rate reduces net income, potentially impacting future profitability and cash flow available for reinvestment or shareholder returns.

Marketaxess Holdings Business Overview & Revenue Model

Company Description

MarketAxess Holdings Inc. is a financial technology company that operates a leading electronic trading platform for fixed-income securities. Founded in 2000 and headquartered in New York City, the company primarily serves institutional investors, broker-dealers, and other financial institutions by facilitating the trading of corporate bonds, municipal securities, and other fixed-income products. MarketAxess provides a suite of technology-driven services, including market data, analytics, and post-trade solutions, aiming to enhance the efficiency and transparency of the bond trading process.

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: Neutral
• Last Price: 167.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKTX, the sentiment is Neutral. The current price of 167.24 is above the 20-day moving average (MA) of 166.31, below the 50-day MA of 167.55, and below the 200-day MA of 196.50, indicating a neutral trend. The MACD of -1.27 indicates Negative momentum. The RSI at 52.73 is Neutral, neither overbought nor oversold. The STOCH value of 60.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MKTX.

Marketaxess Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIRT	79 Outperform	$5.41B	7.66	29.43%	2.71%	27.66%	131.25%
TW	74 Outperform	$25.49B	36.81	10.51%	0.45%	22.17%	40.13%
MKTX	69 Neutral	$6.22B	28.45	15.88%	1.82%	3.96%	-20.33%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PIPR	67 Neutral	$5.77B	24.59	19.30%	1.62%	12.77%	36.43%
LAZ	64 Neutral	$5.19B	21.73	36.41%	3.65%	1.58%	1.93%
SNEX	58 Neutral	$4.88B	15.84	14.47%	―	32.53%	13.38%

Marketaxess Holdings Corporate Events

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.