Marketaxess Holdings (MKTX) AI Stock Analysis

Compare

657 Followers

Top Page

Marketaxess Holdings

(NASDAQ:MKTX)

Rating:67Neutral

Price Target:

$199.00

▲(10.48% 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

Innovation and Market Share

MarketAxess is bringing new products, protocols, and innovation to the marketplace at an accelerating pace that can support structural market share gains as they electronify credit markets.

Revenue Growth

Credit revenue growth improved from a favorable market backdrop and progress on strategic initiatives, which helped drive record levels of revenue and ADV across most product areas and regions.

Stock Inclusion

Even though MarketAxess might be dropped from the S&P 500, its addition to the S&P SmallCap 600 could lead to net buying and a slight benefit for the stock.

Negative Factors

Competitive Pressure

Analyst maintains an Underperform rating due to structural innovation advantages held by competitors like Tradeweb.

Fee Capture Decline

Lower fee capture is expected due to a protocol and product mix shift towards lower-fee products, as well as lower duration across the platform.

Market Share Decline

Market share were flat m/m in IG, softer in HY. Across US HY credit, market share of 12.2% was down -60bps y/y and down -135bps m/m.

Marketaxess Holdings (MKTX) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.73B

Dividend Yield1.68%

Average Volume (3M)591.57K

Price to Earnings (P/E)30.3

Beta (1Y)0.14

Revenue Growth8.30%

EPS Growth-14.39%

CountryUS

Employees891

SectorFinancial

Sector Strength75

IndustryFinancial - Capital Markets

Share Statistics

EPS (TTM)2.00

Shares Outstanding37,363,773

10 Day Avg. Volume597,026

30 Day Avg. Volume591,572

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.17

Enterprise Value/Revenue9.38

Enterprise Value/Gross Profit13.02

Enterprise Value/Ebitda17.41

Forecast

1Y Price Target

$220.40

Price Target Upside22.36% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering12

Marketaxess Holdings Business Overview & Revenue Model

Company DescriptionMarketAxess Holdings Inc. is a leading electronic trading platform for fixed-income securities, primarily focusing on corporate bonds, municipal bonds, and other credit-related products. The company operates in the financial services sector, providing innovative trading technology and market data solutions to institutional investors, brokers, and dealers. MarketAxess is known for its advanced trading platform that facilitates efficient execution and price discovery in the bond market, enhancing liquidity and transparency for participants.

How the Company Makes MoneyMarketAxess 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 Key Performance Indicators (KPIs)

Any

Average Daily Volume by Type

Average Daily Volume by Type
Monitors trading volumes across different product types, indicating market activity levels and the company's ability to capture trading demand.

Chart InsightsMarketAxess is experiencing robust growth in trading volumes, particularly in the Rates segment, which surged 93% year-over-year, reflecting increased client adoption of rates algorithms. Credit volumes also show a positive trend, with a recent uptick. Despite a slight revenue dip, strategic investments in automation and new trading solutions are driving record trading activity, positioning the company well for future growth. However, challenges such as declining U.S. credit commission revenue and new tax reserves pose potential risks.

Data provided by:

Main Street Data

Marketaxess Holdings Earnings Call Summary

Earnings Call Date:Aug 06, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 15, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant achievements in trading volume and revenue growth, supported by strategic initiatives and international expansion. However, challenges in the U.S. high-grade market share and a decline in fee per million were noted. Overall, the company demonstrated strong operational performance with clear strategies to address current market challenges.

Q2-2025 Updates

Positive Updates

Record Trading Volume

Surpassed $1 trillion in total credit trading volume and delivered a record $2 trillion in total rates trading volume.

Revenue Growth

Delivered 11% revenue growth to a record $219 million, with a 12% increase in commission revenue to a record $192 million.

Strategic Initiatives Progress

Generated 38% growth in block trading ADV across U.S. credit, emerging markets, and Eurobonds. Portfolio trading ADV increased by 69%, and dealer-initiated ADV grew by 40%.

International Growth

Strong growth in international product areas with over 20% volume growth and 17% commission revenue growth.

Operational Efficiency

Expenses increased by only 5%, excluding notable items and FX, showing cost discipline while continuing to invest in the platform.

Negative Updates

U.S. High-Grade Market Share Decline

Share of the U.S. high-grade market dropped to 10%, down from 12% in June, with large blocks moving to the phone and chat.

Fee Per Million Decline

Recorded the lowest fee per million in a few years, driven by protocol and product mix changes.

Company Guidance

During the MarketAxess Second Quarter 2025 Earnings Conference Call, the company reported a 10% revenue growth, excluding the impact of foreign exchange (FX), driven by record trading volumes across various product areas, including surpassing $1 trillion in total credit trading volume and achieving a record $2 trillion in total rates trading volume. Commission revenue increased by 12% to a record $192 million, supported by strong market volumes and new initiatives. The company noted a 38% growth in block trading average daily volume (ADV) across U.S. credit, emerging markets, and Eurobonds, along with a 69% increase in total portfolio trading ADV. Additionally, dealer-initiated ADV rose by 40%. Despite a 5% increase in expenses, excluding notables and FX, MarketAxess maintained cost discipline. The company also repurchased 380,000 shares year-to-date through July 2025 for a total of $80 million. However, in July, the U.S. high-grade market share decreased to 10% from 12% in June, attributed to significant swings in block volume between phone and electronic methods, influenced by tighter investment-grade spreads and low volatility.

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

Very Positive

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

Very Positive

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

Positive

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 Price180.13

Price Trends

50DMA

202.00

Negative

100DMA

210.91

Negative

200DMA

215.10

Negative

Market Momentum

MACD

-5.60

Negative

RSI

32.81

Neutral

STOCH

13.01

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 180.13 is below the 20-day moving average (MA) of 186.13, below the 50-day MA of 202.00, and below the 200-day MA of 215.10, indicating a bearish trend. The MACD of -5.60 indicates Negative momentum. The RSI at 32.81 is Neutral, neither overbought nor oversold. The STOCH value of 13.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MKTX.

Marketaxess Holdings Risk Analysis

Marketaxess Holdings disclosed 13 risk factors in its most recent earnings report. Marketaxess Holdings reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Marketaxess Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIRT	78 Outperform	$6.41B	9.39	28.75%	2.37%	25.12%	122.80%
IBKR	78 Outperform	$28.45B	33.51	19.15%	0.78%	12.30%	20.76%
SF	77 Outperform	$11.68B	22.10	11.11%	1.59%	8.76%	10.32%
TW	73 Outperform	$29.55B	48.17	9.51%	0.37%	27.97%	28.39%
Sector *	68 Neutral	$18.05B	11.73	10.24%	3.73%	9.66%	1.70%
JEF	68 Neutral	$13.23B	24.30	5.75%	2.39%	1.00%	46.98%
MKTX	67 Neutral	$6.73B	30.32	16.41%	1.68%	8.30%	-14.39%

* Financial Sector Average

Performance Comparison

MKTX

Marketaxess Holdings

180.13

-73.10

-28.87%

IBKR

Interactive Brokers

64.28

33.81

110.96%

JEF

Jefferies

64.97

10.22

18.67%

Stifel Financial

115.71

33.71

41.11%

VIRT

Virtu Financial

40.43

10.06

33.12%

Tradeweb Markets

123.39

11.96

10.73%

Marketaxess Holdings Corporate Events

DividendsBusiness Operations and StrategyFinancial Disclosures

MarketAxess Holdings Announces Quarterly Dividend and Growth

Positive

Aug 6, 2025

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.

Executive/Board ChangesShareholder Meetings

MarketAxess Holds 2025 Annual Stockholders Meeting

Neutral

Jun 5, 2025

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.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 01, 2025