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Tradeweb Markets Inc (TW)
NASDAQ:TW
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Tradeweb Markets
(NASDAQ:TW)
Rating:77Outperform
Price Target:
$158.00
▲(9.02%Upside)
Positive Factors
Market Share Gains
Market share gains of +14 bps y/y in IG credit to 17.8% and gains of +80 bps y/y in HY credit to 8.3% indicate strong performance.
Revenue and Earnings
Tradeweb reported record ADV and revenues in the quarter as it benefits from a favorable macro backdrop and continues to take share in core markets.
Volume Growth
Tradeweb reported another strong month for volumes with total ADV increased 39% to $2.7 trillion.
Negative Factors
Capture Rate
Capture rate was lower than expected, driven by mix, coming in 8% below Morgan Stanley estimates and 3% below consensus.
Market Share Issues
Management flags further market share issues in April.
Share Price Concerns
Share price outperformance YTD and premium valuation may pose concerns for future growth.
Tradeweb Markets (TW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.27B
Dividend Yield0.33%
Average Volume (3M)1.01M
Price to Earnings (P/E)59.5
Beta (1Y)0.48
Revenue Growth28.86%
EPS Growth29.26%
CountryUS
Employees1,412
SectorFinancial
Sector Strength78
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.86
Shares Outstanding116,443,380
10 Day Avg. Volume1,214,269
30 Day Avg. Volume1,012,458
Financial Highlights & Ratios
PEG Ratio-4.26
Price to Book (P/B)2.03
Price to Sales (P/S)0.00
P/FCF Ratio25.74
Enterprise Value/Market Cap0.19
Enterprise Value/Revenue0.96
Enterprise Value/Gross Profit4.99
Enterprise Value/Ebitda1.73
Forecast
1Y Price Target
$155.56Price Target Upside7.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Tradeweb Markets Business Overview & Revenue Model
Company DescriptionTradeweb Markets Inc. builds and operates electronic marketplaces in the Americas, Europe, the Middle East, Africa, Asia Pacific, and internationally. The company's marketplaces facilitate trading in a range of asset classes, including rates, credit, money markets, and equities. It offers pre-trade data and analytics, trade execution, and trade processing, as well as post-trade data, analytics, and reporting services. The company provides flexible order and trading systems to institutional investors in 45 markets across 25 currencies. It also offers a range of electronic, voice, and hybrid platforms to approximately 300 dealers and financial institutions on electronic or hybrid markets with Dealerweb platform; and trading solutions for financial advisory firms and traders with Tradeweb Direct platform. The company serves a network of approximately 2,500 clients in the institutional, wholesale, and retail client sectors. Its customers include asset managers, hedge funds, insurance companies, central banks, banks and dealers, proprietary trading firms, retail brokerage and financial advisory firms, and regional dealers. Tradeweb Markets Inc. was founded in 1996 and is headquartered in New York, New York. Tradeweb Markets Inc. is a subsidiary of Refinitiv Parent Limited.
How the Company Makes MoneyTradeweb Markets generates revenue primarily through transaction fees and subscription fees. The company earns transaction fees based on the volume and value of trades executed on its platform, making its revenue somewhat dependent on market activity and trading volumes. Additionally, Tradeweb offers data and analytics services through a subscription model, providing clients with market data, trading insights, and analytical tools. The company also benefits from strategic partnerships with major financial institutions and trading networks, which help to expand its market reach and enhance its service offerings. Tradeweb's ability to maintain and grow these partnerships is a significant factor in its revenue generation and overall business strategy.
Tradeweb Markets Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 5.59%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth and record-breaking achievements across various segments, indicating robust business performance. However, challenges such as declines in retail credit revenues and fee per million rates, as well as reduced swap compression volumes, were noted. Despite these challenges, the positive highlights significantly outweighed the lowlights.Q1-2025 Updates
Positive Updates
Record Revenue Achievement
Tradeweb reported the best revenue quarter in its history, surpassing $500 million in quarterly revenues for the first time, indicating strong business performance.
Double-Digit Revenue Growth
The company achieved a 24.7% year-over-year revenue growth on a reported basis, with significant growth across various segments like equities and global swaps.
Expansion in Global Markets
International clients contributed to 40% of revenues, with emerging markets credit revenues growing nearly 20% year-over-year. Additionally, global swaps revenues grew over 40% year-over-year.
Improvement in EBITDA Margins
Adjusted EBITDA margins expanded by 88 basis points compared to the first quarter of 2024, showcasing improved profitability.
Strengthening in U.S. Treasuries and ETFs
Tradeweb saw record revenues in U.S. Treasuries and ETFs, with U.S. Treasury market share reaching 23% and ETF business reaching record revenues due to increased volatility.
Negative Updates
Retail Credit Revenue Decline
Retail credit revenues were down 20% year-over-year due to a risk-off tone among retail investors amid rising macro uncertainty.
Fee Per Million Declines
Average fees per million for certain products decreased, including an 8% decline for cash rate products and an 11% decrease for cash credit, impacting revenue from these streams.
Challenges in Compression Volumes
Total market share in global swaps declined from 22% to 21% due to a significant reduction in U.S. and European client-related compression volumes.
Company Guidance
During Tradeweb's First Quarter 2025 Earnings Conference Call, the company reported a record revenue of $510 million, reflecting a 24.7% year-over-year increase. The adjusted EBITDA margin expanded by 88 basis points compared to the first quarter of 2024. In terms of business segments, the rates division saw record revenues driven by growth in swaps, global government bonds, and mortgages. The credit business experienced high single-digit revenue growth, with double-digit gains in credit derivatives and municipal bonds. The equities segment also posted double-digit revenue growth, led by global ETF and equity derivatives businesses. Money markets benefited from the addition of ICD and record revenues in global repos. Tradeweb's market data revenues were bolstered by the LSEG market data contract and proprietary data products. The company's U.S. Treasuries market share reached a quarterly record of 23%, while the equities business saw volatility increase over 50% during the quarter. Additionally, in the credit segment, the company achieved a record 9% block share in fully electronic U.S. investment-grade trading. Overall, Tradeweb is focused on expanding market share across asset classes and continues to invest in growth and innovation, with a particular emphasis on technology and partnerships.Tradeweb Markets Financial Statement Overview
Summary
Tradeweb Markets demonstrates strong profitability with robust margins and efficient operations. The low debt-to-equity ratio and high equity ratio reflect a stable financial structure. While free cash flow growth shows minor fluctuations, overall cash flow management remains strong.Income Statement
Tradeweb Markets has demonstrated strong revenue growth with a TTM growth rate of 20.06% compared to the previous year. The gross profit margin is robust at 70.23%, and the net profit margin is solid at 28.67%. EBIT and EBITDA margins are also healthy at 39.22% and 48.68%, respectively. These metrics indicate efficient operations and strong profitability.88
Very Positive
Balance Sheet
The company maintains a very low debt-to-equity ratio of 0.005, showcasing minimal leverage risk. Return on Equity (ROE) is solid at 8.82%, supported by a strong equity position. The equity ratio of 80.57% indicates a very stable financial structure with a majority of assets financed by equity, minimizing risk.91
Very Positive
Cash Flow
Tradeweb Markets exhibits a strong operating cash flow to net income ratio of 1.76, indicating excellent cash generation. The free cash flow to net income ratio is similarly robust at 1.62, with a slight decline in free cash flow growth of -1.17%. Overall, cash flow management remains strong despite minor fluctuations.85
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.83B | 1.73B | 1.34B | 1.19B | 1.08B | 892.66M |
| Gross Profit | 1.29B | 1.13B | 877.91M | 756.36M | 669.19M | 543.00M |
| EBITDA | 1.02B | 978.68M | 733.33M | 616.01M | 542.88M | 428.57M |
| Net Income | 523.75M | 501.51M | 364.87M | 309.34M | 226.83M | 166.30M |
Balance Sheet | ||||||
| Total Assets | 4.88B | 7.27B | 7.06B | 6.26B | 5.99B | 5.68B |
| Cash, Cash Equivalents and Short-Term Investments | 361.61M | 1.34B | 1.71B | 1.26B | 972.05M | 791.28M |
| Total Debt | 37.31M | 35.75M | 27.46M | 27.94M | 24.33M | 34.46M |
| Total Liabilities | 283.61M | 869.11M | 1.13B | 713.82M | 681.24M | 660.69M |
| Stockholders Equity | 4.60B | 5.80B | 5.37B | 4.95B | 4.65B | 4.30B |
Cash Flow | ||||||
| Free Cash Flow | 846.79M | 856.78M | 684.33M | 572.73M | 526.67M | 400.70M |
| Operating Cash Flow | 920.03M | 897.74M | 746.09M | 632.82M | 578.02M | 443.23M |
| Investing Cash Flow | -877.02M | -969.19M | -132.76M | -60.10M | -259.11M | -62.54M |
| Financing Cash Flow | -282.52M | -290.26M | -168.17M | -276.70M | -136.10M | -52.69M |
Tradeweb Markets Technical Analysis
Positive
144.93
Price Trends
140.43
Positive
137.35
Positive
133.36
Positive
Market Momentum
0.47
Negative
60.08
Neutral
88.65
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TW, the sentiment is Positive. The current price of 144.93 is above the 20-day moving average (MA) of 140.07, above the 50-day MA of 140.43, and above the 200-day MA of 133.36, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 60.08 is Neutral, neither overbought nor oversold. The STOCH value of 88.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TW.
Tradeweb Markets Risk Analysis
Tradeweb Markets disclosed 57 risk factors in its most recent earnings report. Tradeweb Markets 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
Tradeweb Markets Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.85B | 12.81 | 23.87% | 2.16% | 26.02% | 142.79% | |
77 Outperform | $34.27B | 59.54 | 9.14% | 0.33% | 28.86% | 29.26% | |
72 Outperform | $8.23B | 38.13 | 16.25% | 1.38% | 7.22% | -15.53% | |
69 Neutral | $4.47B | 15.49 | 16.69% | ― | 67.71% | 19.42% | |
67 Neutral | $11.50B | 21.10 | 5.86% | 2.87% | 0.84% | 46.98% | |
64 Neutral | $6.68B | 10.87 | 6.50% | 5.05% | 24.88% | -1.54% | |
61 Neutral | $19.30B | 9.05 | 9.88% | 5.76% | 8.32% | 100.90% |
* Financial Sector Average
Performance Comparison
TW
Tradeweb Markets
144.93
40.20
38.38%
SNEX
StoneX Group
91.38
41.39
82.80%
JEF
Jefferies
55.75
6.97
14.29%
MKTX
Marketaxess Holdings
219.55
28.72
15.05%
NMR
Nomura Holdings
6.60
0.76
13.01%
VIRT
Virtu Financial
44.42
22.40
101.73%
Tradeweb Markets Corporate Events
Executive/Board ChangesShareholder Meetings
Tradeweb Markets Holds Annual Stockholders Meeting
Positive
May 21, 2025
On May 20, 2025, Tradeweb Markets Inc. held its Annual Meeting of Stockholders where key decisions were made. Stockholders elected Class III directors for a three-year term, ratified Deloitte & Touche LLP as the independent public accounting firm, and approved executive compensation, reflecting confidence in the company’s leadership and financial oversight.
The most recent analyst rating on (TW) stock is a Buy with a $119.00 price target. To see the full list of analyst forecasts on Tradeweb Markets stock, see the TW Stock Forecast page.
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.