Tradeweb Markets (TW) AI Stock Analysis

• Market Cap: $24.75B
• Dividend Yield: 0.46%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 35.7
• Beta (1Y): 0.46
• Revenue Growth: 22.17%
• EPS Growth: 40.13%
• Country: US
• Employees: 1,412
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.87
• Shares Outstanding: 116,487,930
• 10 Day Avg. Volume: 1,128,164
• 30 Day Avg. Volume: 1,090,920
• PEG Ratio: 1.53
• Price to Book (P/B): 4.81
• Price to Sales (P/S): 16.16
• P/FCF Ratio: 32.55
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 11.40
• Enterprise Value/Gross Profit: 17.09
• Enterprise Value/Ebitda: 19.21
• 1Y Price Target: $136.20
• Price Target Upside: 31.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 3.44
• Revenue Forecast (FY): $2.05B

• Rating: 71 Outperform
• Price Target: $116.00 ▲(12.12% Upside)

Tradeweb Markets' strong financial performance and positive corporate events are the most significant factors contributing to the score. However, the high valuation and mixed technical indicators present some risks. The earnings call provided a positive outlook, but challenges in certain segments were noted.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, positioning Tradeweb for sustained expansion.

International Expansion

Successful international expansion enhances market diversification and reduces reliance on domestic markets, supporting long-term growth.

Cash Generation

Strong cash generation supports reinvestment in growth initiatives and provides financial flexibility, underpinning future business stability.

Negative Factors

Low Volatility Impact

Reduced market volatility can negatively impact trading volumes and revenue in certain segments, challenging short-term financial performance.

Challenges in U.S. Credit

Declining revenues in U.S. credit highlight potential market challenges and may require strategic adjustments to maintain profitability.

Voice Trading Impact

Increased competition from voice trading could erode market share, necessitating innovation in electronic trading to maintain competitive edge.

Tradeweb Markets Business Overview & Revenue Model

Company Description

Tradeweb 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 Money

Tradeweb generates revenue primarily through transaction fees and subscription services. The company charges clients a fee based on the volume of trades executed on its platforms, which constitutes a significant portion of its revenue. Additionally, Tradeweb offers subscription-based access to its trading systems, providing clients with real-time data, analytics, and execution capabilities. Key revenue streams include fees from trading in fixed income products, derivatives, and equities. Partnerships with major financial institutions and investment firms enhance Tradeweb's market presence and contribute to its earnings by expanding its client base and increasing trading volumes on its platforms.

Tradeweb Markets Financial Statement Overview

Summary

Tradeweb Markets demonstrates strong financial performance with consistent revenue growth and robust profitability. The income statement reflects a stable and growing business with solid profitability metrics, while the balance sheet shows low leverage and financial stability. Cash flow metrics indicate strong cash generation and efficient cash management.

Income Statement

Tradeweb Markets demonstrates strong financial performance with consistent revenue growth, evidenced by a 3.09% increase in TTM revenue. The company maintains robust profitability, with a gross profit margin of 66.39% and a net profit margin of 31.59% in TTM, reflecting efficient cost management. EBIT and EBITDA margins are also healthy at 33.05% and 52.11%, respectively, indicating strong operational efficiency. Overall, the income statement reflects a stable and growing business with solid profitability metrics.

Balance Sheet

The balance sheet of Tradeweb Markets is strong, characterized by a low debt-to-equity ratio of 0.0216 in TTM, indicating minimal leverage and financial risk. The return on equity is 10.86%, showcasing effective use of equity to generate profits. The equity ratio stands at 78.56%, highlighting a solid capital structure with a significant proportion of assets financed by equity. Overall, the balance sheet reflects financial stability and prudent management of liabilities.

Cash Flow

Tradeweb Markets exhibits healthy cash flow metrics, with a 5.42% growth in free cash flow in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 6.36, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is 0.95, reflecting effective cash management. Overall, the cash flow statement indicates robust cash generation and efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.99B	1.73B	1.34B	1.19B	1.08B	892.66M
Gross Profit	1.33B	1.13B	877.91M	756.36M	669.19M	543.00M
EBITDA	1.18B	978.68M	681.10M	617.82M	542.88M	428.57M
Net Income	630.01M	501.51M	364.87M	309.34M	226.83M	166.30M
Balance Sheet
Total Assets	8.00B	7.27B	7.06B	6.26B	5.99B	5.68B
Cash, Cash Equivalents and Short-Term Investments	1.91B	1.34B	1.71B	1.26B	973.05M	792.28M
Total Debt	135.63M	35.75M	49.08M	27.94M	24.33M	34.46M
Total Liabilities	1.06B	869.11M	1.13B	713.82M	681.24M	660.69M
Stockholders Equity	6.28B	5.80B	5.37B	4.95B	4.65B	4.30B
Cash Flow
Free Cash Flow	1.02B	856.78M	684.33M	572.73M	526.67M	400.70M
Operating Cash Flow	1.09B	897.74M	746.09M	632.82M	578.02M	443.23M
Investing Cash Flow	-138.01M	-969.19M	-132.76M	-60.10M	-259.11M	-62.54M
Financing Cash Flow	-222.56M	-290.26M	-168.17M	-276.70M	-136.10M	-52.69M

Tradeweb Markets Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 103.46
• 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 TW, the sentiment is Negative. The current price of 103.46 is below the 20-day moving average (MA) of 106.46, below the 50-day MA of 107.36, and below the 200-day MA of 126.82, indicating a bearish trend. The MACD of -0.97 indicates Positive momentum. The RSI at 38.66 is Neutral, neither overbought nor oversold. The STOCH value of 10.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TW.

Tradeweb Markets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RJF	76 Outperform	$31.67B	15.64	17.64%	1.26%	6.45%	5.85%
IBKR	75 Outperform	$27.81B	30.09	19.82%	0.48%	11.88%	28.96%
TW	71 Outperform	$24.75B	35.74	10.51%	0.46%	22.17%	40.13%
FUTU	70 Outperform	$22.31B	18.31	30.24%	―	81.43%	119.47%
MKTX	68 Neutral	$6.76B	30.94	15.88%	1.68%	3.96%	-20.33%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JEF	63 Neutral	$12.59B	21.03	6.29%	2.58%	-5.41%	25.28%

Tradeweb Markets Corporate Events

Tradeweb Markets Renews Data Agreement with Refinitiv

Tradeweb Markets LLC has reached an agreement-in-principle with Refinitiv US LLC and Refinitiv US Organization LLC to renew their current data schedules under the master data license agreement for an additional three-year term, effective retrospectively from November 1, 2025. This renewal reflects the enhanced quality of data provided by Tradeweb Markets and is subject to final documentation and board approval. Additionally, Tradeweb Markets reported strong financial results for the third quarter of 2025, with a 13.3% increase in quarterly revenues and a 61.7% rise in net income compared to the previous year. The company achieved record trading volumes and average daily volume, driven by growth across rates, equities, and money markets. Tradeweb continues to innovate and expand its market presence, including advancements in electronic trading and global settlement networks.