Tradeweb Markets (TW) AI Stock Analysis

• Market Cap: $26.23B
• Dividend Yield: 0.41%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 42.8
• Beta (1Y): 0.42
• Revenue Growth: 27.97%
• EPS Growth: 28.39%
• Country: US
• Employees: 1,412
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.87
• Shares Outstanding: 116,453,680
• 10 Day Avg. Volume: 1,500,190
• 30 Day Avg. Volume: 1,660,838
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 15.76
• Enterprise Value/Gross Profit: 23.90
• Enterprise Value/Ebitda: 28.19
• 1Y Price Target: $142.46
• Price Target Upside: 28.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 75 Outperform
• Price Target: $122.00 ▲(9.96% Upside)

Tradeweb Markets' strong financial performance and positive earnings call guidance are the primary drivers of its overall score. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Tradeweb's platform, suggesting continued expansion and market penetration.

Technological Advancements

Technological advancements enhance Tradeweb's competitive edge, attracting more clients and increasing trading volumes.

Balance Sheet Health

A strong balance sheet with minimal debt provides financial stability and flexibility for future investments and growth.

Negative Factors

U.S. Treasuries Market Share Decline

A decline in market share for U.S. Treasuries could impact revenue from a key segment, challenging future growth.

ICD Business Volatility

Volatility in the ICD business may lead to unpredictable revenue streams, affecting financial stability.

Fee Per Million Decrease

Decreasing fees per million could pressure margins, impacting profitability if not offset by volume growth.

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-based fees, which are charged each time a trade is executed on its platform. The company also earns revenue from subscription fees for access to its trading technology and services, which are used by clients to streamline their trading operations. Key revenue streams include fees from trading in fixed income products, derivatives, and equities, as well as additional services such as data analytics and post-trade processing. Significant partnerships with financial institutions and market participants enhance Tradeweb's liquidity and trading volumes, further contributing to its earnings.

Tradeweb Markets Financial Statement Overview

Summary

Tradeweb Markets exhibits strong financial health across all key verticals. The company is effectively growing revenue and profit, maintaining robust margins, and efficiently managing costs. Its low leverage and high equity ratio underscore financial stability, while strong cash flow growth and cash generation capabilities highlight operational efficiency.

Income Statement

Tradeweb Markets has demonstrated impressive growth in its revenue, with a notable increase of 11.58% in the TTM (Trailing-Twelve-Months) compared to the previous annual period. The gross profit margin remains strong at 65.63%, reflecting efficient cost management and a robust business model. The net profit margin has also improved to 28.85% in the TTM, highlighting enhanced profitability. EBIT and EBITDA margins are healthy at 38.86% and 49.44% respectively, indicating strong operational efficiency.

Balance Sheet

The balance sheet of Tradeweb Markets is notably strong, with a low debt-to-equity ratio of 0.0053, signifying minimal leverage and financial risk. The return on equity (ROE) is robust at 9.16%, demonstrating effective use of shareholder equity to generate profits. The equity ratio is high at 75.67%, confirming a solid capital structure with minimal reliance on debt financing.

Cash Flow

Cash flow analysis reveals a substantial growth in free cash flow of 14.54% in the TTM, indicating effective cash management and operational efficiency. The operating cash flow to net income ratio stands at 1.87, and the free cash flow to net income ratio is 1.76, both reflecting strong cash generation capabilities relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.93B	1.73B	1.34B	1.19B	1.08B	892.66M
Gross Profit	1.28B	1.13B	877.91M	756.36M	669.19M	543.00M
EBITDA	1.08B	978.68M	733.33M	616.01M	542.88M	428.57M
Net Income	558.29M	501.51M	364.87M	309.34M	226.83M	166.30M
Balance Sheet
Total Assets	8.06B	7.27B	7.06B	6.26B	5.99B	5.68B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.34B	1.71B	1.26B	973.05M	792.28M
Total Debt	32.32M	35.75M	49.08M	27.94M	24.33M	34.46M
Total Liabilities	1.33B	869.11M	1.13B	713.82M	681.24M	660.69M
Stockholders Equity	6.10B	5.80B	5.37B	4.95B	4.65B	4.30B
Cash Flow
Free Cash Flow	981.47M	856.78M	684.33M	572.73M	526.67M	400.70M
Operating Cash Flow	1.04B	897.74M	746.09M	632.82M	578.02M	443.23M
Investing Cash Flow	-891.36M	-969.19M	-132.76M	-60.10M	-259.11M	-62.54M
Financing Cash Flow	-249.13M	-290.26M	-168.17M	-276.70M	-136.10M	-52.69M

Tradeweb Markets Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 110.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 110.95 is above the 20-day moving average (MA) of 108.34, below the 50-day MA of 115.75, and below the 200-day MA of 131.15, indicating a neutral trend. The MACD of -1.58 indicates Negative momentum. The RSI at 50.05 is Neutral, neither overbought nor oversold. The STOCH value of 91.12 is Negative, 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
IBKR	―	$30.61B	33.11	19.82%	0.73%	12.42%	28.96%
RJF	―	$32.39B	15.77	17.72%	1.23%	6.55%	5.90%
TW	―	$26.23B	42.76	9.51%	0.41%	27.97%	28.39%
FUTU	―	$24.84B	24.70	26.43%	―	66.97%	86.46%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MKTX	―	$6.37B	28.70	16.41%	1.77%	8.30%	-14.39%
JEF	―	$11.72B	19.57	6.29%	2.73%	-5.41%	25.28%

Tradeweb Markets Corporate Events

Tradeweb Markets Reports Strong Q2 2025 Growth

Tradeweb Markets Inc., a global leader in electronic marketplaces for rates, credit, equities, and money markets, has reported a robust financial performance for the second quarter of 2025, showcasing significant growth across various metrics. The company, known for its advanced trading technologies, continues to enhance market access and trading efficiency for its clients worldwide.

Tradeweb Markets’ Earnings Call Highlights Robust Growth

Tradeweb Markets’ recent earnings call painted a picture of robust growth and strategic expansion, despite some challenges in specific market segments. The overall sentiment was positive, driven by record-breaking revenues and successful integration of acquisitions, which overshadowed the hurdles faced in the U.S. Treasuries market and the ICD business.