Tradeweb Markets (TW) AI Stock Analysis

• Market Cap: $29.97B
• Dividend Yield: 0.35%
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): 48.6
• Beta (1Y): 0.43
• Revenue Growth: 27.97%
• EPS Growth: 28.39%
• Country: US
• Employees: 1,412
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Capital Markets
• EPS (TTM): 0.87
• Shares Outstanding: 116,453,680
• 10 Day Avg. Volume: 1,135,259
• 30 Day Avg. Volume: 1,209,811
• 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: 1.02
• Enterprise Value/Revenue: 15.76
• Enterprise Value/Gross Profit: 23.90
• Enterprise Value/Ebitda: 28.19
• 1Y Price Target: $152.82
• Price Target Upside: 20.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 73 Outperform
• Price Target: $144.00 ▲(13.59% Upside)

Tradeweb Markets demonstrates strong financial performance and positive earnings call sentiment, driving a high score. However, technical analysis indicates bearish momentum, and the stock appears overvalued, which tempers the overall score. The company's robust growth and strategic focus on innovation are significant strengths, but market challenges and valuation concerns present risks.

Positive Factors

Financial Performance

Tradeweb Markets reported a 33% year-over-year growth in quarterly volumes for 2Q25.

Market Expansion

The company continues to expand volumes at a high rate despite tough comparisons due to heightened volatility and continued share gains.

Revenue Growth

Fixed trading revenues rose by 25% year-over-year, contributing to a total trading revenue increase of 28% year-over-year.

Negative Factors

Growth Concerns

Signs of the firm’s organic growth decelerating amid stagnating market share across Credit, Cash Treasuries, and Equities, making TW more susceptible to swings in industry volumes.

Market Share

Tradeweb’s U.S. Treasuries market share of 21.5% was its lowest quarterly market share since 1Q24 and down from ~23% in both the prior quarter and the year before.

Valuation Concerns

Slower organic revenue growth prospects to weigh on premium valuation.

Tradeweb Markets Business Overview & Revenue Model

Company Description

Tradeweb Markets Inc. is a leading global operator of electronic marketplaces for fixed income, derivatives, and equities. The company provides a platform that facilitates trading in various financial instruments, serving a diverse clientele that includes institutional investors, dealers, and other financial market participants. Tradeweb's core products include trading solutions for government bonds, corporate bonds, mortgage-backed securities, and interest rate derivatives, among others, enabling clients to execute trades efficiently and transparently in a rapidly evolving market environment.

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: 126.77
• 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 126.77 is below the 20-day moving average (MA) of 132.46, below the 50-day MA of 136.28, and below the 200-day MA of 135.19, indicating a bearish trend. The MACD of -3.00 indicates Positive momentum. The RSI at 34.67 is Neutral, neither overbought nor oversold. The STOCH value of 4.42 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
FUTU	80 Outperform	$29.86B	26.31	26.43%	―	66.97%	86.46%
IBKR	80 Outperform	$27.94B	32.73	19.15%	0.42%	12.30%	20.76%
RJF	75 Outperform	$33.49B	16.28	18.16%	1.16%	9.42%	14.86%
TW	73 Outperform	$29.97B	48.65	9.51%	0.35%	27.97%	28.39%
Sector *	68 Neutral	$17.82B	11.90	10.30%	3.72%	9.69%	0.80%
MKTX	68 Neutral	$7.09B	32.00	16.41%	1.59%	8.30%	-14.39%
JEF	68 Neutral	$13.22B	23.55	5.75%	2.39%	1.00%	46.98%

Tradeweb Markets Corporate Events

Tradeweb Markets Holds Annual Stockholders Meeting

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.