Marketaxess Story

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MKTX -- USA Stock  

USD 551.77  6.31  1.16%

As many millenniums are excited about financial services space, it is only fair to break down MarketAxess Holdings. We will analyze why MarketAxess Holdings investors may still consider a stake in the business. What is the firm valuation so far in 2021? We are going to cover MarketAxess Holdings perspective on valuation to give investors a better transparency on taking a position in it.
Published over three weeks ago
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Is MarketAxess Holdings outlook positive for February 2021?
This firm currently holds 93.71 M in liabilities with Debt to Equity (D/E) ratio of 0.1, which may suggest MarketAxess Holdings is not taking enough advantage from borrowing. MarketAxess Holdings has performance score of 1 on a scale of 0 to 100. The company secures a Beta (Market Risk) of 0.1877, which conveys not very significant fluctuations relative to the market. Let's try to break down what MarketAxess's beta means in this case. As returns on the market increase, MarketAxess Holdings returns are expected to increase less than the market. However, during the bear market, the loss on holding MarketAxess Holdings will be expected to be smaller as well. Although it is extremely important to respect MarketAxess Holdings price patterns, it is better to be realistic regarding the information on equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing MarketAxess Holdings technical indicators, you can presently evaluate if the expected return of 0.13% will be sustainable into the future. MarketAxess Holdings right now secures a risk of 7.86%. Please verify MarketAxess Holdings potential upside, as well as the relationship between the accumulation distribution and price action indicator to decide if MarketAxess Holdings will be following its current price movements.
We determine the current worth of Marketaxess Holdings using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Marketaxess Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Marketaxess Holdings's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Marketaxess Holdings's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Marketaxess Holdings. We calculate exposure to Marketaxess Holdings's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Marketaxess Holdings's related companies.

Marketaxess Holdings Investment Alerts

Marketaxess investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Marketaxess Holdings performance across your portfolios.Please check all investment alerts for Marketaxess

Marketaxess Holdings Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Marketaxess value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Marketaxess Holdings competition to find correlations between indicators driving the intrinsic value of Marketaxess.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Marketaxess Holdings, but it might be worth checking our own buy vs. sell analysis

Marketaxess Holdings exotic insider transaction detected

Legal trades by Marketaxess Holdings insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Marketaxess insider trading alert for general transaction of common stock par value $0.003 per share by Richard McVey, Chairman & CEO, on 16th of February 2021. This event was filed by Marketaxess Holdings Inc with SEC on 2021-02-16. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Marketaxess Holdings Investor Appetite?

The company reported the previous year's revenue of 647.55 M. Net Income was 276.72 M with profit before overhead, payroll, taxes, and interest of 353.48 M.
 2018 2019 2020 2021 (projected)
Calculated Tax Rate20.7420.423.4630.77
Interest Coverage27.7732.7829.523.48

Margins Breakdown

MarketAxess profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or MarketAxess Holdings itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of MarketAxess Holdings profit margins.
Operating Margin42.66
EBITDA Margin0.65
Gross Margin0.89
Profit Margin0.43

MarketAxess Holdings Average Assets is increasing over the last 8 years. The previous year's value of MarketAxess Holdings Average Assets was 775,770,531. Further, MarketAxess Holdings Earnings Before Interest Taxes and Depreciation Amortization EBITDA is fairly stable at the moment. MarketAxess Holdings Average Assets is increasing over the last 8 years. Further, MarketAxess Holdings Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years.

MarketAxess is expecting lower volatility in February

Current market risk adjusted performance is at 0.57. MarketAxess Holdings is displaying above-average volatility over the selected time horizon. Investors should scrutinize MarketAxess Holdings independently to ensure intended market timing strategies are aligned with expectations about MarketAxess Holdings volatility.

The Bottom Line

While other companies within the capital markets industry are still a little expensive, even after the recent corrections, MarketAxess Holdings may offer a potential longer-term growth to investors. To sum up, as of the 27th of January 2021, our up-to-date 30 days 'Buy-vs-Sell' recommendation on the company is Strong Sell. We believe MarketAxess Holdings is currently overvalued with close to average chance of financial distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Marketaxess Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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