MarketAxess Holdings Inc (MKTX) stock analysis

P/E below its 5-year median

MarketAxess's P/E of 20.2 is below its own 5-year median of 35.0.

P/E above the industry

MarketAxess's P/E of 20.2 is above the Security Brokers, Dealers, and Flotation median of 15.7.

EV/EBITDA below its 5-year median

MarketAxess's EV/EBITDA of 13.2 is below its 5-year median of 20.9.

P/B above the industry

MarketAxess's price-to-book of 4.56 is above the Security Brokers, Dealers, and Flotation median of 3.12.

Trading below fair value

The share price of $165.31 is below our fair value estimate of $194.08.

Margin of safety under 20%

The price is 14.8% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 5.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -0.1% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 33.0% over the last twelve months, against a 5-year average of -3.8% a year.

Growing slower than the industry

Revenue grew 3.9% over the last twelve months; the Security Brokers, Dealers, and Flotation median is 16.2%.

Guidance issued

The latest outlook (full year 2026 effective tax rate, Feb 6, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 22.0% over the last twelve months and averaged 22.2% over five years.

Return on capital over 10%

Return on invested capital was 30.3%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

MarketAxess's return on equity of 22.0% is above the Security Brokers, Dealers, and Flotation median of 17.9%.

Earnings shrank over 5 years

Net income shrank 3.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 33.5% over the last twelve months, against a 5-year average of 33.7%.

Net margin above the industry

MarketAxess's net margin of 33.5% is above the Security Brokers, Dealers, and Flotation median of 14.4%.

Low debt

Debt is 7.2% of shareholders' equity, under the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 389% of total debt.

Interest well covered

Operating income covers interest expense 47.6 times.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Low bankruptcy risk

The Altman Z-score is 5.44; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

MarketAxess paid dividends worth 2.3% of the share price over the last twelve months.

Yield below Treasuries

The 2.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; MarketAxess yields 2.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.