MARKETAXESS HOLDINGS Continues to Thrive Amidst Normalizing Rates

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MARKETAXESS HOLDINGS ($NASDAQ:MKTX), Inc. continues to thrive amidst normalizing rates, with strong credit volume growth and stabilized revenue capture in its latest quarter. The company has also seen broad-based market share gains across most of its products. With portfolio trading volume also up significantly to $25bn, the fundamental prospects look good for MKTX heading into more quantitative tightening in 2023. Despite concerns about the potential impact of higher rates on financial markets, MKTX has continued to perform well. In its latest quarter, the company reported strong growth in credit trading volume, as well as stabilization in its revenue capture rate.

MKTX has also gained market share across a range of products, including high-grade, high-yield, and investment-grade corporates. Looking ahead, the company’s strong performance is likely to continue, with portfolio trading volume expected to rise further in the coming months. This should provide a tailwind for MKTX as it navigates the more challenging environment created by quantitative tightening.

Earnings

MARKETAXESS HOLDINGS continues to thrive and be profitable despite the normalizing rates. In the earning report of FY2022 Q3 as of September 30, MARKETAXESS HOLDINGS earned 705.5M USD in total revenue, earned 243.2M USD in net income. Compared to previous year, 0.9% increase in total revenue, 5.7% decrease in net income.

MARKETAXESS HOLDINGS’s total revenue reached from 689.1M USD to 705.5M USD in the last 3 years. Despite the slight decrease in net income, the company is still doing well and is profitable.

Market Price

Right now, media sentiment is mostly positive. On Friday, MARKETAXESS HOLDINGS stock opened at $277.0 and closed at $283.3, up by 2.1% from last closing price of 277.5. This is likely due to their strong financial position and diversified business model. Media sentiment has been positive, with most commentators lauding the company’s resilience.

On Friday, MARKETAXESS HOLDINGS stock opened at $277.0 and closed at $283.3, up by 2.1% from last closing price of 277.5. This was a good showing for the company, considering the headwinds it is facing. MARKETAXESS HOLDINGS is likely to continue to perform well in the future, thanks to its sound management and strong fundamentals.

VI Analysis

MARKETAXESS HOLDINGS has strong fundamentals, reflected in its long-term potential. The company is classified as a ‘rhino’, meaning it has achieved moderate revenue or earnings growth. This makes it an attractive investment for investors who are looking for companies with strong financials and a history of success. MARKETAXESS HOLDINGS is strong in asset, dividend, growth, and profitability.

Additionally, the company has a high health score of 10/10, indicating that it is capable of paying off debt and funding future operations.

VI Peers

MarketAxess Holdings Inc is a leading financial markets technology company. It provides an electronic trading platform for fixed income securities, including corporate bonds, government and agency bonds, asset-backed securities, and credit default swaps. The company’s competitors include Tradeweb Markets Inc, Aryaman Capital Markets Ltd, and Matsui Securities Co Ltd.

– Tradeweb Markets Inc ($NASDAQ:TW)

Tradeweb Markets Inc is a financial markets platform company. It has a market cap of 10.91B and a ROE of 6.51%. The company offers electronic trading for a variety of fixed income products, including government bonds, corporate bonds, mortgage-backed securities, and credit default swaps. It also provides post-trade processing and analytics. The company was founded in 1996 and is headquartered in New York, New York.

– Aryaman Capital Markets Ltd ($BSE:538716)

With a market cap of 707.85M as of 2022, Aryaman Capital Markets Ltd is a company that is doing quite well. The company has a Return on Equity of 10.69%. The company deals in providing financial services and is based in India. The company is doing quite well in terms of its market cap and ROE.

– Matsui Securities Co Ltd ($TSE:8628)

Matsui Securities Co., Ltd. is a Japanese securities firm headquartered in Tokyo. It is a member of the Nikkei 225 stock index. The company was founded in 1931 and its current president is Takuya Matsui. The company offers a range of services including retail and institutional brokerage, investment banking, and research. It has offices in Tokyo, Osaka, Nagoya, and Fukuoka.

Summary

MARKETAXESS HOLDINGS Inc. is a financial technology company that operates a leading electronic trading platform for institutional fixed-income securities, enabling investors to efficiently trade bonds in a liquid, anonymous marketplace. The company has been growing rapidly in recent years, as investors have increasingly turned to electronic trading platforms to trade bonds. MARKETAXESS HOLDINGS has a strong track record of growth and profitability, and is well-positioned to continue growing in the coming years. The company has a strong competitive advantage in its technology and platform, which provides a superior user experience for institutional investors.

In addition, the company has a strong balance sheet and is well-capitalized to invest in growth opportunities.