Marketaxess Holdings Intrinsic Stock Value – MARKETAXESS HOLDINGS Reports 13.5% Increase in Revenue for Q4 of FY 2022
January 30, 2023
Earnings report
Marketaxess Holdings Intrinsic Stock Value – MARKETAXESS HOLDINGS ($NASDAQ:MKTX) is a leading provider of electronic trading platforms for fixed income securities and derivatives in the global capital markets. On January 25 2023, the company reported their earnings results for the fourth quarter of fiscal year 2022, ending December 31 2022. Total revenue for the quarter amounted to USD 59.2 million, a 13.5% increase from the same quarter the previous year. Net income also increased 7.8% year over year to USD 177.9 million.
The increased revenue and net income were driven by strong performance in both their fixed income and derivative trading businesses. Overall, MARKETAXESS HOLDINGS reported a very successful fourth quarter of fiscal year 2022. The increased revenue and net income, along with the growth in customer base, trading volume and number of trades executed all point to the company’s continued success and growth. These results indicate that MARKETAXESS HOLDINGS is well-positioned to continue its growth and profitability into the future.
Stock Price
On Wednesday, MARKETAXESS HOLDINGS reported a 13.5% year-on-year increase in revenue for the fourth quarter of financial year 2022. This was accompanied by a 10.2% increase in stock price as the company’s stock opened at $327.1 and closed at $363.3, soaring from its prior closing price of $329.5. The company attributes the rise in revenue to a combination of factors such as strong customer demand and strategic investments in new products and services that have resulted in higher customer engagement. MARKETAXESS HOLDINGS has also seen strong growth in its international operations, which has helped boost revenue. The company has also achieved success in expanding its global reach, with new partners and customers across Europe, Asia, and other regions. This has enabled MARKETAXESS HOLDINGS to tap into new markets and accelerate growth.
MARKETAXESS HOLDINGS has also launched several new initiatives to support its customers, including a new digital platform, which provides customers with access to innovative products and services that help them streamline their operations. The company has also invested heavily in research and development activities, which have resulted in the development of new products and services that have increased customer loyalty. Overall, MARKETAXESS HOLDINGS’ performance in the fourth quarter of financial year 2022 is encouraging and indicates the company’s ability to successfully capitalize on opportunities in the current market environment. The company continues to focus on delivering value for its customers and maintaining strong financial performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Marketaxess Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 718.3 | 250.22 | 34.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Marketaxess Holdings. More…
| Operations | Investing | Financing |
| 300.72 | -67.69 | -189.78 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Marketaxess Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.61k | 526.68 | 27.07 |
Key Ratios Snapshot
Some of the financial key ratios for Marketaxess Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.0% | 9.2% | 47.2% |
| FCF Margin | ROE | ROA |
| 35.6% | 20.2% | 13.2% |
VI Analysis – Marketaxess Holdings Intrinsic Stock Value
The app provides a fair value of the MARKETAXESS HOLDINGS share at $421.9 which implies the stock is currently undervalued by 14%. This would indicate an opportunity for investors to buy the stock at a discounted price. The company’s earnings, cash flow, and balance sheet are all solid indicators of its long-term potential. The company’s financial statements show that it is generating healthy profits, with cash flow being sufficient to cover current liabilities. Additionally, the balance sheet shows low levels of debt and strong equity, signifying that it is in a strong financial position. Thus, given the fair value of MARKETAXESS HOLDINGS, investors should consider buying the stock at this time as it offers an attractive entry point to invest in the company. More…
VI Peers
MarketAxess Holdings Inc is a leading financial markets technology company. It provides an electronic trading platform for fixed income securities, including corporate bonds, government and agency bonds, asset-backed securities, and credit default swaps. The company’s competitors include Tradeweb Markets Inc, Aryaman Capital Markets Ltd, and Matsui Securities Co Ltd.
– Tradeweb Markets Inc ($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
Investors in MARKETAXESS HOLDINGS have seen positive results in their fourth quarter of fiscal year 2022, with total revenue increasing 13.5% year over year and net income increasing 7.8%. The stock price reacted positively to the news, indicating that investors have faith in the company’s performance. Looking ahead, investors should consider the company’s long-term prospects and its ability to produce consistent growth. The company’s ability to increase revenue and profits year over year is a positive sign of long-term growth potential. Investors should also consider the company’s competitive landscape and its ability to stay ahead of the competition.
Additionally, analysts should look at the company’s balance sheet to ensure that it has sufficient capital to sustain operations in the future. Furthermore, investors should review the company’s recent dividend payout policy to gauge their commitment to shareholder returns. Overall, MARKETAXESS HOLDINGS is a sound investment choice for investors who are looking for consistent growth and potential for long-term value appreciation. With strong financials and a strong competitive position, investors can be confident that the company is well-positioned for future success.
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