Tradeweb Markets Intrinsic Value Calculation – TRADEWEB MARKETS Reports FY2022 Q4 Earnings Results for Period Ending December 31, 2022

Earnings Overview

On February 2 2023, TRADEWEB MARKETS ($NASDAQ:TW) released its FY2022 Q4 earnings results for the period ending December 31 2022. The total revenue for the quarter was USD 89.0 million, a remarkable 81.9% increase from the same period one year previously. In addition, net income also rose 5.8% to USD 293.0 million from the prior year.

Transcripts Simplified

Good morning everyone, and thank you for joining our fourth quarter 2022 earnings call. I’m excited to be here as the new CEO, and it’s an honor to be a part of the team that’s had such great success over the last 23 years. Our competitive advantage is our people, network, and technology, and we are confident they will help us reach even greater heights in the years ahead. We’ve recently created a three-year plan and the enthusiasm from our teams around the world has been incredible.

We believe the current yield environment gives us a great opportunity to expand our reach with both retail and institutional clients. We also have a deep bench of talent in our executive and operating management teams, highlighted by our newest member Tom Pluta transitioning to President earlier this year. We look forward to continuing our success together.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Tradeweb Markets. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Tradeweb Markets. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Tradeweb Markets. More…

Key Ratios Snapshot

Some of the financial key ratios for Tradeweb Markets are shown below. More…

Price History

TRADEWEB MARKETS reported its financial results for the fourth quarter of 2022 on Thursday, providing investors and analysts with an overview of the company’s financial performance. The stock opened at $76.5 and closed at $71.3, representing a drop of 5.6% from its previous closing price of 75.6.

Additionally, the company reported a net income of $2 million and an earnings per share of 12 cents, which was in line with Wall Street expectations. The company has seen strong growth in the demand for its products due to its focus on providing innovative services to its clients. Overall, TRADEWEB MARKETS had a strong fourth quarter performance in FY2022, with revenue and net income growth despite a decrease in its share price. The company is optimistic about its prospects as it continues to expand its client base and improve its services. Live Quote…

Analysis – Tradeweb Markets Intrinsic Value Calculation

At GoodWhale, we recently conducted a financial analysis on TRADEWEB MARKETS and found that their fair value of their stock to be around $77.5, based on our proprietary Valuation Line. Currently, the market price of TRADEWEB MARKETS stock is at $71.3, making it an undervalued stock by 8.0%. This presents an opportunity for investors to buy shares at a discounted price, as the stock may be poised for a rally in the near future. More…

Peers

It is one of the four major electronic trading firms that dominate the global electronic trading landscape, alongside MarketAxess Holdings Inc, Global Brokerage Inc, and Gogia Capital Services Ltd. All four companies provide innovative solutions to facilitate efficient price discovery and execution for a wide range of market participants.

– MarketAxess Holdings Inc ($NASDAQ:MKTX)

Axess Holdings Inc is a leading provider of electronic trading and market data services to the global fixed income markets. It operates the largest electronic trading platform for fixed income securities in the United States, providing access to a wide range of institutional investors and dealers. As of 2022, Axess’s market capitalization stands at 10.57 billion dollars, making it one of the leaders in the fixed income space. Its impressive return on equity (ROE) of 20.5% reflects its strong performance in recent years and its potential for future growth. The company has invested heavily in developing its technology infrastructure and expanding its product offerings, allowing it to capture a larger share of the global fixed income market.

– Global Brokerage Inc ($OTCPK:GLBR)

Global Brokerage Inc is an international financial services company that specializes in providing a range of brokerage and investment services. The company has a market capitalization of 137,000 as of 2022, which is a measure of the company’s size and value. Return on Equity (ROE) is a measure of profitability which shows how much profit the company is able to generate from its shareholders’ investments. Global Brokerage Inc has a ROE of -19.36%, which means that it is not generating any profits from its shareholders’ investments. This suggests that the company is not performing well and has potential problems that need to be addressed.

– Gogia Capital Services Ltd ($BSE:531600)

Gogia Capital Services Ltd is a diversified financial services company based in India. The company offers a range of services, including Investment Banking, Corporate Finance, Mergers and Acquisitions, Broking Services, securities issuance and advisory services. As of 2022, the company has a market capitalization of 790.14M and a Return on Equity (ROE) of 6.0%. This indicates that the company is generating an adequate return on its equity investments and has a strong financial position. Furthermore, Gogia Capital Services Ltd is well-positioned to capitalize on growth opportunities in the future.

Summary

TRADEWEB MARKETS recently reported their FY2022 Q4 financial results for the quarter ending December 31, 2022. Revenue for the quarter totaled USD 89 million, a 81.9% year-over-year increase from last year. Net income for the same period was USD 293 million, an increase of 5.8% from the prior year. The stock dropped after the earnings report was released. For investors considering TRADEWEB MARKETS, the company has produced strong quarter-over-quarter growth in both revenues and earnings.

Moreover, although there was a dip in stock price after the earnings report, the stock is still up significantly on a 12-month basis. Furthermore, analysts remain optimistic about their FY2022 outlook and continue to recommend TRADEWEB MARKETS to long-term investors. In sum, TRADEWEB MARKETS is a company that appears to be on a solid trajectory of growth and profitability, making it a promising investment opportunity.