Tradeweb Markets Stock Intrinsic Value – TRADEWEB MARKETS Reports FY2022 Q4 Earnings Results for Period Ending Dec. 31, 2022

Earnings Overview

TRADEWEB MARKETS ($NASDAQ:TW) reported total revenue of USD 89.0 million and net income of USD 293.0 million in their FY2022 Q4 earnings results, which ended on December 31 2022 and were reported on February 2 2023. This represented a year-over-year increase in revenue of 81.9% and a rise in net income of 5.8%.

Transcripts Simplified

Good morning, everyone. And thank you for joining our fourth quarter 2022 earnings call. I’m excited to be here in my role as the new CEO of Tradeweb Markets. We have achieved a great deal of success over the past 23 years, generating nearly $1.2 billion in revenues in 2022. Our competitive advantage combines our people, our expanding network and our pioneering technology, and we believe these elements will continue to propel our business to new heights in coming years.

Our focus remains to provide our clients with an increasingly better user experience across the trade lifecycle. We believe the attractive yield environment is resonating with our retail and institutional clients. We are thrilled to have Tom Pluta who officially transitioned to his President role at the beginning of the year, and our deep bench of talent is ready to drive future growth. Thank you for joining us today and I look forward to your questions.

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…

Share Price

On Thursday, TRADEWEB MARKETS reported its FY2022 Q4 earnings results for the period ending December 31, 2022. The stock opened at $76.5 and closed at $71.3, represent a drop of 5.6% from the previous closing price of 75.6. The reported Q4 earnings results came as a surprise to many investors due to the significant drop in share price. In addition to strong quarterly results, TRADEWEB MARKETS reported an increase in its backlog of pending orders and an uptick in trading volumes during the quarter, likely due to an increase in demand and activity in the market.

Overall, TRADEWEB MARKETS reported strong earnings results for the fourth quarter of FY2022, showing that the company is continuing to maintain its position as a leader in the financial markets. Investors should be encouraged by these results, as they are a sign of continued growth and strength for TRADEWEB MARKETS. Live Quote…

Analysis – Tradeweb Markets Stock Intrinsic Value

At GoodWhale, we recently conducted an analysis of TRADEWEB MARKETS, the leading electronic fixed income trading platform. Through our proprietary Valuation Line, we were able to determine the intrinsic value of a TRADEWEB MARKETS share to be around $77.6. Currently, the stock is traded at $71.3, indicating that it is undervalued by 8.1%. This presents investors with an opportunity to purchase a share of TRADEWEB MARKETS at a lower price than what we consider to be fair market value. 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 reported strong fourth quarter results for the period ending December 31, 2022, with total revenue increasing 81.9% year-over-year. Net income was also up 5.8%. Despite this strong performance, the stock price of TRADEWEB MARKETS declined the same day as investors were unwilling to make investments due to uncertain macroeconomic conditions. In order to make an informed investment decision, investors should analyze the company’s financials, evaluate current market conditions, and research its competitive landscape.