MarketAxess Holdings Inc (MKTX, Financial), a leading player in the Capital Markets industry, has been making waves with its impressive performance. As of August 16, 2023, the company's stock price stands at $243.97, reflecting a gain of 4.9% today, despite a slight dip of 2.55% over the past four weeks. With a market capitalization of $9.18 billion, MarketAxess has a remarkable GF Score of 97 out of 100, indicating the highest outperformance potential.
Financial Strength Analysis
The Financial Strength of a company is a crucial indicator of its ability to withstand economic downturns. MarketAxess boasts a Financial Strength Rank of 9/10, demonstrating a robust financial situation. The company's interest coverage is an impressive 871.49, indicating a low debt burden. Furthermore, its debt to revenue ratio is a mere 0.11, further emphasizing its strong financial health. The company's Altman Z-Score of 14.29 is another testament to its financial strength.
Profitability Rank Analysis
The Profitability Rank of a company is a measure of its profitability and the likelihood of it remaining profitable. MarketAxess has a perfect Profitability Rank of 10/10. The company's Operating Margin is a healthy 44.35%, and its Piotroski F-Score is 8, indicating a strong financial situation. The company has also demonstrated consistent profitability over the past 10 years.
Growth Rank Analysis
The Growth Rank of a company reflects its revenue and profitability growth. MarketAxess has a Growth Rank of 10/10, indicating strong growth potential. The company's 5-year revenue growth rate is 14.60%, and its 3-year revenue growth rate is 12.30%. Additionally, its 5-year EBITDA growth rate is 15.20%, further emphasizing its growth potential.
GF Value Rank Analysis
The GF Value Rank is a measure of a company's valuation based on historical multiples and future performance estimates. MarketAxess has a GF Value Rank of 8/10, indicating a fair valuation.
Momentum Rank Analysis
The Momentum Rank of a company reflects its stock performance. MarketAxess has a Momentum Rank of 5/10, indicating moderate momentum.
Competitor Analysis
MarketAxess faces competition from Interactive Brokers Group Inc (IBKR, Financial), Futu Holdings Ltd (FUTU, Financial), and Jefferies Financial Group Inc (JEF, Financial). However, with a GF Score of 97, MarketAxess outperforms its competitors, as Interactive Brokers, Futu Holdings, and Jefferies Financial Group have GF Scores of 83, 79, and 80, respectively. More details about the competitors can be found here.
Conclusion
In conclusion, MarketAxess Holdings Inc's impressive GF Score of 97, coupled with its strong financial strength, profitability, growth, and fair valuation, make it a compelling choice for investors. Despite facing competition, the company's high GF Score and robust performance indicators suggest a promising future.
