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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3737
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Trading
$6.5B
Richard M. McVey
MarketAxess Holdings Inc. operates an electronic trading platform for institutional investor and broker-dealer companies worldwide. It offers access to liquidity in the U.S. investment-grade bonds, high-yield bonds, and Treasuries. The company executes bond trades between and among institutional investors and brokers in an all-to-all anonymous trading environment.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = MKTX ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$MKTX MARKETAXESS HOLDINGS INC | 38 | 26 | 41 | 30 | 29.8x | 15.7x | 16.4% | 11.2% | - | 41.8% | 26.7% | 5.7% | 1.7% | 45.0x | $6.5B | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
MARKETAXESS HOLDINGS INC (MKTX) receives a "Avoid" rating with a composite score of 38.4/100. It ranks #3737 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Below-average composite — caution warranted
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for MKTX.
View All RatingsROE proxy 16.4% (sector 9.0%)
GM N/A vs sector 78%, OM 42% vs sector 18%
Capital turnover N/A
Rev growth 6%, 10yr history
Interest coverage N/A, Net debt/EBITDA -1.0x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate MARKETAXESS HOLDINGS INC (MKTX) as Avoid with a composite score of 38.4/100 at a current price of $181.88. The stock falls in the bottom quintile, and the multi-factor weakness suggests a high probability of continued underperformance.
MARKETAXESS HOLDINGS INC holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 38.4/100 places it at rank #3737 in our full universe.
Narrow
Low
Exemplary
Fair Value
Returns on equity of 16.4% exceed cost of capital.
Stable competitive position in a defensive sector.
Weak momentum suggests persistent institutional selling pressure.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
MARKETAXESS HOLDINGS INC represents a avoid based on multi-factor quantitative performance.
Our quantitative model flags MARKETAXESS HOLDINGS INC with an Avoid rating, assigning a composite score of 38.4/100 and 1 out of 5 stars. Ranked #3737 of 7,333 stocks, MKTX falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
MKTX's quality score of 26/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 16.4% (sector avg: 9.0%), net margins of 26.7% (sector avg: 21.9%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 41/100, MKTX appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 29.81x, an EV/EBITDA of 15.71x, a P/B ratio of 4.89x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
MARKETAXESS HOLDINGS INC's investment score of 29/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 5.7% vs. a sector average of 10.7% and a return on assets of 11.2% (sector: 1.3%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
MKTX is currently showing below-average momentum at 30/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 5.7% year-over-year, while a beta of -0.22 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
With a stability score of 62/100, MKTX exhibits average financial resilience. Key stability metrics include a beta of -0.22 and a debt-to-equity ratio of 45.00x (sector avg: 0.5x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 42/100 for MKTX suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 45.00x). With a $6.5B market cap (mid-cap), MARKETAXESS HOLDINGS INC may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
MKTX offers a modest dividend yield of 1.7%. This compares to a sector average dividend yield of 2.0%. While the income contribution is relatively small, even a small dividend signals management's commitment to shareholder returns and can serve as a signal of financial discipline.
MARKETAXESS HOLDINGS INC is a mid-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #3737 of 7,333 overall (49th percentile). Key comparisons include ROE of 16.4% exceeding the 9.0% sector median and operating margins of 41.8% above the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While MKTX currently exhibits a AVOID profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Quality (26) would have the largest impact on the composite score.
EV/EBITDA 102% ABOVE SECTOR MEDIAN
ROE 82% ABOVE SECTOR MEDIAN (FAVORABLE)
Op. Margin 131% ABOVE SECTOR MEDIAN (FAVORABLE)
Above 50MA
37.18%
Net New Highs
+51081
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