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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
MKTX
Primary Facts
Capital Markets
Name:
-
Sector:
- 34551.00K
Industry:
249.91
CEO:
Mr. Richard McVey
Total Employees:
Mid Cap
Our Technological Advancement Rating
Our Rating:
1.078883571
-0.300075733
Marketaxess Holdings Inc. (XNAS:MKTX) In-Depth Stock/Fundamental/Options Analysis Today
Primary Targets/Price Insights
Previous Close ($) :
MARKETAXESS HOLDINGS INC. (XNAS:MKTX)
One Month Price Target:
Six Month Price Target :
$250.76
Likely Price in One Year's Time:
Ticker:
$255.01
Likely Trading Range Today Under (Normal Volatility)
$250.88
Price Upper limit ($) :
$260.1
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
P262
This week:
$237.22
This month :
$221.54
Other Primary facts
Market Cap:
37.64M
Market Cap Classification:
9.13B
Number of Shares
IPO Date:
A
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
-12.01%
$193.17
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$282.23
16.14%
$217.59
$308.85
Medium risk (<10%) entry points
Buy Call
Sell Call
$267.88
Buy Put:
Sell Put:
$190.97
$231.94
$273.56
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
Capital Markets
Sharpe Ratio:
MKTX, is amongst the top 40% lowest yielding stocks in terms of daily returns
Comparison:
3.49%
-1.448147354
Sharpe ratio is -144.81% lower than the industry
Average Returns/Yield of
Capital Markets
Daily returns:
1
Weekly returns:
-0.03%
Monthly returns:
-0.15%
Yearly returns:
-7.11%
Comparison of returns:
-1.28391905
Classification:
Average annual returns/yield (last 3 years) is -128.39% below industry average
Results of T-Test of Returns:
MKTX is a riskier investment compared to Nasdaq (IXIC)
Statistical test of Returns:
0.47
Volatility (measured by Standard Deviation)
Daily Volatility:
& is -168.71% lower than the market/S&P 500 average
Weekly Volatility:
2.46%
Monthly Volatility:
5.50%
Yearly Volatility:
10.99%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
47.91%
-58.41%
Value at Risk Analysis (VaR)
Daily VaR:
Volatility in last five trading days has been -58.41% below long-term volatility
Weekly VaR:
-5.08%
Monthly VaR:
-11.35%
How Much Can the price of
Capital Markets
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
Risk of crash in next 6/12 months: Low (<25%)
Worst case (decline):
$198.87
This translates to price declining to:
-20%
This translates to price declining to:
-78.65%
Severe Crash Probability
-22.70%
What is Value at Risk (VaR)?
Risk Fundamentals
37.28%
MKTX is a 60.24% riskier investment compared to the market/S&P 500 & is 37.28% riskier than Nasdaq (IXIC)
MKTX is a 60.24% riskier investment compared to the market/S&P 500
Beta Examination of
Capital Markets
0.607
Expected beta in 1 year's time:
0.712
Expected beta in 3 year's time:
0.548
Unlevered (debt free) Beta:
Beta in relation to market/S&P 500--0.61
Beta in relation to Nasdaq (XNAS):
Returns are, approximately, symmetrical
Beta in relation to all global stocks::
Beta is -46.96% below industry average
Beta Comparison & Analysis
Beta of competitors/peers::
0.571
-0.457
Average Industry Beta:
Beta is -45.66% lower than peers
-0.469564566
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
WACC is -28.67% below industry mean WACC
-33.24%
Alpha provided | Alpha Analysis
Alpha provided:
0.775
-2.025
-9.180
Analysis of Cost of Capital of
Capital Markets
Equity cost of capital:
Alpha is -918% below the market average
-0.335
Unlevered (without debt) cost of capital:
Equity cost of capital is -33.50% below industry mean WACC
Before-tax cost of debt:
6.87%
After-tax cost of debt:
0.95%
Overall debt rating:
0.75%
Weighted average cost of capital (WACC):
0.95%
-28.67%
Key Per-Share Metrics & Analysis
Revenue per share:
Present value of the expected future dividends only: $71.40
Revenue growth rate per share of (3Y):
Price to sales ratio is 218.35% above the industry mean
-20.34%
EPS:
Two Hundred Forty Million Four Hundred Sixteen Thousand Five Hundred Forty Dollars
Expected Annual growth rate of EPS (3Y):
-
-86.71%
Free cash flow (FCF) per share:
Price to book ratio is 159.46% above the industry mean
-
-0.419016075
Debt per share
Debt repayment rate in last quarter: 53.65%
EBITDA per share
Each employee generates 103% more EBITDA than industry average revenue per employee
Valuation Analysis Today of
Capital Markets
P/E Ratio:
Sustainable growth rate is -33.24% below industry average
P/E Ratio of Competitors/Peers:
39.14
0.957492691
127.3620765
0.962201047
$6.17
Share value as per dividend discount (DDM) model: $96.87
P/S (Price to Sales ratio):
$18.32
2.183504178
P/B (Price to book value ratio):
Price to sales ratio is 218.35% above the industry mean
-
-
Net income growth rate (3Y):
Annual revenue growth rate is -20.34% below industry average
-139.38%
Dividend Analysis
Net income growth rate is -139.38% lower than the industry average net income growth rate
Dividend payout rate: 11.32%
$0.70
Previous Dividend: $0.70
Previous adjusted dividend: $0.70
Previous Dividend: $2.72
Expected next dividend best case: $0.75
Expected next dividend worst case: $0.65
Average dividend payment (long-term): $0.63
Average dividend increase/decrease (growth rate) % per period: 3.37%
Expected next dividend payment date: 16/08/2022
Expected next dividend record date: 08/02/2022
Expected next dividend declaration date: 07/12/2022
Previous dividend payment date: 18/05/2022
Previous dividend record date: 05/04/2022
Dividend History:
Previous dividend declaration date: 13/04/2022
2022-02-08--$0.70
2021-08-03--$0.66
2022-05-03--$0.70
2021-11-02--$0.66
2021-05-11--$0.66
-0.886466928
In-depth Debt & Leverage Analysis
Debt to equity ratio:
-27.18%
Net debt to equity ratio:
The remaining useful life of property plant & equipment is: 1.4 years
Debt to assets ratio:
-16.29%
Net debt to assets ratio:
8.44%
-93.18%
Ability to repay debt:
Interest coverage ratio:
Debt-to-asset ratio is -93.18% below industry average
8.20
Looking forward:
Debt growth rate:
1.1x
-125.16%
53.65%
Analysis of Key Statistics
Correlation of price movement with the market:
15.85770798
Statistical significance of correlation:
-0.45%
Average Correlation of the industry with the market:
0.518
-18.63%
R Squared (percentage of price movement explained by movement of the market):
0.518
Correlation of price movement with Nasdaq (^IXIC):
0.269
Covariance of price movement with the market:
-0.073
Kurtosis
-0.105
5.266
Skewness of returns:
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
0.229
Fundamental Analysis & Dupont Analysis of
Capital Markets
Gross Profit Margin Ratio:
518.96M
Operating Profit Margin Ratio:
Net profit margin is 81.34% higher than the industry
140.98%
Net Profit Margin Ratio:
518.96M
Effective Tax Rate:
3.34%
0.253663671
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
Return on assets (ROA) is 158.53% higher than the industry
-2.89%
Financial Leverage
Asset Turnover Ratio (ROA):
Operating profit margin is 140.98% higher than the industry
158.53%
Financial Leverage:
Interest coverage ratio is 819.63% more than industry average
Current Ratio:
Return on equity (ROE) is -2.89% lower than the industry
-0.479125136
Cash Conversion Cycle (days):
$2.30
0.932015094
Current ratio is -47.91% below industry average
Stock based compensation to net income ratio:
Equity growth rate per share is -41.90% lower than the industry
In-depth Efficiency Analysis
Revenue generated per employee:
Cash conversion cycle is 93.20% above industry average
-0.445581666
EBITDA generated per employee:
Each employee generates -45% less revenue than industry average revenue per employee
1.032047651
Profit generated per employee:
$10.28
110%
Free cash flow (FCF) generated per employee:
Each employee generates 110% more net income/profit than industry average revenue per employee
1.202188092
Assets/Capital per employee
Each employee generates 120% more free cash flow than industry average revenue per employee
1.202188092
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
Capital Markets
$321.05
FIRST CITIZENS BANCSHARES, INC. (XNAS:FCNCA)
LPL FINANCIAL HOLDINGS INC. (XNAS:LPLA)
ARCH CAPITAL GROUP LTD. (XNAS:ACGLO)
MORNINGSTAR, INC. (XNAS:MORN)
XP Inc. (XNAS:XP)
HBANO
TMTSU
EAST WEST BANCORP, INC. (XNAS:EWBC)
Current Analyst Ratings
$6.37
Strong buy�0%
Buy�13%
Hold�8%
Sell�0%
Strong sell�0%
Income Statement
Period:
3/31/2022
Date:
Value
Revenue:
TTM
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
689.54M
170.58M
301%
-
114.65M
124.30M
9.64M
72.80M
367.68M
-
824.00K
63.57M
224%
80.34M
676.00K
187%
80.34M
Statement of Cash Flow
Date:
Period:
64.77M
Differed Income Tax :
16.77M
Stock Based Compensation :
- 643.00K
Change in Working Capital :
8.10M
Accounts Receivables:
- 111496.00K
Other Working Capital:
231.08M
Other Non-Cash Items:
- 33670.00K
Net Cash Provided by Operating Activities:
- 1229.00K
Investments in PP&E:
- 23730.00K
Net Acquisitions:
- 1396.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
Value
3/31/2022
2022
Q1
364.57M
11.31M
375.88M
711.32M
-
164.83M
1.25B
164.49M
154.79M
111.62M
24.56M
-
-
455.46M
-
1.71B
70.30M
-
42.61M
-
501.09M
571.39M
86.39M
26.17M
112.56M
-
683.94M
123.00K
995.19M
- 18381.0K
Value
197.10M
46.61M
1.02B
1.71B
35.88M
86.39M
-
-
- 9425.00K
- 10821.00K
- 100000.00K
-
- 38800.00K
- 27425.00K
79.76M
- 86467.00K
- 4356.00K
- 125374.00K
500.19M
625.57M
- 23730.00K
- 10821.00K
Our Proprietary Portfolio Rating
Our Rating:
82.22158496
Price Forecast/Expected Price in Next 5 Years of
Capital Markets
2023
2024
2025
2026
2027
273.6005527
$273.60
$284.76
$296.38
$308.47