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1. Company Snapshot

1.a. Company Description

MarketAxess Holdings Inc., together with its subsidiaries, operates an electronic trading platform for institutional investor and broker-dealer companies worldwide.It offers the access to liquidity in the U.S. investment-grade bonds, U.S. high-yield bonds, and U.S. Treasuries, as well as municipal bonds, emerging market debts, Eurobonds, and other fixed income securities.The company, through its Open Trading protocols, executes bond trades between and among institutional investor and broker-dealer clients in an all-to-all anonymous trading environment for corporate bonds.


It also offers trading-related products and services, including composite+ pricing and other market data products to assist clients with trading decisions; auto-execution and other execution services for clients requiring specialized workflow solutions; connectivity solutions that facilitate straight-through processing; and technology services to optimize trading environments.In addition, the company provides various pre-and post-trade services, such as trade matching, trade publication, regulatory transaction reporting, and market and reference data across a range of fixed-income and other products.MarketAxess Holdings Inc.


was incorporated in 2000 and is headquartered in New York, New York.

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1.b. Last Insights on MKTX

Despite strong Q2 earnings, MarketAxess faces near-term headwinds. Rising costs, partly offset by solid credit trading volume and commission growth, may pressure margins. The company's fees per million (FPM) slipped in Q2, potentially indicating a mix shift. Additionally, the upcoming ex-dividend date on August 20 may lead to short-term volatility.

1.c. Company Highlights

2. MarketAxess Holdings: Steady Q3 Performance Amidst Evolving Fixed Income Landscape

MarketAxess reported revenue of $209 million for Q3 2025, a 1% increase from the prior year, with notable growth in international markets. Diluted earnings per share (EPS) came in at $1.84, beating analyst estimates of $1.69. The company's total commission revenue was flat, while services revenue increased 9% to a record $29 million. The effective tax rate was 27.1%. With a P/E Ratio of 29.5 and an ROE of 15.97%, the market seems to have priced in a certain level of growth and profitability.

Publication Date: Nov -16

📋 Highlights
  • Revenue Growth & Diversification: Q3 2025 revenue reached $209M (+1% YoY), with 10% growth in non-U.S. credit revenue.
  • Trading Channel Expansion: Block trading ADV rose 10%, portfolio trading ADV grew 20%, and dealer-initiated ADV increased 18% in Q3.
  • Strategic Technology Investments: $120M in share repurchases and $385M trailing free cash flow, alongside tech investments in automation and Mid-X.
  • EM Market Growth: Emerging markets drove 36% of global credit trading volume, with significant expansion in LatAm and APAC.
  • Protocol Innovation: Launch of closing auctions to support ETF/iBoxx Index pricing, addressing indexation in the $150T fixed-income market.

Business Highlights and Growth Initiatives

The company is making significant strides in its growth initiatives, including the launch of a new protocol introducing closing auctions to the fixed income market. This move is expected to support the growing indexation of the fixed-income market. MarketAxess' global credit franchise is becoming increasingly diversified, with 36% of global credit trading volume driven by clients outside of North America. The company's investments in technology, such as its EXPAREL and Pragma acquisition, are yielding positive results, with automation growing at 17% in Q3.

Operational Efficiency and Expense Management

MarketAxess reconfirmed its full-year 2025 expense guidance, expecting to be at the low end of the previously stated expense range of $501 million to $521 million on an ex-notable non-GAAP basis. The company generated $385 million in free cash flow over the trailing 12 months and repurchased 595,000 shares year-to-date through October 2025 for a total of $120 million. The company's discipline in managing its expense base is evident, with a focus on self-funding investments in technology and strategic initiatives.

Outlook and Valuation

Analysts estimate next year's revenue growth at 8.5%. With a current P/S Ratio of 7.73 and an EV/EBITDA of 13.5, the market is pricing in a certain level of growth. The company's fee per million is largely a result of the business mix, with growth in portfolio trading and dealer-to-dealer segments, which have lower fees. The launch of the Mid-X matching solution is expected to contribute to revenue growth, albeit at a lower fee per million. As the fixed income market continues to evolve, MarketAxess is well-positioned to capture the efficiencies required to handle the changing market dynamics.

Growth Opportunities and Challenges

The company's core RFQ business faces challenges due to low volatility and tight spreads. However, MarketAxess sees opportunities in areas like block trading, portfolio trading, and automation. The growth of Open Trading, which allows for all-to-all trading, has been driven by the addition of new sources of liquidity. The electronification of high-yield corporate bond trading presents unique challenges, but the company has developed solutions to address these challenges.

3. NewsRoom

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SCHW or MKTX: Which Is the Better Value Stock Right Now?

Dec -02

Source: zacks.com

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Here Are Thursday's Top Wall Street Analyst Research Calls: AON, Apollo Global Managment, Bullish, Jack Henry, Marsh & McClennan, Nasdaq, NVIDIA,

Nov -20

Source: 247wallst.com

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Market Today: Nvidia (NVDA) crushes Q3; WBD bid heats up

Nov -19

Source: gurufocus.com

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First Look: Nvidia Earnings Loom, Retail and AI Moves Drive Headlines

Nov -19

Source: gurufocus.com

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Alberta Investment Management Corp Has $4.09 Million Holdings in MarketAxess Holdings Inc. $MKTX

Nov -17

Source: defenseworld.net

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Arnold Van Den Berg Exits Atkore Inc, Impacting Portfolio by -0.85%

Nov -14

Source: gurufocus.com

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Aviva PLC Sells 818 Shares of MarketAxess Holdings Inc. $MKTX

Nov -14

Source: defenseworld.net

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MarketAxess Q3: Steady Beat Amid U.S. Credit Headwinds, Fairly Valued For Now

Nov -14

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.58%)

6. Segments

Commissions

Expected Growth: 7.5%

Commissions from MarketAxess Holdings Inc. grew 7.5% driven by increased trading volumes, expansion of credit spreads, and rising adoption of electronic trading platforms. Additionally, the company's strategic partnerships, product innovation, and growing market share in the fixed-income market also contributed to the growth.

Information Services

Expected Growth: 8.5%

MarketAxess Holdings Inc.'s Information Services segment growth of 8.5% is driven by increasing adoption of electronic trading platforms, growing demand for data analytics and market insights, expansion into new markets, and strategic partnerships. Additionally, the rise of passive investing and ETFs has led to increased demand for fixed-income market data and trading solutions.

Post-trade Services

Expected Growth: 7.8%

MarketAxess Holdings Inc.'s Post-trade Services segment growth of 7.8% is driven by increasing electronification of fixed-income trading, growing demand for automated trade processing, and expanding client base. Additionally, the company's strategic acquisitions and investments in technology have enhanced its offerings, attracting more clients and increasing trading volumes.

Technology Services

Expected Growth: 8.2%

MarketAxess Holdings Inc.'s Technology Services segment growth of 8.2% is driven by increasing adoption of electronic trading platforms, growing demand for fixed-income trading solutions, and expansion into new markets. Additionally, the company's investments in technology and data analytics, as well as its strategic partnerships, have contributed to the segment's growth.

7. Detailed Products

Corporate Bond Trading

MarketAxess' corporate bond trading platform provides institutional investors with access to a deep pool of liquidity, enabling them to trade a wide range of corporate bonds.

High-Yield Bond Trading

MarketAxess offers a high-yield bond trading platform, providing investors with access to a broad range of high-yield bonds, including distressed and fallen angel securities.

Agency MBS Trading

MarketAxess' agency MBS trading platform enables investors to trade a wide range of agency mortgage-backed securities, including TBA and specified pool securities.

Rates Derivatives Trading

MarketAxess offers a rates derivatives trading platform, providing investors with access to a range of interest rate swaps, options, and futures.

Municipal Bond Trading

MarketAxess' municipal bond trading platform provides investors with access to a broad range of municipal bonds, including general obligation and revenue bonds.

Data and Analytics

MarketAxess offers a range of data and analytics tools, providing investors with insights into market trends, pricing, and liquidity.

Post-Trade Services

MarketAxess offers a range of post-trade services, including trade confirmation, clearing, and settlement.

8. MarketAxess Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

MarketAxess Holdings Inc. operates in a niche market, providing electronic trading platforms for fixed-income securities. While there are substitutes available, they are not as comprehensive as MarketAxess' offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

MarketAxess Holdings Inc.'s customers are primarily institutional investors and broker-dealers, who have limited bargaining power due to the specialized nature of the company's services.

Bargaining Power Of Suppliers

MarketAxess Holdings Inc. has a diversified supplier base, and the company's suppliers have limited bargaining power due to the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the electronic trading platform market, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The electronic trading platform market is moderately competitive, with a few established players competing for market share. However, MarketAxess Holdings Inc.'s strong brand recognition and established customer base help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.97%
Debt Cost 3.95%
Equity Weight 89.03%
Equity Cost 8.82%
WACC 8.28%
Leverage 12.32%

11. Quality Control: MarketAxess Holdings Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Houlihan Lokey

A-Score: 5.9/10

Value: 2.0

Growth: 6.8

Quality: 7.8

Yield: 3.0

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

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Evercore

A-Score: 5.6/10

Value: 3.3

Growth: 5.8

Quality: 8.2

Yield: 3.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

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LPL Financial Holdings

A-Score: 5.3/10

Value: 5.0

Growth: 6.9

Quality: 5.6

Yield: 0.0

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

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StoneX

A-Score: 5.2/10

Value: 6.9

Growth: 4.8

Quality: 4.0

Yield: 0.0

Momentum: 10.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
MarketAxess

A-Score: 4.8/10

Value: 2.8

Growth: 6.2

Quality: 8.6

Yield: 3.0

Momentum: 0.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Marathon Digital Holdings

A-Score: 4.1/10

Value: 6.9

Growth: 5.1

Quality: 6.2

Yield: 0.0

Momentum: 5.5

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

167.24$

Current Price

167.24$

Potential

-0.00%

Expected Cash-Flows