Tradeweb Markets Inc.
Tradeweb Markets Inc. Fundamental Analysis
Tradeweb Markets Inc. (TW) shows moderate financial fundamentals with a PE ratio of 30.86, profit margin of 39.60%, and ROE of 13.10%. The company generates $2.0B in annual revenue with strong year-over-year growth of 28.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze TW's fundamental strength across five key dimensions:
Efficiency Score
WeakTW struggles to generate sufficient returns from assets.
Valuation Score
ModerateTW shows balanced valuation metrics.
Growth Score
ExcellentTW delivers strong and consistent growth momentum.
Financial Health Score
ExcellentTW maintains a strong and stable balance sheet.
Profitability Score
ModerateTW maintains healthy but balanced margins.
Key Financial Metrics
Is TW Expensive or Cheap?
P/E Ratio
TW trades at 30.86 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TW's PEG of 1.07 indicates fair valuation.
Price to Book
The market values Tradeweb Markets Inc. at 3.85 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.81 times EBITDA. This signals the market has high growth expectations.
How Well Does TW Make Money?
Net Profit Margin
For every $100 in sales, Tradeweb Markets Inc. keeps $39.60 as profit after all expenses.
Operating Margin
Core operations generate 41.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.10 in profit for every $100 of shareholder equity.
ROA
Tradeweb Markets Inc. generates $9.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tradeweb Markets Inc. generates strong operating cash flow of $1.16B, reflecting robust business health.
Free Cash Flow
Tradeweb Markets Inc. generates strong free cash flow of $1.11B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.21 in free cash annually.
FCF Yield
TW converts 4.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
12.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How TW Stacks Against Its Sector Peers
| Metric | TW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.86 | 18.73 | Worse (Expensive) |
| ROE | 13.10% | 847.00% | Weak |
| Net Margin | 39.60% | 3919.00% | Weak |
| Debt/Equity | 0.04 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 4.94 | 674.76 | Strong Liquidity |
| ROA | 9.92% | -21563.00% (disorted) | Weak |
TW outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tradeweb Markets Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
54.62%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
101.39%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
100.56%
Industry Style: Value, Dividend, Cyclical
High Growth