July 23, 2025 a 03:31 am
MKTX: Dividend Analysis - MarketAxess Holdings Inc.
MarketAxess Holdings Inc. (MKTX) has demonstrated a robust presence in the financial market with a commitment to consistent dividend payouts over the past 17 years. Despite a modest dividend yield of 1.37%, the company showcases stable dividend growth, reflecting a well-balanced financial strategy. Investors might find MarketAxess appealing due to its prudent payout ratios and strong cash flow generation capabilities.
📊 Overview
MarketAxess operates in a sector characterized by moderate dividend yields, presenting an attractive prospect for income-focused investors. The company's 17-year dividend history with no recent cuts or suspensions underlines its commitment to shareholder value.
| Metric | Value |
|---|---|
| Sector | Financial Services |
| Dividend yield | 1.37% |
| Current dividend per share | 2.997 USD |
| Dividend history | 17 years |
| Last cut or suspension | None |
📉 Dividend History
Understanding the dividend history of a company like MarketAxess is essential as it reflects long-term reliability in returns. Consistent annual dividend increases can be a sign of a strong and growing company.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.52 |
| 2024 | 2.96 |
| 2023 | 2.88 |
| 2022 | 2.80 |
| 2021 | 2.64 |
📈 Dividend Growth
Analyzing dividend growth sheds light on potential future income increases. MarketAxess's dividend has grown significantly over the past 3 and 5 years, indicating robust corporate health and shareholder allegiance.
| Time | Growth |
|---|---|
| 3 years | 3.89% |
| 5 years | 7.73% |
The average dividend growth is 7.73% over 5 years. This shows moderate but steady dividend growth, which is favorable for income investors seeking long-term gains.
✅ Payout Ratio
Payout ratios are crucial for assessing the sustainability of dividend payments. MarketAxess demonstrates disciplined financial management with balanced EPS and free cash flow payout ratios.
| Key figure | Ratio |
|---|---|
| EPS-based | 51.73% |
| Free cash flow-based | 30.58% |
With an EPS payout ratio of 51.73% and a free cash flow payout ratio of 30.58%, MarketAxess is positioned to maintain its dividends while having room for reinvestment and growth.
⚙️ Cashflow & Capital Efficiency
An analysis of cash flow and capital efficiency metrics provides insights into operational robustness and financial health.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.42% | 2.56% | 2.27% |
| Earnings Yield | 3.23% | 2.35% | 2.39% |
| CAPEX to Operating Cash Flow | 2.58% | 15.71% | 17.93% |
| Stock-based Compensation to Revenue | 3.63% | 3.88% | 4.16% |
| Free Cash Flow / Operating Cash Flow Ratio | 97.42% | 84.29% | 82.07% |
MarketAxess exhibits a stable cash flow profile, with high free cash flow yield and prudent CAPEX allocation. This indicates strong capital efficiency and operational effectiveness.
📉 Balance Sheet & Leverage Analysis
A robust balance sheet analysis uncovers financial stability, liquidity, and leverage impacts.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 5.23% | 6.16% | 7.65% |
| Debt-to-Assets | 4.06% | 3.95% | 5.14% |
| Debt-to-Capital | 4.97% | 5.80% | 7.10% |
| Net Debt to EBITDA | -1.07 | -0.90 | -0.88 |
| Current Ratio | 4.41 | 2.46 | 2.49 |
| Quick Ratio | 4.41 | 2.46 | 2.79 |
| Financial Leverage | 1.29 | 1.56 | 1.49 |
MarketAxess maintains a conservative leverage strategy with low debt ratios. Its strong liquidity, reflected in high current and quick ratios, suggests robust short-term financial health.
⚖️ Fundamental Strength & Profitability
Examining profitability and performance metrics underscores operational success and financial return potential.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 19.74% | 19.96% | 23.15% |
| Return on Assets | 15.32% | 12.81% | 15.56% |
| Margins: Net | 33.56% | 34.29% | 34.84% |
| EBIT | 44.32% | 44.47% | 47.19% |
| EBITDA | 54.17% | 54.63% | 54.85% |
| Gross | 68.95% | 70.24% | 74.65% |
| Research & Development to Revenue | 0% | 0% | 0.93% |
MarketAxess showcases strong profitability metrics, with high returns on equity and assets. Elevated margins across net, EBIT, and EBITDA indicate proficient cost management and operational efficiency.
📈 Price Development
🗣️ Dividend Scoring System
| Criteria | Points (out of 5) | Score |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 36/40
🔍 Rating
MarketAxess stands out with a commendable total score of 36 out of 40. Its strong dividend history, financial stability, and prudent management practices make it an attractive option for informed investors seeking reliability and steady income growth. This stock exemplifies solid investment potential given its financial health and dividend policy.