vmaksimovic

MKTX - The Opportunity

Long
NASDAQ:MKTX   MarketAxess Holdings, Inc.
What a magnificent company.

Total debt sits at around 80mil$ with net income of 250mil$ at a profit margin of 35% in 2022. Before 2019, their debt was 0$. This leaves them with highest debt to equity of 0.13 in 2019.

Profit margins range from 34% to 44% several years back. This metric is great in itself but adding consistent, rising revenue makes it stellar.

The company always has cash on hand. Free cash flow closely matches net earnings, consistently, year over year. In 2022 it was 290mil$, of which their total debt represented only 28%. Exceptional.

Now, great financial health, impressive earning power, rising revenue, equity and sales lead us to the opening line of this text. But let's look further.

At the current price of 250$ per share, using the earnings based valuation, a conservative estimate would indicate that the company is trading somewhere around 80% of its intrinsic value.

Acquiring 1$ of this kind of company at 80¢ is worth consideration, at least.

Have A Great Day.
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