Tradeweb's Robust Financials: $502M Net Income, 26% EPS Growth
Tradeweb Markets Inc. (TW) has shown robust financial performance, with net income reaching $502 million in 2024. The company's earnings per share (EPS) have compounded at over 26% annually since 2020. As of September 22nd, TW is trading at $111.97 per share.
TW's strong financials are reflected in its margins. Gross margins are above 90%, and EBITDA margins are above 50%. The company's competitive advantage lies in its powerful network effect and diversified platform, creating a wide moat.
TW's growth is evident in its international revenues, which grew more than 36% in 2024. The company has compounded revenues at nearly 18% annually from 2020 to 2024, reaching $1.73 billion in 2024. Despite this growth, TW is not among the 30 Most Popular Stocks Among Hedge Funds, with only 34 hedge fund portfolios holding TW at the end of the second quarter.
A DCF analysis suggests TW's intrinsic value is around $125 per share, implying modest near-term upside but a 20%+ five-year forward IRR. With a fortress balance sheet boasting more than $1.6 billion in net cash and negligible debt, TW is well-positioned for future growth. Its trailing P/E is 43.23, and forward P/E is 32.47, indicating strong investor confidence in the company's prospects.
