Tradeweb Markets Inc. Class A Common Stock (TW)

FairStock Score: 62/100 — STEADY

Key Financials

Strengths

• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 13.6% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.02, providing financial flexibility
• Altman Z-Score of 15.4 confirms minimal bankruptcy risk and strong solvency
• Healthy net profit margin of 15.8% showing consistent profitability

Concerns

• Trades significantly above Graham Number ($51) with negative 120% margin of safety—limited downside protection

AI Analysis

Tradeweb Markets Inc. Class A Common Stock is a mid-cap financial services company valued at $24.5 billion. The business generates $2.1 billion in annual revenue with a 15.8% net margin. From a quality standpoint, Tradeweb shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 15.4 confirms fortress-level solvency. On valuation, the stock is trading at a premium 30.1x earnings, with trades far above its Graham Number ($51) with no margin of safety. Growth dynamics show revenue growing at 12.5% and profit growth of 128.5%. Our composite FairStock Score of 62/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 30x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer