Cboe Global Markets (CBOE) AI Stock Analysis

• Market Cap: $24.25B
• Dividend Yield: 1.05%
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 30.4
• Beta (1Y): -0.07
• Revenue Growth: 15.76%
• EPS Growth: 1.97%
• Country: US
• Employees: 1,685
• Sector: Financial
• Sector Strength: 83
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 2.50
• Shares Outstanding: 104,713,350
• 10 Day Avg. Volume: 1,059,731
• 30 Day Avg. Volume: 1,002,913
• PEG Ratio: 5.33
• Price to Book (P/B): 5.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.64
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 1.53
• Enterprise Value/Gross Profit: 10.17
• Enterprise Value/Ebitda: 4.65
• 1Y Price Target: $227.09
• Price Target Upside: -1.94% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 78 Outperform
• Price Target: ―

Cboe Global Markets receives a strong overall score, driven by its solid financial performance and positive earnings call outcomes. The company's strategic initiatives in derivatives and global expansion offer promising growth prospects. While technical indicators suggest caution due to potential overbought conditions, the strong financial foundation and effective cash flow management provide stability. The CEO transition is seen as a positive development, with experienced leadership poised to sustain growth.

Positive Factors

Competitive Advantages

The key competitive advantages of index options and the expansion into additional client channels should attract more volume over time.

Revenue Growth

Cboe's derivatives revenue growth was in the midteens, driven by record volumes in proprietary index and multi-listed options.

Negative Factors

Valuation Concerns

The valuation setup for CBOE is less attractive as it is 15% more expensive on a relative basis compared to diversified financials.

Volume Decline Forecast

A significant sequential decline in exchange volumes is expected in the second half, with a forecasted -6% half-over-half growth.

Cboe Global Markets Business Overview & Revenue Model

Company Description

Cboe Global Markets, Inc. is a leading provider of market infrastructure and tradable products, delivering cutting-edge trading, clearing, and investment solutions to market participants around the world. The company operates across various sectors including equities, derivatives, and foreign exchange, and is renowned for its innovative products such as options and futures trading on its exchanges. Cboe's core services include operating regulated securities and derivatives exchanges, offering trading technology solutions, and providing market data services.

How the Company Makes Money

Cboe Global Markets makes money primarily through transaction fees collected from trades executed on its platforms. This includes fees from options, futures, and equities trading. The company also generates revenue from access and capacity fees, which are charged to market participants for connectivity and market data subscriptions to its trading systems. Additionally, Cboe earns revenue from market data sales and licensing its proprietary indices and analytics. Strategic partnerships and acquisitions, such as those with technology firms and other exchanges, further enhance its service offerings and contribute to its revenue streams.

Cboe Global Markets Financial Statement Overview

Summary

Cboe Global Markets exhibits strong financial health across all key metrics. The company is experiencing steady revenue and profit growth, supported by strong margins and efficient operational performance. Its balance sheet is solid, with a healthy equity position and manageable leverage. Cash flow generation is robust, ensuring liquidity and financial flexibility. While liabilities warrant monitoring, Cboe's financials present a positive trajectory and stability in the financial sector.

Income Statement

Cboe Global Markets demonstrates strong revenue growth with a 5.8% increase in TTM compared to the previous annual period. The company maintains healthy profit margins, with a gross profit margin of 56.3% and a net profit margin of 18.6% for TTM. EBIT and EBITDA margins are also robust at 28.9% and 31.8% respectively, indicating efficient operational management. The consistent revenue growth trajectory reflects positively on Cboe's market position and profitability.

Balance Sheet

Cboe's balance sheet shows a solid equity base with a debt-to-equity ratio of 0.35, indicating manageable leverage. The equity ratio stands at 51.4%, highlighting a strong equity foundation. Return on equity is a healthy 18.1%, showcasing effective utilization of shareholder capital. However, the relatively high total liabilities warrant monitoring, though they are well-covered by assets and equity.

Cash Flow

Cboe's cash flow is strong, with significant growth in free cash flow, up 71.2% in the latest TTM period compared to the previous year. The operating cash flow to net income ratio is robust at 2.3, indicating strong cash generation relative to earnings. Similarly, the free cash flow to net income ratio is high at 2.2, reflecting efficient cash utilization. Overall, Cboe demonstrates excellent cash flow management, providing a cushion for future investments and obligations.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.33B	4.09B	3.77B	3.96B	3.49B	3.43B
	Gross Profit
2.44B	1.61B	1.92B	1.74B	1.19B	1.03B
	EBIT
1.25B	1.10B	1.06B	970.10M	805.90M	662.20M
	EBITDA
1.40B	1.27B	1.27B	1.14B	988.90M	865.90M
	Net Income Common Stockholders
804.90M	764.90M	761.40M	235.00M	529.00M	468.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.15B	1.03B	600.70M	524.40M	379.00M	337.80M
	Total Assets
8.67B	7.79B	7.49B	7.00B	6.81B	6.52B
	Total Debt
1.60B	1.60B	1.61B	1.87B	1.43B	1.34B
	Net Debt
556.40M	679.00M	1.07B	1.44B	1.09B	1.09B
	Total Liabilities
4.22B	3.51B	3.50B	3.53B	3.21B	3.17B
	Stockholders Equity
4.45B	4.28B	3.98B	3.47B	3.60B	3.35B
Cash Flow		Free Cash Flow
1.78B	1.04B	1.03B	591.30M	545.80M	1.41B
	Operating Cash Flow
1.85B	1.10B	1.08B	651.10M	596.80M	1.46B
	Investing Cash Flow
-148.20M	-141.80M	-55.10M	-835.10M	-352.70M	-430.50M
	Financing Cash Flow
-440.90M	-495.00M	-656.10M	81.70M	-200.30M	-201.70M

Cboe Global Markets Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 231.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBOE, the sentiment is Positive. The current price of 231.58 is above the 20-day moving average (MA) of 224.58, above the 50-day MA of 219.61, and above the 200-day MA of 208.67, indicating a bullish trend. The MACD of 2.58 indicates Negative momentum. The RSI at 60.87 is Neutral, neither overbought nor oversold. The STOCH value of 90.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBOE.

Cboe Global Markets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CME	79 Outperform	$102.37B	28.56	13.40%	3.70%	11.72%	13.31%
ICE	79 Outperform	$101.03B	36.47	10.27%	1.04%	13.25%	10.82%
CBOE	78 Outperform	$24.25B	30.36	18.93%	1.05%	15.76%	1.97%
NDAQ	77 Outperform	$46.95B	37.08	11.43%	1.17%	25.89%	16.37%
SPGI	76 Outperform	$156.42B	40.04	11.68%	0.72%	12.98%	42.72%
MSCI	71 Outperform	$43.23B	38.42	-117.99%	1.18%	11.67%	-0.89%
Sector *	64 Neutral	$12.64B	9.78	7.67%	17015.08%	12.23%	-6.02%

Cboe Global Markets Corporate Events

Cboe Global Markets Approves Key Proposals at Annual Meeting

On May 6, 2025, Cboe Global Markets held its Annual Meeting of Stockholders, where several key proposals were approved. The stockholders approved the Third Amended and Restated Long-Term Incentive Plan, elected a new Board of Directors, ratified the appointment of KPMG LLP as the independent auditor for 2025, and approved a stockholder proposal on political spending. These decisions are expected to impact the company’s governance and operational strategies moving forward.

Cboe Global Markets Announces CEO Transition

Cboe Global Markets announced the retirement of CEO Fredric J. Tomczyk, effective May 7, 2025, with Craig Donohue appointed as his successor. Donohue, a seasoned executive with extensive experience in global financial markets, is expected to drive forward Cboe’s strategic initiatives and enhance its market leadership, ensuring a smooth transition and continued growth for the company.