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Cboe Global Markets (CBOE)
:CBOE
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Cboe Global Markets
(BATS:CBOE)
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Rating:77Outperform
Price Target:
$269.00
â–²(10.25% Upside)
Cboe Global Markets receives a strong overall score driven by robust financial performance and positive earnings call highlights. While technical analysis and valuation present some caution, the company's strategic growth initiatives and financial health support a favorable outlook.
Positive Factors
Revenue Growth
The consistent revenue growth reflects expanding market reach and strong demand for Cboe's products, indicating robust business fundamentals and potential for sustained growth.
Derivatives Franchise Performance
Strong performance in derivatives highlights Cboe's competitive advantage in this segment, supporting its market position and long-term revenue potential.
Cash Flow Strength
Robust cash flow generation enhances Cboe's financial flexibility, enabling strategic investments and shareholder returns, supporting long-term business sustainability.
Negative Factors
Closure of Japan Equities Business
The closure reflects a strategic shift but also indicates challenges in international operations, potentially impacting revenue diversity and growth.
Futures Segment Decline
Declining futures revenue suggests potential challenges in maintaining market share or demand, which could affect overall revenue stability.
Market Valuation Concerns
High valuation may limit upside potential and indicates market expectations that could pressure Cboe to maintain high growth to justify its valuation.
Cboe Global Markets (CBOE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.44B
Dividend Yield1.07%
Average Volume (3M)874.99K
Price to Earnings (P/E)28.5
Beta (1Y)-0.04
Revenue Growth18.99%
EPS Growth17.97%
CountryUS
Employees1,685
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)2.46
Shares Outstanding104,590,130
10 Day Avg. Volume865,824
30 Day Avg. Volume874,994
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue5.43
Enterprise Value/Gross Profit9.79
Enterprise Value/Ebitda16.82
Forecast
1Y Price Target
$246.50Price Target Upside1.03% Upside
Rating ConsensusHold
Number of Analyst Covering15
Cboe Global Markets Business Overview & Revenue Model
Company DescriptionCboe Global Markets, Inc., through its subsidiaries, operates as an options exchange worldwide. It operates through five segments: Options, North American Equities, Futures, Europe and Asia Pacific, and Global FX. The Options segment trades in listed market indices. The North American Equities segment trades in listed U.S. and Canadian equities. This segment also offers exchange-traded products (ETP) transaction and ETP listing services. The Futures segment trades in futures. The Europe and Asia Pacific segment offers pan-European listed equities and derivatives transaction services, ETPs, exchange-traded commodities, and international depository receipts, as well as ETP listings and clearing services. The Global FX segment provides institutional foreign exchange (FX) trading and non-deliverable forward FX transactions services. The company has strategic relationships with S&P Dow Jones Indices, LLC; FTSE International Limited; Frank Russell Company; MSCI Inc.; and DJI Opco, LLC. The company was formerly known as CBOE Holdings, Inc. and changed its name to Cboe Global Markets, Inc. in October 2017. Cboe Global Markets, Inc. was founded in 1973 and is headquartered in Chicago, Illinois.
How the Company Makes MoneyCboe Global Markets generates revenue through multiple streams, primarily from transaction fees, which are charged for the execution of trades on its exchanges. Additionally, the company earns revenue from the sale of market data and technology solutions, providing vital information and tools to traders and institutions. CBOE also benefits from listing fees for new products and securities on its exchanges. Significant partnerships with financial institutions and technology firms enhance its offerings and capabilities, contributing to its earnings. Moreover, revenue from proprietary products, such as the Cboe Volatility Index (VIX), further bolsters its financial performance.
Cboe Global Markets Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Positive
The earnings call demonstrated strong financial performance and growth across multiple segments, particularly in derivatives and data. However, the closure of the Japan equities business and the decline in futures segment revenue were noted challenges. Overall, the positive growth metrics and strategic initiatives outweighed the lowlights.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Cboe grew net revenue 14% year-over-year to a record $587 million, driven by robust volumes in derivatives, cash, and spot markets, as well as strong new sales growth in the Cboe Data Vantage business.
Derivatives Franchise Performance
The Derivatives franchise delivered a record quarter with organic net revenue increasing 17% year-over-year. SPX options volumes jumped 21% year-over-year and SPX 0DTE volumes rebounded to new highs.
Cash and Spot Markets Growth
Second quarter net revenue was up 11%, with the Europe and Asia Pacific segment achieving a 30% increase driven by strong industry volumes and market share gains in Europe.
Cboe Data Vantage Success
Net revenue for Data Vantage improved by 11% year-over-year, with 45% of new data sales occurring internationally. The segment continues to leverage new technologies and expand global access.
Strong Financial Health
Cboe posted a 14% year-over-year increase in adjusted diluted EPS to $2.46, with adjusted operating EBITDA margin expanding by 2.3 percentage points to 65.8%.
Negative Updates
Closure of Japan Equities Business
Cboe announced the closure of its Japan equities business, reflecting a strategic reallocation of resources to higher potential return activities. This decision will result in a pretax charge of approximately $5 million.
Futures Segment Decline
Futures net revenue decreased 14% from the second quarter of 2024, primarily due to lower volumes.
Company Guidance
During the second quarter earnings call for Cboe Global Markets, several key metrics were highlighted. Cboe posted a 14% year-over-year increase in net revenue, reaching a record $587 million, and a 14% increase in adjusted diluted EPS to $2.46. The Derivatives franchise delivered a record quarter with a 17% rise in organic net revenue, notably with SPX options volumes increasing 21% year-over-year. The Data Vantage business also saw a net revenue increase of 11%. Moreover, Cboe's adjusted operating EBITDA grew 19%, with the margin expanding by 2.3 percentage points to 65.8%. The company revised its 2025 guidance, lowering the full year expense guidance range to $832 million to $847 million, and raised its full-year total organic net revenue growth guidance to high single digits. Additionally, the company plans a strategic exit from its Japan equities business, expecting a pretax charge of approximately $5 million in Q3 2025.Cboe Global Markets Financial Statement Overview
Summary
Cboe Global Markets demonstrates strong financial health across its income statement, balance sheet, and cash flow. Strong revenue growth and efficient operations support profitability. The company maintains a solid balance sheet with manageable leverage and strong equity. Cash flow generation is robust, underscoring financial stability and ability to fund operations and investments.Income Statement
Cboe Global Markets shows strong income performance with a robust Gross Profit Margin of 67.7% and a solid Net Profit Margin of 19.8% for TTM. Revenue has grown steadily, with a growth rate of 10.7% in the most recent period, indicating a positive trajectory. EBIT and EBITDA margins are also strong at 28.7% and 31.5% respectively, reflecting good operational efficiency.85
Very Positive
Balance Sheet
The company's balance sheet is solid with a healthy Debt-to-Equity Ratio of 0.34, indicating manageable leverage. Return on Equity stands at 19.3%, showing effective capital utilization. The Equity Ratio is 51.6%, indicating a strong equity base supporting its assets.78
Positive
Cash Flow
Cboe's cash flow performance is strong, with a Free Cash Flow Growth Rate of 74.1%, and Free Cash Flow to Net Income Ratio of 2.01, indicating robust cash generation relative to net income. The Operating Cash Flow to Net Income Ratio is 2.09, reflecting efficient cash flow management.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.53B | 4.09B | 3.77B | 3.96B | 3.49B | 3.43B |
| Gross Profit | 2.52B | 1.61B | 1.92B | 1.74B | 1.19B | 1.03B |
| EBITDA | 1.46B | 1.27B | 1.27B | 1.14B | 988.90M | 865.90M |
| Net Income | 898.40M | 764.90M | 761.40M | 235.00M | 529.00M | 468.20M |
Balance Sheet | ||||||
| Total Assets | 9.05B | 7.79B | 7.49B | 7.00B | 6.81B | 6.52B |
| Cash, Cash Equivalents and Short-Term Investments | 1.47B | 1.03B | 600.70M | 524.40M | 379.00M | 337.80M |
| Total Debt | 1.60B | 1.60B | 1.61B | 1.87B | 1.43B | 1.34B |
| Total Liabilities | 4.38B | 3.51B | 3.50B | 3.53B | 3.21B | 3.17B |
| Stockholders Equity | 4.67B | 4.28B | 3.98B | 3.47B | 3.60B | 3.35B |
Cash Flow | ||||||
| Free Cash Flow | 1.81B | 1.04B | 1.03B | 591.30M | 545.80M | 1.41B |
| Operating Cash Flow | 1.88B | 1.10B | 1.08B | 651.10M | 596.80M | 1.46B |
| Investing Cash Flow | -228.00M | -141.80M | -55.10M | -835.10M | -352.70M | -430.50M |
| Financing Cash Flow | -367.10M | -495.00M | -656.10M | 81.70M | -200.30M | -201.70M |
Cboe Global Markets Technical Analysis
Positive
243.99
Price Trends
240.94
Positive
234.03
Positive
220.15
Positive
Market Momentum
0.04
Negative
59.52
Neutral
94.58
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 243.99 is above the 20-day moving average (MA) of 235.64, above the 50-day MA of 240.94, and above the 200-day MA of 220.15, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.52 is Neutral, neither overbought nor oversold. The STOCH value of 94.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBOE.
Cboe Global Markets Risk Analysis
Cboe Global Markets disclosed 38 risk factors in its most recent earnings report. Cboe Global Markets reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cboe Global Markets Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | 96.20B | 32.26 | 10.56% | 1.13% | 11.44% | 29.10% | |
77 Outperform | $25.44B | 28.51 | 20.64% | 1.07% | 18.99% | 17.97% | |
77 Outperform | 95.30B | 25.59 | 13.54% | 3.98% | 11.15% | 13.98% | |
71 Outperform | 43.82B | 37.53 | -133.00% | 1.24% | 10.48% | 0.98% | |
70 Outperform | 50.01B | 33.49 | 12.77% | 1.18% | 23.55% | 49.91% | |
69 Neutral | 149.82B | 37.72 | 11.98% | 0.78% | 10.72% | 23.30% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
CBOE
Cboe Global Markets
243.99
41.52
20.51%
CME
CME Group
268.73
57.50
27.22%
ICE
Intercontinental Exchange
167.28
8.43
5.31%
SPGI
S&P Global
484.94
-28.00
-5.46%
MSCI
MSCI
564.66
-11.25
-1.95%
NDAQ
Nasdaq
86.73
14.61
20.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.