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Cboe Global Markets Inc (CBOE)
BATS:CBOE

Cboe Global Markets (CBOE) AI Stock Analysis

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Cboe Global Markets

(BATS:CBOE)

Rating:80Outperform
Price Target:
$263.00
â–²(13.67%Upside)
Cboe Global Markets presents a strong investment profile, driven primarily by its robust financial performance and positive earnings call outcomes. The stable technical indicators and recent corporate events further enhance its position, although the relatively high P/E ratio suggests careful consideration of valuation is needed.
Positive Factors
Product Expansion
Management discussed its current efforts to expand its product offerings and increase access to scale the business.
Revenue Growth
Cboe’s leading derivatives franchise is a key beneficiary of elevated volatility, which was exhibited in the quarter as total revenues increased to record levels from higher volumes.
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
A significant sequential decline in exchange volumes is expected in the second half, with a forecasted -6% half-over-half growth.

Cboe Global Markets (CBOE) vs. SPDR S&P 500 ETF (SPY)

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 primarily through transaction fees, market data fees, and access and capacity fees. Transaction fees are charged on trades executed on its various exchanges, including equities, options, and futures. Market data fees are collected by providing real-time and historical data to market participants and financial institutions. Access and capacity fees are derived from charging market participants for the connectivity and bandwidth needed to access its exchanges. Additionally, Cboe benefits from strategic partnerships and acquisitions that enhance its product offerings and expand its market reach, further contributing to its revenue streams.

Cboe Global Markets Earnings Call Summary

Earnings Call Date:May 02, 2025
(Q1-2025)
|
% Change Since: 4.88%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong financial performance for Cboe with record-breaking revenue and profit, driven by robust growth in derivatives and DataVantage segments. There were strategic expansions in Asia Pacific and continued focus on global sales efforts and product innovation. However, there were challenges in North American equities and some variability in retail engagement. Overall, the sentiment reflects a positive outlook for Cboe's future growth, supported by a strong balance sheet and strategic initiatives.
Q1-2025 Updates
Positive Updates
Record-Breaking Revenue and Profit
Cboe reported a 13% increase in net revenue year over year to a record $565 million and a 16% increase in adjusted diluted earnings per share to a record $2.50.
Strong Derivatives Business Performance
The derivatives business delivered a record quarter with organic net revenue increasing 16% year over year. SPX options volumes increased 13% year over year while VIX options volumes jumped 33%.
DataVantage and Global Expansion
DataVantage business saw an 8% increase in organic net revenue year over year. Cboe expanded client onboarding in Asia Pacific, including new clients in Korea and Taiwan.
Cash and Spot Markets Growth
Cash and spot markets' organic net revenue increased 10%, driven by healthy trading volumes and growth across regional equities.
Future Growth Opportunities
Cboe is focused on expanding its global sales efforts and product innovation, with significant opportunities identified in the Asia Pacific region.
Negative Updates
Challenges in North American Equities
North American equities net revenue increased only 2% year over year, with a 9% decline in net transaction and clearing fees.
Retail Engagement Variability
Retail investors showed disciplined behavior, but their participation during volatility spikes was lower compared to institutional investors.
Company Guidance
During the Cboe Global Markets First Quarter Earnings Call, guidance for 2025 was provided, highlighting an increase in the full-year total organic net revenue growth guidance to mid to high single digits from mid-single digits, reflecting a strong start to the year. The company reaffirmed its DataVantage organic net revenue growth range of mid to high single digits and maintained its full-year adjusted expense guidance range of $837 million to $852 million. Capital expenditures are expected to remain between $75 million and $85 million, with depreciation and amortization projected to be in the $55 million to $59 million range. The effective tax rate on adjusted earnings is anticipated to be between 28.5% and 30.5% for the full year, while interest expense net of interest income is projected at $2 million to $3 million for the second quarter. The company emphasized disciplined expense management, maintaining a strong operating efficiency, and leveraging a flexible balance sheet to produce durable returns for shareholders.

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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.33B4.09B3.77B3.96B3.49B3.43B
Gross Profit2.44B1.61B1.92B1.74B1.19B1.03B
EBITDA1.40B1.27B1.27B1.14B988.90M865.90M
Net Income804.90M764.90M761.40M235.00M529.00M468.20M
Balance Sheet
Total Assets8.67B7.79B7.49B7.00B6.81B6.52B
Cash, Cash Equivalents and Short-Term Investments1.15B1.03B600.70M524.40M379.00M337.80M
Total Debt1.60B1.60B1.61B1.87B1.43B1.34B
Total Liabilities4.22B3.51B3.50B3.53B3.21B3.17B
Stockholders Equity4.45B4.28B3.98B3.47B3.60B3.35B
Cash Flow
Free Cash Flow1.78B1.04B1.03B591.30M545.80M1.41B
Operating Cash Flow1.85B1.10B1.08B651.10M596.80M1.46B
Investing Cash Flow-148.20M-141.80M-55.10M-835.10M-352.70M-430.50M
Financing Cash Flow-440.90M-495.00M-656.10M81.70M-200.30M-201.70M

Cboe Global Markets Technical Analysis

Technical Analysis Sentiment
Positive
Last Price231.37
Price Trends
50DMA
224.92
Positive
100DMA
218.98
Positive
200DMA
211.01
Positive
Market Momentum
MACD
2.00
Negative
RSI
57.28
Neutral
STOCH
78.66
Neutral
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 231.37 is above the 20-day moving average (MA) of 226.86, above the 50-day MA of 224.92, and above the 200-day MA of 211.01, indicating a bullish trend. The MACD of 2.00 indicates Negative momentum. The RSI at 57.28 is Neutral, neither overbought nor oversold. The STOCH value of 78.66 is Neutral, 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
$51.71B40.8411.43%1.20%25.89%16.37%
80
Outperform
$162.43B41.5811.68%0.72%12.98%42.72%
80
Outperform
$24.23B30.3318.93%1.09%15.76%1.97%
CMCME
79
Outperform
$99.71B27.8213.40%1.81%11.72%13.31%
ICICE
79
Outperform
$105.04B37.9210.27%1.05%13.25%10.82%
68
Neutral
$45.47B40.42-117.99%1.23%11.67%-0.89%
67
Neutral
$17.01B11.909.70%3.76%11.63%-9.47%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CBOE
Cboe Global Markets
231.37
64.54
38.69%
CME
CME Group
276.70
90.14
48.32%
ICE
Intercontinental Exchange
183.11
43.51
31.17%
SPGI
S&P Global
529.61
77.00
17.01%
MSCI
MSCI
587.74
101.24
20.81%
NDAQ
Nasdaq
90.07
30.39
50.92%

Cboe Global Markets Corporate Events

Private Placements and FinancingBusiness Operations and StrategyRegulatory Filings and Compliance
Cboe Global Markets Amends Credit Facility Agreement
Positive
Jun 27, 2025

On June 24, 2025, Cboe Global Markets, Inc. entered into an Amendment and Restatement Agreement with Cboe Clear Europe N.V. and other financial institutions to amend and extend the existing credit facility agreement. The agreement extends the term until June 26, 2026, maintains the aggregate commitment at Euro 1.2 billion, with an increase to Euro 1.7 billion after the accordion feature, and updates provisions to comply with current laws and regulations. This move ensures continued financial flexibility and stability for Cboe Global Markets, potentially impacting its operations and stakeholder relationships positively.

The most recent analyst rating on (CBOE) stock is a Hold with a $195.00 price target. To see the full list of analyst forecasts on Cboe Global Markets stock, see the CBOE Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Cboe Global Markets EVP David Howson Resigns
Neutral
May 28, 2025

On May 27, 2025, David Howson, Executive Vice President and Global President of Cboe Global Markets, announced his resignation, effective August 1, 2025, to return to the UK. His departure has led to strategic leadership changes, with Cathy Clay and Chris Isaacson expanding their roles, enhancing Cboe’s operational agility and positioning the company for sustained global growth. CEO Craig Donohue will also assume the title of President following Howson’s departure.

The most recent analyst rating on (CBOE) stock is a Hold with a $195.00 price target. To see the full list of analyst forecasts on Cboe Global Markets stock, see the CBOE Stock Forecast page.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Cboe Global Markets Approves Key Proposals at Annual Meeting
Neutral
May 7, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Cboe Global Markets Announces CEO Transition
Positive
May 1, 2025

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.

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.Date of analysis: Jun 28, 2025