Cboe Global Markets (CBOE) AI Stock Analysis

• Market Cap: $26.06B
• Dividend Yield: 1.08%
• Average Volume (3M): 717.61K
• Price to Earnings (P/E): 26.7
• Beta (1Y): -0.14
• Revenue Growth: 16.74%
• EPS Growth: 26.74%
• Country: US
• Employees: 1,685
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 2.67
• Shares Outstanding: 104,644,516
• 10 Day Avg. Volume: 732,687
• 30 Day Avg. Volume: 717,607
• PEG Ratio: 24.03
• Price to Book (P/B): 4.80
• Price to Sales (P/S): 5.02
• P/FCF Ratio: 19.75
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 5.59
• Enterprise Value/Gross Profit: 11.60
• Enterprise Value/Ebitda: 17.18
• 1Y Price Target: $272.09
• Price Target Upside: 7.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): 10.28
• Revenue Forecast (FY): $2.37B

• Rating: 75 Outperform
• Price Target: $277.00 ▲(9.81% Upside)

Cboe Global Markets shows strong financial performance and a positive outlook from its recent earnings call, which are the most significant factors driving the score. Technical indicators suggest a positive trend, though valuation metrics indicate potential overvaluation. The company's strategic focus on growth opportunities further supports a favorable outlook.

Positive Factors

Revenue Growth

The consistent revenue growth reflects Cboe's ability to expand its market reach and strengthen its financial performance, ensuring long-term sustainability.

Derivatives Market Performance

Strong performance in the derivatives market showcases Cboe's competitive advantage and positions it well for future growth in this high-demand sector.

Data Vantage Segment Growth

Growth in the Data Vantage segment underscores Cboe's ability to capitalize on data-driven opportunities, enhancing its revenue streams and market position.

Negative Factors

Decline in Free Cash Flow Growth

A significant decline in free cash flow growth could impact Cboe's liquidity and ability to invest in future growth opportunities, posing a risk to financial stability.

Futures Net Revenue Decline

A decline in futures net revenue indicates potential challenges in maintaining volume growth, which could affect overall profitability and market share.

Strategic Realignment and Business Divestitures

The strategic shift away from certain markets may limit Cboe's global expansion and diversification efforts, potentially impacting its long-term growth strategy.

Cboe Global Markets Business Overview & Revenue Model

Company Description

Cboe 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 Money

Cboe Global Markets generates revenue primarily through transaction fees, which are charged for trades executed on its exchanges. These fees are collected from market participants, including retail and institutional investors, as well as market makers. Additionally, CBOE earns revenue from the listing and trading of exchange-traded products (ETPs) and through market data services, which provide valuable trading information to clients. The company also engages in licensing agreements for its proprietary indexes, such as the Cboe Volatility Index (VIX), which contributes to its revenue stream. Strategic partnerships with financial institutions and technology firms further enhance CBOE's product offerings and market reach, ultimately supporting its earnings growth.

Cboe Global Markets Financial Statement Overview

Summary

Cboe Global Markets demonstrates strong financial health with robust revenue growth and profitability. The balance sheet is solid with low leverage, and the company maintains a healthy return on equity. However, the recent decline in free cash flow growth warrants attention.

Income Statement

Cboe Global Markets has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 1.9% and consistent profitability. The gross profit margin has improved significantly to 69.5% in the TTM, indicating efficient cost management. The net profit margin is healthy at 21.3%, showing effective conversion of revenue into profit. However, the EBIT margin has slightly decreased compared to previous years, suggesting potential cost pressures.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.32, indicating prudent financial leverage. The return on equity is strong at 21.5%, reflecting efficient use of shareholder funds. The equity ratio stands at 53.9%, showcasing a solid capital structure. However, the slight increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Cboe's cash flow performance shows mixed results. The operating cash flow to net income ratio is moderate at 0.32, indicating room for improvement in cash generation from operations. The free cash flow to net income ratio is strong at 89.2%, suggesting good cash conversion. However, the free cash flow growth rate has declined significantly by 66% in the TTM, which could impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.62B	4.09B	3.77B	3.96B	3.49B	3.43B
Gross Profit	2.22B	2.07B	1.92B	1.74B	1.48B	1.25B
EBITDA	1.50B	1.27B	1.27B	659.70M	971.50M	857.60M
Net Income	981.50M	764.90M	761.40M	235.00M	529.00M	468.20M
Balance Sheet
Total Assets	9.07B	7.79B	7.49B	7.00B	6.81B	6.52B
Cash, Cash Equivalents and Short-Term Investments	1.80B	1.03B	600.70M	524.40M	379.00M	337.80M
Total Debt	1.59B	1.60B	1.61B	1.87B	1.43B	1.34B
Total Liabilities	4.18B	3.51B	3.50B	3.53B	3.21B	3.17B
Stockholders Equity	4.88B	4.28B	3.98B	3.47B	3.60B	3.35B
Cash Flow
Free Cash Flow	1.15B	963.70M	748.00M	808.80M	545.80M	1.41B
Operating Cash Flow	1.22B	1.02B	793.00M	868.60M	596.80M	1.46B
Investing Cash Flow	-95.90M	-141.80M	-55.10M	-835.10M	-352.70M	-430.50M
Financing Cash Flow	-364.80M	-495.00M	-656.10M	81.70M	-200.30M	-201.70M

Cboe Global Markets Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 252.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 252.26 is below the 20-day moving average (MA) of 253.23, above the 50-day MA of 248.36, and above the 200-day MA of 233.44, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.07 is Neutral, neither overbought nor oversold. The STOCH value of 36.78 is Neutral, 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
ICE	80 Outperform	$91.26B	29.14	11.32%	1.19%	8.96%	30.16%
NDAQ	78 Outperform	$53.06B	33.13	14.07%	1.12%	16.41%	68.03%
CBOE	75 Outperform	$26.06B	26.73	21.51%	1.08%	16.74%	26.74%
CME	74 Outperform	$98.43B	26.46	13.35%	3.95%	5.84%	8.51%
SPGI	73 Outperform	$151.36B	36.34	12.57%	0.75%	9.04%	21.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MSCI	62 Neutral	$41.42B	34.94	―	1.28%	9.02%	3.45%

Cboe Global Markets Corporate Events

Cboe Global Markets Reports Record Revenue Growth

Cboe Global Markets’ recent earnings call painted a picture of robust financial health, underscored by record-breaking revenue growth and strategic cost management. Despite some challenges, such as the closure of its Japan equities business and a decline in futures segment revenue, the overall sentiment was positive, driven by strong performance in derivatives and data businesses.