Education
About Us
Working with TipRanks
Follow Us
Euronext NV Unsponsored ADR (ERNXY)
OTHER OTC:ERNXY
Top Page
Euronext NV Unsponsored ADR
(OTC:ERNXY)
Select Model
Select Model
Rating:73Outperform
Price Target:
$37.00
Action:ReiteratedDate:03/02/26
The score is driven primarily by strong profitability and a constructive earnings-call outlook (growth initiatives, disciplined leverage, and shareholder returns). It is tempered by weakening recent cash-flow/revenue signals in the provided financial statement summary, stretched technical momentum (overbought readings), and a valuation that looks more premium than bargain.
Positive Factors
High and expanding profitability
Euronext's very high and expanding margins reflect a scalable marketplace model with low incremental costs. Sustained operating and EBITDA margins support durable cash generation, funding investments, dividends and buybacks while insulating returns from moderate revenue variability over the next 2–6 months.
Diversified recurring revenue and custody scale
A majority of revenue comes from non‑volume, recurring services (data, listings, custody). Record custody assets and diversified fee pools reduce reliance on short‑term trading volumes, creating a durable revenue base that supports predictability and resilience across market cycles.
Prudent leverage and capital returns
Leverage within a 1–2x target and sizable cash stores give financial flexibility to fund strategic projects and weather volatility. Active buybacks and higher dividend guidance signal management discipline and free cash flow prioritization, supporting long‑term shareholder returns.
Negative Factors
Recent revenue and free cash flow weakness
A revenue dip alongside a sharp FCF decline reduces near‑term cash conversion visibility. If the revenue slowdown or lower cash conversion persists, it could constrain reinvestment capacity, reduce cushion for episodic costs, and pressure the pace of future buybacks or dividends.
2026 operating expense step‑up and integration costs
A material guided OpEx increase for 2026 tied to acquisitions and product investments will weigh on near‑term operating leverage. Until synergies and new product revenues realize, margins and free cash flow could be pressured, increasing execution risk across 2–6 months.
Large asset base vs equity and rising debt trend
A balance sheet with very large assets relative to equity and increasing debt makes capital cushions thinner in stress scenarios. Asset valuation or liquidity shocks could disproportionately affect solvency metrics; rising leverage reduces flexibility for opportunistic M&A or aggressive payouts.
Euronext NV Unsponsored ADR (ERNXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.01B
Dividend YieldN/A
Average Volume (3M)1.53K
Price to Earnings (P/E)104.4
Beta (1Y)0.12
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees2,407
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)0.33
Shares Outstanding518,449,650
10 Day Avg. Volume217
30 Day Avg. Volume1,532
Financial Highlights & Ratios
PEG Ratio-1.33
Price to Book (P/B)14.22
Price to Sales (P/S)36.91
P/FCF Ratio94.52
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue8.98
Enterprise Value/Gross Profit10.58
Enterprise Value/Ebitda13.93
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Euronext NV Unsponsored ADR Business Overview & Revenue Model
Company DescriptionEuronext N.V., together with its subsidiaries, operates securities and derivatives exchanges in Continental Europe, Ireland, and Norway. The company offers a range of exchange and corporate services, including security listings, cash and derivatives trading, and market data dissemination. It also provides listing venues and cash equities trading venues; and various marketplaces, including multilateral trading facilities for investors, broker-dealers, and other market participants to meet directly to buy and sell cash equities, fixed income securities, and exchange traded products. In addition, the company offers options contracts based on the blue-chip equities listed on Euronext; commodity derivatives, such as milling wheat futures contracts; and post-trade services, as well as distributes and sells real-time, historic, and reference data to data vendors, and financial institutions and individual investors. Further, it provides equity, debt, fund and ETF listing, corporate and investor, cash trading, foreign exchange trading, derivatives trading, fixed income trading, and power trading services. Additionally, the company offers technology solutions and services to exchanges, venue operators, and financial institutions; connectivity, colocation, and network and proximity services; data analytics, risk management, order management system, broker workstations, algorithmic trading validation, and regulatory reporting services; and hosting services to financial firms and third-party venue operators. The company was formerly known as Euronext Group N.V. and changed its name to Euronext N.V. in May 2014. Euronext N.V. was founded in 2000 and is headquartered in Amsterdam, the Netherlands.
How the Company Makes Money
Euronext NV Unsponsored ADR Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call communicated a broadly positive operational and financial story: double‑digit top‑line, EBITDA and EPS growth, expanding margins (full year), record custody assets, completed buyback and disciplined leverage (1.5x). Management also laid out concrete strategic steps (Admincontrol and Athex integration, power futures, CSD expansion and repo offering) that underpin growth. Key near‑term risks flagged were a sharp Q4 reduction in operating cash flow (working capital effects), non‑cash acquisition accounting adjustments, and a guided step‑up in underlying expenses for 2026 tied to integration and growth investments. On balance, the company’s strong results, prudent balance‑sheet management and clear execution plan outweigh the manageable operational and accounting headwinds.Q4-2025 Updates
Positive Updates
Strong full-year top-line growth
Underlying revenue and income grew 12.1% in FY2025 to more than EUR 1.8 billion, with Q4 revenue at EUR 460.8 million, up 10.8% year‑on‑year.
Double-digit EBITDA expansion and high margins
Adjusted EBITDA for FY2025 rose 13.6% to approximately EUR 1.1 billion; adjusted EBITDA margin expanded by 0.8 percentage points to 62.7% for the year.
EPS and net income growth
Adjusted EPS increased 10.3% to EUR 7.27 for FY2025; adjusted net income was EUR 736.5 million, up 7.9%.
Recurring Q4 profitability
Q4 2025 adjusted EBITDA grew 8.9% to EUR 275 million with an adjusted margin of 59.7%; reported Q4 EBITDA was EUR 260.8 million, up 8.1%.
Balanced revenue mix and strong non-volume revenues
Non‑volume‑related revenue represented 59% of total revenue and rose 10.9% year‑on‑year; management noted non‑volume revenue covers 157% of underlying operating expenses (ex D&A).
Robust growth across trading businesses
Volume‑related revenue rose 13.9% (FY) with double‑digit performance in fixed income and commodities; Q4 highlights include equity market revenue +12.8% to EUR 101.6 million and cash equity trading & clearing +15.7% to EUR 89.4 million (average daily volumes on Euronext +15% to EUR 12bn).
Record and growing asset custody base
Assets under custody reached a record EUR 7.9 trillion in January 2026 (EUR 7.6 trillion in Dec 2025), supporting custody & settlement revenue growth (custody revenue +9.6% in Q4).
Strong balance sheet and capital returns
Net debt / last‑12‑months adjusted EBITDA at 1.5x (within 1–2x target); cash position > EUR 1.5 billion at year end; proposed dividend EUR 321.5 million (~+10% YoY) and completed EUR 250 million share repurchase program in Jan 2026.
Successful strategic M&A and integration starts
Completed Admincontrol acquisition (SaaS) and voluntary exchange for Athex Group; Athex showed very strong performance (January ADVs roughly doubled YoY to ~412 million) and management expects substantial synergies from migration and integration initiatives.
Clear roadmap and product expansion
Near‑term product/market actions: power futures expansion (Mar 2026), fully integrated European repo solution (by Jun 2026), Euronext Securities to become CSD of reference for four markets in Sep 2026; partnerships with leading issuing agents announced (Dec 2025).
Negative Updates
Q4 operating cash flow decline
Net cash flow from operating activities in Q4 2025 was EUR 85.5 million versus EUR 175 million in Q4 2024, primarily due to negative working capital impacts from clearing and Nord Pool CCP activity.
Rising underlying expenses and 2026 cost guidance
FY2025 underlying expenses (including Admincontrol and Athex) were EUR 680.1 million, up 9.6% YoY; guidance indicates total underlying expenses (ex D&A) around EUR 770 million for 2026 (including ~EUR 35 million from Athex and ~EUR 15 million of strategic investment), implying a material step‑up in OpEx.
Quarterly margin pressure in Q4
Q4 adjusted EBITDA margin declined ~1 percentage point to 59.7% year‑on‑year, reflecting integration costs and non‑underlying items.
Admincontrol IFRS3 non‑cash revenue adjustments
As part of purchase price allocation adjustments, Admincontrol reduced reported revenue by EUR 4.4 million in Q4 with an expected additional EUR 2.6 million reduction through mid‑May 2026 (non‑cash, non‑recurring IFRS3 impact).
Pressure in treasury, FX and derivatives revenue
Net treasury income fell 19.4% in Q4 (lower average collateral, one‑offs and Italian migration); FX trading revenue down 12.7% YoY in Q4 (like‑for‑like −4.7%); financial derivatives trading & clearing revenue down 5% due to low volatility.
Some post‑trade revenue declines
Other post‑trade revenue declined 6.3% in Q4 to EUR 7.2 million, largely explained by migration of Italian markets to a harmonized clearing framework.
Adjusted net income growth lagging revenue/EBITDA
While revenue and adjusted EBITDA showed double‑digit growth, adjusted net income grew more modestly at 7.9% for FY2025, impacted by higher D&A (PPA) and other non‑operating adjustments.
Company Guidance
Management reiterated the Innovate for Growth 2027 ambition to deliver above‑5% CAGR in revenue and EBITDA by end‑2027 and provided 2026 operating guidance: total underlying expenses excluding D&A around EUR 770m (Q4‑annualised ex‑Athex ≈ EUR 720m), plus ~EUR 35m of Athex operating costs and ~EUR 15m of incremental underlying investment for strategic projects. They confirmed a strong balance sheet and liquidity position (cash > EUR 1.5bn at end‑2025; net debt/LTM adjusted EBITDA 1.5x, within a 1–2x target range), completed a EUR 250m share repurchase (finished Jan‑26), proposed a dividend of EUR 321.5m (≈+10% y/y), and completed refinancing actions including a EUR 600m (3‑yr, A‑) bond issue and a tender that leaves EUR 385.5m of 2026 bonds outstanding. Management anchored the guidance in FY‑25 results (underlying revenue +12.1% to >EUR 1.8bn; adjusted EBITDA EUR 1.1bn, +13.6%, FY adjusted EBITDA margin 62.7% +0.8pts; adjusted net income EUR 736.5m, +7.9%; adjusted EPS EUR 7.27, +10.3%) and Q4 metrics (revenue EUR 460.8m, +10.8%; Q4 adjusted EBITDA EUR 275m, margin 59.7%; Q4 adjusted net income EUR 179.6m; Q4 adjusted EPS EUR 1.77), while flagging near‑term product rollouts (power futures in March‑26, repo solution by June‑26, Euronext Securities CSD reference in Sept‑26) and the expected benefits from Admincontrol and Athex integrations.Euronext NV Unsponsored ADR Financial Statement Overview
Summary
Fundamentals are solid overall, led by very strong profitability (high and expanding gross/operating margins) and sizable absolute cash generation. The score is held back by a 2025 revenue decline, a sharp year-over-year drop in free cash flow, and balance-sheet considerations including rising debt and a large asset base relative to equity.Income Statement
Profitability is a clear strength: gross margin expanded meaningfully from 71.2% (2024) to 89.0% (2025) and operating profitability remains very strong (2025 operating margin ~52.8%, EBITDA margin ~63.8%). Net margin stayed robust in the mid-30% range (35.3% in 2025). The main weakness is growth momentum: revenue rose steadily from 2020–2024 but declined in 2025 (-1.7% year-over-year), signaling a near-term slowdown despite resilient margins.86
Very Positive
Balance Sheet
Leverage looks manageable for the model, with debt-to-equity around ~0.73–0.79 in 2022–2025 (0.76 in 2025) and return on equity holding in the low-to-mid teens (~13–14% in 2024–2025). A key risk is that reported total assets are very large relative to equity, which can imply a balance sheet that is less equity-cushioned than typical operating companies; this makes capital structure and asset valuation more important in a downturn. Debt has also trended upward versus 2022–2023 levels.72
Positive
Cash Flow
Cash generation remains solid in absolute terms (2025 operating cash flow ~€812M and free cash flow ~€682M), supporting flexibility. However, free cash flow fell sharply in 2025 (down ~22% year-over-year), and cash conversion signals are mixed: 2024–2023 showed strong free cash flow relative to net income (~0.88x), but 2025 displays missing/zeroed conversion and coverage fields in the provided data, reducing visibility and confidence in cash-flow quality for the most recent year.63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.75B | 1.62B | 1.47B | 1.41B | 1.29B |
| Gross Profit | 1.55B | 1.16B | 1.10B | 1.04B | 958.49M |
| EBITDA | 1.11B | 975.60M | 904.96M | 811.76M | 756.32M |
| Net Income | 617.53M | 585.60M | 513.57M | 437.83M | 413.34M |
Balance Sheet | |||||
| Total Assets | 327.49B | 209.39B | 189.51B | 175.14B | 145.91B |
| Cash, Cash Equivalents and Short-Term Investments | 1.66B | 1.74B | 176.46B | 168.01B | 961.95M |
| Total Debt | 3.47B | 3.12B | 3.11B | 3.09B | 3.13B |
| Total Liabilities | 322.76B | 204.99B | 185.42B | 171.10B | 142.14B |
| Stockholders Equity | 4.54B | 4.25B | 3.95B | 3.91B | 3.65B |
Cash Flow | |||||
| Free Cash Flow | 682.20M | 621.36M | 723.04M | 516.97M | 476.12M |
| Operating Cash Flow | 812.10M | 708.60M | 826.07M | 616.49M | 543.71M |
| Investing Cash Flow | -387.70M | -37.07M | 157.91M | -122.58M | -4.22B |
| Financing Cash Flow | -495.10M | -441.67M | -522.21M | -282.37M | 3.84B |
Euronext NV Unsponsored ADR Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $111.68B | 24.28 | 14.48% | 3.92% | 5.84% | 8.51% | |
80 Outperform | $30.34B | 23.89 | 22.99% | 1.06% | 16.74% | 26.74% | |
73 Outperform | $16.01B | 104.42 | 14.94% | ― | ― | ― | |
72 Outperform | $90.41B | 28.00 | 11.60% | 1.19% | 8.96% | 30.16% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $126.24B | 34.77 | 13.62% | 0.73% | 9.04% | 21.35% | |
65 Neutral | $48.62B | 26.70 | 15.03% | 1.07% | 16.41% | 68.03% |
* Financial Sector Average
ERNXY
Euronext NV Unsponsored ADR
31.81
4.57
16.75%
CBOE
Cboe Global Markets
289.90
76.39
35.78%
CME
CME Group
311.40
57.54
22.67%
ICE
Intercontinental Exchange
159.20
-12.17
-7.10%
SPGI
S&P Global
422.49
-67.90
-13.85%
NDAQ
Nasdaq
85.53
11.64
15.76%
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.