Intercontinental Exchange (ICE) AI Stock Analysis

• Market Cap: $105.04B
• Dividend Yield: 1.05%
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): 37.9
• Beta (1Y): 0.67
• Revenue Growth: 13.25%
• EPS Growth: 10.82%
• Country: US
• Employees: 12,842
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 1.72
• Shares Outstanding: 573,626,300
• 10 Day Avg. Volume: 2,138,008
• 30 Day Avg. Volume: 2,293,627
• PEG Ratio: 35.32
• Price to Book (P/B): 3.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.84
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 2.69
• Enterprise Value/Gross Profit: 17.50
• Enterprise Value/Ebitda: 5.19
• 1Y Price Target: $193.10
• Price Target Upside: 5.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 79 Outperform
• Price Target: ―

Intercontinental Exchange receives a strong overall stock score, driven by robust financial performance and positive earnings call results. The company shows significant revenue growth and profitability, although valuation metrics suggest the stock may be overvalued. Technical indicators support a positive trend, but caution due to nearing overbought conditions is advised. Overall, ICE's financial health and market position contribute to a favorable outlook.

Positive Factors

Earnings Expectations

Intercontinental Exchange Inc. has seen upward revisions in its adjusted earnings per share estimates, which suggests improved financial expectations.

Industry Innovation

ICE's ability and commitment to digitize the mortgage industry and penetrate the $14 billion total addressable market reflects strong growth potential.

Stock Performance

The analyst's recommendation includes a target price increase to $192, indicating confidence in the stock's future performance.

Negative Factors

Deal Uncertainty

The focus is on the achievability of earnings per share after the Black Knight deal closure, highlighting potential uncertainties.

Investment Analysis

Investors should consider Morgan Stanley Research as only a single factor in making their investment decisions, indicating potential limitations in the analysis.

Intercontinental Exchange Business Overview & Revenue Model

Company Description

Intercontinental Exchange (ICE) is a leading global operator of exchanges and clearing houses, and provider of data and listings services. Established in 2000 and headquartered in Atlanta, Georgia, ICE operates a network of exchanges and clearing houses for financial and commodity markets, including the New York Stock Exchange. ICE's core services include trading and clearing a wide range of asset classes, providing market data, and offering technology solutions that facilitate financial and commodity trading globally.

How the Company Makes Money

Intercontinental Exchange primarily makes money through transaction and clearing fees, data services, and listings. The company's revenue model hinges on fees collected from trading and clearing activities on its various exchanges, such as futures, options, and financial instruments. ICE also generates significant income from selling market data and analytics, which are crucial for traders and financial institutions. Additionally, ICE earns revenue from listing fees for companies that choose to list their stocks on the New York Stock Exchange. Strategic partnerships and acquisitions have bolstered ICE's capabilities and expanded its service offerings, further contributing to its revenue streams.

Intercontinental Exchange Financial Statement Overview

Summary

Intercontinental Exchange displays a strong financial position with impressive revenue growth, high profitability margins, and efficient cash flow management. While the balance sheet is solid, there is potential for enhancing equity proportions. The company is well-positioned in the financial industry, with a stable outlook and consistent financial performance.

Income Statement

Intercontinental Exchange has demonstrated strong revenue growth, with a 23.3% increase from 2023 to TTM (Trailing-Twelve-Months). The company maintains robust profitability metrics, including a gross profit margin of 63.9% and a net profit margin of 23.1% for TTM. Additionally, the EBIT and EBITDA margins are solid at 37.2% and 47.4% respectively. This consistent growth and high profitability indicate a strong financial performance.

Balance Sheet

The company's balance sheet shows a stable equity position, with a debt-to-equity ratio of 0.74 for TTM, which suggests moderate leverage. The return on equity (ROE) is strong at 9.95%, reflecting effective use of equity to generate profits. The equity ratio stands at 19.6%, indicating a solid capital structure, though there is room for improvement in equity proportions.

Cash Flow

Intercontinental Exchange exhibits steady cash flow with a free cash flow to net income ratio of 1.42, indicating efficient cash conversion. The operating cash flow to net income ratio is 1.64, highlighting strong cash generation capabilities. While the free cash flow observed a decline of 5.8% from 2023 to TTM, the overall cash flow management remains robust.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.05B	11.76B	9.90B	9.64B	9.17B	8.24B
Gross Profit	6.98B	6.52B	5.66B	5.20B	5.02B	4.30B
EBITDA	6.13B	5.95B	4.90B	4.80B	5.82B	3.87B
Net Income	2.78B	2.75B	2.37B	1.45B	4.06B	2.09B
Balance Sheet
Total Assets	142.87B	139.43B	136.08B	194.34B	193.50B	126.20B
Cash, Cash Equivalents and Short-Term Investments	3.17B	1.37B	2.11B	1.80B	607.00M	583.00M
Total Debt	20.62B	20.70B	22.91B	18.38B	14.17B	16.86B
Total Liabilities	114.83B	111.71B	110.30B	171.58B	170.75B	106.57B
Stockholders Equity	27.97B	27.72B	25.72B	22.71B	22.71B	19.50B
Cash Flow
Free Cash Flow	3.96B	4.20B	3.05B	3.07B	2.67B	2.47B
Operating Cash Flow	4.57B	4.61B	3.54B	3.55B	3.12B	2.88B
Investing Cash Flow	-3.33B	-921.00M	-8.80B	677.00M	-786.00M	-9.83B
Financing Cash Flow	7.88B	79.00M	-64.34B	-1.84B	62.03B	6.74B

Intercontinental Exchange Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 183.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICE, the sentiment is Positive. The current price of 183.11 is above the 20-day moving average (MA) of 179.69, above the 50-day MA of 175.80, and above the 200-day MA of 163.81, indicating a bullish trend. The MACD of 1.93 indicates Negative momentum. The RSI at 63.89 is Neutral, neither overbought nor oversold. The STOCH value of 75.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ICE.

Intercontinental Exchange Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NDAQ	83 Outperform	$51.71B	40.84	11.43%	1.20%	25.89%	16.37%
MS	80 Outperform	$231.25B	16.91	13.88%	2.57%	6.53%	55.54%
SPGI	80 Outperform	$162.43B	41.58	11.68%	0.72%	12.98%	42.72%
ICE	79 Outperform	$105.04B	37.92	10.27%	1.05%	13.25%	10.82%
CME	78 Outperform	$99.71B	27.82	13.40%	1.81%	11.72%	13.31%
CME	78 Outperform	$99.71B	27.82	13.40%	1.81%	11.72%	13.31%
CBOE	77 Outperform	$24.23B	30.33	18.93%	1.09%	15.76%	1.97%
CBOE	77 Outperform	$24.23B	30.33	18.93%	1.09%	15.76%	1.97%
Sector *	69 Neutral	€21.55B	27.73	10.92%	4.79%	4.57%	1.35%

Intercontinental Exchange Corporate Events

Intercontinental Exchange Holds Annual Stockholders Meeting

The Annual Meeting of Stockholders of Intercontinental Exchange was held on May 16, 2025, where stockholders voted on several key issues. Ten directors were elected to serve one-year terms, an advisory resolution on executive compensation was approved, amendments to the Certificate of Incorporation for regulatory compliance were adopted, and Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (ICE) stock is a Buy with a $171.00 price target. To see the full list of analyst forecasts on Intercontinental Exchange stock, see the ICE Stock Forecast page.