Intercontinental Exchange (ICE) AI Stock Analysis

• Market Cap: $102.31B
• Dividend Yield: 1.05%
• Average Volume (3M): 2.89M
• Price to Earnings (P/E): 34.4
• Beta (1Y): 0.65
• Revenue Growth: 11.44%
• EPS Growth: 29.10%
• Country: US
• Employees: 12,842
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 1.81
• Shares Outstanding: 572,423,100
• 10 Day Avg. Volume: 3,166,123
• 30 Day Avg. Volume: 2,891,403
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 9.79
• Enterprise Value/Gross Profit: 16.26
• Enterprise Value/Ebitda: 19.19
• 1Y Price Target: $207.67
• Price Target Upside: 17.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 81 Outperform
• Price Target: $213.00 ▲(20.14% Upside)

Intercontinental Exchange scores highly due to its strong financial performance, including robust revenue and profit growth, and effective cash flow management. Technical indicators are positive but caution is advised due to overbought signals. Valuation is relatively high, suggesting the market expects continued growth. The company’s recent earnings call was very positive with record results, but noted challenges in the mortgage segment and rising expenses.

Positive Factors

Earnings

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

Market Position

The market capitalization of Intercontinental Exchange Inc. is significant, reflecting its established position in the market.

Stock Performance

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

Negative Factors

Economic Conditions

The stock is seen as a defensive choice in a recession playbook, highlighting its stability in uncertain economic conditions.

Intercontinental Exchange Business Overview & Revenue Model

Company Description

Intercontinental Exchange (ICE) is a global operator of financial and commodity markets, providing a platform for trading, clearing, and data services across various asset classes. Founded in 2000 and headquartered in Atlanta, Georgia, ICE operates multiple exchanges, including the New York Stock Exchange (NYSE), and offers a wide range of products and services that encompass futures, options, and over-the-counter (OTC) trading. The company also provides risk management and market data solutions, catering to a diverse clientele in the financial services, energy, and agricultural sectors.

How the Company Makes Money

ICE generates revenue through several key streams, primarily focusing on transaction fees, market data services, and clearing services. Transaction fees are earned from trades executed on its exchanges, where the company charges a fee per trade. Additionally, ICE generates significant income from its market data services, providing real-time and historical data to customers including financial institutions and trading firms. The clearing services offered by ICE, which involve the processing and settlement of trades, also contribute to its earnings through clearing fees. Strategic partnerships with financial institutions and technology firms enhance its service offerings and drive additional revenue streams, while acquisitions, such as the purchase of NYSE, have expanded its market presence and product range, further bolstering its financial performance.

Intercontinental Exchange Financial Statement Overview

Summary

Intercontinental Exchange shows strong financial health with robust revenue and profit growth, efficient cost management, and effective leverage utilization. The balance sheet is solid and cash flow generation is strong, though there's room for improvement in equity ratio.

Income Statement

Intercontinental Exchange has demonstrated strong revenue growth with a substantial increase from $8.24 billion in 2020 to $12.55 billion in the TTM. Gross profit margin is robust at approximately 60.2% for the TTM, indicating efficient cost management. Net profit margin has also improved, reaching 23.9% in the TTM, reflecting strong profitability. The EBIT and EBITDA margins are solid at 43.2% and 51.0%, respectively, showcasing operational efficiency. Overall, the company has shown consistent revenue and profit growth.

Balance Sheet

The balance sheet reveals a stable financial position with a manageable debt-to-equity ratio of 0.69 in the TTM, reflecting a balanced leverage approach. The equity ratio stands at 19.7%, indicating a reasonable equity buffer. Return on Equity (ROE) is impressive at 10.6%, showcasing effective utilization of shareholder funds. While the company has a solid equity base, a higher equity ratio could further strengthen the financial stability.

Cash Flow

Cash flow analysis shows positive trends with operating cash flow increasing to $4.88 billion in the TTM. Free cash flow has also grown by 4.1% compared to the previous year, highlighting efficient capital expenditure management. The operating cash flow to net income ratio is 1.62, indicating strong cash generation relative to net income. Additionally, the free cash flow to net income ratio is 1.46, further showcasing healthy cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.55B	11.76B	9.90B	9.64B	9.17B	8.24B
Gross Profit	7.55B	6.52B	5.66B	5.20B	5.02B	4.30B
EBITDA	6.40B	6.08B	4.92B	3.46B	7.13B	3.87B
Net Income	3.00B	2.75B	2.37B	1.45B	4.06B	2.09B
Balance Sheet
Total Assets	144.18B	139.43B	136.08B	194.34B	193.50B	126.20B
Cash, Cash Equivalents and Short-Term Investments	2.64B	1.37B	2.11B	4.42B	607.00M	583.00M
Total Debt	19.67B	20.70B	22.91B	18.38B	14.17B	16.86B
Total Liabilities	115.65B	111.71B	110.30B	171.58B	170.75B	106.57B
Stockholders Equity	28.44B	27.65B	25.72B	22.71B	22.71B	19.50B
Cash Flow
Free Cash Flow	4.38B	4.20B	3.05B	3.07B	2.67B	2.47B
Operating Cash Flow	4.88B	4.61B	3.54B	3.55B	3.12B	2.88B
Investing Cash Flow	-2.08B	-921.00M	-8.80B	677.00M	-786.00M	-9.83B
Financing Cash Flow	3.32B	79.00M	-64.34B	-1.84B	62.03B	6.74B

Intercontinental Exchange Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 177.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICE, the sentiment is Neutral. The current price of 177.3 is below the 20-day moving average (MA) of 182.33, below the 50-day MA of 182.02, and above the 200-day MA of 168.09, indicating a neutral trend. The MACD of -1.34 indicates Positive momentum. The RSI at 38.47 is Neutral, neither overbought nor oversold. The STOCH value of 16.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ICE.

Intercontinental Exchange Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICE	81 Outperform	$102.31B	34.39	10.89%	1.05%	11.44%	29.10%
CBOE	79 Outperform	$25.39B	29.20	20.64%	1.06%	18.99%	17.97%
MCO	79 Outperform	$91.74B	43.34	55.18%	0.72%	11.47%	16.14%
NDAQ	78 Outperform	$54.45B	36.46	13.28%	1.04%	23.55%	49.91%
CME	77 Outperform	$97.88B	26.27	13.62%	3.92%	11.15%	13.98%
SPGI	76 Outperform	$168.62B	42.45	11.76%	0.69%	10.72%	23.30%
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%

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.