Intercontinental Exchange (ICE) AI Stock Analysis

• Market Cap: $91.26B
• Dividend Yield: 1.19%
• Average Volume (3M): 3.44M
• Price to Earnings (P/E): 29.1
• Beta (1Y): 0.57
• Revenue Growth: 8.96%
• EPS Growth: 30.16%
• Country: US
• Employees: 12,842
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 1.71
• Shares Outstanding: 570,178,600
• 10 Day Avg. Volume: 3,796,159
• 30 Day Avg. Volume: 3,439,509
• PEG Ratio: 2.17
• Price to Book (P/B): 3.09
• Price to Sales (P/S): 7.26
• P/FCF Ratio: 20.31
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 9.50
• Enterprise Value/Gross Profit: 14.92
• Enterprise Value/Ebitda: 17.66
• 1Y Price Target: $191.70
• Price Target Upside: 19.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 6.91
• Revenue Forecast (FY): $9.90B

• Rating: 80 Outperform
• Price Target: $181.00 ▲(12.52% Upside)

Intercontinental Exchange's overall stock score reflects its strong financial performance and strategic initiatives, including AI-driven efficiencies and effective debt management. While the stock's valuation is relatively high, the company's robust earnings and strategic focus on core segments provide a solid foundation for future growth. Technical indicators suggest short-term bullish momentum, though medium to long-term resistance remains.

Positive Factors

Strong Cash Generation

ICE's ability to generate strong free cash flow enhances its financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Strategic Partnerships

The investment in Polymarket positions ICE to integrate prediction markets into the financial mainstream, potentially expanding its product offerings and market reach.

UK Emissions Trading Scheme

Securing the UK ETS contract through 2028 solidifies ICE's role in a growing market, reinforcing its position in environmental markets and providing stable revenue.

Negative Factors

Revenue Growth Challenges

A slowdown in revenue growth could indicate challenges in maintaining market share or expanding into new markets, potentially impacting long-term growth prospects.

Client Departure Impact

The departure of a significant client like PennyMac could reduce recurring revenue, affecting ICE's revenue stability and necessitating new client acquisitions.

Mortgage Technology Challenges

Challenges in the Mortgage Technology segment may hinder growth in this area, requiring strategic adjustments to address market dynamics and client needs.

Intercontinental Exchange Business Overview & Revenue Model

Company Description

Intercontinental Exchange, Inc., together with its subsidiaries, operates regulated exchanges, clearing houses, and listings venues for commodity, financial, fixed income, and equity markets in the United States, the United Kingdom, the European Union, Singapore, Israel, and Canada. It operates through three segments: Exchanges, Fixed Income and Data Services, and Mortgage Technology. The company operates marketplaces for listing, trading, and clearing an array of derivatives contracts and financial securities, such as commodities, interest rates, foreign exchange, and equities, as well as corporate and exchange-traded funds; trading venues, including 13 regulated exchanges and 6 clearing houses; and offers futures and options products for energy, agricultural and metals, financial, cash equities and equity, over-the-counter, and other markets, as well as listings and data and connectivity services. It also provides fixed income data and analytic, fixed income execution, CDS clearing, and other multi-asset class data and network services. In addition, the company offers proprietary and comprehensive mortgage origination platform, which serves residential mortgage loans; closing solutions that provides customers connectivity to the mortgage supply chain and facilitates the secure exchange of information; data and analytics services; and Data as a Service for lenders to access data and origination information. Intercontinental Exchange, Inc. was founded in 2000 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

ICE generates revenue primarily through transaction fees charged for trading and clearing services on its exchanges. The key revenue streams include market data sales, where it monetizes information and analytics provided to market participants, and listing fees from companies that list their securities on its exchanges, particularly the NYSE. Additionally, ICE earns revenue from its clearinghouse operations, which facilitate the settlement of trades and manage counterparty risk. The company also benefits from strategic partnerships, including collaborations with other financial institutions to enhance its trading and data services, contributing significantly to its overall earnings.

Intercontinental Exchange Financial Statement Overview

Summary

Intercontinental Exchange exhibits strong profitability and cash generation, with efficient operations and a balanced capital structure. While revenue growth has slowed, the company maintains robust margins and a healthy balance sheet, positioning it well for future opportunities and challenges.

Income Statement

Intercontinental Exchange has demonstrated strong profitability with a consistent gross profit margin above 55% and a net profit margin around 27% in the TTM. However, the revenue growth rate has declined by 4.39% in the TTM, indicating a potential challenge in maintaining growth momentum. The EBIT and EBITDA margins are robust, reflecting efficient operations.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.68 in the TTM, suggesting a balanced approach to leverage. Return on equity has improved to 11.47%, indicating effective use of equity to generate profits. The equity ratio is stable, reflecting a solid capital structure.

Cash Flow

Cash flow analysis reveals a significant growth in free cash flow by 77.7% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is low, which may suggest potential inefficiencies in converting income to cash. However, the free cash flow to net income ratio is healthy at 90.13%.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.00B	11.76B	9.90B	9.64B	9.17B	8.24B
Gross Profit	7.65B	6.52B	5.66B	5.20B	5.02B	4.30B
EBITDA	6.46B	6.08B	4.92B	3.46B	7.13B	3.87B
Net Income	3.23B	2.75B	2.37B	1.45B	4.06B	2.09B
Balance Sheet
Total Assets	140.90B	139.43B	136.08B	194.34B	193.50B	126.20B
Cash, Cash Equivalents and Short-Term Investments	2.22B	1.37B	2.11B	7.95B	607.00M	583.00M
Total Debt	19.51B	20.70B	22.91B	18.38B	14.17B	16.86B
Total Liabilities	112.19B	111.71B	110.30B	171.58B	170.75B	106.57B
Stockholders Equity	28.64B	27.65B	25.72B	22.71B	22.71B	19.50B
Cash Flow
Free Cash Flow	4.41B	4.20B	3.05B	3.07B	2.67B	2.47B
Operating Cash Flow	4.89B	4.61B	3.54B	3.55B	3.12B	2.88B
Investing Cash Flow	-2.09B	-921.00M	-8.80B	677.00M	-786.00M	-9.83B
Financing Cash Flow	1.86B	79.00M	-64.34B	-1.84B	62.03B	6.74B

Intercontinental Exchange Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 160.86
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 160.86 is above the 20-day moving average (MA) of 157.19, above the 50-day MA of 154.66, and below the 200-day MA of 168.64, indicating a neutral trend. The MACD of 1.92 indicates Negative momentum. The RSI at 59.74 is Neutral, neither overbought nor oversold. The STOCH value of 56.36 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
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%
MCO	77 Outperform	$87.95B	39.64	57.08%	0.75%	8.77%	13.62%
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%

Intercontinental Exchange Corporate Events

Intercontinental Exchange Completes $1.25 Billion Notes Offering

On November 17, 2025, Intercontinental Exchange, Inc. completed a public offering of $1.25 billion in senior notes, with the proceeds intended to repay existing debt maturing in December 2025. This strategic financial move is expected to strengthen ICE’s financial positioning by managing its debt obligations effectively.

Intercontinental Exchange Invests $2 Billion in Polymarket

On October 7, 2025, Intercontinental Exchange, Inc. announced a strategic investment of up to $2 billion in Polymarket, a prediction market platform. This move positions ICE as a global distributor of Polymarket’s event-driven data, offering sentiment indicators on market-relevant topics. The partnership aims to integrate prediction markets into the financial mainstream, leveraging ICE’s institutional scale and Polymarket’s innovative approach to deliver advanced products for investors. The investment is not expected to materially impact ICE’s 2025 financial results.

Intercontinental Exchange Expands Board with New Appointment

On September 18, 2025, Intercontinental Exchange, Inc. (ICE) announced the appointment of The Rt. Hon. the Lord Hill of Oareford CBE to its Board of Directors, expanding the board from 10 to 11 members. Lord Hill, who has a distinguished background in politics and business advisory roles, is expected to bring valuable geopolitical insights to ICE. His appointment is seen as a strategic move to leverage his extensive experience in financial regulation and international negotiations, potentially enhancing ICE’s industry positioning and stakeholder relations.