CBOE GLOBAL MARKETS INC (CBOE)
POSITIVEPrice
$294.91
Market Cap
$30.86B
Fundamental
72
Technical
75
Composite
73
AI Analysis
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Overview
Cboe Global Markets, Inc., through its subsidiaries, operates as a derivatives and securities exchange network that delivers cutting-edge trading, clearing, and investment solutions in the United States and internationally. It operates through five segments: Options, North American Equities, Europe and Asia Pacific, Futures, and Global FX. The Options segment includes options on market indices, as well as on the stocks of individual corporations and on trading solutions and products in multiple asset classes, including equities, derivatives, and FX, across North America, Europe, and Asia Pacific (ETPs), such as exchange-traded funds (ETFs) and exchange-traded notes (ETNs); and trading in listed options through a single system. The North American Equities segment comprising U.S. equities and ETP transaction services. This segment also includes listing services on Cboe Canada, ETP listings on BZX, the Cboe Global Markets, Inc. common stock listing, and applicable market data. The Europe and Asia Pacific segment provides pan-European derivatives transaction services, ETPs, including exchange traded funds, exchange traded notes, and exchange traded commodities, and international depository receipts; and ETP listings business on regulated markets and clearing activities, as well as the equities services. The Futures segment offers transaction services, which includes trading of VIX futures and other futures products, the licensing of proprietary market data, as well as access and capacity services. The Global FX segment provides institutional foreign exchange (FX) trading and non-deliverable forward FX transactions services. It has strategic relationships with S&P Dow Jones Indices, LLC; Frank Russell Company; and FTSE International Limited. 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.
Balance Sheet & Liquidity
Revenue
$1.27B
Net Income
$386M
Free Cash Flow
$1.94B
Total Equity
$5.37B
Total Liabilities
$5.70B
Current Ratio
1.39
Interest Coverage
-
Debt/EBITDA
11.27
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Fair Value Estimation
UndervaluedFair Value
$489.21
Current Price
$294.91
Margin of Safety
+39.7%
Fair Value Range
$317.99 - $660.44
Estimation Methods
Valuation Metrics
P/E Ratio
80.36
ROE
7.2%
P/B Ratio
5.74
P/FCF
15.89
Gross Margin
57.3%
ROIC
6.1%
Value Creation (Economic Moat)
ROIC
6.1%
WACC
6.8%
ROIC − WACC
-0.7 pp
ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.
Fundamental Analysis Criteria
Passed (20)
- EPS shows upward trend
- EPS CAGR 11.44%
- Price CAGR 14.85%
- ROIC 6.1%
- Gross Margin 57.3%
- P/FCF 15.89
- Debt/Equity ratio
- Operating Margin 39.7%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Return on Tangible Assets
- ROE 24.6%
- Revenue Growth 5Y 6.6%
- Earnings Surprise avg 3.9%
- PEG Ratio 1.28
- Earnings Quality (OCF/NI) 5.08
- Share Dilution -0.1%
- Net Margin Trend 30.3% vs 23.3%
- Piotroski F-Score 5/9
Failed (6)
- P/B Ratio 5.74
- Debt/EBITDA
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- Analyst Consensus 38% Buy
Unavailable (2)
- Dividend Payout NaN%
- Interest Coverage
Price Chart
Technical Indicators
RSI (14)
40.34
SMA 50
$318.14
SMA 200
$273.88
MACD
-3.68
Volatility
1.6%
Momentum (12m)
30.3%
RSI 40.3, SMA trend bullish, momentum 30.3%.
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Craig Steven Donohue | CEO, President & Director | 63 |
| Ms. Jill M. Griebenow CPA | Executive VP & CFO | 45 |
| Mr. Timothy Lipscomb | Executive VP & CTO | 50 |
| Mr. John Patrick Sexton J.D. | Executive VP, General Counsel & Corporate Secretary | 60 |
| Mr. Christopher Andrew Isaacson | Advisor | 47 |
| Mr. Fredric J. Tomczyk A.C.A. | Director | 69 |
| Mr. Scott L. Johnston | Executive VP & COO | 60 |
| Mr. Allen L. Wilkinson CPA | Senior VP & Chief Accounting Officer | 37 |
| Mr. Kenneth William Hill C.F.A. | Senior VP, Treasurer and Head of Investor Relations & Business Intelligence | - |
| Ms. Stacie Fleming | Senior Vice President of Marketing & Communications | - |
Audit Risk
6
Board Risk
1
Compensation Risk
3
Shareholder Rights Risk
5
Latest News
Recent headlines for CBOE, sourced from Markets Gazette.