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Cboe Global Markets Inc (CBOE)
BATS:CBOE
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Cboe Global Markets
(BATS:CBOE)79Outperform
Positive Factors
Market Demand
The success of spot crypto ETFs indicates robust market demand for crypto products in a Trad-Fi wrapper.
Product Expansion
Index options are coming to HOOD, beginning with the Cboe index options suite.
Negative Factors
Cost Barriers
Commissions might be a barrier to adoption given how Robinhood users have grown accustomed to zero-commission trading.
Cboe Global Markets (CBOE) vs. S&P 500 (SPY)
Market Cap
$22.07B
Dividend Yield1.16%
Average Volume (3M)750.26K
Price to Earnings (P/E)29.2
Beta (1Y)0.07
Revenue Growth8.51%
EPS Growth1.13%
CountryUS
Employees1,647
SectorFinancial
Sector Strength93
IndustryCapital Markets
Share Statistics
EPS (TTM)7.22
Shares Outstanding104,701,700
10 Day Avg. Volume768,465
30 Day Avg. Volume750,261
Financial Highlights & Ratios
PEG Ratio25.78
Price to Book (P/B)N/A
Price to Sales (P/S)5.38
Price to Cash Flow (P/CF)-7.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$212.45Price Target Upside0.53% Upside
Rating ConsensusHold
Number of Analyst Covering12
Cboe Global Markets Business Overview & Revenue Model
Company DescriptionCboe Global Markets, Inc. is a leading provider of market infrastructure and tradable products, delivering cutting-edge trading, clearing, and investment solutions to market participants around the world. The company operates across various sectors including equities, derivatives, and foreign exchange, and is renowned for its innovative products such as options and futures trading on its exchanges. Cboe's core services include operating regulated securities and derivatives exchanges, offering trading technology solutions, and providing market data services.
How the Company Makes MoneyCboe Global Markets makes money primarily through transaction fees collected from trades executed on its platforms. This includes fees from options, futures, and equities trading. The company also generates revenue from access and capacity fees, which are charged to market participants for connectivity and market data subscriptions to its trading systems. Additionally, Cboe earns revenue from market data sales and licensing its proprietary indices and analytics. Strategic partnerships and acquisitions, such as those with technology firms and other exchanges, further enhance its service offerings and contribute to its revenue streams.
Cboe Global Markets Financial Statement Overview
Summary
Cboe Global Markets exhibits strong financial health with steady revenue growth, robust profitability margins, and efficient cash flow management. The balance sheet reflects a stable financial position with manageable debt levels. While the company shows positive financial performance, continuous monitoring of debt levels and investment activities is advised to maintain financial stability.Income Statement
Cboe Global Markets has shown consistent revenue growth over the years, with a significant increase in revenue from 2019 to 2024. The gross profit margin and net profit margin have remained strong, indicating efficient cost management. The EBIT and EBITDA margins are robust, reflecting healthy operational efficiency. However, there was a slight decline in gross profit margin in 2024 compared to previous years.85
Very Positive
Balance Sheet
The company maintains a solid balance sheet with a healthy equity base and controlled debt levels, as evidenced by a reasonable debt-to-equity ratio. The return on equity (ROE) is commendable, showing effective utilization of equity. The equity ratio indicates a stable capital structure. However, there is a slight increase in total debt over the period, which should be monitored.78
Positive
Cash Flow
Cboe Global Markets demonstrates strong cash flow generation capabilities, with consistent free cash flow and operating cash flow figures. The free cash flow growth rate is positive, highlighting effective management of operational cash requirements. The operating cash flow to net income ratio is healthy, indicating efficient conversion of profits into cash. However, the fluctuations in investing cash flow suggest variability in investment activities.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.09B | 3.77B | 3.96B | 3.49B | 3.43B | Gross Profit |
| 1.61B | 1.92B | 1.74B | 1.19B | 1.03B | EBIT |
| 1.10B | 1.06B | 970.10M | 805.90M | 662.20M | EBITDA |
| 1.27B | 1.27B | 1.14B | 988.90M | 865.90M | Net Income Common Stockholders |
| 764.90M | 761.40M | 235.00M | 529.00M | 468.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.03B | 600.70M | 524.40M | 379.00M | 337.80M | Total Assets |
| 7.79B | 7.49B | 7.00B | 6.81B | 6.52B | Total Debt |
| 1.60B | 1.61B | 1.87B | 1.43B | 1.34B | Net Debt |
| 679.00M | 1.07B | 1.44B | 1.09B | 1.09B | Total Liabilities |
| 3.51B | 3.50B | 3.53B | 3.21B | 3.17B | Stockholders Equity |
| 4.28B | 3.98B | 3.47B | 3.60B | 3.35B |
| Cash Flow | Free Cash Flow | |||
| 1.04B | 1.03B | 591.30M | 545.80M | 1.41B | Operating Cash Flow |
| 1.10B | 1.08B | 651.10M | 596.80M | 1.46B | Investing Cash Flow |
| -141.80M | -55.10M | -835.10M | -352.70M | -430.50M | Financing Cash Flow |
| -495.00M | -656.10M | 81.70M | -200.30M | -201.70M |
Cboe Global Markets Technical Analysis
Positive
211.32
Price Trends
201.33
Positive
203.85
Positive
196.33
Positive
Market Momentum
2.33
Negative
56.35
Neutral
73.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBOE, the sentiment is Positive. The current price of 211.32 is above the 20-day moving average (MA) of 208.58, above the 50-day MA of 201.33, and above the 200-day MA of 196.33, indicating a bullish trend. The MACD of 2.33 indicates Negative momentum. The RSI at 56.35 is Neutral, neither overbought nor oversold. The STOCH value of 73.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBOE.
Cboe Global Markets Risk Analysis
Cboe Global Markets disclosed 42 risk factors in its most recent earnings report. Cboe Global Markets reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cboe Global Markets Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $90.80B | 26.05 | 13.31% | 4.05% | 9.88% | 9.18% | |
79 Outperform | $22.07B | 29.22 | 17.87% | 1.16% | 8.51% | 1.13% | |
77 Outperform | $97.59B | 35.52 | 9.94% | 1.04% | 15.32% | 14.02% | |
75 Outperform | $47.14B | 42.50 | 9.98% | 1.15% | 21.96% | -8.37% | |
73 Outperform | $7.27B | 26.49 | 19.74% | 1.53% | 9.06% | 6.10% | |
71 Outperform | $5.66B | 12.33 | 18.58% | 2.63% | 24.22% | 112.34% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% |
* Financial Sector Average
Performance Comparison
CBOE
Cboe Global Markets
211.32
23.36
12.43%
CME
CME Group
251.98
41.88
19.93%
ICE
Intercontinental Exchange
169.85
32.13
23.33%
MKTX
Marketaxess Holdings
197.89
-10.60
-5.08%
NDAQ
Nasdaq
78.76
22.62
40.29%
VIRT
Virtu Financial
35.91
17.39
93.90%
Cboe Global Markets Earnings Call Summary
Earnings Call Date: Feb 7, 2025 | % Change Since: 2.40% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive sentiment, highlighting strong annual performance, record figures in key business areas, and strategic initiatives such as the partnership with Robinhood and the launch of Cboe Titanium. However, there were some challenges with decreasing futures revenue and rising operating expenses.Highlights
Record-Breaking Annual Results
Cboe Global Markets achieved record net revenue of $2.1 billion in 2024, an 8% increase from the previous year, and a record adjusted diluted EPS of $8.61, marking a 10% growth.
Strong Derivatives Business Performance
The Derivatives business saw organic net revenue increase by 8%, with a record-breaking 3.8 billion contracts traded in 2024, driven by SPX and VIX options reaching record volumes.
Growth in Data Vantage Business
Data Vantage business reported a 7% increase in organic net revenue in 2024, supported by technology investments and global market reach.
Cash and Spot Markets Growth
Organic net revenue in Cash and Spot Markets increased by 10%, driven by healthy trading volumes across all regional equities markets.
Retail Expansion via Robinhood Partnership
Cboe's index options are now available to all Robinhood customers, expanding retail access and adoption potential.
Introduction of Cboe Titanium
Cboe unveiled its new unified technology platform, Cboe Titanium, enhancing trading technology and market participant experiences.
Lowlights
Decrease in Futures Net Revenue
Futures net revenue decreased by 7% year-over-year in Q4 2024, primarily due to a 12% decline in ADV.
Higher Operating Expenses
Adjusted operating expenses increased by 7% in Q4 2024, driven by higher travel, promotional expenses, and technology support services expenses.
Geopolitical and Market Uncertainties
There remains significant uncertainty due to geopolitical tensions and market volatility, impacting investor sentiment and market conditions.
Company Guidance
During Cboe Global Markets' fourth-quarter earnings call, the company reported a 5% year-over-year increase in net revenue, reaching $524.5 million, and a 2% rise in adjusted diluted earnings per share, hitting $2.10. For the full fiscal year 2024, Cboe achieved an 8% increase in net revenue, totaling $2.1 billion, and a 10% boost in adjusted diluted earnings per share to $8.61. The Derivatives business saw a notable performance with a total volume of 3.8 billion contracts traded and an average daily volume (ADV) of nearly 15 million contracts. SPX and VIX options achieved record volumes, with SPX options reaching an ADV of 3.1 million contracts, and VIX options an ADV of 830,000 contracts. The Data Vantage segment grew its organic net revenue by 7%, driven by enhancements in technology and global distribution. The company also outlined a guidance for 2025, expecting mid-single-digit growth in total organic net revenue and mid to high-single-digit growth in Data Vantage organic net revenue. Cboe plans to manage adjusted expenses between $837 million and $852 million, with a focus on strategic investments and disciplined expense management.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.