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CBOE

Cboe Global Markets BATS:CBOE Stock Report

Last Price

US$113.17

Market Cap

US$12.1b

7D

0.7%

1Y

-4.5%

Updated

30 Jun, 2022

Data

Company Financials +
CBOE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends4/6

CBOE Stock Overview

Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange worldwide.

Cboe Global Markets Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cboe Global Markets
Historical stock prices
Current Share PriceUS$113.17
52 Week HighUS$139.00
52 Week LowUS$103.82
Beta0.63
1 Month Change0.77%
3 Month Change-3.15%
1 Year Change-4.50%
3 Year Change2.88%
5 Year Change22.77%
Change since IPO248.32%

Recent News & Updates

Jun 06

Cboe Global: Dividend Growth Bargain With Takeover Chances

Cboe Global Markets is an attractively priced company operating in the stock exchange industry with additional growth thanks to current volatility. The company has a decent dividend yield and high dividend growth fueled by its steadily rising free cash flow. Additionally, I believe that the company is a suitable takeover target in its industry, given its valuation and business model.

Shareholder Returns

CBOEUS Capital MarketsUS Market
7D0.7%-0.5%-0.6%
1Y-4.5%-21.3%-21.7%

Return vs Industry: CBOE exceeded the US Capital Markets industry which returned -20.4% over the past year.

Return vs Market: CBOE exceeded the US Market which returned -20.8% over the past year.

Price Volatility

Is CBOE's price volatile compared to industry and market?
CBOE volatility
CBOE Average Weekly Movement3.8%
Capital Markets Industry Average Movement0.5%
Market Average Movement8.0%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: CBOE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CBOE's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19731,196Ed Tillyhttps://www.cboe.com

Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange worldwide. It operates through five segments: Options, North American Equities, Futures, Europe and Asia Pacific, and Global FX. The Options segment trades in listed market indices.

Cboe Global Markets Fundamentals Summary

How do Cboe Global Markets's earnings and revenue compare to its market cap?
CBOE fundamental statistics
Market CapUS$12.09b
Earnings (TTM)US$499.70m
Revenue (TTM)US$3.46b

24.0x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CBOE income statement (TTM)
RevenueUS$3.46b
Cost of RevenueUS$1.93b
Gross ProfitUS$1.53b
Other ExpensesUS$1.03b
EarningsUS$499.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 29, 2022

Earnings per share (EPS)4.71
Gross Margin44.20%
Net Profit Margin14.45%
Debt/Equity Ratio44.7%

How did CBOE perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

40%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is CBOE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CBOE?

Other financial metrics that can be useful for relative valuation.

CBOE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.8x
Enterprise Value/EBITDA13x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

How does CBOE's PE Ratio compare to its peers?

CBOE PE Ratio vs Peers
The above table shows the PE ratio for CBOE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average48.1x
MKTX MarketAxess Holdings
39.9x14.1%US$9.7b
MORN Morningstar
56x24.2%US$10.3b
FDS FactSet Research Systems
37x14.4%US$14.6b
TW Tradeweb Markets
57.7x12.8%US$16.0b
CBOE Cboe Global Markets
24x12.7%US$12.1b

Price-To-Earnings vs Peers: CBOE is good value based on its Price-To-Earnings Ratio (24x) compared to the peer average (48.1x).


Price to Earnings Ratio vs Industry

How does CBOE's PE Ratio compare vs other companies in the US Capital Markets Industry?

Price-To-Earnings vs Industry: CBOE is good value based on its Price-To-Earnings Ratio (24x) compared to the US Capital Markets industry average (29.6x)


Price to Earnings Ratio vs Fair Ratio

What is CBOE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CBOE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24x
Fair PE Ratio15.7x

Price-To-Earnings vs Fair Ratio: CBOE is expensive based on its Price-To-Earnings Ratio (24x) compared to the estimated Fair Price-To-Earnings Ratio (15.7x).


Share Price vs Fair Value

What is the Fair Price of CBOE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CBOE ($113.17) is trading below our estimate of fair value ($175.81)

Significantly Below Fair Value: CBOE is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: CBOE is poor value based on its PEG Ratio (1.9x)


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Future Growth

How is Cboe Global Markets forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBOE's forecast earnings growth (12.7% per year) is above the savings rate (1.9%).

Earnings vs Market: CBOE's earnings (12.7% per year) are forecast to grow slower than the US market (13.7% per year).

High Growth Earnings: CBOE's earnings are forecast to grow, but not significantly.

Revenue vs Market: CBOE's revenue is expected to decline over the next 3 years (-0.8% per year).

High Growth Revenue: CBOE's revenue is forecast to decline over the next 3 years (-0.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CBOE's Return on Equity is forecast to be low in 3 years time (18.3%).


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Past Performance

How has Cboe Global Markets performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CBOE has high quality earnings.

Growing Profit Margin: CBOE's current net profit margins (14.4%) are higher than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: CBOE's earnings have grown by 10.6% per year over the past 5 years.

Accelerating Growth: CBOE's earnings growth over the past year (11.8%) exceeds its 5-year average (10.6% per year).

Earnings vs Industry: CBOE earnings growth over the past year (11.8%) underperformed the Capital Markets industry 78.6%.


Return on Equity

High ROE: CBOE's Return on Equity (14.1%) is considered low.


Discover strong past performing companies

Financial Health

How is Cboe Global Markets's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CBOE's short term assets ($2.9B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: CBOE's short term assets ($2.9B) exceed its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: CBOE's net debt to equity ratio (24.8%) is considered satisfactory.

Reducing Debt: CBOE's debt to equity ratio has reduced from 53.9% to 44.7% over the past 5 years.

Debt Coverage: CBOE's debt is well covered by operating cash flow (78.9%).

Interest Coverage: CBOE's interest payments on its debt are well covered by EBIT (18.6x coverage).


Balance Sheet


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Dividend

What is Cboe Global Markets's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.70%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CBOE's dividend (1.7%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: CBOE's dividend (1.7%) is low compared to the top 25% of dividend payers in the US market (4.3%).


Stability and Growth of Payments

Stable Dividend: CBOE's dividend payments have been volatile in the past 10 years.

Growing Dividend: CBOE's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39.8%), CBOE's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (16.9%), CBOE's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Ed Tilly (58 yo)

9.08yrs

Tenure

US$10,646,558

Compensation

Mr. Edward T. Tilly, also known as Ed, serves as Chairman of World Federation of Exchanges since September 9, 2021. He has been the Chief Executive Officer at Cboe Exchange, Inc. and C2 Options Exchange (C...


CEO Compensation Analysis

Compensation vs Market: Ed's total compensation ($USD10.65M) is about average for companies of similar size in the US market ($USD13.59M).

Compensation vs Earnings: Ed's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CBOE's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: CBOE's board of directors are considered experienced (7.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CBOE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cboe Global Markets, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Cboe Global Markets, Inc.
  • Ticker: CBOE
  • Exchange: BATS
  • Founded: 1973
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Implied Market Cap: US$12.095b
  • Shares outstanding: 106.19m
  • Website: https://www.cboe.com

Number of Employees


Location

  • Cboe Global Markets, Inc.
  • 433 West Van Buren Street
  • Chicago
  • Illinois
  • 60607
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.