BATS:CBOE

Stock Analysis Report

Executive Summary

Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange in the United States.


Snowflake Analysis

Fair value second-rate dividend payer.


Similar Companies

Share Price & News

How has Cboe Global Markets's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CBOE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

18.7%

CBOE

19.7%

US Capital Markets

12.5%

US Market


1 Year Return

-6.1%

CBOE

-13.2%

US Capital Markets

-12.7%

US Market

Return vs Industry: CBOE exceeded the US Capital Markets industry which returned -13.2% over the past year.

Return vs Market: CBOE exceeded the US Market which returned -12.7% over the past year.


Shareholder returns

CBOEIndustryMarket
7 Day18.7%19.7%12.5%
30 Day-20.3%-16.9%-14.7%
90 Day-24.3%-23.7%-21.5%
1 Year-5.0%-6.1%-11.5%-13.2%-10.9%-12.7%
3 Year16.6%12.7%6.8%0.7%12.6%5.4%
5 Year72.2%61.8%32.7%20.3%31.9%17.5%

Price Volatility Vs. Market

How volatile is Cboe Global Markets's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Cboe Global Markets undervalued compared to its fair value and its price relative to the market?

11.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CBOE ($90.89) is trading below our estimate of fair value ($102.1)

Significantly Below Fair Value: CBOE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CBOE is good value based on its PE Ratio (27.2x) compared to the Capital Markets industry average (32.5x).

PE vs Market: CBOE is poor value based on its PE Ratio (27.2x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CBOE is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: CBOE is good value based on its PB Ratio (3x) compared to the US Capital Markets industry average (7.2x).


Next Steps

Future Growth

How is Cboe Global Markets forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBOE's forecast earnings growth (12% per year) is above the savings rate (1.7%).

Earnings vs Market: CBOE's earnings (12% per year) are forecast to grow slower than the US market (12.3% 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 (-21.8% per year).

High Growth Revenue: CBOE's revenue is forecast to decline over the next 3 years (-21.8% 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 (17.3%).


Next Steps

Past Performance

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

22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBOE has high quality earnings.

Growing Profit Margin: CBOE's current net profit margins (14.9%) are lower than last year (15.2%).


Past Earnings Growth Analysis

Earnings Trend: CBOE's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: CBOE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CBOE had negative earnings growth (-11.7%) over the past year, making it difficult to compare to the Capital Markets industry average (9.7%).


Return on Equity

High ROE: CBOE's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is Cboe Global Markets's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CBOE has a low level of unsold assets or inventory.

Debt Coverage by Assets: CBOE's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: CBOE's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CBOE has a sufficient allowance for bad loans.

Low Risk Liabilities: CBOE reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CBOE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CBOE has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CBOE has an appropriate level of bad loans.


Next Steps

Dividend

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

1.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CBOE's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: CBOE's dividend (1.59%) is low compared to the top 25% of dividend payers in the US market (5.49%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.1%), CBOE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CBOE's dividends in 3 years are forecast to be well covered by earnings (31.8% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Ed Tilly (56yo)

6.83s

Tenure

US$8,453,137

Compensation

Mr. Edward T. Tilly, also known as Ed, has been the Chief Executive Officer at Cboe Exchange, Inc. and C2 Options Exchange (C2) since May 23, 2013 and President since January 14, 2019. Mr. Tilly serves as  ...


CEO Compensation Analysis

Compensation vs Market: Ed's total compensation ($USD8.45M) is about average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Edward Tilly
Chairman6.83yrsUS$8.45m0.14% $14.1m
Brian Schell
Executive VP2.17yrsUS$2.42m0.019% $1.9m
Christopher Isaacson
Executive VP & COO1.17yrsUS$3.56m0.054% $5.4m
Jill M. Griebenow
Senior VP & Chief Accounting Officer1.58yrsno data0.0034% $342.3k
Eric Crampton
Senior VP & Chief Technology Officer1.17yrsno datano data
Deborah Koopman
Vice President of Investor Relationsno datano datano data
Alexandra Albright
Chief Compliance Officer7.92yrsno datano data
John Sexton
Executive VP2yrsno data0.015% $1.5m
Stephanie Klein
Chief Marketing Officer & VP5yrsno datano data
Pamela Culpepper
Chief Human Resources Officer3.92yrsno datano data

2.2yrs

Average Tenure

53.5yo

Average Age

Experienced Management: CBOE's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Tilly
Chairman6.83yrsUS$8.45m0.14% $14.1m
Roderick Palmore
Independent Director20.17yrsUS$241.09k0.018% $1.8m
Joseph Ratterman
Independent Director3yrsUS$217.59k0.032% $3.2m
Jill Goodman
Independent Director7.75yrsUS$234.09k0.011% $1.1m
William Farrow
Independent Director3.83yrsUS$235.09k0.0046% $464.7k
Eugene Sunshine
Lead Directorno dataUS$300.09k0.018% $1.9m
Carole Stone
Director14.17yrsUS$254.09k0.013% $1.3m
Edward Fitzpatrick
Independent Director6.83yrsUS$251.09k0.0089% $888.3k
Frank English
Independent Director7.75yrsUS$231.09k0.0040% $397.5k
Janet Froetscher
Independent Director15.17yrsUS$226.59k0.011% $1.1m

7.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: CBOE's board of directors are considered experienced (7.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CBOE insiders have only sold shares 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 company bio, 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
  • Market Cap: US$10.037b
  • Shares outstanding: 110.44m
  • Website: https://www.cboe.com

Number of Employees


Location

  • Cboe Global Markets, Inc.
  • 400 South LaSalle Street
  • Chicago
  • Illinois
  • 60605
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CBOEBATS (Better Alternative Trading System)YesCommon StockUSUSDJun 2010
C67DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2010
CBOE *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2010
0HQNLSE (London Stock Exchange)YesCommon StockGBUSDJun 2010
C1BO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange in the United States. It operates in five segments: Options, U.S. Equities, Futures, European Equities, and Global FX. The Options segment trades in listed market indexes. The U.S. Equities segment trades in listed cash equities; and offers exchange-traded products (ETP) transaction and ETP listing services. The Futures segment trades in futures, bitcoins, and other products. The European Equities segment trades in pan-European listed equities transaction services, ETPs, exchange-traded commodities, and international depository receipts that occur on the recognized investment exchange. It also provides listed cash equities and ETPs routed transaction services, as well as listing services. The Global FX segment provides institutional foreign exchange (FX) and non-deliverable forward FX transactions services. Cboe Global Markets, Inc. has strategic relationships with S&P Dow Jones Indices, LLC; FTSE International Limited; Frank Russell Company; MSCI Inc.; DJI Opco, LLC.; and Cboe Vest Financial Group, Inc. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:52
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.