BATS:CBOE

Stock Analysis Report

Executive Summary

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

Rewards

PE ratio (31.6x) is below the Capital Markets industry average (33x)

Earnings are forecast to grow 9.87% per year

Risk Analysis

No risks detected for CBOE from our risk checks.


Snowflake Analysis

Slightly overvalued with questionable track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

CBOE

-0.3%

US Capital Markets

-1.2%

US Market


1 Year Return

15.2%

CBOE

17.1%

US Capital Markets

15.5%

US Market

Return vs Industry: CBOE matched the US Capital Markets industry which returned 17.1% over the past year.

Return vs Market: CBOE matched the US Market which returned 15.5% over the past year.


Shareholder returns

CBOEIndustryMarket
7 Day1.1%-0.3%-1.2%
30 Day5.1%4.6%1.4%
90 Day1.3%6.7%4.7%
1 Year16.6%15.2%19.4%17.1%18.0%15.5%
3 Year62.3%56.8%38.1%30.3%44.8%35.4%
5 Year105.4%92.9%78.0%61.5%67.3%48.9%

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?

31.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CBOE ($120.24) is trading above our estimate of fair value ($74.42)

Significantly Below Fair Value: CBOE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CBOE is good value based on its PE Ratio (31.6x) compared to the Capital Markets industry average (33x).

PE vs Market: CBOE is poor value based on its PE Ratio (31.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: CBOE is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: CBOE is good value based on its PB Ratio (4x) compared to the US Capital Markets industry average (6.4x).


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?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBOE's forecast earnings growth (9.9% per year) is above the savings rate (1.7%).

Earnings vs Market: CBOE's earnings (9.9% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: CBOE's revenue (0.07% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: CBOE's revenue (0.07% per year) is forecast to grow slower than 20% 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 (16.4%).


Next Steps

Past Performance

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

23.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBOE has high quality earnings.

Growing Profit Margin: CBOE's current net profit margins (16%) are lower than last year (20.4%).


Past Earnings Growth Analysis

Earnings Trend: CBOE's earnings have grown significantly by 23.4% 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 (-21.4%) over the past year, making it difficult to compare to the Capital Markets industry average (20.6%).


Return on Equity

High ROE: CBOE's Return on Equity (12.7%) is considered low.


Return on Assets


Return on Capital Employed


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 0.6x 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?

1.20%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: CBOE's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: CBOE's dividend (1.2%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: CBOE has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CBOE's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.9%), 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 (27.7% payout ratio).


Next Steps

Management

What is the CEO of Cboe Global Markets's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Ed Tilly (56yo)

6.6yrs

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 ($USD8.45M) is about average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

1.8yrs

Average Tenure

54yo

Average Age

Experienced Management: CBOE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

7.5yrs

Average Tenure

61.5yo

Average Age

Experienced Board: CBOE's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$313,30019 Aug 19
Michael Richter
EntityIndividual
Shares2,600
Max PriceUS$120.50
SellUS$325,55807 Aug 19
Carole Stone
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,766
Max PriceUS$117.70
SellUS$1,084,70004 Jun 19
Brian Schell
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares10,000
Max PriceUS$108.47
SellUS$458,85323 May 19
Bryan Harkins
EntityIndividual
Shares4,300
Max PriceUS$106.71

Ownership Breakdown

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


Management Team

  • Brian Schell (54yo)

    Executive VP

    • Tenure: 1.9yrs
    • Compensation: US$2.42m
  • Mark Hemsley (57yo)

    Executive VP & President of Europe

    • Tenure: 0yrs
    • Compensation: US$2.38m
  • Ed Tilly (56yo)

    Chairman

    • Tenure: 6.6yrs
    • Compensation: US$8.45m
  • Chris Isaacson (41yo)

    Executive VP & COO

    • Tenure: 0.9yrs
    • Compensation: US$3.56m
  • Debbie Koopman

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Alexandra Albright

    Chief Compliance Officer

    • Tenure: 7.7yrs
  • Pat Sexton (54yo)

    Executive VP

    • Tenure: 1.8yrs
  • Jill Griebenow (39yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 1.3yrs
  • Stephanie Klein

    Chief Marketing Officer & VP

    • Tenure: 4.8yrs
  • Eric Crampton

    Senior VP & Chief Technology Officer

    • Tenure: 0.9yrs

Board Members

  • Roderick Palmore (67yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$241.09k
  • Joe Ratterman (53yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$217.59k
  • Jill Goodman (52yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$234.09k
  • Ed Tilly (56yo)

    Chairman

    • Tenure: 6.6yrs
    • Compensation: US$8.45m
  • Bill Farrow (64yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$235.09k
  • Gene Sunshine (69yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$300.09k
  • Carole Stone (72yo)

    Director

    • Tenure: 13.9yrs
    • Compensation: US$254.09k
  • Ed Fitzpatrick (53yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$251.09k
  • Frank English (73yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$231.09k
  • Janet Froetscher (59yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$226.59k

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$13.311b
  • Shares outstanding: 110.86m
  • 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

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. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 02:00
End of Day Share Price2019/12/04 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.