NYSE:ICE

Stock Analysis Report

Executive Summary

Intercontinental Exchange, Inc. operates regulated exchanges, clearing houses, and listings venues for commodity, financial, fixed income, and equity markets in the United States, the United Kingdom, European Union, Asia, Israel, and Canada.

Rewards

PE ratio (25.3x) is below the Capital Markets industry average (33.2x)

Earnings are forecast to grow 5.55% per year

Risk Analysis

No risks detected for ICE from our risk checks.


Snowflake Analysis

Slightly overvalued with questionable track record.


Similar Companies

Share Price & News

How has Intercontinental Exchange's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ICE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

ICE

0.5%

US Capital Markets

-0.3%

US Market


1 Year Return

19.4%

ICE

20.1%

US Capital Markets

18.6%

US Market

Return vs Industry: ICE exceeded the US Capital Markets industry which returned 20.1% over the past year.

Return vs Market: ICE exceeded the US Market which returned 18.6% over the past year.


Shareholder returns

ICEIndustryMarket
7 Day-0.4%0.5%-0.3%
30 Day3.5%5.4%2.2%
90 Day-1.1%7.6%5.6%
1 Year21.0%19.4%22.4%20.1%21.1%18.6%
3 Year63.3%57.2%39.5%31.6%45.6%36.2%
5 Year127.2%114.1%84.0%66.9%71.1%52.2%

Price Volatility Vs. Market

How volatile is Intercontinental Exchange's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Intercontinental Exchange undervalued compared to its fair value and its price relative to the market?

25.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ICE ($93.8) is trading above our estimate of fair value ($72.65)

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


Price To Earnings Ratio

PE vs Industry: ICE is good value based on its PE Ratio (25.3x) compared to the Capital Markets industry average (33.2x).

PE vs Market: ICE is poor value based on its PE Ratio (25.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: ICE is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: ICE is good value based on its PB Ratio (3x) compared to the US Capital Markets industry average (6.3x).


Next Steps

Future Growth

How is Intercontinental Exchange forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ICE's forecast earnings growth (5.6% per year) is above the savings rate (1.7%).

Earnings vs Market: ICE's earnings (5.6% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: ICE's revenue (4.9% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: ICE's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ICE's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has Intercontinental Exchange performed over the past 5 years?

19.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ICE has high quality earnings.

Growing Profit Margin: ICE's current net profit margins (40.2%) are lower than last year (54.2%).


Past Earnings Growth Analysis

Earnings Trend: ICE's earnings have grown by 19.5% per year over the past 5 years.

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

Earnings vs Industry: ICE had negative earnings growth (-19.7%) over the past year, making it difficult to compare to the Capital Markets industry average (20.6%).


Return on Equity

High ROE: ICE's Return on Equity (12.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Intercontinental Exchange'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: ICE has a low level of unsold assets or inventory.

Debt Coverage by Assets: ICE's debt is covered by short term assets (assets are 8.8x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Intercontinental Exchange's current dividend yield, its reliability and sustainability?

1.17%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Intercontinental Exchange before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: ICE's dividend (1.17%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: ICE's dividend (1.17%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ICE has been paying a dividend for less than 10 years.

Growing Dividend: ICE's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.7%), ICE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ICE's dividends in 3 years are forecast to be well covered by earnings (25.9% payout ratio).


Next Steps

Management

What is the CEO of Intercontinental Exchange's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Jeff Sprecher (64yo)

19.6yrs

Tenure

US$14,513,403

Compensation

Mr. Jeffrey C. Sprecher, also known as Jeff, Founded Intercontinental Exchange, Inc. and has been the Chairman and Chief Executive Officer of Intercontinental Exchange, Inc. (“IE”) since November 2002 and  ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD14.51M) is above average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

3.0yrs

Average Tenure

52yo

Average Age

Experienced Management: ICE's management team is considered experienced (3 years average tenure).


Board Age and Tenure

14.1yrs

Average Tenure

64yo

Average Age

Experienced Board: ICE's board of directors are seasoned and experienced ( 14.1 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$163,73930 May 19
Vincent Tese
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$81.87
SellUS$117,11610 May 19
Benjamin Jackson
EntityIndividual
Role
President
President
Shares1,455
Max PriceUS$80.79

Ownership Breakdown

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


Management Team

  • Scott Hill (52yo)

    Chief Financial Officer

    • Tenure: 12.6yrs
    • Compensation: US$5.40m
  • Jeff Sprecher (64yo)

    Chairman & CEO

    • Tenure: 19.6yrs
    • Compensation: US$14.51m
  • Chuck Vice (55yo)

    Vice Chairman

    • Tenure: 2.1yrs
    • Compensation: US$7.13m
  • Dave Goone (58yo)

    Chief Strategy Officer

    • Tenure: 18.8yrs
    • Compensation: US$4.66m
  • Ben Jackson (46yo)

    President

    • Tenure: 2.1yrs
    • Compensation: US$4.65m
  • Warren Gardiner

    Vice President of Investor Relations

    • Tenure: 2.4yrs
  • Mark Wassersug (49yo)

    Chief Operating Officer

    • Tenure: 2.1yrs
  • Mayur Kapani

    Chief Technology Officer

    • Tenure: 3.6yrs
  • Doug Foley

    Senior Vice President of Human Resources & Administration

    • Tenure: 6.1yrs
  • James Namkung (43yo)

    Chief Accounting Officer & Corporate Controller

    • Tenure: 1.8yrs

Board Members

  • Tom Noonan (58yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$294.94k
  • Vincent Tese (76yo)

    Independent Director

    • Tenure: 15.7yrs
    • Compensation: US$459.91k
  • Fred Salerno (75yo)

    Lead Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$414.94k
  • Judy Sprieser (66yo)

    Independent Director

    • Tenure: 15.7yrs
    • Compensation: US$464.91k
  • Charlie Crisp (71yo)

    Independent Director

    • Tenure: 17.1yrs
    • Compensation: US$399.52k
  • Jeff Sprecher (64yo)

    Chairman & CEO

    • Tenure: 19.6yrs
    • Compensation: US$14.51m
  • Jean-Marc Forneri (60yo)

    Independent Director

    • Tenure: 17.1yrs
    • Compensation: US$294.94k
  • Jeff Hague (58yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$447.48k
  • Yi Shyan Lee (57yo)

    Chairman of ICE Futures Singapore & ICE Clear Singapore

    • Tenure: 3.1yrs
  • Fred Hatfield (64yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$434.91k

Company Information

Intercontinental Exchange, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Intercontinental Exchange, Inc.
  • Ticker: ICE
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: US$52.038b
  • Shares outstanding: 556.85m
  • Website: https://www.intercontinentalexchange.com

Number of Employees


Location

  • Intercontinental Exchange, Inc.
  • 5660 New Northside Drive NW
  • 3rd Floor
  • Atlanta
  • Georgia
  • 30328
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ICENYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2005
IC2DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2005
ICE *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 2005
0JC3LSE (London Stock Exchange)YesCommon StockGBUSDNov 2005
ICEIWBAG (Wiener Boerse AG)YesCommon StockATEURNov 2005

Biography

Intercontinental Exchange, Inc. operates regulated exchanges, clearing houses, and listings venues for commodity, financial, fixed income, and equity markets in the United States, the United Kingdom, Europ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 00:38
End of Day Share Price2019/12/06 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.