NYSE:ICE

Stock Analysis Report

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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, Singapore, Israel, and Canada. More Details


Snowflake Analysis

Adequate balance sheet 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

-4.4%

ICE

-1.0%

US Capital Markets

-2.4%

US Market


1 Year Return

5.5%

ICE

9.7%

US Capital Markets

18.2%

US Market

Return vs Industry: ICE underperformed the US Capital Markets industry which returned 11.3% over the past year.

Return vs Market: ICE underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

ICEIndustryMarket
7 Day-4.4%-1.0%-2.4%
30 Day-0.8%3.9%4.2%
90 Day3.5%1.3%6.3%
1 Year6.9%5.5%12.5%9.7%20.9%18.2%
3 Year55.7%49.9%21.2%11.8%41.2%31.8%
5 Year112.0%99.0%72.5%50.6%84.8%63.9%

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?

25.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ICE ($98.45) is trading above our estimate of fair value ($78.65)

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


Price To Earnings Ratio

PE vs Industry: ICE is poor value based on its PE Ratio (25.3x) compared to the US Capital Markets industry average (23.6x).

PE vs Market: ICE is poor value based on its PE Ratio (25.3x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: ICE is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: ICE is good value based on its PB Ratio (3.2x) compared to the US Capital Markets industry average (4.5x).


Next Steps

Future Growth

How is Intercontinental Exchange forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ICE's forecast earnings growth (8.4% per year) is above the savings rate (2.2%).

Earnings vs Market: ICE's earnings (8.4% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: ICE's revenue (7.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: ICE's revenue (7.4% 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 (15.9%).


Next Steps

Past Performance

How has Intercontinental Exchange performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ICE has high quality earnings.

Growing Profit Margin: ICE's current net profit margins (38.5%) are lower than last year (39.9%).


Past Earnings Growth Analysis

Earnings Trend: ICE's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: ICE's earnings growth over the past year (6.1%) is below its 5-year average (12.5% per year).

Earnings vs Industry: ICE earnings growth over the past year (6.1%) underperformed the Capital Markets industry 11.9%.


Return on Equity

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


Next Steps

Financial Health

How is Intercontinental Exchange's financial position?


Financial Position Analysis

Short Term Liabilities: ICE's short term assets ($97.4B) exceed its short term liabilities ($96.2B).

Long Term Liabilities: ICE's short term assets ($97.4B) exceed its long term liabilities ($10.8B).


Debt to Equity History and Analysis

Debt Level: ICE's debt to equity ratio (48.9%) is considered high.

Reducing Debt: ICE's debt to equity ratio has increased from 26.2% to 48.9% over the past 5 years.

Debt Coverage: ICE's debt is well covered by operating cash flow (31.8%).

Interest Coverage: ICE's interest payments on its debt are well covered by EBIT (11.8x coverage).


Balance Sheet


Next Steps

Dividend

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

1.22%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ICE's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: ICE's dividend (1.22%) is low compared to the top 25% of dividend payers in the US market (4.66%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.6%), 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 (27.7% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Jeff Sprecher (65 yo)

20.42yrs

Tenure

US$14,408,908

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 ($USD14.41M) is about average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Sprecher
Founder20.42yrsUS$14.41m0.83%
$ 459.2m
Benjamin Jackson
President2.92yrsUS$4.63m0.010%
$ 5.6m
Scott Hill
Chief Financial Officer13.42yrsUS$5.39m0.022%
$ 11.9m
David Goone
Chief Strategy Officer19.58yrsUS$4.61m0.077%
$ 42.6m
Charles Vice
0.58yrUS$7.07m0.075%
$ 41.2m
Mark Wassersug
Chief Operating Officer2.92yrsno data0.0024%
$ 1.3m
James Namkung
Chief Accounting Officer & Corporate Controller2.67yrsno data0.0019%
$ 1.1m
Mayur Kapani
Chief Technology Officer4.42yrsno datano data
Douglas Foley
Senior Vice President of Human Resources & Administration6.92yrsno datano data
Warren Gardiner
Vice President of Investor Relations3.25yrsno datano data
Andrew Surdykowski
General Counsel2yrsno data0.0051%
$ 2.8m
Christopher Edmonds
Global Head of Clearing & Risk6.92yrsno datano data

3.8yrs

Average Tenure

51yo

Average Age

Experienced Management: ICE's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Sprecher
Founder20.42yrsUS$14.41m0.83%
$ 459.2m
Yi Shyan Lee
Chairman of ICE Futures Singapore & ICE Clear Singapore3.92yrsno datano data
Hester Serafini
President & Director of ICE Clear Europe0.33yrno datano data
Thomas Noonan
Independent Director4.08yrsUS$304.94k0.0019%
$ 1.1m
Vincent Tese
Independent Director16.5yrsUS$472.37k0.0061%
$ 3.3m
Frederic Salerno
Lead Independent Director12.75yrsUS$424.94k0.0020%
$ 1.1m
Judith Sprieser
Independent Director16.5yrsUS$474.87k0.0046%
$ 2.6m
Charles Crisp
Independent Director17.92yrsUS$409.94k0.0094%
$ 5.2m
Jean-Marc Forneri
Independent Director17.92yrsUS$304.94k0.0030%
$ 1.7m
William Hague
Independent Director5.08yrsUS$457.56k0.0020%
$ 1.1m
Frederick Hatfield
Independent Director13.42yrsUS$419.94k0.0058%
$ 3.2m
Duriya Farooqui
Independent Director3.58yrsUS$389.94k0.0014%
$ 757.0k

13.1yrs

Average Tenure

63yo

Average Age

Experienced Board: ICE's board of directors are seasoned and experienced ( 13.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

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$55.255b
  • Shares outstanding: 561.25m
  • 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
IC2XTRA (XETRA Trading Platform)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
I1CE34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

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 Analysis2020/10/19 23:45
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.