10Y annualized return is
very good
at 14.3% per year
CBOE has met or exceeded earnings expectations in
most
recent quarters (9/10)
Strong Return on Equity
Reasonable Debt Levels
Strong Operating Profit Margin
High Gross Profit Margin
Strong Liquidity Ratios
Excellent Interest Coverage
Record Financial Performance
Diverse Revenue Streams
Strong Market Position
Expansion Opportunities
Technological Innovations
Global Market Expansion
High Price-to-Earnings Ratio
Elevated Price-to-Sales Ratio
Moderate Net Profit Margin
Free Cash Flow Yield
Market Volatility Challenges
Cboe Global Markets demonstrated strong business quality through record financial performance, a diversified revenue model, and a strong market position. Looking ahead, the company has promising growth prospects driven by technological innovations, expansion into retail and international markets, despite facing potential challenges from market volatility.
Analysis Date: February 7, 2025
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Cboe Global Markets, Inc. is a company that helps people buy and sell different types of financial products. They mainly focus on options, which are contracts that let you buy or sell stocks at a certain price. They also trade regular stocks from the U.S. and Canada, as well as other financial products like futures and foreign exchange. Cboe connects buyers and sellers, making it easier for them to trade in these markets.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Platform/Marketplace
Competitive Advantages
Key Business Risks
Latest News
Buy 3 U.S. Securities and Exchanges stocks to strengthen your portfolio. These are CME, CBOE, ICE.
CHICAGO , April 17, 2025 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, this...
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$280.59
Current Market Price: $214.89
IV/P Ratio: 1.31x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
23.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for CBOE
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (29.51)
P/B ratio ≤ 1.5 (10.16)
Current ratio ≥ 2.0 (1.78x)
Long-term debt < Net current assets (1.46x)
Margin of safety (23.0%)
CBOE does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
21.11%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
43.28%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
18.65%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
CBOE boasts an operating profit margin of 28.83%, showcasing effective cost management and efficient operations.
A gross profit margin of 43.28% indicates that the company retains a significant portion of revenue after covering the cost of goods sold.
The net profit margin of 18.65% is respectable but may not be as competitive compared to industry peers, suggesting room for improvement.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.72x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.78x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
CBOE has a current ratio of 1.78 and a quick ratio of 1.78, indicating solid short-term financial health and ability to meet obligations.
An interest coverage ratio of 22.92 shows that the company can easily cover interest expenses, reflecting strong financial stability.
The free cash flow yield of 4.65% is relatively moderate, which may indicate less cash available for growth opportunities or shareholder returns.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Cboe achieved strong financial results, with net revenue growing 8% year-over-year to a record $2.1 billion and adjusted diluted EPS increasing by 10% to a record $8.61. This growth was driven by solid volumes across Derivatives and Cash and Spot markets.
The business showcased resilience and growth across various segments, including Derivatives, Data Vantage, and Cash and Spot markets. Each segment contributed to revenue growth, highlighting the company's well-diversified business model.
Cboe's Derivatives business remains a leader with record volumes in SPX and VIX options, supported by an increasing customer base and demand for options trading.
Cboe is well-positioned to capitalize on the rising popularity of options trading, especially among retail investors. The partnership with Robinhood to expand access to index options is a strategic move to tap into a vast market of retail traders.
The introduction of Cboe Titanium as a new technology platform signifies a commitment to enhancing trading technology and operational efficiency, paving the way for future growth.
Cboe's strategy includes expanding its footprint in international markets, with significant efforts in Asia-Pacific, and leveraging its global salesforce to drive growth in trading volumes.
The geopolitical environment and ongoing market volatility could pose risks to trading volumes and investor sentiment, which may affect future revenue growth.