Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. Fundamental Analysis
Intercontinental Exchange, Inc. (ICE) shows moderate financial fundamentals with a PE ratio of 22.31, profit margin of 29.98%, and ROE of 13.57%. The company generates $13.0B in annual revenue with moderate year-over-year growth of 7.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ICE's fundamental strength across five key dimensions:
Efficiency Score
WeakICE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentICE trades at attractive valuation levels.
Growth Score
ExcellentICE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentICE maintains a strong and stable balance sheet.
Profitability Score
ModerateICE maintains healthy but balanced margins.
Key Financial Metrics
Is ICE Expensive or Cheap?
P/E Ratio
ICE trades at 22.31 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ICE's PEG of 0.53 indicates potential undervaluation.
Price to Book
The market values Intercontinental Exchange, Inc. at 2.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.21 times EBITDA. This signals the market has high growth expectations.
How Well Does ICE Make Money?
Net Profit Margin
For every $100 in sales, Intercontinental Exchange, Inc. keeps $29.98 as profit after all expenses.
Operating Margin
Core operations generate 40.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.57 in profit for every $100 of shareholder equity.
ROA
Intercontinental Exchange, Inc. generates $2.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Intercontinental Exchange, Inc. generates strong operating cash flow of $5.01B, reflecting robust business health.
Free Cash Flow
Intercontinental Exchange, Inc. generates strong free cash flow of $4.55B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.04 in free cash annually.
FCF Yield
ICE converts 5.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.71
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.01
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How ICE Stacks Against Its Sector Peers
| Metric | ICE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.31 | 18.85 | Worse (Expensive) |
| ROE | 13.57% | 820.00% | Weak |
| Net Margin | 29.98% | 1999.00% | Weak |
| Debt/Equity | 0.71 | 1.01 | Strong (Low Leverage) |
| Current Ratio | 1.01 | 673.75 | Neutral |
| ROA | 2.19% | -23583.00% (disorted) | Weak |
ICE outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Intercontinental Exchange, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
48.16%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
52.86%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
56.40%
Industry Style: Value, Dividend, Cyclical
High Growth