Cboe Global Markets logged a 4.3% change during today's morning session, and is now trading at a price of $193.78 per share.
Cboe Global Markets returned gains of 32.5% last year, with its stock price reaching a high of $199.0 and a low of $144.67. Over the same period, the stock outperformed the S&P 500 index by 14.1%. More recently, the company's 50-day average price was $175.98. Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange worldwide. Based in Chicago, IL, the Large-Cap Finance company has 1,647 full time employees. Cboe Global Markets has offered a 1.2% dividend yield over the last 12 months.
Growing Revenues but an Average Current Ratio:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $2,769 | $2,496 | $3,427 | $3,495 | $3,958 | $3,774 |
| Interest Income (M) | -$38 | -$36 | -$38 | -$47 | -$56 | -$50 |
| Operating Margins | 22% | 22% | 19% | 23% | 12% | 28% |
| Net Margins | 15% | 15% | 14% | 15% | 6% | 20% |
| Net Income (M) | $426 | $375 | $468 | $529 | $235 | $761 |
| Depreciation & Amort. (M) | $25 | $24 | $27 | $34 | $35 | $33 |
| Diluted Shares (M) | 112 | 112 | 109 | 107 | 107 | 106 |
| Earnings Per Share | $3.76 | $3.34 | $4.27 | $4.92 | $2.19 | $7.13 |
| EPS Growth | n/a | -11.17% | 27.84% | 15.22% | -55.49% | 225.57% |
| Avg. Price | $100.2 | $101.58 | $92.2 | $111.24 | $113.09 | $193.78 |
| P/E Ratio | 26.51 | 30.32 | 21.54 | 22.56 | 51.4 | 27.06 |
| Free Cash Flow (M) | $498 | $598 | $1,411 | $546 | $591 | $1,031 |
| CAPEX (M) | $36 | $35 | $47 | $51 | $60 | $45 |
| EV / EBITDA | 20.07 | 21.32 | 16.27 | 15.35 | 26.04 | 19.6 |
| Total Debt (M) | $1,515 | $868 | $1,273 | $1,299 | $2,047 | $1,439 |
| Net Debt / EBITDA | 1.99 | 1.14 | 1.49 | 1.14 | 3.07 | 0.82 |
| Current Ratio | 1.15 | 2.16 | 1.19 | 1.31 | 1.05 | 1.43 |
Cboe Global Markets benefits from growing revenues and increasing reinvestment in the business, strong operating margins with a stable trend, and low leverage levels. The company's financial statements show a strong EPS growth trend and positive cash flows. Furthermore, Cboe Global Markets has just enough current assets to cover current liabilities, as shown by its current ratio of 1.43.
Cboe Global Markets Has Elevated P/B and P/E Ratios:
Cboe Global Markets has a trailing twelve month P/E ratio of 24.3, compared to an average of 19.48 for the Finance sector. Based on its EPS guidance of $9.02, the company has a forward P/E ratio of 19.5. The 13.3% compound average growth rate of Cboe Global Markets's historical and projected earnings per share yields a PEG ratio of 1.83. This suggests that these shares are overvalued. Furthermore, Cboe Global Markets is likely overvalued compared to the book value of its equity, since its P/B ratio of 5.05 is higher than the sector average of 1.85. The company's shares are currently trading 149.8% below their Graham number. Overall, Cboe Global Markets's lofty valuation in terms of earnings and assets is to some extent attenuated by its strong cash flow trend and reasonable levels of debt.
There's an Analyst Consensus of Little Upside Potential for Cboe Global Markets:
The 12 analysts following Cboe Global Markets have set target prices ranging from $175.0 to $203.0 per share, for an average of $189.67 with a hold rating. The company is trading 2.2% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Cboe Global Markets has an average amount of shares sold short because 3.0% of the company's shares are sold short. Institutions own 84.4% of the company's shares, and the insider ownership rate stands at 0.42%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $2,444,772,227.
