INTERCONTINENTAL EXCHANGE IN (ICE)

US45866F1049 - Common Stock

150.31  +2.02 (+1.36%)

After market: 150.31 0 (0%)

Fundamental Rating

4

Taking everything into account, ICE scores 4 out of 10 in our fundamental rating. ICE was compared to 220 industry peers in the Capital Markets industry. While ICE is still in line with the averages on profitability rating, there are concerns on its financial health. ICE is valied quite expensively at the moment, while it does show a decent growth rate.



6

1. Profitability

1.1 Basic Checks

In the past year ICE was profitable.
In the past year ICE had a positive cash flow from operations.
ICE had positive earnings in each of the past 5 years.
ICE had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

ICE has a Return On Assets (1.80%) which is in line with its industry peers.
ICE's Return On Equity of 8.92% is in line compared to the rest of the industry. ICE outperforms 51.61% of its industry peers.
With a decent Return On Invested Capital value of 6.77%, ICE is doing good in the industry, outperforming 75.12% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ICE is in line with the industry average of 7.00%.
Industry RankSector Rank
ROA 1.8%
ROE 8.92%
ROIC 6.77%
ROA(3y)1.53%
ROA(5y)1.66%
ROE(3y)11.15%
ROE(5y)11.07%
ROIC(3y)6.77%
ROIC(5y)7.01%

1.3 Margins

The Profit Margin of ICE (21.31%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ICE has declined.
ICE has a Operating Margin of 37.84%. This is in the better half of the industry: ICE outperforms 62.21% of its industry peers.
In the last couple of years the Operating Margin of ICE has remained more or less at the same level.
Looking at the Gross Margin, with a value of 80.35%, ICE belongs to the top of the industry, outperforming 82.49% of the companies in the same industry.
ICE's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 37.84%
PM (TTM) 21.31%
GM 80.35%
OM growth 3Y1.68%
OM growth 5Y-0.82%
PM growth 3Y-1.91%
PM growth 5Y-5.47%
GM growth 3Y3.28%
GM growth 5Y0.33%

3

2. Health

2.1 Basic Checks

ICE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ICE has more shares outstanding
ICE has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.85, we must say that ICE is in the distress zone and has some risk of bankruptcy.
ICE has a Altman-Z score of 0.85. This is comparable to the rest of the industry: ICE outperforms 50.23% of its industry peers.
The Debt to FCF ratio of ICE is 6.18, which is on the high side as it means it would take ICE, 6.18 years of fcf income to pay off all of its debts.
ICE has a better Debt to FCF ratio (6.18) than 60.83% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that ICE is somewhat dependend on debt financing.
ICE has a better Debt to Equity ratio (0.78) than 61.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.78
Debt/FCF 6.18
Altman-Z 0.85
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

A Current Ratio of 1.00 indicates that ICE should not have too much problems paying its short term obligations.
The Current ratio of ICE (1.00) is comparable to the rest of the industry.
ICE has a Quick Ratio of 1.00. This is a normal value and indicates that ICE is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ICE (1.00) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1
Quick Ratio 1

5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 5.95% over the past year.
The Earnings Per Share has been growing by 9.42% on average over the past years. This is quite good.
Looking at the last year, ICE shows a quite strong growth in Revenue. The Revenue has grown by 18.55% in the last year.
The Revenue has been growing by 9.55% on average over the past years. This is quite good.
EPS 1Y (TTM)5.95%
EPS 3Y7.67%
EPS 5Y9.42%
EPS Q2Q%6.16%
Revenue 1Y (TTM)18.55%
Revenue growth 3Y6.3%
Revenue growth 5Y9.55%
Sales Q2Q%17.27%

3.2 Future

ICE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.13% yearly.
Based on estimates for the next years, ICE will show a small growth in Revenue. The Revenue will grow by 7.60% on average per year.
EPS Next Y9.09%
EPS Next 2Y9.86%
EPS Next 3Y10.54%
EPS Next 5Y11.13%
Revenue Next Year16.85%
Revenue Next 2Y11.2%
Revenue Next 3Y9.47%
Revenue Next 5Y7.6%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 25.56, which means the current valuation is very expensive for ICE.
ICE's Price/Earnings ratio is a bit more expensive when compared to the industry. ICE is more expensive than 68.20% of the companies in the same industry.
ICE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.12 indicates a rather expensive valuation of ICE.
Based on the Price/Forward Earnings ratio, ICE is valued a bit more expensive than the industry average as 63.13% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.73. ICE is around the same levels.
Industry RankSector Rank
PE 25.56
Fwd PE 22.12

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ICE is valued a bit cheaper than 71.43% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ICE.
Industry RankSector Rank
P/FCF 25.14
EV/EBITDA 17.83

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ICE does not grow enough to justify the current Price/Earnings ratio.
ICE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.81
PEG (5Y)2.71
EPS Next 2Y9.86%
EPS Next 3Y10.54%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.21%, ICE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 9.57, ICE is paying slightly less dividend.
With a Dividend Yield of 1.21, ICE pays less dividend than the S&P500 average, which is at 2.36.
Industry RankSector Rank
Dividend Yield 1.21%

5.2 History

The dividend of ICE is nicely growing with an annual growth rate of 11.86%!
ICE has paid a dividend for at least 10 years, which is a reliable track record.
ICE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.86%
Div Incr Years11
Div Non Decr Years11

5.3 Sustainability

42.07% of the earnings are spent on dividend by ICE. This is a bit on the high side, but may be sustainable.
The dividend of ICE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.07%
EPS Next 2Y9.86%
EPS Next 3Y10.54%

INTERCONTINENTAL EXCHANGE IN

NYSE:ICE (12/20/2024, 8:17:47 PM)

After market: 150.31 0 (0%)

150.31

+2.02 (+1.36%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)02-06 2025-02-06/amc
Inst Owners92.57%
Inst Owner Change0.09%
Ins Owners1.01%
Ins Owner Change-1.73%
Market Cap86.30B
Analysts80.91
Price Target185.71 (23.55%)
Short Float %1.24%
Short Ratio2.33
Dividend
Industry RankSector Rank
Dividend Yield 1.21%
Dividend Growth(5Y)11.86%
DP42.07%
Div Incr Years11
Div Non Decr Years11
Ex-Date12-16 2024-12-16 (0.45)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.11%
Min EPS beat(2)-1.05%
Max EPS beat(2)1.26%
EPS beat(4)2
Avg EPS beat(4)0.29%
Min EPS beat(4)-1.06%
Max EPS beat(4)2%
EPS beat(8)4
Avg EPS beat(8)0.83%
EPS beat(12)7
Avg EPS beat(12)1.04%
EPS beat(16)10
Avg EPS beat(16)1.39%
Revenue beat(2)0
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)-0.77%
Revenue beat(4)0
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-1.84%
Max Revenue beat(4)-0.77%
Revenue beat(8)1
Avg Revenue beat(8)3%
Revenue beat(12)5
Avg Revenue beat(12)11.88%
Revenue beat(16)9
Avg Revenue beat(16)16.65%
PT rev (1m)-1.13%
PT rev (3m)8%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)0.38%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.23%
Valuation
Industry RankSector Rank
PE 25.56
Fwd PE 22.12
P/S 7.57
P/FCF 25.14
P/OCF 21.19
P/B 3.17
P/tB N/A
EV/EBITDA 17.83
EPS(TTM)5.88
EY3.91%
EPS(NY)6.79
Fwd EY4.52%
FCF(TTM)5.98
FCFY3.98%
OCF(TTM)7.09
OCFY4.72%
SpS19.85
BVpS47.43
TBVpS-34.72
PEG (NY)2.81
PEG (5Y)2.71
Profitability
Industry RankSector Rank
ROA 1.8%
ROE 8.92%
ROCE 8.52%
ROIC 6.77%
ROICexc 6.86%
ROICexgc 67.58%
OM 37.84%
PM (TTM) 21.31%
GM 80.35%
FCFM 30.12%
ROA(3y)1.53%
ROA(5y)1.66%
ROE(3y)11.15%
ROE(5y)11.07%
ROIC(3y)6.77%
ROIC(5y)7.01%
ROICexc(3y)6.94%
ROICexc(5y)7.18%
ROICexgc(3y)52.61%
ROICexgc(5y)61.16%
ROCE(3y)8.27%
ROCE(5y)8.69%
ROICexcg growth 3Y5.61%
ROICexcg growth 5Y-4.69%
ROICexc growth 3Y-1.26%
ROICexc growth 5Y-5.63%
OM growth 3Y1.68%
OM growth 5Y-0.82%
PM growth 3Y-1.91%
PM growth 5Y-5.47%
GM growth 3Y3.28%
GM growth 5Y0.33%
F-Score9
Asset Turnover0.08
Health
Industry RankSector Rank
Debt/Equity 0.78
Debt/FCF 6.18
Debt/EBITDA 3.63
Cap/Depr 41.85%
Cap/Sales 5.61%
Interest Coverage 5
Cash Conversion 69.73%
Profit Quality 141.33%
Current Ratio 1
Quick Ratio 1
Altman-Z 0.85
F-Score9
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)43.93%
Cap/Depr(5y)46.49%
Cap/Sales(3y)4.96%
Cap/Sales(5y)4.9%
Profit Quality(3y)135.73%
Profit Quality(5y)129.45%
High Growth Momentum
Growth
EPS 1Y (TTM)5.95%
EPS 3Y7.67%
EPS 5Y9.42%
EPS Q2Q%6.16%
EPS Next Y9.09%
EPS Next 2Y9.86%
EPS Next 3Y10.54%
EPS Next 5Y11.13%
Revenue 1Y (TTM)18.55%
Revenue growth 3Y6.3%
Revenue growth 5Y9.55%
Sales Q2Q%17.27%
Revenue Next Year16.85%
Revenue Next 2Y11.2%
Revenue Next 3Y9.47%
Revenue Next 5Y7.6%
EBIT growth 1Y12.14%
EBIT growth 3Y8.09%
EBIT growth 5Y8.65%
EBIT Next Year27.54%
EBIT Next 3Y13.92%
EBIT Next 5Y9.69%
FCF growth 1Y14.2%
FCF growth 3Y7.3%
FCF growth 5Y6.27%
OCF growth 1Y17.86%
OCF growth 3Y7.13%
OCF growth 5Y6.94%