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Intercontinental Exchange Inc ICE

Morningstar Rating
$136.69 +0.26 (0.19%)
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Company Report

Intercontinental Exchange Earnings: Energy Futures Continue to Deliver Impressive Results

Wide-moat-rated Intercontinental Exchange reported decent fourth-quarter earnings that were in line with our expectations. Net revenue increased 24% from last year to $2.2 billion, or 7% when adjusted for the firm's acquisition of Black Knight. Meanwhile, net income fell 11.4% to $390 million, mostly due to acquisition-related expenses. As we incorporate these results, we do not plan to materially alter our $136 per share fair value estimate.

Price vs Fair Value

ICE is trading at a 1% premium.
Price
$136.69
Fair Value
$685.00
Uncertainty
Medium
1-Star Price
$392.20
5-Star Price
$19.40
Economic Moat
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Capital Allocation
Chssqqtly

Bulls Say, Bears Say

Bulls

Intercontinental Exchange has become increasingly less reliant on transactional revenue as it expands its data and service offerings both organically and through acquisitions.

Bears

ICE has faced pushback from its customers on pricing for its equity market data. Recent regulatory action by the SEC suggests the agency is sympathetic to these complaints.

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News

Trading Information

Previous Close Price
$136.43
Day Range
$135.42137.12
52-Week Range
$94.16138.34
Bid/Ask
$135.88 / $139.00
Market Cap
$78.27 Bil
Volume/Avg
2.6 Mil / 2.7 Mil

Key Statistics

Price/Earnings (Normalized)
24.27
Price/Sales
7.80
Dividend Yield (Trailing)
1.23%
Dividend Yield (Forward)
1.32%
Total Yield
1.33%

Company Profile

Intercontinental Exchange is a vertically integrated operator of financial exchanges and provides ancillary data products. Though the company is probably best known for its ownership of the New York Stock Exchange, which it acquired in 2013, ICE operates a large derivatives exchange, too. The company's largest commodity futures product is the ICE Brent crude futures contract. In addition to the exchanges business, which is about 56% of net revenue, Intercontinental Exchange has used a series of acquisitions to create its mortgage technology business (15% of net revenue) and fixed-income and data services segment (29% of net revenue).
Sector
Financial Services
Industry
Financial Data & Stock Exchanges
Stock Style Box
Large Core
Total Number of Employees
13,222

Competitors

Valuation

Metric
ICE
DB1
CME
Price/Earnings (Normalized)
24.2720.0324.21
Price/Book Value
3.043.872.90
Price/Sales
7.805.9413.87
Price/Cash Flow
19.6515.4222.38
Price/Earnings
ICE
DB1
CME

Financial Strength

Metric
ICE
DB1
CME
Quick Ratio
0.050.700.03
Current Ratio
1.001.011.03
Interest Coverage
4.1947.9825.91
Quick Ratio
ICE
DB1
CME

Profitability

Metric
ICE
DB1
CME
Return on Assets (Normalized)
2.10%0.60%2.01%
Return on Equity (Normalized)
13.14%19.86%11.53%
Return on Invested Capital (Normalized)
8.05%0.99%10.65%
Return on Assets
ICE
DB1
CME
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