The Company in a Nutshell
- ICE is shifting its business toward selling market data rather than being solely an exchange.
- Data (42%) & listings (9%) represent 51% of revenue while trading & clearing is now 49%.
- Through its business transformation, ICE is increasing its recurring revenue (51%).
- We do not cover Intercontinental Exchange at the moment.
Date Reviewed | N/A |
Company Name | Intercontinental Exchange Inc |
Symbol | ICE |
Sector | Financials |
Industry | Financial Data & Stock Exchanges |
Beta | 1.022 |
PRO Rating | 3 |
Dividend Safety | 3 |
Business Model
Intercontinental Exchange, Inc. is a global provider of technology and data to a range of customers including financial institutions, corporations, and government entities. The Company operates through three segments: Exchanges, Fixed Income and Data Services, and Mortgage Technology. The Exchanges segment operates regulated marketplace technology for the listing, trading, and clearing of an array of derivatives contracts and financial securities. The Fixed Income and Data Services segment provides fixed income pricing, reference data, indices, analytics, and execution services, as well as global credit default swaps (CDS), clearing and multi-asset class data delivery technology. The Mortgage Technology segment provides a technology platform that offers customers digital workflow tools that aim to address the inefficiencies and mitigate risks that exist in the United States residential mortgage market life cycle, from application through closing, servicing, and the secondary market.
Current price | 131.72 |
ROE | 9.80 % |
ROIC | 7.10 % |
Shareholder Yield | 0.25 % |
5-Yr Total Return | 73.40 % |
1-Yr Total Return | 27.80 % |
Next Earnings Date | 05-02-24 |
Latest Quarter Information
What the CEO said:
We are pleased to report our 18th consecutive year of record revenues and another year of earnings per share growth. A dynamic macro environment and strong secular tailwinds across our business continue to drive customers to our diverse, liquid markets and our mission-critical data and SaaS technologies to manage risk and capture efficiencies. As we look to 2024 and beyond, we remain focused on innovating across asset classes to serve the needs of our customers and deliver growth for our stockholders.
What we say:
02-26-2024, ICE beat analysts' estimates on both earnings and revenues. Revenue by segments: Exchanges: $1,136M, Fixed income and data services: $563M, and Mortgage Technology: $502M. The adjusted operating margin was 72%, 43%, and 39%, respectively for the segments. Energy, financials, and Ags & Metals drove revenue in the Exchanges segment while Other Data and Network Service was the largest contributor in the FI and Data Services, and the Mortgage Technology segment saw recurring revenue growth of 144% Y/Y. ICE paid $955M in dividends in FY23 and had cash of $899M and debt of $22.6B. ICE completed the acquisition of Black Knight in September 2023.
Investment Thesis
Dividend Triangle
5-Yr Rev. Growth | 9.55 % |
5-Yr EPS Growth | 4.10 % |
5-Yr Div Growth | 11.85 % |
Potential Risks
Debt/Equity | 0.90 |
Financial Debt to EBITDA (TTM) | 4.35 |
Current Ratio (Quarterly) | 1.00 |
Credit Score | 80 |
Dividend Growth Perspective
Dividend ($) | 1.8 |
Dividend Yield Fwd | 1.35 % |
Dividend Frequency | Quarterly |
Average 5-Yr Yield | 1.20 % |
Payout Ratio (%) | 40.35 |
Cash Payout Ratio (%) | 31.30 |
DGR 1-Yr | 10.55 |
DGR 3-Yr | 11.85 |
DGR 5-Yr | 11.85 |
DGR Streak | 10 |
Chowder Score | 13.20 |
Next DVD PMT | 06-28-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 76 B |
PE Ratio | 31.40 |
Fwd PE | 21.25 |
Price to Book Ratio | 2.95 |
DDM Valuation | N/A |
Average 5-Yr PE | 27.21 |
Value Score | 31 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.