Intercontinental Exchange, Inc. (ICE) Stock Analysis
Intercontinental Exchange, Inc. (ICE) Stock Analysis
Analysis from 10-Q filed 2025-10-30. Data as of Q4 2025.
Overall Grade: F (Concerning)
Intercontinental Exchange, Inc. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 33.9% | Strong cash generation |
| Debt/Equity | 0.7x | Moderate leverage |
Investment Thesis: Healthy free cash flow margin of 33.9% provides financial flexibility for growth and shareholder returns.
Explore Intercontinental Exchange, Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Intercontinental Exchange, Inc. earns N/A ROIC
Intercontinental Exchange, Inc.'s trailing-twelve-month ROIC of N/A (sector median: 7.3%). Source: 10-Q filed 2025-10-30.
| Metric | ICE | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 7.3% |
| Return on Equity (ROE) | 11.7% | Adequate | Moderate equity returns |
Cash Flow: Intercontinental Exchange, Inc. generates $4.3B FCF at 33.9% margin, positive NaN/8 quarters
Intercontinental Exchange, Inc. generated $4.3B in free cash flow (TTM), a 33.9% FCF margin, a margin that ranks Top 25% in Financials. Operating cash flow exceeds net income by 1.4x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-30.
| Metric | ICE | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 33.9% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $4.3B | Good | Positive cash generation |
| OCF/Net Income | 1.4x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Intercontinental Exchange, Inc. at 0.7x leverage
Intercontinental Exchange, Inc.'s debt-to-equity ratio of 0.7x reflects elevated leverage. Net cash position of $57.9B provides financial flexibility. Source: 10-Q filed 2025-10-30.
| Metric | ICE | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.7x | Adequate | Moderate leverage |
| Net Cash Position | $57.9B | Excellent | Net cash positive |
Valuation: Intercontinental Exchange, Inc. trades at 27.9x earnings
Intercontinental Exchange, Inc. trades at a P/E of 27.9x. Free cash flow yield of 4.6% reflects market expectations for growth.
| Metric | ICE | Rating | Context |
|---|---|---|---|
| P/E Ratio | 27.9x | Adequate | Premium valuation |
| EV/Sales | 2.2x | Good | Attractive revenue multiple |
| FCF Yield | 4.6% | Good | Lower cash yield |
| Dividend Yield | 1.2% | Adequate | Growth focus over income |
Capital Allocation: Intercontinental Exchange, Inc. returns 2.6% shareholder yield
Intercontinental Exchange, Inc.'s total shareholder yield is 2.6% (dividends 1.2% + buybacks 1.4%). Source: 10-Q filed 2025-10-30.
| Metric | ICE | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 2.6% | Adequate | Dividend + buyback yield combined |
| Buyback Yield | 1.4% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $2.4B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 33.9% | Top 25% | 1.6x above |
| Return on Equity (ROE) | 11.7% | Top 50% | 1.1x above |
| P/E Ratio | 27.9x | N/A | - |
Financial Scorecard
| Metric | ICE | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 33.9% | Excellent | Top 25% of sector (median: 21.7%) |
| Debt to Equity Ratio | 71.5% | Adequate | Elevated but manageable |
| P/E Ratio (Price-to-Earnings) | 27.9x | Adequate | Growth premium |
| Free Cash Flow Yield | 4.6% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is Intercontinental Exchange, Inc.'s Return on Invested Capital (ROIC)?
Intercontinental Exchange, Inc. (ICE) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 7.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Intercontinental Exchange, Inc.'s Free Cash Flow Margin?
Intercontinental Exchange, Inc. (ICE) has a free cash flow margin of 33.9%, generating $4.3 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is Intercontinental Exchange, Inc. stock overvalued or undervalued?
Intercontinental Exchange, Inc. (ICE) trades at a P/E ratio of 27.9x, which is above the sector median of N/A. The EV/Sales multiple is 2.2x. Free cash flow yield is 4.6%, which is in line with market averages.
Q: Does Intercontinental Exchange, Inc. pay a dividend?
Intercontinental Exchange, Inc. (ICE) currently pays a dividend yield of 1.2%. Including share buybacks, the total shareholder yield is 2.6%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: How much debt does Intercontinental Exchange, Inc. have?
Intercontinental Exchange, Inc. (ICE) has a debt-to-equity ratio of 0.7x with total debt of $20.7 billion. Despite carrying debt, the company maintains a net cash position of $57.9 billion.
Q: What is Intercontinental Exchange, Inc.'s revenue and earnings growth?
Intercontinental Exchange, Inc. (ICE) grew revenue by 7.5% year-over-year. Earnings per share increased by 20.7% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: Is Intercontinental Exchange, Inc. buying back stock?
Intercontinental Exchange, Inc. (ICE) repurchased $1.3 billion of stock over the trailing twelve months. This represents a buyback yield of 1.4%.
Q: How does Intercontinental Exchange, Inc. compare to competitors in Financials?
Compared to other companies in Financials, Intercontinental Exchange, Inc. (ICE) shows: ROIC of N/A is below the sector median of 7.3% (NaNx median). FCF margin of 33.9% exceeds the sector median of 21.7% (Top 24% of sector). These rankings are based on MetricDuck's analysis of all Financials companies with available SEC filings.
Q: What warning signs should I watch for with Intercontinental Exchange, Inc.?
Intercontinental Exchange, Inc. (ICE) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.