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Fundamental analysis: Cboe Global Markets, Inc. (CBOE)

Awarener score: 7.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Good) and growth (Modest), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

  • Business growth has been almost stagnant. It's been below average when measured against peer companies.
  • Cboe Global Markets, Inc. business trend stability is good. The higher the stability, the lower the risk. It looks mediocre against rivals.

Margins score: 7.8

  • CBOE profit margins -on goods and services sold- are usually sufficient. They stand bottom tier against rival companies.
  • Business profit on sales tends to be excellent. It's weak when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain a disappointment compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still worse than most similar companies.
  • Profits -before income taxes- are usually very good considering total sales, and remain substantially worse when measured against rivals.
  • Total net profit tends to be very good when confronted to sales. Company stands substantially worse when measured against comparable firms.

Growth score: 2.6

  • Cboe Global Markets, Inc. profit -on goods and services sold- has been growing at a low pace. It's been lacking compared to competitors.
  • In recent years, earnings -on operations- have been shrinking, which has been somewhat better than comparable firms.
  • Profits -available to repay debt and purchase properties- tended to shrink, which compares weak when measured against peer enterprises.
  • Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be close to average when compared to similar stocks.
  • In past years, profits -before income taxes- tended to shrink. It was slightly worse than rivals.
  • In the previous years, growth on total net profit has been negative, and weak when measured against peer companies.
  • Earnings per share have been shrinking in the past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 3.0

  • CBOE had to pay a lot of income taxes in relation to profits made in the past years. It's been worse than most peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.8

  • Cboe Global Markets, Inc. usually gets excellent returns on the resources it controls. It proves below average when measured against peer firms.
  • The company normally gets very good proceeds -on the resources directly invested in the business-. They remain close to average when compared to similar companies.
  • There's usually abundant profitability -in relation to owned resources-. It ranks below average when measured against competitors.
  • In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 6.6

  • CBOE usually uses a modest portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments isn't too high. It stands great when measured against rival firms.
  • The company is usually sparsely replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is last-in-rank when measured against industry peers.
  • In the past twelve months it paid run-of-the-mill dividends, considering the current stock price. It came better than most competitors.
  • Has increased dividend payments in the past years. Business prospects may have improved. The company has behaved in good shape compared to similar firms.
  • Dividend payments usually represent a modest portion of genuine funds generation and should be reasonable safe. Sustainability looks top-notch against comparable companies.
  • The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains excellent in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you 're interested in a technical explanation. It stands impressive in relation to rivals.
  • The company uses a modest portion of genuine fund generation to reward investors, which can probably be sustained. It still looks top tier when measured against competitors.

Balance Sheet score: 5.1

  • Cboe Global Markets, Inc. intangible assets (like brands and goodwill) represent a very large portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be almost average when measured against peer companies.
  • The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be rather normal in relation to similar firms.
  • Roughly a third of resources controlled were provided for with financial debt. Creditors have claims on the company. It remains slightly better than rival firms.
  • Most controlled resources might be only slowly turned into cash and equivalents, which is risky. It looks weak when measured against rivals.
  • For every dollar of short-term obligations, the company has less than a dollar of cash and short-term receivables. It's in a weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is somewhat worse than similar enterprises.
  • Usually, sales are on a month and a half credit. It still ranks more than average in relation to peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes approximately two months from the purchase to charging customers. It happens to be well ranked against peers.
  • Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
  • The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's lacking compared to similar companies.
  • Net interest expenses consume a minor portion of usual business earnings, and are easily bearable. It stands slightly worse than rival firms.
  • Business earnings have usually been quite good when measured against loans taken. Cutting back reinvesting in the business, it could take around three years to repay the obligations with current profitability. It ranks similar to comparable enterprises.
  • Revenues are excellent in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks impressive in relation to similar firms.
  • Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat better than peer companies.

Valuation score: 4.7

  • Cboe Global Markets, Inc. profits are really small compared to market valuation, market valuation doesn't rely on current earnings. It happens to be more than average in relation to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company generated some free funds in relation to the stock price, which stands top-notch against similar companies.
  • The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still top tier when measured against industry firms.
  • In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
  • The company has barely more debt than cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks slightly worse than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is huge, as profits were extremely low in relative terms. It ranks encouraging in relation to peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks excellent in relation to rival firms.
  • The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly better than peer firms.
  • In the past twelve months, the operating business lost a little money. It happens to be more than average in relation to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still excellent in relation to peer companies.

Total score: 5.6


CBOE logos

Company at a glance: Cboe Global Markets, Inc. (CBOE)

Sector, industry: Financial Services, Financial Data & Stock Exchanges

Market Cap: 12.32 billions

Revenues TTM: 3.64 billions

Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange worldwide. It operates through five segments: Options, North American Equities, Futures, Europe and Asia Pacific, and Global FX. The Options segment trades in listed market indices. The North American Equities segment trades in listed U.S. and Canadian equities. This segment also offers exchange-traded products (ETP) transaction and ETP listing services. The Futures segment trades in futures. The Europe and Asia Pacific segment offers pan-European listed equities and derivatives transaction services, ETPs, exchange-traded commodities, and international depository receipts, as well as ETP listings and clearing services. The Global FX segment provides institutional foreign exchange (FX) trading and non-deliverable forward FX transactions services. The company has strategic relationships with S&P Dow Jones Indices, LLC; FTSE International Limited; Frank Russell Company; MSCI Inc.; and DJI Opco, LLC. The company was formerly known as CBOE Holdings, Inc. and changed its name to Cboe Global Markets, Inc. in October 2017. Cboe Global Markets, Inc. was founded in 1973 and is headquartered in Chicago, Illinois.

Awarener score: 7.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Good) and growth (Modest), and the company's inclination to return cash to the stockholders (Very good).