📊 CBOE Key Takeaways
Is Cboe Global Markets, Inc. (CBOE) a Good Investment?
Cboe exhibits strong financial fundamentals with exceptional free cash flow generation ($1.9B, 152.5% FCF margin), robust profitability (30.3% net margin), and conservative leverage (0.27x Debt/Equity). However, net income growth of only 0.5% YoY despite 15.1% revenue growth reveals significant margin compression and expense growth outpacing revenues, while low ROE of 7.2% indicates inefficient capital deployment.
Cboe Global Markets shows high-quality fundamentals with strong revenue growth, excellent margins, and very strong free cash flow conversion. The balance sheet is healthy, with ample cash, modest leverage, and strong interest coverage, supporting resilience and strategic flexibility. The main caution is that net income growth materially lagged revenue growth, which suggests investors should watch expense discipline and earnings quality.
Why Buy Cboe Global Markets, Inc. Stock? CBOE Key Strengths
- Exceptional free cash flow of $1.9B with FCF exceeding net income, demonstrating strong cash conversion and operational quality
- Outstanding profitability with 30.3% net margin and 39.7% operating margin reflecting strong pricing power and cost control
- Conservative balance sheet with Debt/Equity of 0.27x, $2.1B cash, and interest coverage of 38.0x providing substantial financial flexibility
- Solid 15.1% YoY revenue growth indicating sustained market demand and business momentum
- Strong profitability profile with 51.5% gross margin, 31.1% operating margin, and 23.3% net margin
- Excellent cash generation, with $1.68B of free cash flow and a 35.7% FCF margin on only $71M of capex
- Healthy financial position with $2.22B cash, low debt-to-equity of 0.28x, current ratio of 1.87x, and interest coverage of 28.1x
CBOE Stock Risks: Cboe Global Markets, Inc. Investment Risks
- Net income growth of only 0.5% YoY versus 15.1% revenue growth indicates margin compression and operating expenses growing faster than top-line
- ROE of 7.2% and ROA of 3.5% are unusually low for a company with 30.3% net margins, suggesting capital inefficiency or underutilized assets
- EPS growth of 44.5% driven primarily by share buybacks masking weak underlying earnings growth from operations
- Current ratio of 1.39x is modest for a financial services firm and may constrain operational or strategic flexibility
- Net income grew only 0.5% despite 15.1% revenue growth, indicating possible cost pressure or weaker operating leverage
- Diluted EPS growth far exceeded net income growth, which may reduce the durability of per-share growth if underlying earnings do not accelerate
- As an exchange and market infrastructure business, future growth can be sensitive to trading activity mix, volumes, and competitive pricing pressure
Key Metrics to Watch
- Operating expense trend as percentage of revenue to assess if margin compression is stabilizing or accelerating
- Net income growth trajectory relative to revenue growth to identify if operational leverage is improving
- Return on Equity improvement pathway given current 7.2% level is below industry expectations for this profitability level
- Free cash flow sustainability and conversion rates as business scales to validate quality of earnings
- Net income growth relative to revenue growth
- Operating margin and free cash flow margin sustainability
Cboe Global Markets, Inc. (CBOE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 152.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
CBOE Profit Margin, ROE & Profitability Analysis
CBOE vs Services Sector: How Cboe Global Markets, Inc. Compares
How Cboe Global Markets, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Cboe Global Markets, Inc. Stock Overvalued? CBOE Valuation Analysis 2026
Based on fundamental analysis, Cboe Global Markets, Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Cboe Global Markets, Inc. Balance Sheet: CBOE Debt, Cash & Liquidity
CBOE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Cboe Global Markets, Inc.'s revenue has grown significantly by 35% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.13 reflects profitable operations.
CBOE Revenue Growth, EPS Growth & YoY Performance
CBOE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.2B | $250.6M | $2.37 |
| Q3 2025 | $1.1B | $218.5M | $2.07 |
| Q2 2025 | $974.0M | $140.4M | $1.33 |
| Q1 2025 | $957.2M | $209.5M | $1.96 |
| Q3 2024 | $908.8M | N/A | $1.95 |
| Q2 2024 | $907.8M | N/A | $1.33 |
| Q1 2024 | $957.2M | N/A | $1.63 |
| Q3 2023 | $908.8M | N/A | $0.70 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Cboe Global Markets, Inc. Dividends, Buybacks & Capital Allocation
CBOE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Cboe Global Markets, Inc. (CIK: 0001374310)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CBOE
What is the AI rating for CBOE?
Cboe Global Markets, Inc. (CBOE) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CBOE's key strengths?
Claude: Exceptional free cash flow of $1.9B with FCF exceeding net income, demonstrating strong cash conversion and operational quality. Outstanding profitability with 30.3% net margin and 39.7% operating margin reflecting strong pricing power and cost control. ChatGPT: Strong profitability profile with 51.5% gross margin, 31.1% operating margin, and 23.3% net margin. Excellent cash generation, with $1.68B of free cash flow and a 35.7% FCF margin on only $71M of capex.
What are the risks of investing in CBOE?
Claude: Net income growth of only 0.5% YoY versus 15.1% revenue growth indicates margin compression and operating expenses growing faster than top-line. ROE of 7.2% and ROA of 3.5% are unusually low for a company with 30.3% net margins, suggesting capital inefficiency or underutilized assets. ChatGPT: Net income grew only 0.5% despite 15.1% revenue growth, indicating possible cost pressure or weaker operating leverage. Diluted EPS growth far exceeded net income growth, which may reduce the durability of per-share growth if underlying earnings do not accelerate.
What is CBOE's revenue and growth?
Cboe Global Markets, Inc. reported revenue of $1.3B.
Does CBOE pay dividends?
Cboe Global Markets, Inc. pays dividends, with $75.8M distributed to shareholders in the trailing twelve months.
Where can I find CBOE SEC filings?
Official SEC filings for Cboe Global Markets, Inc. (CIK: 0001374310) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CBOE's EPS?
Cboe Global Markets, Inc. has a diluted EPS of $3.66.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CBOE a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Cboe Global Markets, Inc. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CBOE stock overvalued or undervalued?
Valuation metrics for CBOE: ROE of 7.2% (sector avg: 16%), net margin of 30.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy CBOE stock in 2026?
Our dual AI analysis gives Cboe Global Markets, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CBOE's free cash flow?
Cboe Global Markets, Inc.'s operating cash flow is $2.0B, with capital expenditures of $19.2M. FCF margin is 152.5%.
How does CBOE compare to other Services stocks?
Vs Services sector averages: Net margin 30.3% (avg: 10%), ROE 7.2% (avg: 16%), current ratio 1.39 (avg: 1.5).