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CBOE Stock Analysis - Cboe Global Markets, Inc. AI Rating

CBOE CBOE Security & Commodity Brokers, Dealers, Exchanges & Services DE CIK: 0001374310
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
STRONG BUY
87% Confidence

📊 CBOE Key Takeaways

Revenue: $4.7B
Net Margin: 23.3%
Free Cash Flow: $1.7B
Current Ratio: 1.87x
Debt/Equity: 0.28x
EPS: $10.42
AI Rating: STRONG BUY with 87% confidence

Investment Thesis

Cboe demonstrates exceptional financial health with strong revenue growth of 15.1% YoY, industry-leading profitability margins (23.3% net margin, 31.1% operating margin), and robust cash generation with $1.7B free cash flow. The company maintains fortress-like balance sheet strength with conservative leverage (0.28x debt-to-equity), substantial liquidity (1.87x current ratio), and excellent interest coverage (28.1x), positioning it well for sustained shareholder returns.

CBOE Strengths

  • + Strong revenue growth of 15.1% YoY with net income growth despite modest earnings increase, indicating margin expansion
  • + Exceptional profitability with net margin of 23.3% and operating margin of 31.1%, well above peer averages for financial exchanges
  • + Outstanding cash generation with $1.7B free cash flow (35.7% FCF margin) providing significant capital allocation flexibility
  • + Conservative capital structure with debt-to-equity of 0.28x and interest coverage of 28.1x providing substantial financial flexibility
  • + Strong return on equity of 21.4% and ROA of 11.8% demonstrating efficient capital deployment
  • + Solid balance sheet with $2.2B cash against only $1.4B long-term debt, providing strategic optionality

CBOE Risks

  • ! EPS growth of 44.5% appears driven by share buybacks rather than earnings growth (net income up only 0.5%), raising questions about organic profitability growth
  • ! As an exchange operator, revenues are highly dependent on trading volumes and market volatility, creating cyclical earnings exposure
  • ! Regulatory risks inherent to commodity and derivatives exchanges could impact fee structures and operational flexibility
  • ! Integration and execution risks from potential acquisitions given the sector's consolidation trends

Key Metrics to Watch

CBOE Financial Metrics

Revenue
$4.7B
Net Income
$1.1B
EPS (Diluted)
$10.42
Free Cash Flow
$1.7B
Total Assets
$9.3B
Cash Position
$2.2B

💡 AI Analyst Insight

The 35.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.

CBOE Profitability Ratios

Gross Margin 51.5%
Operating Margin 31.1%
Net Margin 23.3%
ROE 21.4%
ROA 11.8%
FCF Margin 35.7%

CBOE vs Finance Sector

How Cboe Global Markets, Inc. compares to Finance sector averages

Net Margin
CBOE 23.3%
vs
Sector Avg 25.0%
CBOE Sector
ROE
CBOE 21.4%
vs
Sector Avg 12.0%
CBOE Sector
Current Ratio
CBOE 1.9x
vs
Sector Avg 1.2x
CBOE Sector
Debt/Equity
CBOE 0.3x
vs
Sector Avg 2.0x
CBOE Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CBOE Balance Sheet & Liquidity

Current Ratio
1.87x
Quick Ratio
1.87x
Debt/Equity
0.28x
Debt/Assets
44.8%
Interest Coverage
28.05x
Long-term Debt
$1.4B

CBOE 5-Year Financial Trend

CBOE 5-year financial data: Year 2021: Revenue $3.5B, Net Income $374.9M, EPS $3.34. Year 2022: Revenue $4.0B, Net Income N/A, EPS $4.27. Year 2023: Revenue $4.0B, Net Income N/A, EPS $4.92. Year 2024: Revenue $4.1B, Net Income N/A, EPS $2.19. Year 2025: Revenue $4.7B, Net Income $761.4M, EPS $7.13.
Revenue
Net Income
EPS (right axis)

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 Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
35.7%
Free cash flow / Revenue

CBOE Quarterly Performance

Quarterly financial performance data for Cboe Global Markets, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
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
Q2 2023 $907.8M N/A $-0.70

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CBOE Capital Allocation

Operating Cash Flow
$1.8B
Cash generated from operations
Stock Buybacks
$66.7M
Shares repurchased (TTM)
Capital Expenditures
$71.0M
Investment in assets
Dividends Paid
$284.3M
Returned to shareholders

CBOE SEC Filings

Access official SEC EDGAR filings for Cboe Global Markets, Inc. (CIK: 0001374310)

📋 Recent SEC Filings

Date Form Document Action
Feb 25, 2026 4 xslF345X05/form4-02252026_040202.xml View →
Feb 23, 2026 4 xslF345X05/form4-02232026_040218.xml View →
Feb 23, 2026 4 xslF345X05/form4-02232026_040220.xml View →
Feb 23, 2026 4 xslF345X05/form4-02232026_040216.xml View →
Feb 23, 2026 4 xslF345X05/form4-02232026_040214.xml View →

Frequently Asked Questions about CBOE

What is the AI rating for CBOE?

Cboe Global Markets, Inc. (CBOE) has an AI rating of STRONG BUY with 87% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CBOE's key strengths?

Strong revenue growth of 15.1% YoY with net income growth despite modest earnings increase, indicating margin expansion. Exceptional profitability with net margin of 23.3% and operating margin of 31.1%, well above peer averages for financial exchanges.

What are the risks of investing in CBOE?

EPS growth of 44.5% appears driven by share buybacks rather than earnings growth (net income up only 0.5%), raising questions about organic profitability growth. As an exchange operator, revenues are highly dependent on trading volumes and market volatility, creating cyclical earnings exposure.

What is CBOE's revenue and growth?

Cboe Global Markets, Inc. reported revenue of $4.7B.

Does CBOE pay dividends?

Cboe Global Markets, Inc. pays dividends, with $284.3M 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 $10.42.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-31 | Powered by Claude AI