📊 ICE Key Takeaways
Is Intercontinental Exchange, Inc. (ICE) a Good Investment?
ICE demonstrates exceptional operational profitability (45.4% operating margin) and strong free cash flow generation ($1.3B), supported by a capital-light business model requiring only $64M in capex. The company maintains reasonable leverage (0.63x Debt/Equity) with adequate interest coverage (6.9x), making it a fundamentally sound exchange and trading platform operator. However, net income declined 1.6% despite 7.5% revenue growth, signaling emerging margin pressure that requires monitoring.
ICE shows high-quality fundamentals with strong operating and net margins, robust free cash flow generation, and excellent interest coverage. Revenue growth remains healthy, and cash conversion is strong, although the slight decline in net income and low ROA suggest the large asset base needs to keep producing better earnings efficiency. Overall, the business appears fundamentally strong with good growth quality and manageable leverage.
Intercontinental Exchange, Inc. Key Strengths (ICE)
- Exceptional operating margin of 45.4% and net margin of 38.5% demonstrate strong operational efficiency
- Robust free cash flow of $1.3B (34.4% FCF margin) with minimal capex requirements ($64M) indicates a highly efficient, capital-light business model
- Reasonable leverage at 0.63x Debt/Equity with solid interest coverage ratio of 6.9x providing financial stability
- Consistent revenue growth of 7.5% YoY in a mature market demonstrates competitive strength
- High profitability with 39.0% operating margin and 26.2% net margin
- Strong cash generation with $4.29B in free cash flow and 33.9% FCF margin
- Manageable leverage profile supported by 20.5x interest coverage and 0.64x debt-to-equity
ICE Stock Risks: Intercontinental Exchange, Inc. Investment Risks
- Critically tight liquidity position with current ratio of only 1.01x leaves minimal working capital buffer for a $179.2B asset company
- Net income declined 1.6% YoY despite revenue growth, indicating margin compression or cost pressures offsetting revenue gains
- Unusually high gross margin (119.1%) requires clarification; while potentially legitimate for exchange operations, the discrepancy between gross and operating performance is notable
- Low return metrics (4.8% ROE, 0.8% ROA) relative to profitability ratios suggest inefficient capital deployment or structural constraints
- Net income declined 1.6% year over year despite revenue growth, which may indicate margin or expense pressure
- Low ROA of 2.4% suggests limited earnings efficiency relative to the very large asset base
- Liquidity is adequate but not conservative, with current and quick ratios both at 1.02x
Key Metrics to Watch
- Operating cash flow trends and free cash flow sustainability amid revenue growth
- Net income growth trajectory relative to revenue growth to assess margin recovery
- Current ratio and working capital management to ensure liquidity adequacy
- Debt refinancing costs and interest expense given $18.6B long-term debt load in rising rate environment
- Net income growth relative to revenue growth
- Free cash flow margin and debt reduction progress
Intercontinental Exchange, Inc. (ICE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 34.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
ICE Profit Margin, ROE & Profitability Analysis
ICE vs Services Sector: How Intercontinental Exchange, Inc. Compares
How Intercontinental Exchange, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Intercontinental Exchange, Inc. Stock Overvalued? ICE Valuation Analysis 2026
Based on fundamental analysis, Intercontinental Exchange, 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.
Intercontinental Exchange, Inc. Balance Sheet: ICE Debt, Cash & Liquidity
ICE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Intercontinental Exchange, Inc.'s revenue has grown significantly by 38% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.19 reflects profitable operations.
ICE Revenue Growth, EPS Growth & YoY Performance
ICE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.2B | $797.0M | $1.38 |
| Q3 2025 | $3.0B | $657.0M | $1.14 |
| Q2 2025 | $2.9B | $632.0M | $1.10 |
| Q1 2025 | $2.8B | $767.0M | $1.33 |
| Q3 2024 | $2.4B | $541.0M | $0.96 |
| Q2 2024 | $2.3B | $632.0M | $1.10 |
| Q1 2024 | $2.5B | $655.0M | $1.17 |
| Q3 2023 | $2.4B | -$191.0M | $-0.34 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Intercontinental Exchange, Inc. Dividends, Buybacks & Capital Allocation
ICE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Intercontinental Exchange, Inc. (CIK: 0001571949)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ICE
What is the AI rating for ICE?
Intercontinental Exchange, Inc. (ICE) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ICE's key strengths?
Claude: Exceptional operating margin of 45.4% and net margin of 38.5% demonstrate strong operational efficiency. Robust free cash flow of $1.3B (34.4% FCF margin) with minimal capex requirements ($64M) indicates a highly efficient, capital-light business model. ChatGPT: High profitability with 39.0% operating margin and 26.2% net margin. Strong cash generation with $4.29B in free cash flow and 33.9% FCF margin.
What are the risks of investing in ICE?
Claude: Critically tight liquidity position with current ratio of only 1.01x leaves minimal working capital buffer for a $179.2B asset company. Net income declined 1.6% YoY despite revenue growth, indicating margin compression or cost pressures offsetting revenue gains. ChatGPT: Net income declined 1.6% year over year despite revenue growth, which may indicate margin or expense pressure. Low ROA of 2.4% suggests limited earnings efficiency relative to the very large asset base.
What is ICE's revenue and growth?
Intercontinental Exchange, Inc. reported revenue of $3.7B.
Does ICE pay dividends?
Intercontinental Exchange, Inc. pays dividends, with $297.0M distributed to shareholders in the trailing twelve months.
Where can I find ICE SEC filings?
Official SEC filings for Intercontinental Exchange, Inc. (CIK: 0001571949) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ICE's EPS?
Intercontinental Exchange, Inc. has a diluted EPS of $2.48.
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 grade reflects both perspectives for balanced insights.
What is ICE's fundamental grade?
Based on our AI fundamental analysis in June 2026, Intercontinental Exchange, Inc. has a A grade with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ICE stock overvalued or undervalued?
Valuation metrics for ICE: ROE of 4.8% (sector avg: 16%), net margin of 38.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ICE's AI grade for 2026?
Our dual AI analysis gives Intercontinental Exchange, Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ICE's free cash flow?
Intercontinental Exchange, Inc.'s operating cash flow is $1.3B, with capital expenditures of $64.0M. FCF margin is 34.4%.
How does ICE compare to other Services stocks?
Vs Services sector averages: Net margin 38.5% (avg: 10%), ROE 4.8% (avg: 16%), current ratio 1.01 (avg: 1.5).