📊 ICE Key Takeaways
Is Intercontinental Exchange, Inc. (ICE) a Good Investment?
ICE demonstrates strong fundamental health with robust profitability (39% operating margin, 26.2% net margin) and excellent cash generation (4.3B free cash flow, 33.9% FCF margin). Revenue growth of 7.5% YoY combined with EPS growth of 20.7% YoY indicates operational leverage and disciplined capital allocation, though modest ROE of 11.5% and tight current ratio warrant 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.
Why Buy Intercontinental Exchange, Inc. Stock? ICE Key Strengths
- Exceptional operating margins (39%) and net margins (26.2%) demonstrate pricing power and operational efficiency in core exchange/brokerage business
- Strong free cash flow generation of 4.3B with 33.9% FCF margin provides substantial flexibility for debt reduction, dividends, and acquisitions
- EPS growth of 20.7% YoY outpacing revenue growth of 7.5% suggests effective cost management and positive operating leverage
- Solid interest coverage ratio of 20.5x indicates strong debt servicing capability despite 0.64x debt-to-equity leverage
- Significant insider activity with 53 Form 4 filings in last 90 days suggests confidence from management
- 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
- Tight current ratio of 1.02x and quick ratio of 1.02x indicate limited short-term liquidity cushion relative to current liabilities
- Net income declined 1.6% YoY despite 7.5% revenue growth, suggesting margin compression or elevated expenses in the latest period
- Low ROE of 11.5% and ROA of 2.4% indicate suboptimal returns on deployed capital relative to asset base of 136.9B
- High leverage with 79% of assets financed by debt creates refinancing risk and limits financial flexibility in downturns
- Dependence on transaction volumes and market volatility; cyclical headwinds could impact revenue streams
- 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 trend and free cash flow sustainability amid business cycles
- Operating margin stability and ability to maintain 39% levels as revenue scales
- Debt-to-equity ratio trajectory and debt paydown progress from strong FCF generation
- Current ratio improvement to healthier 1.5x+ levels to reduce liquidity risk
- ROE expansion toward 15%+ to demonstrate improved capital efficiency
- 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 33.9% 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $2.3B | $555.0M | $0.99 |
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 Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ICE's key strengths?
Claude: Exceptional operating margins (39%) and net margins (26.2%) demonstrate pricing power and operational efficiency in core exchange/brokerage business. Strong free cash flow generation of 4.3B with 33.9% FCF margin provides substantial flexibility for debt reduction, dividends, and acquisitions. 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: Tight current ratio of 1.02x and quick ratio of 1.02x indicate limited short-term liquidity cushion relative to current liabilities. Net income declined 1.6% YoY despite 7.5% revenue growth, suggesting margin compression or elevated expenses in the latest period. 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 $12.6B.
Does ICE pay dividends?
Intercontinental Exchange, Inc. pays dividends, with $1,105.0M 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 $5.77.
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 ICE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Intercontinental Exchange, Inc. has a BUY rating with 78% 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 11.5% (sector avg: 16%), net margin of 26.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ICE stock in 2026?
Our dual AI analysis gives Intercontinental Exchange, Inc. a combined BUY rating 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 $4.7B, with capital expenditures of $373.0M. FCF margin is 33.9%.
How does ICE compare to other Services stocks?
Vs Services sector averages: Net margin 26.2% (avg: 10%), ROE 11.5% (avg: 16%), current ratio 1.02 (avg: 1.5).