ICE Intercontinental Exchange Inc

Intercontinental Exchange operates major financial exchanges including the New York Stock Exchange, as well as mortgage technology platforms and leading financial data businesses. Sector: Financials.

Intercontinental Exchange Inc (ICE) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Assessing the quality of returns on invested capital, ROIC is 5.74%, WACC is 7.99%, and the economic spread is -2.25%. On balance, the company is not clearing their capital cost hurdle, meaning reinvestment may be diluting rather than compounding value. Supporting metrics show ROE at 13.78% and ROA at 2.38%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that likely needs operating improvement before returns quality can be considered durable.

The market currently prices the company at trailing P/E of 20.43, forward P/E of 17.39, PEG of 2.00. The gap between P/E and forward P/E is small, suggesting the valuation is not contingent on a near-term earnings step-change. The PEG ratio is consistent with a company that is reasonably valued on a growth basis — not cheap, but not obviously expensive either. The current ratio of 1.01 is below average, suggesting some the company may face tighter short-term financial conditions. Valuation and liquidity together frame a company where the price paid today is a reasonable bet on earnings delivery — but not a margin-of-safety purchase at current levels.

Looking at margins from gross to free cash flow, gross margin sits at 78.88%, operating margin at 46.90%, and free cash flow margin at 38.60%. The gross margin here is a standout, pointing to businesses with durable unit economics and limited commodity exposure. Exceptional operating margins signal that overhead costs are well managed relative to the revenue base. Outstanding free cash flow margins signal businesses that convert revenues into cash at rates that support both reinvestment and shareholder returns. The aggregate margin picture is strong enough to suggest resilience through normal cyclical pressure.

Projected 12-month EPS growth of 17.5% adds a powerful forward signal — analyst consensus expects earnings to accelerate materially, which, if delivered, could make current multiples look increasingly modest. Turning to growth and analyst expectations, TTM revenue growth of 13.53% pointing to stable operational progress without outsized acceleration, while the estimated 12-month price change of 41.90%, where analyst targets indicate a strong re-rating opportunity from current prices. The distinction matters: revenue growth tells you what the company are doing, price targets tell you what analysts think the market will pay for it. Ultimately, the alignment between revenue momentum and analyst targets will depend on execution quality and the broader rate and sentiment environment. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Taken together, the metrics present a favorable setup — not without risk, but with enough quality and momentum to support a positive view.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.