CBOE GLOBAL MARKETS INC (NYSEARCA:CBOE) – A Quality Stock Worth Considering

CBOE GLOBAL MARKETS INC (NYSEARCA:CBOE) was identified by our Caviar Cruise screen as a potential candidate for quality investors. The company operates in the capital markets sector, providing trading and investment solutions globally. Below, we examine why CBOE meets the criteria for a quality investment.

Key Strengths of CBOE

• Strong Revenue and EBIT Growth: Over the past five years, CBOE has delivered revenue growth of 5.02% and EBIT growth of 15.05%. This indicates not only top-line expansion but also improving operational efficiency.
• High Return on Invested Capital (ROIC): With an ROIC of 102.87%, CBOE demonstrates exceptional efficiency in generating profits from its capital investments.
• Healthy Debt Management: The company’s debt-to-free cash flow ratio stands at 1.37, meaning it could repay all its debt in just over a year using current cash flows—a sign of financial strength.
• Profit Quality: CBOE’s five-year average profit quality is 186.20%, well above our 75% threshold, indicating strong cash conversion from net income.

Fundamental Analysis Summary

CBOE earns a solid fundamental rating of 6 out of 10, with high marks in profitability (8/10) and financial health (8/10). The company benefits from strong margins, consistent earnings growth, and a reliable dividend history. While its valuation appears slightly expensive compared to peers, its profitability and stability may justify the premium.

Our Caviar Cruise screener lists more quality stocks and is updated daily. For a deeper dive, review the full fundamental report on CBOE.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.