lundi 27 juillet 2020

Intercontinental Exchange (ICE)

You were waiting for something new, something refreshing, something to make you experience some thrill?

Maybe I got something for you.

Intercontinental Exchange is a brand new discovery for me. I found it on my latest screening of the market. And it looked pretty interesting.

First of all, Intercontinental Exchange (ICE) owns and operates the leading global electronic marketplace for trading both futures and over-the-counter energy contracts and is the leading soft commodity exchange. For instance, about 50% of the world's traded crude and refined oil futures contract are hosted on ICE.

Performance last 5 years: 115%
Performance last 10 years: 326%
Forward PE: 21
Average ROE last 5 years: 12
Long term debt: low
Profit margin: 40% (which is VERY high)
Beta: 0,54
Annual EPS growth last 5 years: 16%
Annual EPS growth last 10 years: 16%
Stock predictability according to Value Line: 100%

Frankly, if we exclude the ROE which is a little low, every other metric looks great with that stock. Have you seen the net profit margin? About 40%. These margins beat about 99% of all stocks. And the predictability is also exceptional.

Of course, the sector is related to oil (everybody should stay away from natural resources), but it's first and foremost a techno company related to the trade of energy. And, even if everybody dreams of a world full of Tesla's, we'll probably have a lot of oil and energy in our economies for many years. Well, actually, we’ll probably need energy until the apocalypse.

So, I believe that this is an interesting find. A stock with a low beta, high growth, and high predictability is something we can rarely find and that’s exceptional.

Don't thank me. I live to give.

2 commentaires:

  1. Interesting company. If you read the profile it operates exchanges for many other stuff than oil.
    There are other funds managers that like this company too. ;-)

  2. Also owns the NYSE and the Chicago exchange.