CME GROUP INC (CME)
US12572Q1058 - Common Stock
CME gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 218 industry peers in the Capital Markets industry. While CME has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, CME is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CME was profitable.
CME had a positive operating cash flow in the past year.
Each year in the past 5 years CME has been profitable.
CME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CME (2.64%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 11.80%, CME is in the better half of the industry, outperforming 64.65% of the companies in the same industry.
The Return On Invested Capital of CME (17.24%) is better than 94.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CME is significantly above the industry average of 6.96%.
The 3 year average ROIC (11.97%) for CME is below the current ROIC(17.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 11.8% | ||
| ROIC | 17.24% |
ROA(3y)1.77%
ROA(5y)1.96%
ROE(3y)10.45%
ROE(5y)9.49%
ROIC(3y)11.97%
ROIC(5y)9.74%
1.3 Margins
CME's Profit Margin of 31.78% is fine compared to the rest of the industry. CME outperforms 74.42% of its industry peers.
CME's Profit Margin has declined in the last couple of years.
The Operating Margin of CME (79.01%) is better than 99.53% of its industry peers.
In the last couple of years the Operating Margin of CME has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 79.01% | ||
| PM (TTM) | 31.78% | ||
| GM | N/A |
OM growth 3Y12.97%
OM growth 5Y5.81%
PM growth 3Y-10.94%
PM growth 5Y-8.41%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, CME has about the same amount of shares outstanding.
CME has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CME has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that CME is in the distress zone and has some risk of bankruptcy.
CME has a Altman-Z score of 0.89. This is comparable to the rest of the industry: CME outperforms 48.84% of its industry peers.
CME has a debt to FCF ratio of 1.00. This is a very positive value and a sign of high solvency as it would only need 1.00 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.00, CME belongs to the top of the industry, outperforming 87.91% of the companies in the same industry.
CME has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.10, CME belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 0.89 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
CME has a Current Ratio of 1.02. This is a normal value and indicates that CME is financially healthy and should not expect problems in meeting its short term obligations.
CME's Current ratio of 1.02 is in line compared to the rest of the industry. CME outperforms 45.58% of its industry peers.
CME has a Quick Ratio of 1.02. This is a normal value and indicates that CME is financially healthy and should not expect problems in meeting its short term obligations.
CME has a Quick ratio of 1.02. This is comparable to the rest of the industry: CME outperforms 45.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.72% over the past year.
Measured over the past 5 years, CME shows a small growth in Earnings Per Share. The EPS has been growing by 6.49% on average per year.
CME shows a decrease in Revenue. In the last year, the revenue decreased by -4.06%.
The Revenue has been growing by 20.29% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)13.72%
EPS 3Y11.54%
EPS 5Y6.49%
EPS Q2Q%19.11%
Revenue 1Y (TTM)-4.06%
Revenue growth 3Y28.91%
Revenue growth 5Y20.29%
Sales Q2Q%18.43%
3.2 Future
Based on estimates for the next years, CME will show a small growth in Earnings Per Share. The EPS will grow by 4.18% on average per year.
The Revenue is expected to grow by 4.19% on average over the next years.
EPS Next Y10.42%
EPS Next 2Y5.79%
EPS Next 3Y5.3%
EPS Next 5Y4.18%
Revenue Next Year10.07%
Revenue Next 2Y6.27%
Revenue Next 3Y5.71%
Revenue Next 5Y4.19%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.41, which indicates a rather expensive current valuation of CME.
Based on the Price/Earnings ratio, CME is valued a bit more expensive than the industry average as 61.86% of the companies are valued more cheaply.
CME's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.96.
The Price/Forward Earnings ratio is 21.68, which indicates a rather expensive current valuation of CME.
Based on the Price/Forward Earnings ratio, CME is valued a bit more expensive than 61.40% of the companies in the same industry.
CME is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 21.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CME is valued cheaply inside the industry as 86.98% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CME is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.36 | ||
| EV/EBITDA | 9.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CME has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)3.45
EPS Next 2Y5.79%
EPS Next 3Y5.3%
5. Dividend
5.1 Amount
CME has a Yearly Dividend Yield of 2.06%.
CME's Dividend Yield is slightly below the industry average, which is at 9.01.
Compared to an average S&P500 Dividend Yield of 2.23, CME has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
The dividend of CME is nicely growing with an annual growth rate of 7.84%!
CME has paid a dividend for at least 10 years, which is a reliable track record.
CME has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.84%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
CME pays out 108.75% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CME is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP108.75%
EPS Next 2Y5.79%
EPS Next 3Y5.3%
CME GROUP INC
NASDAQ:CME (11/21/2024, 8:20:06 PM)
After market: 226.56 0 (0%)226.56
-1.44 (-0.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap81.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 21.68 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.15
PEG (5Y)3.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 11.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 79.01% | ||
| PM (TTM) | 31.78% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)13.72%
EPS 3Y11.54%
EPS 5Y
EPS Q2Q%
EPS Next Y10.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.06%
Revenue growth 3Y28.91%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y