CME GROUP INC (CME) Stock Fundamental Analysis
NASDAQ:CME - Nasdaq - US12572Q1058 - Common Stock - Currency: USD
CME gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 233 industry peers in the Capital Markets industry. While CME has a great profitability rating, there are some minor concerns on its financial health. CME is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CME was profitable.
In the past year CME had a positive cash flow from operations.
Each year in the past 5 years CME has been profitable.
Each year in the past 5 years CME had a positive operating cash flow.
1.2 Ratios
CME has a Return On Assets (2.27%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 13.25%, CME is in the better half of the industry, outperforming 72.96% of the companies in the same industry.
CME has a better Return On Invested Capital (17.02%) than 92.27% of its industry peers.
CME had an Average Return On Invested Capital over the past 3 years of 15.81%. This is significantly above the industry average of 7.84%.
The 3 year average ROIC (15.81%) for CME is below the current ROIC(17.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 13.25% | ||
| ROIC | 17.02% |
ROA(3y)2.17%
ROA(5y)1.91%
ROE(3y)11.65%
ROE(5y)10.5%
ROIC(3y)15.81%
ROIC(5y)11.95%
1.3 Margins
With a decent Profit Margin value of 35.16%, CME is doing good in the industry, outperforming 79.40% of the companies in the same industry.
CME's Profit Margin has declined in the last couple of years.
CME has a better Operating Margin (78.35%) than 99.14% of its industry peers.
CME's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 78.35% | ||
| PM (TTM) | 35.16% | ||
| GM | N/A |
OM growth 3Y9.92%
OM growth 5Y6.02%
PM growth 3Y-13.33%
PM growth 5Y-2.37%
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 an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.74, we must say that CME is in the distress zone and has some risk of bankruptcy.
CME's Altman-Z score of 0.74 is in line compared to the rest of the industry. CME outperforms 43.78% of its industry peers.
The Debt to FCF ratio of CME is 0.91, which is an excellent value as it means it would take CME, only 0.91 years of fcf income to pay off all of its debts.
CME's Debt to FCF ratio of 0.91 is amongst the best of the industry. CME outperforms 88.84% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that CME is not too dependend on debt financing.
CME has a Debt to Equity ratio of 0.13. This is in the better half of the industry: CME outperforms 79.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 0.74 |
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 has a Current ratio of 1.02. This is comparable to the rest of the industry: CME outperforms 42.92% 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 (1.02) which is in line with 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 12.10% over the past year.
The Earnings Per Share has been growing by 8.57% on average over the past years. This is quite good.
CME shows a decrease in Revenue. In the last year, the revenue decreased by -4.04%.
The Revenue has been growing by 13.14% on average over the past years. This is quite good.
EPS 1Y (TTM)12.1%
EPS 3Y15.32%
EPS 5Y8.57%
EPS Q2Q%12%
Revenue 1Y (TTM)-4.04%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%10.38%
3.2 Future
The Earnings Per Share is expected to grow by 7.08% on average over the next years.
Based on estimates for the next years, CME will show a small growth in Revenue. The Revenue will grow by 4.32% on average per year.
EPS Next Y10.12%
EPS Next 2Y7.08%
EPS Next 3Y7.1%
EPS Next 5Y7.08%
Revenue Next Year8.27%
Revenue Next 2Y6.13%
Revenue Next 3Y5.86%
Revenue Next 5Y4.32%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 26.05, CME can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CME is valued a bit more expensive than the industry average as 63.52% of the companies are valued more cheaply.
CME is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 23.38, which indicates a rather expensive current valuation of CME.
Based on the Price/Forward Earnings ratio, CME is valued a bit more expensive than 61.37% of the companies in the same industry.
CME's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 23.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CME indicates a rather cheap valuation: CME is cheaper than 85.84% of the companies listed in the same industry.
CME's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.91 | ||
| EV/EBITDA | 12.15 |
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)2.57
PEG (5Y)3.04
EPS Next 2Y7.08%
EPS Next 3Y7.1%
5. Dividend
5.1 Amount
CME has a Yearly Dividend Yield of 3.83%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.10, CME has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, CME pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
5.2 History
The dividend of CME is nicely growing with an annual growth rate of 16.00%!
CME has been paying a dividend for at least 10 years, so it has 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)16%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
CME pays out 106.75% 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.
DP106.75%
EPS Next 2Y7.08%
EPS Next 3Y7.1%
275.08
-0.11 (-0.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners91.38%
Inst Owner Change0%
Ins Owners0.24%
Ins Owner Change-1.63%
Market Cap99.13B
Analysts70
Price Target282.95 (2.86%)
Short Float %1.58%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
Yearly Dividend9.97
Dividend Growth(5Y)16%
DP106.75%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.38%
Min EPS beat(2)-1.28%
Max EPS beat(2)2.05%
EPS beat(4)2
Avg EPS beat(4)0.19%
Min EPS beat(4)-1.28%
Max EPS beat(4)2.05%
EPS beat(8)6
Avg EPS beat(8)1.04%
EPS beat(12)10
Avg EPS beat(12)1.02%
EPS beat(16)14
Avg EPS beat(16)1.22%
Revenue beat(2)0
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-1.72%
Max Revenue beat(2)-0.57%
Revenue beat(4)0
Avg Revenue beat(4)-1%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)-0.57%
Revenue beat(8)1
Avg Revenue beat(8)-0.7%
Revenue beat(12)5
Avg Revenue beat(12)13.84%
Revenue beat(16)9
Avg Revenue beat(16)11.79%
PT rev (1m)0.51%
PT rev (3m)6.04%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)11.5%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)5.17%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)7.85%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)3.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 23.38 | ||
| P/S | 9.73 | ||
| P/FCF | 25.91 | ||
| P/OCF | 25.32 | ||
| P/B | 3.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.15 |
EPS(TTM)10.56
EY3.84%
EPS(NY)11.76
Fwd EY4.28%
FCF(TTM)10.62
FCFY3.86%
OCF(TTM)10.86
OCFY3.95%
SpS28.26
BVpS75.01
TBVpS-9.48
PEG (NY)2.57
PEG (5Y)3.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 13.25% | ||
| ROCE | 21.92% | ||
| ROIC | 17.02% | ||
| ROICexc | 17.76% | ||
| ROICexgc | 139.44% | ||
| OM | 78.35% | ||
| PM (TTM) | 35.16% | ||
| GM | N/A | ||
| FCFM | 37.57% |
ROA(3y)2.17%
ROA(5y)1.91%
ROE(3y)11.65%
ROE(5y)10.5%
ROIC(3y)15.81%
ROIC(5y)11.95%
ROICexc(3y)17.24%
ROICexc(5y)12.98%
ROICexgc(3y)263.94%
ROICexgc(5y)202.43%
ROCE(3y)20.37%
ROCE(5y)15.39%
ROICexcg growth 3Y53.64%
ROICexcg growth 5Y25.03%
ROICexc growth 3Y41.34%
ROICexc growth 5Y22.06%
OM growth 3Y9.92%
OM growth 5Y6.02%
PM growth 3Y-13.33%
PM growth 5Y-2.37%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.91 | ||
| Debt/EBITDA | 0.42 | ||
| Cap/Depr | 26.47% | ||
| Cap/Sales | 0.87% | ||
| Interest Coverage | 61.44 | ||
| Cash Conversion | 47.08% | ||
| Profit Quality | 106.83% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 0.74 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)24.77%
Cap/Depr(5y)29.97%
Cap/Sales(3y)0.96%
Cap/Sales(5y)1.86%
Profit Quality(3y)106.99%
Profit Quality(5y)105.5%
High Growth Momentum
Growth
EPS 1Y (TTM)12.1%
EPS 3Y15.32%
EPS 5Y8.57%
EPS Q2Q%12%
EPS Next Y10.12%
EPS Next 2Y7.08%
EPS Next 3Y7.1%
EPS Next 5Y7.08%
Revenue 1Y (TTM)-4.04%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%10.38%
Revenue Next Year8.27%
Revenue Next 2Y6.13%
Revenue Next 3Y5.86%
Revenue Next 5Y4.32%
EBIT growth 1Y-5.79%
EBIT growth 3Y39.48%
EBIT growth 5Y19.95%
EBIT Next Year12.83%
EBIT Next 3Y8.86%
EBIT Next 5Y7.1%
FCF growth 1Y24.31%
FCF growth 3Y16.49%
FCF growth 5Y8.18%
OCF growth 1Y23.9%
OCF growth 3Y15.38%
OCF growth 5Y6.67%