CME GROUP INC (CME) Stock Fundamental Analysis
USA - NASDAQ:CME - US12572Q1058 - Common Stock
258.83 USD
-3.47 (-1.32%)
258.83 USD
0 (0%)
CME gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. CME scores excellent on profitability, but 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.
In the past 5 years CME has always been profitable.
In the past 5 years CME always reported a positive cash flow from operatings.
1.2 Ratios
CME has a Return On Assets (2.07%) which is in line with its industry peers.
CME has a Return On Equity of 13.42%. This is in the better half of the industry: CME outperforms 71.73% of its industry peers.
CME has a Return On Invested Capital of 17.96%. This is amongst the best in the industry. CME outperforms 94.09% 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 7.61%.
The 3 year average ROIC (15.81%) for CME is below the current ROIC(17.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 13.42% | ||
| ROIC | 17.96% |
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
CME's Profit Margin of 34.40% is fine compared to the rest of the industry. CME outperforms 77.22% of its industry peers.
In the last couple of years the Profit Margin of CME has declined.
Looking at the Operating Margin, with a value of 79.34%, CME belongs to the top of the industry, outperforming 98.73% of the companies in the same industry.
CME's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 79.34% | ||
| PM (TTM) | 34.4% | ||
| 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.
Compared to 5 years ago, CME has more shares outstanding
CME has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of CME is 0.83, which is an excellent value as it means it would take CME, only 0.83 years of fcf income to pay off all of its debts.
CME has a better Debt to FCF ratio (0.83) than 90.30% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that CME is not too dependend on debt financing.
The Debt to Equity ratio of CME (0.12) is better than 79.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | N/A |
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 43.88% 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.
Looking at the Quick ratio, with a value of 1.02, CME is in line with its industry, outperforming 47.68% of the companies in the same industry.
| 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 13.22% over the past year.
Measured over the past years, CME shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.57% on average per year.
The Revenue has been growing slightly by 5.41% in the past year.
CME shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.14% yearly.
EPS 1Y (TTM)13.22%
EPS 3Y15.32%
EPS 5Y8.57%
EPS Q2Q%15.62%
Revenue 1Y (TTM)5.41%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%10.41%
3.2 Future
CME is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.38% yearly.
CME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.14% yearly.
EPS Next Y9.95%
EPS Next 2Y6.89%
EPS Next 3Y6.76%
EPS Next 5Y7.38%
Revenue Next Year6.51%
Revenue Next 2Y5.4%
Revenue Next 3Y5.34%
Revenue Next 5Y5.14%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
CME is valuated rather expensively with a Price/Earnings ratio of 23.62.
Compared to the rest of the industry, the Price/Earnings ratio of CME is on the same level as its industry peers.
CME is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.08, the valuation of CME can be described as rather expensive.
CME's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CME is more expensive than 60.34% 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 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.62 | ||
| Fwd PE | 22.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CME is valued cheaply inside the industry as 87.34% of the companies are valued more expensively.
CME's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.71 | ||
| EV/EBITDA | 10.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CME does not grow enough to justify the current Price/Earnings ratio.
CME has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.37
PEG (5Y)2.75
EPS Next 2Y6.89%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
CME has a Yearly Dividend Yield of 1.91%.
Compared to an average industry Dividend Yield of 7.96, CME is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.38, CME is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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 103.72% of its income as dividend. This is not a sustainable payout ratio.
CME's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP103.72%
EPS Next 2Y6.89%
EPS Next 3Y6.76%
258.83
-3.47 (-1.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners91.81%
Inst Owner Change-3.5%
Ins Owners0.24%
Ins Owner Change1.09%
Market Cap93.28B
Analysts69.09
Price Target290.5 (12.24%)
Short Float %1.26%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend9.97
Dividend Growth(5Y)16%
DP103.72%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.43%
Min EPS beat(2)-1.28%
Max EPS beat(2)0.43%
EPS beat(4)2
Avg EPS beat(4)0.29%
Min EPS beat(4)-1.28%
Max EPS beat(4)2.05%
EPS beat(8)6
Avg EPS beat(8)0.66%
EPS beat(12)10
Avg EPS beat(12)0.99%
EPS beat(16)14
Avg EPS beat(16)1.18%
Revenue beat(2)0
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-1.72%
Max Revenue beat(2)-1.11%
Revenue beat(4)0
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)-0.57%
Revenue beat(8)0
Avg Revenue beat(8)-0.9%
Revenue beat(12)4
Avg Revenue beat(12)11.99%
Revenue beat(16)8
Avg Revenue beat(16)11.42%
PT rev (1m)-0.09%
PT rev (3m)2.87%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-3.05%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-4.2%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.62 | ||
| Fwd PE | 22.08 | ||
| P/S | 8.62 | ||
| P/FCF | 22.71 | ||
| P/OCF | 22.23 | ||
| P/B | 3.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.6 |
EPS(TTM)10.96
EY4.23%
EPS(NY)11.72
Fwd EY4.53%
FCF(TTM)11.4
FCFY4.4%
OCF(TTM)11.64
OCFY4.5%
SpS30.02
BVpS76.97
TBVpS-7.46
PEG (NY)2.37
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 13.42% | ||
| ROCE | 23.13% | ||
| ROIC | 17.96% | ||
| ROICexc | 19.04% | ||
| ROICexgc | 145.35% | ||
| OM | 79.34% | ||
| PM (TTM) | 34.4% | ||
| GM | N/A | ||
| FCFM | 37.97% |
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 | 0.12 | ||
| Debt/FCF | 0.83 | ||
| Debt/EBITDA | 0.38 | ||
| Cap/Depr | 26.59% | ||
| Cap/Sales | 0.82% | ||
| Interest Coverage | 66.07 | ||
| Cash Conversion | 47.06% | ||
| Profit Quality | 110.37% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | N/A |
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)13.22%
EPS 3Y15.32%
EPS 5Y8.57%
EPS Q2Q%15.62%
EPS Next Y9.95%
EPS Next 2Y6.89%
EPS Next 3Y6.76%
EPS Next 5Y7.38%
Revenue 1Y (TTM)5.41%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%10.41%
Revenue Next Year6.51%
Revenue Next 2Y5.4%
Revenue Next 3Y5.34%
Revenue Next 5Y5.14%
EBIT growth 1Y5.85%
EBIT growth 3Y39.48%
EBIT growth 5Y19.95%
EBIT Next Year12.03%
EBIT Next 3Y7.91%
EBIT Next 5Y7.61%
FCF growth 1Y32.16%
FCF growth 3Y16.49%
FCF growth 5Y8.18%
OCF growth 1Y31.45%
OCF growth 3Y15.38%
OCF growth 5Y6.67%