CME GROUP INC (CME) Stock Fundamental Analysis
NASDAQ:CME - Nasdaq - US12572Q1058 - Common Stock - Currency: USD
Overall CME gets a fundamental rating of 5 out of 10. We evaluated CME against 225 industry peers in the Capital Markets industry. While CME belongs to the best of the industry regarding profitability, 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
CME had positive earnings in the past year.
In the past year CME had a positive cash flow from operations.
Each year in the past 5 years CME has been profitable.
CME had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CME has a Return On Assets (2.48%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 12.13%, CME is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.94%, CME belongs to the top of the industry, outperforming 94.98% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CME is significantly above the industry average of 6.76%.
The 3 year average ROIC (15.81%) for CME is below the current ROIC(16.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 12.13% | ||
| ROIC | 16.94% |
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 has a Profit Margin of 33.34%. This is in the better half of the industry: CME outperforms 73.06% 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 78.60%, CME belongs to the top of the industry, outperforming 99.09% of the companies in the same industry.
In the last couple of years the Operating Margin of CME has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 78.6% | ||
| PM (TTM) | 33.34% | ||
| 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
CME has more shares outstanding than it did 1 year ago.
CME has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CME has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that CME is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.84, CME perfoms like the industry average, outperforming 47.95% of the companies in the same industry.
CME has a debt to FCF ratio of 0.96. This is a very positive value and a sign of high solvency as it would only need 0.96 years to pay back of all of its debts.
CME has a Debt to FCF ratio of 0.96. This is amongst the best in the industry. CME outperforms 88.13% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that CME is not too dependend on debt financing.
CME has a better Debt to Equity ratio (0.10) than 80.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 0.84 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.02 indicates that CME should not have too much problems paying its short term obligations.
The Current ratio of CME (1.02) is comparable to the rest of the industry.
A Quick Ratio of 1.02 indicates that CME should not have too much problems paying its short term obligations.
CME has a Quick ratio (1.02) which is comparable to the rest of the 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 9.85% 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.
CME shows a decrease in Revenue. In the last year, the revenue decreased by -5.94%.
The Revenue has been growing by 13.14% on average over the past years. This is quite good.
EPS 1Y (TTM)9.85%
EPS 3Y15.32%
EPS 5Y8.57%
EPS Q2Q%6.33%
Revenue 1Y (TTM)-5.94%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%5.98%
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 5.53% on average per year.
The Revenue is expected to grow by 3.53% on average over the next years.
EPS Next Y3.62%
EPS Next 2Y4.59%
EPS Next 3Y5.43%
EPS Next 5Y5.53%
Revenue Next Year3.37%
Revenue Next 2Y4.12%
Revenue Next 3Y4.27%
Revenue Next 5Y3.53%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CME is valuated rather expensively with a Price/Earnings ratio of 24.26.
62.10% of the companies in the same industry are cheaper than CME, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. CME is around the same levels.
CME is valuated rather expensively with a Price/Forward Earnings ratio of 23.41.
CME's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CME is more expensive than 62.56% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CME to the average of the S&P500 Index (22.68), we can say CME is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.26 | ||
| Fwd PE | 23.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CME is valued cheaply inside the industry as 85.84% 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 | 24.72 | ||
| EV/EBITDA | 10.76 |
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)6.7
PEG (5Y)2.83
EPS Next 2Y4.59%
EPS Next 3Y5.43%
5. Dividend
5.1 Amount
CME has a Yearly Dividend Yield of 4.19%, which is a nice return.
CME's Dividend Yield is comparable with the industry average which is at 10.00.
Compared to an average S&P500 Dividend Yield of 2.29, CME pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
5.2 History
On average, the dividend of CME grows each year by 7.84%, which is quite nice.
CME has been paying a dividend for at least 10 years, so it has a reliable track record.
CME has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.84%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
CME pays out 104.19% 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.
DP104.19%
EPS Next 2Y4.59%
EPS Next 3Y5.43%
248.87
+0.55 (+0.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners89.67%
Inst Owner Change0.62%
Ins Owners0.3%
Ins Owner Change0.78%
Market Cap89.68B
Analysts69.09
Price Target262.07 (5.3%)
Short Float %1.25%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
Yearly Dividend9.01
Dividend Growth(5Y)7.84%
DP104.19%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0%
Min EPS beat(2)-0.04%
Max EPS beat(2)0.05%
EPS beat(4)3
Avg EPS beat(4)0.95%
Min EPS beat(4)-0.04%
Max EPS beat(4)2.81%
EPS beat(8)7
Avg EPS beat(8)1.18%
EPS beat(12)11
Avg EPS beat(12)1.34%
EPS beat(16)15
Avg EPS beat(16)1.31%
Revenue beat(2)0
Avg Revenue beat(2)-0.86%
Min Revenue beat(2)-1.07%
Max Revenue beat(2)-0.66%
Revenue beat(4)0
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-1.07%
Max Revenue beat(4)-0.26%
Revenue beat(8)3
Avg Revenue beat(8)11.5%
Revenue beat(12)7
Avg Revenue beat(12)14.84%
Revenue beat(16)11
Avg Revenue beat(16)12.11%
PT rev (1m)1.5%
PT rev (3m)5.95%
EPS NQ rev (1m)-1.02%
EPS NQ rev (3m)-0.86%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.26 | ||
| Fwd PE | 23.41 | ||
| P/S | 8.74 | ||
| P/FCF | 24.72 | ||
| P/OCF | 24.13 | ||
| P/B | 3.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.76 |
EPS(TTM)10.26
EY4.12%
EPS(NY)10.63
Fwd EY4.27%
FCF(TTM)10.07
FCFY4.05%
OCF(TTM)10.31
OCFY4.14%
SpS28.48
BVpS78.3
TBVpS-6.56
PEG (NY)6.7
PEG (5Y)2.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 12.13% | ||
| ROCE | 21.82% | ||
| ROIC | 16.94% | ||
| ROICexc | 18.14% | ||
| ROICexgc | 158.3% | ||
| OM | 78.6% | ||
| PM (TTM) | 33.34% | ||
| GM | N/A | ||
| FCFM | 35.35% |
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-Score7
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.96 | ||
| Debt/EBITDA | 0.32 | ||
| Cap/Depr | 26.08% | ||
| Cap/Sales | 0.86% | ||
| Interest Coverage | 62.1 | ||
| Cash Conversion | 44.21% | ||
| Profit Quality | 106.03% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 0.84 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.85%
EPS 3Y15.32%
EPS 5Y8.57%
EPS Q2Q%6.33%
EPS Next Y3.62%
EPS Next 2Y4.59%
EPS Next 3Y5.43%
EPS Next 5Y5.53%
Revenue 1Y (TTM)-5.94%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%5.98%
Revenue Next Year3.37%
Revenue Next 2Y4.12%
Revenue Next 3Y4.27%
Revenue Next 5Y3.53%
EBIT growth 1Y-6.1%
EBIT growth 3Y39.48%
EBIT growth 5Y19.95%
EBIT Next Year8.26%
EBIT Next 3Y6.2%
EBIT Next 5Y6.33%
FCF growth 1Y9.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.61%
OCF growth 3YN/A
OCF growth 5YN/A