CME GROUP INC (CME) Stock Fundamental Analysis
USA - NASDAQ:CME - US12572Q1058 - Common Stock
276.5 USD
+5.08 (+1.87%)
276.5 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. CME is quite expensive at the moment. It does show a decent growth rate.
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.
CME had positive earnings in each of the past 5 years.
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.
Looking at the Return On Equity, with a value of 13.42%, CME is in the better half of the industry, outperforming 71.31% of the companies in the same industry.
CME's Return On Invested Capital of 17.96% is amongst the best of the industry. CME outperforms 94.09% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CME is significantly above the industry average of 7.63%.
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 has a better Profit Margin (34.40%) than 78.06% of its industry peers.
In the last couple of years the Profit Margin of CME has declined.
CME has a better Operating Margin (79.34%) than 98.73% of its industry peers.
In the last couple of years the Operating Margin of CME has grown nicely.
| 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
The number of shares outstanding for CME remains at a similar level compared to 1 year ago.
Compared to 5 years ago, CME has more shares outstanding
Compared to 1 year ago, CME has an improved debt to assets ratio.
2.2 Solvency
CME has an Altman-Z score of 0.66. This is a bad value and indicates that CME is not financially healthy and even has some risk of bankruptcy.
CME's Altman-Z score of 0.66 is in line compared to the rest of the industry. CME outperforms 41.77% of its industry peers.
CME has a debt to FCF ratio of 0.85. This is a very positive value and a sign of high solvency as it would only need 0.85 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.85, CME belongs to the top of the industry, outperforming 91.14% of the companies in the same industry.
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 78.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 0.66 |
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.
CME's Current ratio of 1.02 is in line compared to the rest of the industry. CME outperforms 42.19% 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 45.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
CME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.41%, which is quite good.
The Earnings Per Share has been growing by 8.57% on average over the past years. This is quite good.
Looking at the last year, CME shows a quite strong growth in Revenue. The Revenue has grown by 10.03% in the last year.
Measured over the past years, CME shows a quite strong growth in Revenue. The Revenue has been growing by 13.14% on average per year.
EPS 1Y (TTM)8.41%
EPS 3Y15.32%
EPS 5Y8.57%
EPS Q2Q%0%
Revenue 1Y (TTM)10.03%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%-2.95%
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 Y9.06%
EPS Next 2Y6.66%
EPS Next 3Y6.41%
EPS Next 5Y7.38%
Revenue Next Year5.81%
Revenue Next 2Y5.15%
Revenue Next 3Y5.11%
Revenue Next 5Y5.14%
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.
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
With a Price/Earnings ratio of 25.23, CME can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CME is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, CME is valued at the same level.
With a Price/Forward Earnings ratio of 23.69, CME is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CME indicates a slightly more expensive valuation: CME is more expensive than 63.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, CME is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 23.69 |
4.2 Price Multiples
86.92% of the companies in the same industry are more expensive than CME, based on the Enterprise Value to EBITDA ratio.
CME's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.26 | ||
| EV/EBITDA | 11.11 |
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.
The decent profitability rating of CME may justify a higher PE ratio.
PEG (NY)2.79
PEG (5Y)2.94
EPS Next 2Y6.66%
EPS Next 3Y6.41%
5. Dividend
5.1 Amount
CME has a Yearly Dividend Yield of 1.90%.
Compared to an average industry Dividend Yield of 8.39, CME has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.39, CME is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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 2Y6.66%
EPS Next 3Y6.41%
276.5
+5.08 (+1.87%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners91.46%
Inst Owner Change-1.55%
Ins Owners0.25%
Ins Owner Change2.38%
Market Cap99.65B
Revenue(TTM)11.29B
Net Income(TTM)3.72B
Analysts70.91
Price Target290.51 (5.07%)
Short Float %1.25%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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%
PT rev (3m)0.29%
EPS NQ rev (1m)-2.5%
EPS NQ rev (3m)-2.49%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)-1.78%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 23.69 | ||
| P/S | 9.21 | ||
| P/FCF | 24.26 | ||
| P/OCF | 23.75 | ||
| P/B | 3.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.11 |
EPS(TTM)10.96
EY3.96%
EPS(NY)11.67
Fwd EY4.22%
FCF(TTM)11.4
FCFY4.12%
OCF(TTM)11.64
OCFY4.21%
SpS30.02
BVpS76.97
TBVpS-7.46
PEG (NY)2.79
PEG (5Y)2.94
Graham Number137.77
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%
ROICexgc growth 3Y53.64%
ROICexgc 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 | 0.85 | ||
| Debt/EBITDA | 0.39 | ||
| 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 | 0.66 |
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)8.41%
EPS 3Y15.32%
EPS 5Y8.57%
EPS Q2Q%0%
EPS Next Y9.06%
EPS Next 2Y6.66%
EPS Next 3Y6.41%
EPS Next 5Y7.38%
Revenue 1Y (TTM)10.03%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%-2.95%
Revenue Next Year5.81%
Revenue Next 2Y5.15%
Revenue Next 3Y5.11%
Revenue Next 5Y5.14%
EBIT growth 1Y5.85%
EBIT growth 3Y39.48%
EBIT growth 5Y19.95%
EBIT Next Year11.98%
EBIT Next 3Y8.14%
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%
CME GROUP INC / CME FAQ
What is the ChartMill fundamental rating of CME GROUP INC (CME) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CME.
What is the valuation status for CME stock?
ChartMill assigns a valuation rating of 3 / 10 to CME GROUP INC (CME). This can be considered as Overvalued.
Can you provide the profitability details for CME GROUP INC?
CME GROUP INC (CME) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for CME stock?
The Price/Earnings (PE) ratio for CME GROUP INC (CME) is 25.23 and the Price/Book (PB) ratio is 3.59.
How sustainable is the dividend of CME GROUP INC (CME) stock?
The dividend rating of CME GROUP INC (CME) is 4 / 10 and the dividend payout ratio is 103.72%.