CME GROUP INC (CME) Stock Fundamental Analysis
USA - NASDAQ:CME - US12572Q1058 - Common Stock
285.04 USD
+1.5 (+0.53%)
285.04 USD
0 (0%)
Overall CME gets a fundamental rating of 5 out of 10. We evaluated CME against 237 industry peers in the Capital Markets industry. CME has an excellent profitability rating, but 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.
CME had a positive operating cash flow in the past year.
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's Return On Assets of 1.99% is in line compared to the rest of the industry. CME outperforms 42.62% of its industry peers.
CME's Return On Equity of 13.18% is fine compared to the rest of the industry. CME outperforms 71.73% of its industry peers.
CME's Return On Invested Capital of 18.72% is amongst the best of the industry. CME outperforms 95.78% 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 7.47%.
The 3 year average ROIC (15.81%) for CME is below the current ROIC(18.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 13.18% | ||
| ROIC | 18.72% |
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 (32.91%) than 78.06% 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 80.16%, 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 | 80.16% | ||
| PM (TTM) | 32.91% | ||
| 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
Compared to 1 year ago, CME has an improved debt to assets ratio.
2.2 Solvency
CME has a debt to FCF ratio of 0.84. This is a very positive value and a sign of high solvency as it would only need 0.84 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.84, CME belongs to the best of the industry, outperforming 90.72% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that CME is not too dependend on debt financing.
CME has a better Debt to Equity ratio (0.12) than 78.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.84 | ||
| 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.
Looking at the Current ratio, with a value of 1.02, CME is in line with its industry, outperforming 41.77% of the companies in the same industry.
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 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 8.41% 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.
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
Based on estimates for the next years, CME will show a small growth in Earnings Per Share. The EPS will grow by 7.48% on average per year.
CME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.21% yearly.
EPS Next Y9.39%
EPS Next 2Y6.87%
EPS Next 3Y6.76%
EPS Next 5Y7.48%
Revenue Next Year5.91%
Revenue Next 2Y5.35%
Revenue Next 3Y5.46%
Revenue Next 5Y5.21%
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
The Price/Earnings ratio is 26.01, which means the current valuation is very expensive for CME.
67.93% 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 25.89. CME is around the same levels.
CME is valuated rather expensively with a Price/Forward Earnings ratio of 24.32.
64.56% of the companies in the same industry are cheaper than CME, based on the Price/Forward Earnings ratio.
CME is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.01 | ||
| Fwd PE | 24.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CME is valued cheaper than 86.92% of the companies in the same industry.
CME's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.15 | ||
| EV/EBITDA | 10.97 |
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)2.77
PEG (5Y)3.03
EPS Next 2Y6.87%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
CME has a Yearly Dividend Yield of 1.84%.
Compared to an average industry Dividend Yield of 8.41, CME has a dividend in line with its industry peers.
CME's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
On average, the dividend of CME grows each year by 16.00%, which is quite nice.
CME has paid a dividend for at least 10 years, which is a reliable track record.
CME has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
104.85% of the earnings are spent on dividend by CME. This is not a sustainable payout ratio.
CME's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP104.85%
EPS Next 2Y6.87%
EPS Next 3Y6.76%
285.04
+1.5 (+0.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners91.46%
Inst Owner Change-2.5%
Ins Owners0.25%
Ins Owner Change2.32%
Market Cap102.72B
Revenue(TTM)11.29B
Net Income(TTM)3.72B
Analysts72.73
Price Target290.51 (1.92%)
Short Float %1.25%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend9.97
Dividend Growth(5Y)16%
DP104.85%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.59%
Min EPS beat(2)0.43%
Max EPS beat(2)0.76%
EPS beat(4)3
Avg EPS beat(4)0.49%
Min EPS beat(4)-1.28%
Max EPS beat(4)2.05%
EPS beat(8)6
Avg EPS beat(8)0.72%
EPS beat(12)10
Avg EPS beat(12)0.95%
EPS beat(16)14
Avg EPS beat(16)1.13%
Revenue beat(2)0
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-1.11%
Max Revenue beat(2)-0.54%
Revenue beat(4)0
Avg Revenue beat(4)-0.98%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)-0.54%
Revenue beat(8)0
Avg Revenue beat(8)-0.81%
Revenue beat(12)3
Avg Revenue beat(12)7.34%
Revenue beat(16)7
Avg Revenue beat(16)10.88%
PT rev (1m)-0.58%
PT rev (3m)-0.09%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)-0.74%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.01 | ||
| Fwd PE | 24.32 | ||
| P/S | 9.1 | ||
| P/FCF | 25.15 | ||
| P/OCF | 24.69 | ||
| P/B | 3.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.97 |
EPS(TTM)10.96
EY3.85%
EPS(NY)11.72
Fwd EY4.11%
FCF(TTM)11.33
FCFY3.98%
OCF(TTM)11.55
OCFY4.05%
SpS31.34
BVpS78.22
TBVpS-6.01
PEG (NY)2.77
PEG (5Y)3.03
Graham Number138.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 13.18% | ||
| ROCE | 24.11% | ||
| ROIC | 18.72% | ||
| ROICexc | 20.09% | ||
| ROICexgc | 151.85% | ||
| OM | 80.16% | ||
| PM (TTM) | 32.91% | ||
| GM | N/A | ||
| FCFM | 36.16% |
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-Score4
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 23.26% | ||
| Cap/Sales | 0.68% | ||
| Interest Coverage | 66.76 | ||
| Cash Conversion | 44.34% | ||
| Profit Quality | 109.88% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | N/A |
F-Score4
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 Y9.39%
EPS Next 2Y6.87%
EPS Next 3Y6.76%
EPS Next 5Y7.48%
Revenue 1Y (TTM)10.03%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%-2.95%
Revenue Next Year5.91%
Revenue Next 2Y5.35%
Revenue Next 3Y5.46%
Revenue Next 5Y5.21%
EBIT growth 1Y12.23%
EBIT growth 3Y39.48%
EBIT growth 5Y19.95%
EBIT Next Year11.98%
EBIT Next 3Y8.14%
EBIT Next 5Y7.73%
FCF growth 1Y23.34%
FCF growth 3Y16.49%
FCF growth 5Y8.18%
OCF growth 1Y22.71%
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 26.01 and the Price/Book (PB) ratio is 3.64.
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 104.85%.