286.05 USD
+1.57 (+0.55%)
286.07 USD
+0.02 (+0.01%)
Taking everything into account, CME scores 5 out of 10 in our fundamental rating. CME was compared to 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.
- Each year in the past 5 years CME had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 1.99%, CME perfoms like the industry average, outperforming 41.77% of the companies in the same industry.
- CME has a Return On Equity of 13.18%. This is in the better half of the industry: CME outperforms 72.57% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 18.72%, CME belongs to the top of the industry, outperforming 95.36% 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 7.27%.
- 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
- Looking at the Profit Margin, with a value of 32.91%, CME is in the better half of the industry, outperforming 79.32% of the companies in the same industry.
- CME's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 80.16%, CME belongs to the best of the industry, outperforming 98.73% 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 | 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
- CME has about the same amout of shares outstanding than it did 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
- The Debt to FCF ratio of CME is 0.84, which is an excellent value as it means it would take CME, only 0.84 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.84, CME belongs to the top of the industry, outperforming 89.45% of the companies in the same industry.
- CME has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of CME (0.12) is better than 78.06% 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
- A Current Ratio of 1.02 indicates that CME should not have too much problems paying its short term obligations.
- CME has a Current ratio (1.02) which is in line with its industry peers.
- 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
- 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.
- 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.03%.
- The Revenue has been growing by 13.14% on average over the past years. This is quite good.
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 7.92% yearly.
- Based on estimates for the next years, CME will show a small growth in Revenue. The Revenue will grow by 4.71% on average per year.
EPS Next Y10.02%
EPS Next 2Y7.36%
EPS Next 3Y6.97%
EPS Next 5Y7.92%
Revenue Next Year6.62%
Revenue Next 2Y5.94%
Revenue Next 3Y5.81%
Revenue Next 5Y4.71%
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
- The Price/Earnings ratio is 26.10, which means the current valuation is very expensive for CME.
- Based on the Price/Earnings ratio, CME is valued a bit more expensive than 69.20% of the companies in the same industry.
- When comparing the Price/Earnings ratio of CME to the average of the S&P500 Index (28.60), we can say CME is valued inline with the index average.
- CME is valuated rather expensively with a Price/Forward Earnings ratio of 24.19.
- CME's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CME is more expensive than 62.03% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. CME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.1 | ||
| Fwd PE | 24.19 |
4.2 Price Multiples
- CME's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CME is cheaper than 87.34% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CME is valued a bit cheaper than 60.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.26 | ||
| EV/EBITDA | 11.07 |
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)2.6
PEG (5Y)3.04
EPS Next 2Y7.36%
EPS Next 3Y6.97%
5. Dividend
5.1 Amount
- CME has a Yearly Dividend Yield of 1.78%.
- CME's Dividend Yield is comparable with the industry average which is at 5.87.
- Compared to an average S&P500 Dividend Yield of 1.82, CME has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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 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
- CME pays out 104.85% 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.
DP104.85%
EPS Next 2Y7.36%
EPS Next 3Y6.97%
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 of CME GROUP INC (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.
What is the earnings growth outlook for CME GROUP INC?
The Earnings per Share (EPS) of CME GROUP INC (CME) is expected to grow by 10.02% in the next year.
Can you provide the dividend sustainability for CME stock?
The dividend rating of CME GROUP INC (CME) is 5 / 10 and the dividend payout ratio is 104.85%.