CME GROUP INC (CME) Stock Fundamental Analysis
USA - NASDAQ:CME - US12572Q1058 - Common Stock
267.935 USD
+5.43 (+2.07%)
267.75 USD
-0.19 (-0.07%)
Taking everything into account, CME scores 5 out of 10 in our fundamental rating. CME was compared to 239 industry peers in the Capital Markets industry. While CME has a great profitability rating, 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.
In the past year CME had a positive cash flow from operations.
CME had positive earnings in each of the past 5 years.
CME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CME (2.07%) is comparable to the rest of the industry.
With a decent Return On Equity value of 13.42%, CME is doing good in the industry, outperforming 70.46% of the companies in the same industry.
With an excellent Return On Invested Capital value of 17.96%, CME belongs to the best of the industry, outperforming 94.09% 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 7.55%.
The last Return On Invested Capital (17.96%) for CME is above the 3 year average (15.81%), which is a sign of increasing profitability.
| 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 77.64% of its industry peers.
In the last couple of years the Profit Margin of CME has declined.
CME has a Operating Margin of 79.34%. This is amongst the best in the industry. CME outperforms 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.
CME has more shares outstanding than it did 5 years ago.
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.
The Debt to FCF ratio of CME (0.83) is better than 91.14% of its industry peers.
CME has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
CME's Debt to Equity ratio of 0.12 is fine compared to the rest of the industry. CME outperforms 78.90% 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
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.
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.
With a Quick ratio value of 1.02, CME perfoms like the industry average, outperforming 47.26% 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.
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 small growth in Revenue. The Revenue has grown by 5.41% 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)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
The Earnings Per Share is expected to grow by 7.38% on average over the next years.
CME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.14% yearly.
EPS Next Y9.86%
EPS Next 2Y6.93%
EPS Next 3Y6.81%
EPS Next 5Y7.38%
Revenue Next Year6.25%
Revenue Next 2Y5.24%
Revenue Next 3Y5.22%
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.
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 24.45, which indicates a rather expensive current valuation of CME.
Based on the Price/Earnings ratio, CME is valued a bit more expensive than 64.13% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.40. CME is around the same levels.
With a Price/Forward Earnings ratio of 22.84, CME is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CME is valued a bit more expensive than 62.03% 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 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.45 | ||
| Fwd PE | 22.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CME is valued cheaply inside the industry as 86.50% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CME is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.51 | ||
| EV/EBITDA | 10.75 |
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)2.48
PEG (5Y)2.85
EPS Next 2Y6.93%
EPS Next 3Y6.81%
5. Dividend
5.1 Amount
CME has a Yearly Dividend Yield of 1.90%.
CME's Dividend Yield is slightly below the industry average, which is at 8.49.
Compared to an average S&P500 Dividend Yield of 2.36, CME has a dividend comparable with the average S&P500 company.
| 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 paid a dividend for at least 10 years, which is 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
103.72% of the earnings are spent on dividend by CME. This is not a sustainable payout ratio.
The dividend of CME is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP103.72%
EPS Next 2Y6.93%
EPS Next 3Y6.81%
267.935
+5.43 (+2.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners91.46%
Inst Owner Change0.17%
Ins Owners0.25%
Ins Owner Change2.06%
Market Cap96.56B
Analysts70.91
Price Target292.2 (9.06%)
Short Float %1.29%
Short Ratio2.38
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)0.12%
PT rev (3m)3.27%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-2.73%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-3.61%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.45 | ||
| Fwd PE | 22.84 | ||
| P/S | 8.93 | ||
| P/FCF | 23.51 | ||
| P/OCF | 23.01 | ||
| P/B | 3.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.75 |
EPS(TTM)10.96
EY4.09%
EPS(NY)11.73
Fwd EY4.38%
FCF(TTM)11.4
FCFY4.25%
OCF(TTM)11.64
OCFY4.35%
SpS30.02
BVpS76.97
TBVpS-7.46
PEG (NY)2.48
PEG (5Y)2.85
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 Y9.86%
EPS Next 2Y6.93%
EPS Next 3Y6.81%
EPS Next 5Y7.38%
Revenue 1Y (TTM)5.41%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%10.41%
Revenue Next Year6.25%
Revenue Next 2Y5.24%
Revenue Next 3Y5.22%
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%