CME GROUP INC (CME)
US12572Q1058 - Common Stock
Taking everything into account, CME scores 5 out of 10 in our fundamental rating. CME was compared to 220 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. 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.
CME had a positive operating cash flow in the past year.
In the past 5 years CME has always been profitable.
In the past 5 years CME always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.48%, CME perfoms like the industry average, outperforming 49.77% of the companies in the same industry.
CME has a Return On Equity of 12.13%. This is in the better half of the industry: CME outperforms 67.28% of its industry peers.
CME's Return On Invested Capital of 16.88% is amongst the best of the industry. CME outperforms 94.01% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CME is above the industry average of 7.00%.
The 3 year average ROIC (11.97%) for CME is below the current ROIC(16.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 12.13% | ||
| ROIC | 16.88% |
ROA(3y)1.77%
ROA(5y)1.96%
ROE(3y)10.45%
ROE(5y)9.49%
ROIC(3y)11.97%
ROIC(5y)9.74%
1.3 Margins
Looking at the Profit Margin, with a value of 33.34%, CME is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
In the last couple of years the Profit Margin of CME has declined.
CME's Operating Margin of 78.60% is amongst the best of the industry. CME outperforms 99.08% of its industry peers.
CME's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 78.6% | ||
| PM (TTM) | 33.34% | ||
| GM | N/A |
OM growth 3Y12.97%
OM growth 5Y5.81%
PM growth 3Y-10.94%
PM growth 5Y-8.41%
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 worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that CME is in the distress zone and has some risk of bankruptcy.
CME's Altman-Z score of 0.82 is in line compared to the rest of the industry. CME outperforms 47.47% of its industry peers.
The Debt to FCF ratio of CME is 0.96, which is an excellent value as it means it would take CME, only 0.96 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.96, CME belongs to the top of the industry, outperforming 88.02% of the companies in the same industry.
A Debt/Equity ratio of 0.10 indicates that CME is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.10, CME belongs to the best of the industry, outperforming 81.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 0.82 |
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.
CME has a Current ratio (1.02) which is comparable to the rest of the 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.
Looking at the Quick ratio, with a value of 1.02, CME is in line with its industry, outperforming 46.08% of the companies in the same 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 13.72%, which is quite good.
The Earnings Per Share has been growing slightly by 6.49% on average over the past years.
Looking at the last year, CME shows a decrease in Revenue. The Revenue has decreased by -4.06% in the last year.
CME shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.29% yearly.
EPS 1Y (TTM)13.72%
EPS 3Y11.54%
EPS 5Y6.49%
EPS Q2Q%19.11%
Revenue 1Y (TTM)-4.06%
Revenue growth 3Y28.91%
Revenue growth 5Y20.29%
Sales Q2Q%18.43%
3.2 Future
CME is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.26% yearly.
CME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.67% yearly.
EPS Next Y10.5%
EPS Next 2Y6.1%
EPS Next 3Y5.49%
EPS Next 5Y5.26%
Revenue Next Year10.16%
Revenue Next 2Y6.41%
Revenue Next 3Y5.72%
Revenue Next 5Y4.67%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 23.59, which indicates a rather expensive current valuation of CME.
CME's Price/Earnings ratio is a bit more expensive when compared to the industry. CME is more expensive than 65.44% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, CME is valued at the same level.
A Price/Forward Earnings ratio of 22.69 indicates a rather expensive valuation of CME.
CME's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CME is more expensive than 63.59% 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 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.59 | ||
| Fwd PE | 22.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CME is valued cheaper than 85.25% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CME.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.69 | ||
| EV/EBITDA | 10.34 |
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)2.25
PEG (5Y)3.63
EPS Next 2Y6.1%
EPS Next 3Y5.49%
5. Dividend
5.1 Amount
CME has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
CME's Dividend Yield is slightly below the industry average, which is at 9.45.
Compared to an average S&P500 Dividend Yield of 2.34, CME has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
The dividend of CME is nicely growing with an annual growth rate of 7.84%!
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 2Y6.1%
EPS Next 3Y5.49%
CME GROUP INC
NASDAQ:CME (12/20/2024, 8:02:50 PM)
After market: 239.26 +0.73 (+0.31%)238.53
+1.71 (+0.72%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners89.67%
Inst Owner Change0.64%
Ins Owners0.3%
Ins Owner Change3.3%
Market Cap85.96B
Analysts70.91
Price Target241.47 (1.23%)
Short Float %1.37%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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)2.63%
PT rev (3m)7.48%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)5.53%
EPS NY rev (1m)0.07%
EPS NY rev (3m)3.22%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)3.91%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.59 | ||
| Fwd PE | 22.69 | ||
| P/S | 8.37 | ||
| P/FCF | 23.69 | ||
| P/OCF | 23.13 | ||
| P/B | 3.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.34 |
EPS(TTM)10.11
EY4.24%
EPS(NY)10.51
Fwd EY4.41%
FCF(TTM)10.07
FCFY4.22%
OCF(TTM)10.31
OCFY4.32%
SpS28.48
BVpS78.3
TBVpS-6.56
PEG (NY)2.25
PEG (5Y)3.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 12.13% | ||
| ROCE | 21.82% | ||
| ROIC | 16.88% | ||
| ROICexc | 18.07% | ||
| ROICexgc | 157.75% | ||
| OM | 78.6% | ||
| PM (TTM) | 33.34% | ||
| GM | N/A | ||
| FCFM | 35.35% |
ROA(3y)1.77%
ROA(5y)1.96%
ROE(3y)10.45%
ROE(5y)9.49%
ROIC(3y)11.97%
ROIC(5y)9.74%
ROICexc(3y)13.03%
ROICexc(5y)10.5%
ROICexgc(3y)171.98%
ROICexgc(5y)150.98%
ROCE(3y)15.47%
ROCE(5y)12.59%
ROICexcg growth 3Y31.85%
ROICexcg growth 5Y10.85%
ROICexc growth 3Y47.74%
ROICexc growth 5Y28.4%
OM growth 3Y12.97%
OM growth 5Y5.81%
PM growth 3Y-10.94%
PM growth 5Y-8.41%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
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 | 0.82 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)26.47%
Cap/Depr(5y)34.77%
Cap/Sales(3y)1.5%
Cap/Sales(5y)2.57%
Profit Quality(3y)101.53%
Profit Quality(5y)107.78%
High Growth Momentum
Growth
EPS 1Y (TTM)13.72%
EPS 3Y11.54%
EPS 5Y6.49%
EPS Q2Q%19.11%
EPS Next Y10.5%
EPS Next 2Y6.1%
EPS Next 3Y5.49%
EPS Next 5Y5.26%
Revenue 1Y (TTM)-4.06%
Revenue growth 3Y28.91%
Revenue growth 5Y20.29%
Sales Q2Q%18.43%
Revenue Next Year10.16%
Revenue Next 2Y6.41%
Revenue Next 3Y5.72%
Revenue Next 5Y4.67%
EBIT growth 1Y-6.1%
EBIT growth 3Y45.64%
EBIT growth 5Y27.28%
EBIT Next Year19.19%
EBIT Next 3Y8.41%
EBIT Next 5Y7.11%
FCF growth 1Y36.91%
FCF growth 3Y10.28%
FCF growth 5Y7.76%
OCF growth 1Y35.51%
OCF growth 3Y8.35%
OCF growth 5Y7.19%