266.85 USD
-2.3 (-0.85%)
267 USD
+0.15 (+0.06%)
CME gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 235 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 quite expensive at the moment. It does show a decent growth rate.
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
CME has a Return On Assets of 1.99%. This is comparable to the rest of the industry: CME outperforms 45.96% of its industry peers.
CME's Return On Equity of 13.18% is fine compared to the rest of the industry. CME outperforms 72.77% of its industry peers.
CME has a better Return On Invested Capital (18.72%) than 95.74% 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 7.14%.
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
With a decent Profit Margin value of 32.91%, CME is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CME has declined.
The Operating Margin of CME (80.16%) is better than 98.72% of its industry peers.
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
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 0.84, 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 89.36% 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 79.15% 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.
CME has a Current ratio of 1.02. This is comparable to the rest of the industry: CME outperforms 45.11% of 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.
The Earnings Per Share has been growing by 8.57% on average over the past years. This is quite good.
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 7.30% yearly.
The Revenue is expected to grow by 4.71% on average over the next years.
EPS Next Y9.98%
EPS Next 2Y7.13%
EPS Next 3Y6.89%
EPS Next 5Y7.3%
Revenue Next Year6.33%
Revenue Next 2Y5.53%
Revenue Next 3Y5.51%
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.
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
Based on the Price/Earnings ratio of 24.35, the valuation of CME can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CME indicates a slightly more expensive valuation: CME is more expensive than 62.13% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, CME is valued at the same level.
A Price/Forward Earnings ratio of 22.66 indicates a rather expensive valuation of CME.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CME is on the same level as its industry peers.
CME's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.35 | ||
| Fwd PE | 22.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CME is valued cheaply inside the industry as 87.66% of the companies are valued more expensively.
CME's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.56 | ||
| EV/EBITDA | 10.42 |
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)2.44
PEG (5Y)2.84
EPS Next 2Y7.13%
EPS Next 3Y6.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.83%, CME has a reasonable but not impressive dividend return.
CME's Dividend Yield is slightly below the industry average, which is at 6.39.
CME's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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
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 2Y7.13%
EPS Next 3Y6.89%
266.85
-2.3 (-0.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners91.62%
Inst Owner Change0%
Ins Owners0.24%
Ins Owner Change-0.44%
Market Cap96.23B
Revenue(TTM)11.29B
Net Income(TTM)3.72B
Analysts69.52
Price Target291.65 (9.29%)
Short Float %1.72%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend9.97
Dividend Growth(5Y)16%
DP104.85%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
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)0.05%
PT rev (3m)-0.19%
EPS NQ rev (1m)1.33%
EPS NQ rev (3m)1.16%
EPS NY rev (1m)0.47%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)1.3%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.35 | ||
| Fwd PE | 22.66 | ||
| P/S | 8.52 | ||
| P/FCF | 23.56 | ||
| P/OCF | 23.13 | ||
| P/B | 3.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.42 |
EPS(TTM)10.96
EY4.11%
EPS(NY)11.77
Fwd EY4.41%
FCF(TTM)11.33
FCFY4.24%
OCF(TTM)11.54
OCFY4.32%
SpS31.32
BVpS78.18
TBVpS-6.01
PEG (NY)2.44
PEG (5Y)2.84
Graham Number138.85
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 Y9.98%
EPS Next 2Y7.13%
EPS Next 3Y6.89%
EPS Next 5Y7.3%
Revenue 1Y (TTM)10.03%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%-2.95%
Revenue Next Year6.33%
Revenue Next 2Y5.53%
Revenue Next 3Y5.51%
Revenue Next 5Y4.71%
EBIT growth 1Y12.23%
EBIT growth 3Y39.48%
EBIT growth 5Y19.95%
EBIT Next Year12.32%
EBIT Next 3Y7.91%
EBIT Next 5Y7.1%
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 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 9.98% in the next year.
Can you provide the dividend sustainability for CME stock?
The dividend rating of CME GROUP INC (CME) is 4 / 10 and the dividend payout ratio is 104.85%.