CME GROUP INC (CME) Stock Fundamental Analysis
USA - NASDAQ:CME - US12572Q1058 - Common Stock
279.28 USD
+0.15 (+0.05%)
279.28 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. While CME belongs to the best of the industry regarding profitability, 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.
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
The Return On Assets of CME (1.99%) is comparable to the rest of the industry.
The Return On Equity of CME (13.18%) is better than 71.31% of its industry peers.
With an excellent Return On Invested Capital value of 18.72%, CME belongs to the best 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 7.11%.
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's Profit Margin of 32.91% is fine compared to the rest of the industry. CME outperforms 78.48% of its industry peers.
In the last couple of years the Profit Margin of CME has declined.
CME has a Operating Margin of 80.16%. This is amongst the best in the industry. CME outperforms 98.73% of its industry peers.
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
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.
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.
CME has a Debt to FCF ratio of 0.84. This is amongst the best in the industry. CME outperforms 90.30% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that CME is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.12, CME is doing good in the industry, outperforming 78.48% of the companies in the same industry.
| 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.
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 in line with its industry peers.
| 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.
CME shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.57% yearly.
Looking at the last year, CME shows a quite strong growth in Revenue. The Revenue has grown by 10.03% in the last year.
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 7.48% yearly.
The Revenue is expected to grow by 5.21% on average over the next years.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 25.48, which means the current valuation is very expensive for CME.
CME's Price/Earnings ratio is a bit more expensive when compared to the industry. CME is more expensive than 67.51% of the companies in the same industry.
When comparing the Price/Earnings ratio of CME to the average of the S&P500 Index (25.51), we can say CME is valued inline with the index average.
CME is valuated rather expensively with a Price/Forward Earnings ratio of 23.83.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CME indicates a slightly more expensive valuation: CME is more expensive than 64.56% of the companies listed in the same industry.
CME is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.48 | ||
| Fwd PE | 23.83 |
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.
CME's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.64 | ||
| EV/EBITDA | 10.8 |
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)2.71
PEG (5Y)2.97
EPS Next 2Y6.87%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
CME has a Yearly Dividend Yield of 1.76%.
Compared to an average industry Dividend Yield of 8.50, CME has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, CME is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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 2Y6.87%
EPS Next 3Y6.76%
279.28
+0.15 (+0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners91.46%
Inst Owner Change0.18%
Ins Owners0.25%
Ins Owner Change4.13%
Market Cap100.65B
Revenue(TTM)11.29B
Net Income(TTM)3.72B
Analysts72.73
Price Target290.51 (4.02%)
Short Float %1.15%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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)0.19%
EPS NQ rev (3m)-0.74%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.48 | ||
| Fwd PE | 23.83 | ||
| P/S | 8.91 | ||
| P/FCF | 24.64 | ||
| P/OCF | 24.19 | ||
| P/B | 3.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.8 |
EPS(TTM)10.96
EY3.92%
EPS(NY)11.72
Fwd EY4.2%
FCF(TTM)11.33
FCFY4.06%
OCF(TTM)11.55
OCFY4.13%
SpS31.34
BVpS78.22
TBVpS-6.01
PEG (NY)2.71
PEG (5Y)2.97
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 25.48 and the Price/Book (PB) ratio is 3.57.
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%.