CME GROUP INC (CME) Stock Fundamental Analysis
NASDAQ:CME - Nasdaq - US12572Q1058 - Common Stock
Overall CME gets a fundamental rating of 5 out of 10. We evaluated CME against 224 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
CME had positive earnings in the past year.
In the past year CME had a positive cash flow from operations.
CME had positive earnings in each of the past 5 years.
In the past 5 years CME always reported a positive cash flow from operatings.
1.2 Ratios
CME has a Return On Assets of 2.48%. This is comparable to the rest of the industry: CME outperforms 47.95% of its industry peers.
CME has a better Return On Equity (12.13%) than 69.41% of its industry peers.
CME has a Return On Invested Capital of 16.88%. This is amongst the best in the industry. CME outperforms 95.43% of its industry peers.
CME had an Average Return On Invested Capital over the past 3 years of 11.97%. This is significantly above the industry average of 6.66%.
The last Return On Invested Capital (16.88%) for CME is above the 3 year average (11.97%), which is a sign of increasing profitability.
| 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
CME's Profit Margin of 33.34% is fine compared to the rest of the industry. CME outperforms 75.80% of its industry peers.
In the last couple of years the Profit Margin of CME has declined.
Looking at the Operating Margin, with a value of 78.60%, CME belongs to the top of the industry, outperforming 99.09% of the companies in the same industry.
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
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
CME has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.81, we must say that CME is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.81, CME is in line with its industry, outperforming 46.12% of the companies in the same industry.
CME has a debt to FCF ratio of 0.96. This is a very positive value and a sign of high solvency as it would only need 0.96 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.96, CME belongs to the best of the industry, outperforming 88.13% of the companies in the same industry.
A Debt/Equity ratio of 0.10 indicates that CME is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.10, CME belongs to the top of the industry, outperforming 80.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 0.81 |
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.
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 13.72%, which is quite good.
CME shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.49% yearly.
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 6.38% yearly.
Based on estimates for the next years, CME will show a small growth in Revenue. The Revenue will grow by 4.78% on average per year.
EPS Next Y10.5%
EPS Next 2Y6.1%
EPS Next 3Y5.49%
EPS Next 5Y6.38%
Revenue Next Year10.11%
Revenue Next 2Y6.38%
Revenue Next 3Y5.76%
Revenue Next 5Y4.78%
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
With a Price/Earnings ratio of 22.97, CME is valued on the expensive side.
Based on the Price/Earnings ratio, CME is valued a bit more expensive than 63.01% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. CME is around the same levels.
Based on the Price/Forward Earnings ratio of 22.09, the valuation of CME can be described as rather expensive.
CME's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CME is more expensive than 63.47% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CME to the average of the S&P500 Index (24.44), we can say CME is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.97 | ||
| Fwd PE | 22.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CME is valued cheaper than 87.67% of the companies in the same industry.
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 | 23.07 | ||
| EV/EBITDA | 10.09 |
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)2.19
PEG (5Y)3.54
EPS Next 2Y6.1%
EPS Next 3Y5.49%
5. Dividend
5.1 Amount
CME has a Yearly Dividend Yield of 1.98%. 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 2.28, CME has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
The dividend of CME is nicely growing with an annual growth rate of 7.84%!
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)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.
The dividend of CME is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP104.19%
EPS Next 2Y6.1%
EPS Next 3Y5.49%
CME GROUP INC
NASDAQ:CME (1/21/2025, 8:00:00 PM)
After market: 232.25 0 (0%)232.25
-0.46 (-0.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners89.67%
Inst Owner Change0.04%
Ins Owners0.3%
Ins Owner Change1.76%
Market Cap83.69B
Analysts70.91
Price Target245.62 (5.76%)
Short Float %1.2%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Yearly Dividend9.01
Dividend Growth(5Y)7.84%
DP104.19%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
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)1.72%
PT rev (3m)10.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.53%
EPS NY rev (1m)0%
EPS NY rev (3m)3.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.91%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.97 | ||
| Fwd PE | 22.09 | ||
| P/S | 8.15 | ||
| P/FCF | 23.07 | ||
| P/OCF | 22.52 | ||
| P/B | 2.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.09 |
EPS(TTM)10.11
EY4.35%
EPS(NY)10.51
Fwd EY4.53%
FCF(TTM)10.07
FCFY4.34%
OCF(TTM)10.31
OCFY4.44%
SpS28.48
BVpS78.3
TBVpS-6.56
PEG (NY)2.19
PEG (5Y)3.54
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 | 0.81 |
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 5Y6.38%
Revenue 1Y (TTM)-4.06%
Revenue growth 3Y28.91%
Revenue growth 5Y20.29%
Sales Q2Q%18.43%
Revenue Next Year10.11%
Revenue Next 2Y6.38%
Revenue Next 3Y5.76%
Revenue Next 5Y4.78%
EBIT growth 1Y-6.1%
EBIT growth 3Y45.64%
EBIT growth 5Y27.28%
EBIT Next Year19.24%
EBIT Next 3Y8.49%
EBIT Next 5Y7.47%
FCF growth 1Y36.91%
FCF growth 3Y10.28%
FCF growth 5Y7.76%
OCF growth 1Y35.51%
OCF growth 3Y8.35%
OCF growth 5Y7.19%