284.05 USD
+1.31 (+0.47%)
285 USD
+0.95 (+0.33%)
Overall CME gets a fundamental rating of 5 out of 10. We evaluated CME against 237 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.
- Each year in the past 5 years CME has been profitable.
- In the past 5 years CME always reported a positive cash flow from operatings.
1.2 Ratios
- CME has a Return On Assets (1.99%) which is in line with its industry peers.
- CME has a Return On Equity of 13.18%. This is in the better half of the industry: CME outperforms 72.57% 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 7.27%.
- 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 79.32% of its industry peers.
- CME's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 80.16%, CME belongs to the best of the industry, outperforming 98.73% of the companies in the same industry.
- 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
- Compared to 1 year ago, CME has about the same amount of shares outstanding.
- CME has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for CME has been reduced compared to a year ago.
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 89.45% 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.
- CME has a better Debt to Equity ratio (0.12) than 78.06% 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
- 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 comparable to the rest of the industry.
- A Quick Ratio of 1.02 indicates that CME should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.02, CME perfoms like the industry average, outperforming 46.41% 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 8.41%, which is quite good.
- CME shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.57% yearly.
- The Revenue has grown by 10.03% in the past year. This is quite good.
- 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)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
- The Earnings Per Share is expected to grow by 7.92% on average over the next years.
- Based on estimates for the next years, CME will show a small growth in Revenue. The Revenue will grow by 4.71% on average per year.
EPS Next Y10.02%
EPS Next 2Y7.36%
EPS Next 3Y6.97%
EPS Next 5Y7.92%
Revenue Next Year6.62%
Revenue Next 2Y5.94%
Revenue Next 3Y5.81%
Revenue Next 5Y4.71%
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 25.92, 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 68.35% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. CME is around the same levels.
- Based on the Price/Forward Earnings ratio of 24.02, the valuation of CME can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, CME is valued a bit more expensive than 61.60% of the companies in the same industry.
- CME is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.92 | ||
| Fwd PE | 24.02 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CME is valued cheaper than 87.34% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CME indicates a somewhat cheap valuation: CME is cheaper than 60.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.08 | ||
| EV/EBITDA | 10.94 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of CME may justify a higher PE ratio.
PEG (NY)2.59
PEG (5Y)3.02
EPS Next 2Y7.36%
EPS Next 3Y6.97%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.78%, CME has a reasonable but not impressive dividend return.
- CME's Dividend Yield is comparable with the industry average which is at 5.87.
- CME's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
- On average, the dividend of CME grows each year by 16.00%, which is quite nice.
- 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 2Y7.36%
EPS Next 3Y6.97%
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 10.02% in the next year.
Can you provide the dividend sustainability for CME stock?
The dividend rating of CME GROUP INC (CME) is 5 / 10 and the dividend payout ratio is 104.85%.