281.39 USD
+2.32 (+0.83%)
281.3 USD
-0.09 (-0.03%)
CME gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 238 industry peers in the Capital Markets industry. While CME has a great profitability rating, 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.
- CME had a positive operating cash flow in the past year.
- 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
- With a Return On Assets value of 1.99%, CME perfoms like the industry average, outperforming 42.02% of the companies in the same industry.
- CME has a better Return On Equity (13.18%) than 72.69% of its industry peers.
- CME has a better Return On Invested Capital (18.72%) than 95.38% of its industry peers.
- CME had an Average Return On Invested Capital over the past 3 years of 15.81%. This 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
- With a decent Profit Margin value of 32.91%, CME is doing good in the industry, outperforming 79.41% of the companies in the same industry.
- CME's Profit Margin has declined in the last couple of years.
- CME has a better Operating Margin (80.16%) than 98.74% 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.
- 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.
- CME has a better Debt to FCF ratio (0.84) than 89.50% of its industry peers.
- A Debt/Equity ratio of 0.12 indicates that CME is not too dependend on debt financing.
- CME has a better Debt to Equity ratio (0.12) than 78.15% 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.
- Looking at the Current ratio, with a value of 1.02, CME is in line with its industry, outperforming 45.38% of the companies in the same 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 in line with its industry peers.
| 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.
- 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
- Based on estimates for the next years, CME will show a small growth in Earnings Per Share. The EPS will grow by 7.92% on average per year.
- 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 Y9.98%
EPS Next 2Y7.13%
EPS Next 3Y6.89%
EPS Next 5Y7.92%
Revenue Next Year6.53%
Revenue Next 2Y5.68%
Revenue Next 3Y5.64%
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
- A Price/Earnings ratio of 25.67 indicates a quite expensive valuation of CME.
- Based on the Price/Earnings ratio, CME is valued a bit more expensive than 68.07% of the companies in the same industry.
- When comparing the Price/Earnings ratio of CME to the average of the S&P500 Index (27.32), we can say CME is valued inline with the index average.
- With a Price/Forward Earnings ratio of 23.90, CME is valued on the expensive side.
- CME's Price/Forward Earnings ratio is in line with the industry average.
- CME is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.67 | ||
| Fwd PE | 23.9 |
4.2 Price Multiples
- 87.39% of the companies in the same industry are more expensive than CME, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, CME is valued a bit cheaper than the industry average as 60.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.85 | ||
| EV/EBITDA | 10.8 |
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)2.57
PEG (5Y)2.99
EPS Next 2Y7.13%
EPS Next 3Y6.89%
5. Dividend
5.1 Amount
- CME has a Yearly Dividend Yield of 1.83%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 6.10, CME has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, CME has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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
- 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 2Y7.13%
EPS Next 3Y6.89%
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 5 / 10 and the dividend payout ratio is 104.85%.