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CME GROUP INC (CME) Stock Fundamental Analysis

NASDAQ:CME - Nasdaq - US12572Q1058 - Common Stock - Currency: USD

281.74  +3.87 (+1.39%)

After market: 280.7 -1.04 (-0.37%)

Fundamental Rating

5

Overall CME gets a fundamental rating of 5 out of 10. We evaluated CME against 230 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.


Dividend Valuation Growth Profitability Health

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7

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.
Each year in the past 5 years CME had a positive operating cash flow.
CME Yearly Net Income VS EBIT VS OCF VS FCFCME Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

1.2 Ratios

CME has a Return On Assets of 2.27%. This is comparable to the rest of the industry: CME outperforms 48.26% of its industry peers.
CME has a better Return On Equity (13.25%) than 67.83% of its industry peers.
CME's Return On Invested Capital of 17.02% is amongst the best of the industry. CME outperforms 94.35% of its industry peers.
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(17.02%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.27%
ROE 13.25%
ROIC 17.02%
ROA(3y)2.17%
ROA(5y)1.91%
ROE(3y)11.65%
ROE(5y)10.5%
ROIC(3y)15.81%
ROIC(5y)11.95%
CME Yearly ROA, ROE, ROICCME Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

CME has a better Profit Margin (35.16%) than 76.52% of its industry peers.
CME's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 78.35%, CME belongs to the top of the industry, outperforming 99.13% of the companies in the same industry.
In the last couple of years the Operating Margin of CME has grown nicely.
Industry RankSector Rank
OM 78.35%
PM (TTM) 35.16%
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
CME Yearly Profit, Operating, Gross MarginsCME Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80 100

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5

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.
CME Yearly Shares OutstandingCME Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
CME Yearly Total Debt VS Total AssetsCME Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

2.2 Solvency

CME has an Altman-Z score of 0.75. This is a bad value and indicates that CME is not financially healthy and even has some risk of bankruptcy.
CME's Altman-Z score of 0.75 is in line compared to the rest of the industry. CME outperforms 43.04% of its industry peers.
CME has a debt to FCF ratio of 0.91. This is a very positive value and a sign of high solvency as it would only need 0.91 years to pay back of all of its debts.
The Debt to FCF ratio of CME (0.91) is better than 86.52% of its industry peers.
CME has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.13, CME is doing good in the industry, outperforming 78.70% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 0.91
Altman-Z 0.75
ROIC/WACCN/A
WACCN/A
CME Yearly LT Debt VS Equity VS FCFCME Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

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.
The Current ratio of CME (1.02) 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.
The Quick ratio of CME (1.02) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.02
Quick Ratio 1.02
CME Yearly Current Assets VS Current LiabilitesCME Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 12.10% 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 decrease in Revenue. The Revenue has decreased by -4.04% 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)12.1%
EPS 3Y15.32%
EPS 5Y8.57%
EPS Q2Q%12%
Revenue 1Y (TTM)-4.04%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%10.38%

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 7.08% on average per year.
CME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.46% yearly.
EPS Next Y10.26%
EPS Next 2Y7.12%
EPS Next 3Y7.21%
EPS Next 5Y7.08%
Revenue Next Year8.34%
Revenue Next 2Y6.17%
Revenue Next 3Y5.97%
Revenue Next 5Y4.46%

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.
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.
CME Yearly Revenue VS EstimatesCME Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B 10B
CME Yearly EPS VS EstimatesCME Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10

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2

4. Valuation

4.1 Price/Earnings Ratio

CME is valuated quite expensively with a Price/Earnings ratio of 26.68.
64.35% of the companies in the same industry are cheaper than CME, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.03. CME is around the same levels.
CME is valuated rather expensively with a Price/Forward Earnings ratio of 23.93.
CME's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CME is more expensive than 62.61% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, CME is valued at the same level.
Industry RankSector Rank
PE 26.68
Fwd PE 23.93
CME Price Earnings VS Forward Price EarningsCME Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CME is valued cheaper than 85.65% of the companies in the same industry.
CME's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 26.54
EV/EBITDA 12.27
CME Per share dataCME EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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)2.6
PEG (5Y)3.11
EPS Next 2Y7.12%
EPS Next 3Y7.21%

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5

5. Dividend

5.1 Amount

CME has a Yearly Dividend Yield of 3.87%.
CME's Dividend Yield is comparable with the industry average which is at 8.20.
Compared to an average S&P500 Dividend Yield of 2.36, CME pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.87%

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 Years10
Div Non Decr Years10
CME Yearly Dividends per shareCME Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

5.3 Sustainability

CME pays out 106.75% 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.
DP106.75%
EPS Next 2Y7.12%
EPS Next 3Y7.21%
CME Yearly Income VS Free CF VS DividendCME Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B
CME Dividend Payout.CME Dividend Payout, showing the Payout Ratio.CME Dividend Payout.PayoutRetained Earnings

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CME GROUP INC

NASDAQ:CME (5/21/2025, 8:00:00 PM)

After market: 280.7 -1.04 (-0.37%)

281.74

+3.87 (+1.39%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)04-23 2025-04-23/bmo
Earnings (Next)07-22 2025-07-22/bmo
Inst Owners89.58%
Inst Owner Change2.74%
Ins Owners0.29%
Ins Owner Change-2.71%
Market Cap101.53B
Analysts70
Price Target281.52 (-0.08%)
Short Float %1.4%
Short Ratio1.79
Dividend
Industry RankSector Rank
Dividend Yield 3.87%
Yearly Dividend9.97
Dividend Growth(5Y)16%
DP106.75%
Div Incr Years10
Div Non Decr Years10
Ex-Date06-09 2025-06-09 (1.25)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.38%
Min EPS beat(2)-1.28%
Max EPS beat(2)2.05%
EPS beat(4)2
Avg EPS beat(4)0.19%
Min EPS beat(4)-1.28%
Max EPS beat(4)2.05%
EPS beat(8)6
Avg EPS beat(8)1.04%
EPS beat(12)10
Avg EPS beat(12)1.02%
EPS beat(16)14
Avg EPS beat(16)1.22%
Revenue beat(2)0
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-1.72%
Max Revenue beat(2)-0.57%
Revenue beat(4)0
Avg Revenue beat(4)-1%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)-0.57%
Revenue beat(8)1
Avg Revenue beat(8)-0.7%
Revenue beat(12)5
Avg Revenue beat(12)13.84%
Revenue beat(16)9
Avg Revenue beat(16)11.79%
PT rev (1m)5.5%
PT rev (3m)12.93%
EPS NQ rev (1m)7.88%
EPS NQ rev (3m)12.59%
EPS NY rev (1m)2.11%
EPS NY rev (3m)6.79%
Revenue NQ rev (1m)5.23%
Revenue NQ rev (3m)8.03%
Revenue NY rev (1m)1.95%
Revenue NY rev (3m)5.4%
Valuation
Industry RankSector Rank
PE 26.68
Fwd PE 23.93
P/S 9.97
P/FCF 26.54
P/OCF 25.94
P/B 3.76
P/tB N/A
EV/EBITDA 12.27
EPS(TTM)10.56
EY3.75%
EPS(NY)11.77
Fwd EY4.18%
FCF(TTM)10.62
FCFY3.77%
OCF(TTM)10.86
OCFY3.86%
SpS28.26
BVpS75.01
TBVpS-9.48
PEG (NY)2.6
PEG (5Y)3.11
Profitability
Industry RankSector Rank
ROA 2.27%
ROE 13.25%
ROCE 21.92%
ROIC 17.02%
ROICexc 17.76%
ROICexgc 139.44%
OM 78.35%
PM (TTM) 35.16%
GM N/A
FCFM 37.57%
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%
ROICexcg growth 3Y53.64%
ROICexcg 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-Score5
Asset Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 0.91
Debt/EBITDA 0.42
Cap/Depr 26.47%
Cap/Sales 0.87%
Interest Coverage 61.44
Cash Conversion 47.08%
Profit Quality 106.83%
Current Ratio 1.02
Quick Ratio 1.02
Altman-Z 0.75
F-Score5
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)12.1%
EPS 3Y15.32%
EPS 5Y8.57%
EPS Q2Q%12%
EPS Next Y10.26%
EPS Next 2Y7.12%
EPS Next 3Y7.21%
EPS Next 5Y7.08%
Revenue 1Y (TTM)-4.04%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%10.38%
Revenue Next Year8.34%
Revenue Next 2Y6.17%
Revenue Next 3Y5.97%
Revenue Next 5Y4.46%
EBIT growth 1Y-5.79%
EBIT growth 3Y39.48%
EBIT growth 5Y19.95%
EBIT Next Year11.84%
EBIT Next 3Y7.85%
EBIT Next 5Y7.53%
FCF growth 1Y24.31%
FCF growth 3Y16.49%
FCF growth 5Y8.18%
OCF growth 1Y23.9%
OCF growth 3Y15.38%
OCF growth 5Y6.67%