CME GROUP INC (CME) Stock Fundamental Analysis
USA - NASDAQ:CME - US12572Q1058 - Common Stock
261.96 USD
+0.88 (+0.34%)
261.96 USD
0 (0%)
CME gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 236 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 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.
Each year in the past 5 years CME has been profitable.
CME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CME (2.07%) is comparable to the rest of the industry.
The Return On Equity of CME (13.42%) is better than 71.61% of its industry peers.
The Return On Invested Capital of CME (17.96%) is better than 94.07% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CME is significantly above the industry average of 7.59%.
The 3 year average ROIC (15.81%) for CME is below the current ROIC(17.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 13.42% | ||
| ROIC | 17.96% |
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 has a Profit Margin of 34.40%. This is in the better half of the industry: CME outperforms 77.12% of its industry peers.
CME's Profit Margin has declined in the last couple of years.
CME's Operating Margin of 79.34% is amongst the best of 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 | 79.34% | ||
| PM (TTM) | 34.4% | ||
| 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.
The number of shares outstanding for CME has been increased compared to 5 years ago.
The debt/assets ratio for CME has been reduced compared to a year ago.
2.2 Solvency
CME has a debt to FCF ratio of 0.83. This is a very positive value and a sign of high solvency as it would only need 0.83 years to pay back of all of its debts.
CME has a better Debt to FCF ratio (0.83) than 91.10% of its industry peers.
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 79.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.83 | ||
| 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.
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.
Looking at the Quick ratio, with a value of 1.02, CME is in line with its industry, outperforming 47.88% of the companies in the same industry.
| 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 13.22% over the past year.
The Earnings Per Share has been growing by 8.57% on average over the past years. This is quite good.
CME shows a small growth in Revenue. In the last year, the Revenue has grown by 5.41%.
CME shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.14% yearly.
EPS 1Y (TTM)13.22%
EPS 3Y15.32%
EPS 5Y8.57%
EPS Q2Q%15.62%
Revenue 1Y (TTM)5.41%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%10.41%
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 7.38% on average per year.
Based on estimates for the next years, CME will show a small growth in Revenue. The Revenue will grow by 5.14% on average per year.
EPS Next Y9.95%
EPS Next 2Y6.89%
EPS Next 3Y6.76%
EPS Next 5Y7.38%
Revenue Next Year6.51%
Revenue Next 2Y5.4%
Revenue Next 3Y5.34%
Revenue Next 5Y5.14%
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
CME is valuated rather expensively with a Price/Earnings ratio of 23.90.
Based on the Price/Earnings ratio, CME is valued a bit more expensive than 60.17% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. CME is around the same levels.
With a Price/Forward Earnings ratio of 22.35, CME is valued on the expensive side.
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 61.44% of the companies listed in the same industry.
CME's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.9 | ||
| Fwd PE | 22.35 |
4.2 Price Multiples
87.29% of the companies in the same industry are more expensive than CME, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as CME.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.98 | ||
| EV/EBITDA | 10.69 |
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)2.4
PEG (5Y)2.79
EPS Next 2Y6.89%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
CME has a Yearly Dividend Yield of 1.92%. Purely for dividend investing, there may be better candidates out there.
CME's Dividend Yield is slightly below the industry average, which is at 8.21.
CME's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
The dividend of CME is nicely growing with an annual growth rate of 16.00%!
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 103.72% 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.
DP103.72%
EPS Next 2Y6.89%
EPS Next 3Y6.76%
261.96
+0.88 (+0.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners91.81%
Inst Owner Change-3.5%
Ins Owners0.24%
Ins Owner Change2.06%
Market Cap94.41B
Analysts69.09
Price Target290.5 (10.89%)
Short Float %1.26%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend9.97
Dividend Growth(5Y)16%
DP103.72%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.43%
Min EPS beat(2)-1.28%
Max EPS beat(2)0.43%
EPS beat(4)2
Avg EPS beat(4)0.29%
Min EPS beat(4)-1.28%
Max EPS beat(4)2.05%
EPS beat(8)6
Avg EPS beat(8)0.66%
EPS beat(12)10
Avg EPS beat(12)0.99%
EPS beat(16)14
Avg EPS beat(16)1.18%
Revenue beat(2)0
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-1.72%
Max Revenue beat(2)-1.11%
Revenue beat(4)0
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)-0.57%
Revenue beat(8)0
Avg Revenue beat(8)-0.9%
Revenue beat(12)4
Avg Revenue beat(12)11.99%
Revenue beat(16)8
Avg Revenue beat(16)11.42%
PT rev (1m)-0.09%
PT rev (3m)2.67%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-3.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-4.2%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.9 | ||
| Fwd PE | 22.35 | ||
| P/S | 8.73 | ||
| P/FCF | 22.98 | ||
| P/OCF | 22.5 | ||
| P/B | 3.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.69 |
EPS(TTM)10.96
EY4.18%
EPS(NY)11.72
Fwd EY4.47%
FCF(TTM)11.4
FCFY4.35%
OCF(TTM)11.64
OCFY4.44%
SpS30.02
BVpS76.97
TBVpS-7.46
PEG (NY)2.4
PEG (5Y)2.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 13.42% | ||
| ROCE | 23.13% | ||
| ROIC | 17.96% | ||
| ROICexc | 19.04% | ||
| ROICexgc | 145.35% | ||
| OM | 79.34% | ||
| PM (TTM) | 34.4% | ||
| GM | N/A | ||
| FCFM | 37.97% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.83 | ||
| Debt/EBITDA | 0.38 | ||
| Cap/Depr | 26.59% | ||
| Cap/Sales | 0.82% | ||
| Interest Coverage | 66.07 | ||
| Cash Conversion | 47.06% | ||
| Profit Quality | 110.37% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | N/A |
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)13.22%
EPS 3Y15.32%
EPS 5Y8.57%
EPS Q2Q%15.62%
EPS Next Y9.95%
EPS Next 2Y6.89%
EPS Next 3Y6.76%
EPS Next 5Y7.38%
Revenue 1Y (TTM)5.41%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%10.41%
Revenue Next Year6.51%
Revenue Next 2Y5.4%
Revenue Next 3Y5.34%
Revenue Next 5Y5.14%
EBIT growth 1Y5.85%
EBIT growth 3Y39.48%
EBIT growth 5Y19.95%
EBIT Next Year12.03%
EBIT Next 3Y7.91%
EBIT Next 5Y7.61%
FCF growth 1Y32.16%
FCF growth 3Y16.49%
FCF growth 5Y8.18%
OCF growth 1Y31.45%
OCF growth 3Y15.38%
OCF growth 5Y6.67%