CME GROUP INC (CME) Stock Fundamental Analysis
NASDAQ:CME - US12572Q1058 - Common Stock
266.51 USD
-0.26 (-0.1%)
266.51 USD
0 (0%)
CME gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 239 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
CME had positive earnings in the past year.
CME had a positive operating cash flow in the past year.
In the past 5 years CME has always been profitable.
CME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CME has a Return On Assets (2.07%) which is comparable to the rest of the industry.
CME has a Return On Equity of 13.42%. This is in the better half of the industry: CME outperforms 72.92% of its industry peers.
CME has a Return On Invested Capital of 17.96%. This is amongst the best in the industry. CME outperforms 94.17% 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 7.59%.
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 better Profit Margin (34.40%) than 77.92% 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 79.34%, CME belongs to the top of the industry, outperforming 98.75% of the companies in the same industry.
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
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 better debt/assets ratio than last year.
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 90.42% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that CME is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.12, CME is doing good in the industry, outperforming 79.58% of the companies in the same industry.
| 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.
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 47.50% 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 13.22%, which is quite good.
Measured over the past years, CME shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.57% on average per year.
The Revenue has been growing slightly by 5.41% in the past year.
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
The Earnings Per Share is expected to grow by 7.23% on average over the next years.
CME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.25% yearly.
EPS Next Y9.95%
EPS Next 2Y6.89%
EPS Next 3Y6.76%
EPS Next 5Y7.23%
Revenue Next Year6.61%
Revenue Next 2Y5.38%
Revenue Next 3Y5.31%
Revenue Next 5Y4.25%
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 24.32, CME is valued on the expensive side.
Based on the Price/Earnings ratio, CME is valued a bit more expensive than 60.42% of the companies in the same industry.
CME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.13.
With a Price/Forward Earnings ratio of 22.74, 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 62.08% of the companies listed in the same industry.
CME is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.32 | ||
| Fwd PE | 22.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CME is valued cheaper than 87.50% 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 | 23.38 | ||
| EV/EBITDA | 10.91 |
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)2.44
PEG (5Y)2.84
EPS Next 2Y6.89%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
CME has a Yearly Dividend Yield of 1.87%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.91, CME has a dividend in line with its industry peers.
CME's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
On average, the dividend of CME grows each year by 16.00%, which is quite nice.
CME has been paying a dividend for at least 10 years, so it has 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%
266.51
-0.26 (-0.1%)
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 Change-1.09%
Market Cap96.04B
Analysts69.09
Price Target291.72 (9.46%)
Short Float %1.51%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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)0.7%
PT rev (3m)3.62%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.78%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.32 | ||
| Fwd PE | 22.74 | ||
| P/S | 8.88 | ||
| P/FCF | 23.38 | ||
| P/OCF | 22.89 | ||
| P/B | 3.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.91 |
EPS(TTM)10.96
EY4.11%
EPS(NY)11.72
Fwd EY4.4%
FCF(TTM)11.4
FCFY4.28%
OCF(TTM)11.64
OCFY4.37%
SpS30.02
BVpS76.97
TBVpS-7.46
PEG (NY)2.44
PEG (5Y)2.84
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 5Y7.23%
Revenue 1Y (TTM)5.41%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%10.41%
Revenue Next Year6.61%
Revenue Next 2Y5.38%
Revenue Next 3Y5.31%
Revenue Next 5Y4.25%
EBIT growth 1Y5.85%
EBIT growth 3Y39.48%
EBIT growth 5Y19.95%
EBIT Next Year12.03%
EBIT Next 3Y7.91%
EBIT Next 5Y6.99%
FCF growth 1Y32.16%
FCF growth 3Y16.49%
FCF growth 5Y8.18%
OCF growth 1Y31.45%
OCF growth 3Y15.38%
OCF growth 5Y6.67%