280.87 USD
+3.89 (+1.4%)
282.524 USD
+1.65 (+0.59%)
We assign a fundamental rating of 5 out of 10 to CME. CME was compared to 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
In the past year CME was profitable.
In the past year CME had a positive cash flow from operations.
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
CME has a Return On Assets (1.99%) which is in line with its industry peers.
CME's Return On Equity of 13.18% is fine compared to the rest of the industry. CME outperforms 71.73% of its industry peers.
CME's Return On Invested Capital of 18.72% is amongst the best of the industry. CME outperforms 95.78% 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 6.96%.
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
Looking at the Profit Margin, with a value of 32.91%, CME is in the better half of the industry, outperforming 78.06% of the companies in the same industry.
In the last couple of years the Profit Margin of CME has declined.
The Operating Margin of CME (80.16%) is better than 98.73% of its industry peers.
CME's Operating Margin has improved in the last couple of years.
| 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.
Compared to 5 years ago, CME has more shares outstanding
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.
The Debt to FCF ratio of CME (0.84) is better than 89.87% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that CME is not too dependend on debt financing.
CME has a Debt to Equity ratio of 0.12. This is in the better half of the industry: CME outperforms 77.64% 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.
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.
With a Quick ratio value of 1.02, CME perfoms like the industry average, outperforming 48.52% 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.
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)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
CME is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.48% yearly.
The Revenue is expected to grow by 5.21% on average over the next years.
EPS Next Y9.39%
EPS Next 2Y6.87%
EPS Next 3Y6.76%
EPS Next 5Y7.48%
Revenue Next Year5.91%
Revenue Next 2Y5.35%
Revenue Next 3Y5.46%
Revenue Next 5Y5.21%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CME is valuated quite expensively with a Price/Earnings ratio of 25.63.
CME's Price/Earnings ratio is a bit more expensive when compared to the industry. CME is more expensive than 66.67% of the companies in the same industry.
CME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.15.
The Price/Forward Earnings ratio is 23.97, which indicates a rather expensive current valuation of CME.
64.13% of the companies in the same industry are cheaper than CME, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CME to the average of the S&P500 Index (36.12), we can say CME is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.63 | ||
| Fwd PE | 23.97 |
4.2 Price Multiples
87.34% of the companies in the same industry are more expensive than CME, based on the Enterprise Value to EBITDA ratio.
CME's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.79 | ||
| EV/EBITDA | 10.86 |
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)2.73
PEG (5Y)2.99
EPS Next 2Y6.87%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
CME has a Yearly Dividend Yield of 1.82%. Purely for dividend investing, there may be better candidates out there.
CME's Dividend Yield is comparable with the industry average which is at 8.59.
Compared to the average S&P500 Dividend Yield of 2.41, CME is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of CME is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP104.85%
EPS Next 2Y6.87%
EPS Next 3Y6.76%
280.87
+3.89 (+1.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners91.46%
Inst Owner Change0.24%
Ins Owners0.25%
Ins Owner Change2.41%
Market Cap101.22B
Revenue(TTM)11.29B
Net Income(TTM)3.72B
Analysts72.73
Price Target291.52 (3.79%)
Short Float %1.15%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend9.97
Dividend Growth(5Y)16%
DP104.85%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.59%
Min EPS beat(2)0.43%
Max EPS beat(2)0.76%
EPS beat(4)3
Avg EPS beat(4)0.49%
Min EPS beat(4)-1.28%
Max EPS beat(4)2.05%
EPS beat(8)6
Avg EPS beat(8)0.72%
EPS beat(12)10
Avg EPS beat(12)0.95%
EPS beat(16)14
Avg EPS beat(16)1.13%
Revenue beat(2)0
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-1.11%
Max Revenue beat(2)-0.54%
Revenue beat(4)0
Avg Revenue beat(4)-0.98%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)-0.54%
Revenue beat(8)0
Avg Revenue beat(8)-0.81%
Revenue beat(12)3
Avg Revenue beat(12)7.34%
Revenue beat(16)7
Avg Revenue beat(16)10.88%
PT rev (1m)-0.23%
PT rev (3m)-0.07%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.63 | ||
| Fwd PE | 23.97 | ||
| P/S | 8.96 | ||
| P/FCF | 24.79 | ||
| P/OCF | 24.33 | ||
| P/B | 3.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.86 |
EPS(TTM)10.96
EY3.9%
EPS(NY)11.72
Fwd EY4.17%
FCF(TTM)11.33
FCFY4.03%
OCF(TTM)11.55
OCFY4.11%
SpS31.34
BVpS78.22
TBVpS-6.01
PEG (NY)2.73
PEG (5Y)2.99
Graham Number138.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 13.18% | ||
| ROCE | 24.11% | ||
| ROIC | 18.72% | ||
| ROICexc | 20.09% | ||
| ROICexgc | 151.85% | ||
| OM | 80.16% | ||
| PM (TTM) | 32.91% | ||
| GM | N/A | ||
| FCFM | 36.16% |
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%
ROICexgc growth 3Y53.64%
ROICexgc 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-Score4
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 23.26% | ||
| Cap/Sales | 0.68% | ||
| Interest Coverage | 66.76 | ||
| Cash Conversion | 44.34% | ||
| Profit Quality | 109.88% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | N/A |
F-Score4
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)8.41%
EPS 3Y15.32%
EPS 5Y8.57%
EPS Q2Q%0%
EPS Next Y9.39%
EPS Next 2Y6.87%
EPS Next 3Y6.76%
EPS Next 5Y7.48%
Revenue 1Y (TTM)10.03%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%-2.95%
Revenue Next Year5.91%
Revenue Next 2Y5.35%
Revenue Next 3Y5.46%
Revenue Next 5Y5.21%
EBIT growth 1Y12.23%
EBIT growth 3Y39.48%
EBIT growth 5Y19.95%
EBIT Next Year11.98%
EBIT Next 3Y8.14%
EBIT Next 5Y7.73%
FCF growth 1Y23.34%
FCF growth 3Y16.49%
FCF growth 5Y8.18%
OCF growth 1Y22.71%
OCF growth 3Y15.38%
OCF growth 5Y6.67%
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 for 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.
Can you provide the PE and PB ratios for CME stock?
The Price/Earnings (PE) ratio for CME GROUP INC (CME) is 25.63 and the Price/Book (PB) ratio is 3.59.
How sustainable is the dividend of CME GROUP INC (CME) stock?
The dividend rating of CME GROUP INC (CME) is 4 / 10 and the dividend payout ratio is 104.85%.