CME GROUP INC (CME)
US12572Q1058 - Common Stock
Overall CME gets a fundamental rating of 5 out of 10. We evaluated CME against 210 industry peers in the Capital Markets industry. While CME belongs to the best of the industry regarding profitability, 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
CME had positive earnings in the past year.
In the past year CME had a positive cash flow from operations.
In the past 5 years CME has always been profitable.
In the past 5 years CME always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CME (2.46%) is comparable to the rest of the industry.
CME has a Return On Equity of 11.91%. This is in the better half of the industry: CME outperforms 61.54% of its industry peers.
CME's Return On Invested Capital of 18.58% is amongst the best of the industry. CME outperforms 94.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CME is above the industry average of 8.34%.
The 3 year average ROIC (11.97%) for CME is below the current ROIC(18.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 11.91% | ||
| ROIC | 18.58% |
ROA(3y)1.77%
ROA(5y)1.96%
ROE(3y)10.45%
ROE(5y)9.49%
ROIC(3y)11.97%
ROIC(5y)9.74%
1.3 Margins
CME has a Profit Margin of 29.35%. This is in the better half of the industry: CME outperforms 64.90% of its industry peers.
CME's Profit Margin has declined in the last couple of years.
The Operating Margin of CME (80.25%) is better than 99.52% of its industry peers.
In the last couple of years the Operating Margin of CME has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 80.25% | ||
| PM (TTM) | 29.35% | ||
| GM | N/A |
OM growth 3Y12.97%
OM growth 5Y5.81%
PM growth 3Y-10.94%
PM growth 5Y-8.41%
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.
The number of shares outstanding for CME has been increased compared to 5 years ago.
CME has a worse debt/assets ratio than last year.
2.2 Solvency
CME has an Altman-Z score of 0.81. This is a bad value and indicates that CME is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.81, CME is in line with its industry, outperforming 46.63% of the companies in the same industry.
The Debt to FCF ratio of CME is 1.03, which is an excellent value as it means it would take CME, only 1.03 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.03, CME belongs to the best of the industry, outperforming 86.06% of the companies in the same industry.
CME has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
CME has a better Debt to Equity ratio (0.13) than 79.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 0.81 |
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's Current ratio of 1.02 is in line compared to the rest of the industry. CME outperforms 43.27% of its industry peers.
A Quick Ratio of 1.02 indicates that CME should not have too much problems paying its short term obligations.
CME has a Quick ratio of 1.02. This is comparable to the rest of the industry: CME outperforms 43.27% of 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 17.04%, which is quite good.
CME shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.49% yearly.
CME shows a strong growth in Revenue. In the last year, the Revenue has grown by 50.38%.
CME shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.29% yearly.
EPS 1Y (TTM)17.04%
EPS 3Y11.54%
EPS 5Y6.49%
EPS growth Q2Q23.44%
Revenue 1Y (TTM)50.38%
Revenue growth 3Y28.91%
Revenue growth 5Y20.29%
Revenue growth Q2Q6.62%
3.2 Future
CME is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.10% yearly.
Based on estimates for the next years, CME will show a small growth in Revenue. The Revenue will grow by 3.26% on average per year.
EPS Next Y3.28%
EPS Next 2Y3.14%
EPS Next 3Y4.38%
EPS Next 5Y3.1%
Revenue Next Year4.98%
Revenue Next 2Y4.44%
Revenue Next 3Y4.84%
Revenue Next 5Y3.26%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 22.58 indicates a rather expensive valuation of CME.
Compared to the rest of the industry, the Price/Earnings ratio of CME indicates a slightly more expensive valuation: CME is more expensive than 68.27% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CME to the average of the S&P500 Index (25.20), we can say CME is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.86, CME is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CME is valued a bit more expensive than the industry average as 65.38% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 21.63. CME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 21.86 |
4.2 Price Multiples
87.50% 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 | 22.48 | ||
| EV/EBITDA | 8.48 |
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.
CME has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.89
PEG (5Y)3.48
EPS Next 2Y3.14%
EPS Next 3Y4.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.16%, CME has a reasonable but not impressive dividend return.
CME's Dividend Yield is slightly below the industry average, which is at 7.77.
Compared to an average S&P500 Dividend Yield of 2.44, CME has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
On average, the dividend of CME grows each year by 7.84%, which is quite nice.
CME has paid a dividend for at least 10 years, which is a reliable track record.
As CME did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.84%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
101.57% of the earnings are spent on dividend by CME. 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.
DP101.57%
EPS Next 2Y3.14%
EPS Next 3Y4.38%
CME GROUP INC
NASDAQ:CME (4/26/2024, 12:35:08 PM)
210.905
-1.63 (-0.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap75.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 21.86 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.89
PEG (5Y)3.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 11.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 80.25% | ||
| PM (TTM) | 29.35% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)17.04%
EPS 3Y11.54%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)50.38%
Revenue growth 3Y28.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y