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CME GROUP INC (CME) Stock Fundamental Analysis

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

260.33  -2.2 (-0.84%)

After market: 260.33 0 (0%)

Fundamental Rating

5

Taking everything into account, CME scores 5 out of 10 in our fundamental rating. CME was compared to 227 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 quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

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.
CME had positive earnings in each of the past 5 years.
In the past 5 years CME always reported a positive cash flow from operatings.
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's Return On Assets of 2.53% is in line compared to the rest of the industry. CME outperforms 48.46% of its industry peers.
The Return On Equity of CME (13.14%) is better than 67.40% of its industry peers.
CME has a Return On Invested Capital of 17.71%. This is amongst the best in the industry. CME outperforms 94.71% 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 7.09%.
The 3 year average ROIC (15.81%) for CME is below the current ROIC(17.71%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.53%
ROE 13.14%
ROIC 17.71%
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 Profit Margin of 34.10%. This is in the better half of the industry: CME outperforms 75.77% 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 78.46%, CME belongs to the top of the industry, outperforming 99.12% 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 78.46%
PM (TTM) 34.1%
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

5

2. Health

2.1 Basic Checks

CME has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for CME has been increased compared to 5 years ago.
CME has a better debt/assets ratio than last year.
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 0.83. 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 0.83 is in line compared to the rest of the industry. CME outperforms 48.46% of its industry peers.
The Debt to FCF ratio of CME is 0.97, which is an excellent value as it means it would take CME, only 0.97 years of fcf income to pay off all of its debts.
CME has a Debt to FCF ratio of 0.97. This is amongst the best in the industry. CME outperforms 88.11% of its industry peers.
CME has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
CME's Debt to Equity ratio of 0.10 is fine compared to the rest of the industry. CME outperforms 79.30% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.1
Debt/FCF 0.97
Altman-Z 0.83
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 1.01. 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 of 1.01. This is comparable to the rest of the industry: CME outperforms 44.93% of its industry peers.
CME has a Quick Ratio of 1.01. 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 Quick ratio (1.01) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.01
Quick Ratio 1.01
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

4

3. Growth

3.1 Past

CME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.85%, 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 decreased by -5.94% in the past year.
The Revenue has been growing by 13.14% on average over the past years. This is quite good.
EPS 1Y (TTM)9.85%
EPS 3Y15.32%
EPS 5Y8.57%
EPS Q2Q%6.33%
Revenue 1Y (TTM)-5.94%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%5.98%

3.2 Future

CME is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.08% yearly.
The Revenue is expected to grow by 4.46% on average over the next years.
EPS Next Y7.99%
EPS Next 2Y6.4%
EPS Next 3Y6.71%
EPS Next 5Y7.08%
Revenue Next Year6.27%
Revenue Next 2Y5.35%
Revenue Next 3Y5.45%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 25.37, the valuation of CME can be described as expensive.
Based on the Price/Earnings ratio, CME is valued a bit more expensive than the industry average as 66.08% of the companies are valued more cheaply.
CME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 23.50 indicates a rather expensive valuation of CME.
65.64% 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 (21.32), we can say CME is valued inline with the index average.
Industry RankSector Rank
PE 25.37
Fwd PE 23.5
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

84.14% 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 is on the same level as the industry average.
Industry RankSector Rank
P/FCF 26.09
EV/EBITDA 11.38
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 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)3.18
PEG (5Y)2.96
EPS Next 2Y6.4%
EPS Next 3Y6.71%

4

5. Dividend

5.1 Amount

CME has a Yearly Dividend Yield of 1.79%. Purely for dividend investing, there may be better candidates out there.
CME's Dividend Yield is slightly below the industry average, which is at 8.41.
CME's Dividend Yield is slightly below the S&P500 average, which is at 2.51.
Industry RankSector Rank
Dividend Yield 1.79%

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 their dividend for at least 10 years, which is a reliable track record.
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 102.95% 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.
DP102.95%
EPS Next 2Y6.4%
EPS Next 3Y6.71%
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

CME GROUP INC

NASDAQ:CME (4/21/2025, 4:52:36 PM)

After market: 260.33 0 (0%)

260.33

-2.2 (-0.84%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-12 2025-02-12/bmo
Earnings (Next)04-23 2025-04-23/bmo
Inst Owners89.58%
Inst Owner Change0.64%
Ins Owners0.29%
Ins Owner Change-2.75%
Market Cap93.82B
Analysts70
Price Target266.83 (2.5%)
Short Float %1.41%
Short Ratio2.46
Dividend
Industry RankSector Rank
Dividend Yield 1.79%
Yearly Dividend9.97
Dividend Growth(5Y)16%
DP102.95%
Div Incr Years10
Div Non Decr Years10
Ex-Date03-07 2025-03-07 (1.25)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1%
Min EPS beat(2)-0.04%
Max EPS beat(2)2.05%
EPS beat(4)3
Avg EPS beat(4)0.76%
Min EPS beat(4)-0.04%
Max EPS beat(4)2.05%
EPS beat(8)7
Avg EPS beat(8)1.31%
EPS beat(12)11
Avg EPS beat(12)1.5%
EPS beat(16)15
Avg EPS beat(16)1.39%
Revenue beat(2)0
Avg Revenue beat(2)-0.62%
Min Revenue beat(2)-0.66%
Max Revenue beat(2)-0.57%
Revenue beat(4)0
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-1.07%
Max Revenue beat(4)-0.54%
Revenue beat(8)2
Avg Revenue beat(8)-0.17%
Revenue beat(12)6
Avg Revenue beat(12)14.56%
Revenue beat(16)10
Avg Revenue beat(16)11.97%
PT rev (1m)1.23%
PT rev (3m)8.64%
EPS NQ rev (1m)6.52%
EPS NQ rev (3m)9.35%
EPS NY rev (1m)4.21%
EPS NY rev (3m)5.37%
Revenue NQ rev (1m)5.4%
Revenue NQ rev (3m)7.18%
Revenue NY rev (1m)2.53%
Revenue NY rev (3m)3.22%
Valuation
Industry RankSector Rank
PE 25.37
Fwd PE 23.5
P/S 9.19
P/FCF 26.09
P/OCF 25.42
P/B 3.54
P/tB N/A
EV/EBITDA 11.38
EPS(TTM)10.26
EY3.94%
EPS(NY)11.08
Fwd EY4.26%
FCF(TTM)9.98
FCFY3.83%
OCF(TTM)10.24
OCFY3.93%
SpS28.33
BVpS73.5
TBVpS-11.09
PEG (NY)3.18
PEG (5Y)2.96
Profitability
Industry RankSector Rank
ROA 2.53%
ROE 13.14%
ROCE 22.8%
ROIC 17.71%
ROICexc 19.36%
ROICexgc 378.45%
OM 78.46%
PM (TTM) 34.1%
GM N/A
FCFM 35.23%
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-Score6
Asset Turnover0.07
Health
Industry RankSector Rank
Debt/Equity 0.1
Debt/FCF 0.97
Debt/EBITDA 0.33
Cap/Depr 27.91%
Cap/Sales 0.92%
Interest Coverage 61.67
Cash Conversion 44.21%
Profit Quality 103.3%
Current Ratio 1.01
Quick Ratio 1.01
Altman-Z 0.83
F-Score6
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)9.85%
EPS 3Y15.32%
EPS 5Y8.57%
EPS Q2Q%6.33%
EPS Next Y7.99%
EPS Next 2Y6.4%
EPS Next 3Y6.71%
EPS Next 5Y7.08%
Revenue 1Y (TTM)-5.94%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%5.98%
Revenue Next Year6.27%
Revenue Next 2Y5.35%
Revenue Next 3Y5.45%
Revenue Next 5Y4.46%
EBIT growth 1Y-8.04%
EBIT growth 3Y39.48%
EBIT growth 5Y19.95%
EBIT Next Year11.84%
EBIT Next 3Y7.85%
EBIT Next 5Y7.53%
FCF growth 1Y6.49%
FCF growth 3Y16.49%
FCF growth 5Y8.18%
OCF growth 1Y6.85%
OCF growth 3Y15.38%
OCF growth 5Y6.67%