CME GROUP INC (CME) Stock Fundamental Analysis
NASDAQ:CME - Nasdaq - US12572Q1058 - Common Stock - Currency: USD
Taking everything into account, CME scores 5 out of 10 in our fundamental rating. CME was compared to 237 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. CME is quite expensive at the moment. It does show a decent growth rate.
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.
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's Return On Assets of 2.07% is in line compared to the rest of the industry. CME outperforms 45.57% of its industry peers.
CME has a better Return On Equity (13.42%) than 73.42% of its industry peers.
With an excellent Return On Invested Capital value of 17.96%, CME belongs to the best of the industry, outperforming 94.09% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CME is significantly above the industry average of 7.83%.
The last Return On Invested Capital (17.96%) for CME is above the 3 year average (15.81%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 34.40%, CME is doing good in the industry, outperforming 78.90% of the companies in the same industry.
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 99.16% 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
The number of shares outstanding for CME remains at a similar level compared to 1 year ago.
CME has more shares outstanding than it did 5 years ago.
CME has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of CME is 0.83, which is an excellent value as it means it would take CME, only 0.83 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.83, CME belongs to the best of the industry, outperforming 89.03% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that CME is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.12, CME is in the better half of the industry, outperforming 79.32% 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.
CME's Quick ratio of 1.02 is in line compared to the rest of the industry. CME outperforms 47.68% 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 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.
The Revenue has been growing by 13.14% on average over the past years. This is quite good.
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 7.08% on average per year.
Based on estimates for the next years, CME will show a small growth in Revenue. The Revenue will grow by 4.32% on average per year.
EPS Next Y9.8%
EPS Next 2Y6.97%
EPS Next 3Y7.22%
EPS Next 5Y7.08%
Revenue Next Year6.44%
Revenue Next 2Y5.26%
Revenue Next 3Y5.3%
Revenue Next 5Y4.32%
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
The Price/Earnings ratio is 25.75, which means the current valuation is very expensive for CME.
Based on the Price/Earnings ratio, CME is valued a bit more expensive than the industry average as 64.13% of the companies are valued more cheaply.
CME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.48.
A Price/Forward Earnings ratio of 24.04 indicates a rather expensive valuation of CME.
Based on the Price/Forward Earnings ratio, CME is valued a bit more expensive than 62.87% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, CME is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.75 | ||
| Fwd PE | 24.04 |
4.2 Price Multiples
86.50% 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 | 24.76 | ||
| EV/EBITDA | 11.49 |
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)2.63
PEG (5Y)3
EPS Next 2Y6.97%
EPS Next 3Y7.22%
5. Dividend
5.1 Amount
CME has a Yearly Dividend Yield of 3.77%. Purely for dividend investing, there may be better candidates out there.
CME's Dividend Yield is comparable with the industry average which is at 8.18.
Compared to an average S&P500 Dividend Yield of 2.40, CME pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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 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 2Y6.97%
EPS Next 3Y7.22%
282.21
+1.26 (+0.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners91.81%
Inst Owner Change-0.97%
Ins Owners0.24%
Ins Owner Change-1.63%
Market Cap101.70B
Analysts69.09
Price Target290.77 (3.03%)
Short Float %1.32%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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)2.38%
PT rev (3m)4.13%
EPS NQ rev (1m)-3.16%
EPS NQ rev (3m)-0.33%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)-4.02%
Revenue NQ rev (3m)-2.78%
Revenue NY rev (1m)-1.69%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.75 | ||
| Fwd PE | 24.04 | ||
| P/S | 9.4 | ||
| P/FCF | 24.76 | ||
| P/OCF | 24.24 | ||
| P/B | 3.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.49 |
EPS(TTM)10.96
EY3.88%
EPS(NY)11.74
Fwd EY4.16%
FCF(TTM)11.4
FCFY4.04%
OCF(TTM)11.64
OCFY4.13%
SpS30.02
BVpS76.97
TBVpS-7.46
PEG (NY)2.63
PEG (5Y)3
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 Y9.8%
EPS Next 2Y6.97%
EPS Next 3Y7.22%
EPS Next 5Y7.08%
Revenue 1Y (TTM)5.41%
Revenue growth 3Y26.89%
Revenue growth 5Y13.14%
Sales Q2Q%10.41%
Revenue Next Year6.44%
Revenue Next 2Y5.26%
Revenue Next 3Y5.3%
Revenue Next 5Y4.32%
EBIT growth 1Y5.85%
EBIT growth 3Y39.48%
EBIT growth 5Y19.95%
EBIT Next Year12.83%
EBIT Next 3Y8.86%
EBIT Next 5Y7.1%
FCF growth 1Y32.16%
FCF growth 3Y16.49%
FCF growth 5Y8.18%
OCF growth 1Y31.45%
OCF growth 3Y15.38%
OCF growth 5Y6.67%