CME GROUP INC (CME)
US12572Q1058 - Common Stock
Taking everything into account, CME scores 5 out of 10 in our fundamental rating. CME was compared to 207 industry peers in the Capital Markets industry. CME has only an average score on both its financial health and profitability. 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.
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.
1.2 Ratios
CME has a Return On Assets (2.40%) which is comparable to the rest of the industry.
CME has a better Return On Equity (10.70%) than 65.20% of its industry peers.
CME has a Return On Invested Capital of 17.68%. This is amongst the best in the industry. CME outperforms 94.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CME is in line with the industry average of 9.53%.
The last Return On Invested Capital (17.68%) for CME is above the 3 year average (7.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 10.7% | ||
| ROIC | 17.68% |
ROA(3y)1.51%
ROA(5y)1.98%
ROE(3y)9.15%
ROE(5y)8.62%
ROIC(3y)7.8%
ROIC(5y)7.16%
1.3 Margins
CME has a better Profit Margin (28.15%) than 67.65% of its industry peers.
In the last couple of years the Profit Margin of CME has declined.
CME's Operating Margin of 80.31% is amongst the best of the industry. CME outperforms 99.02% of its industry peers.
In the last couple of years the Operating Margin of CME has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 80.31% | ||
| PM (TTM) | 28.15% | ||
| GM | N/A |
OM growth 3Y7.23%
OM growth 5Y2.65%
PM growth 3Y-1.43%
PM growth 5Y-19.88%
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.
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 0.89. This is a bad value and indicates that CME is not financially healthy and even has some risk of bankruptcy.
CME has a Altman-Z score of 0.89. This is comparable to the rest of the industry: CME outperforms 48.04% of its industry peers.
CME has a debt to FCF ratio of 1.06. This is a very positive value and a sign of high solvency as it would only need 1.06 years to pay back of all of its debts.
CME has a Debt to FCF ratio of 1.06. This is amongst the best in the industry. CME outperforms 87.25% of its industry peers.
CME has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
CME has a Debt to Equity ratio of 0.12. This is in the better half of the industry: CME outperforms 79.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 0.89 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.03 indicates that CME should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.03, CME is in line with its industry, outperforming 42.65% of the companies in the same industry.
A Quick Ratio of 1.03 indicates that CME should not have too much problems paying its short term obligations.
CME has a Quick ratio of 1.03. This is comparable to the rest of the industry: CME outperforms 42.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.16% over the past year.
The Earnings Per Share has been growing by 10.89% on average over the past years. This is quite good.
CME shows a strong growth in Revenue. In the last year, the Revenue has grown by 76.16%.
The Revenue has been growing by 14.64% on average over the past years. This is quite good.
EPS 1Y (TTM)15.16%
EPS 3Y5.48%
EPS 5Y10.89%
EPS growth Q2Q13.64%
Revenue 1Y (TTM)76.16%
Revenue growth 3Y9.44%
Revenue growth 5Y14.64%
Revenue growth Q2Q36.38%
3.2 Future
The Earnings Per Share is expected to grow by 5.75% on average over the next years.
The Revenue is expected to grow by 4.54% on average over the next years.
EPS Next Y14.91%
EPS Next 2Y8.74%
EPS Next 3Y7.1%
EPS Next 5Y5.75%
Revenue Next Year8.73%
Revenue Next 2Y6.32%
Revenue Next 3Y5.56%
Revenue Next 5Y4.54%
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
With a Price/Earnings ratio of 23.93, CME is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CME indicates a slightly more expensive valuation: CME is more expensive than 72.55% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CME to the average of the S&P500 Index (24.81), we can say CME is valued inline with the index average.
CME is valuated rather expensively with a Price/Forward Earnings ratio of 22.55.
CME's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CME is more expensive than 71.57% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.91. CME is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.93 | ||
| Fwd PE | 22.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CME is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
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 | 23.13 | ||
| EV/EBITDA | 8.89 |
4.3 Compensation for Growth
CME's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CME has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.6
PEG (5Y)2.2
EPS Next 2Y8.74%
EPS Next 3Y7.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.02%, CME has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.08, CME is paying slightly less dividend.
CME's Dividend Yield is slightly below the S&P500 average, which is at 2.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
The dividend of CME has a limited annual growth rate of 4.49%.
CME has been paying a dividend for at least 10 years, so it has a reliable track record.
CME has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.49%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
106.23% of the earnings are spent on dividend by CME. This is not a sustainable payout ratio.
CME's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP106.23%
EPS Next 2Y8.74%
EPS Next 3Y7.1%
CME GROUP INC
NASDAQ:CME (12/6/2023, 11:49:51 AM)
212.74
-5.6 (-2.56%)
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 Cap76.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 23.93 | ||
| Fwd PE | 22.55 | ||
| 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)1.6
PEG (5Y)2.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 10.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 80.31% | ||
| PM (TTM) | 28.15% | ||
| 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 Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| 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)15.16%
EPS 3Y5.48%
EPS 5Y
EPS growth Q2Q
EPS Next Y14.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)76.16%
Revenue growth 3Y9.44%
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