Market Cap
US$76.4b
Last Updated
2020/02/18 00:16 UTC
Data Sources
Company Financials +
Executive Summary
CME Group Inc., through its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide.
Snowflake Analysis
Second-rate dividend payer and slightly overvalued.
Similar Companies
Share Price & News
How has CME Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CME has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.7%
CME
1.1%
US Capital Markets
0.9%
US Market
1 Year Return
22.3%
CME
18.8%
US Capital Markets
20.0%
US Market
Return vs Industry: CME exceeded the US Capital Markets industry which returned 19% over the past year.
Return vs Market: CME exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| CME | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.7% | 1.1% | 0.9% |
| 30 Day | 3.0% | 0.5% | 1.4% |
| 90 Day | 3.1% | 8.0% | 8.8% |
| 1 Year | 25.7%22.3% | 21.2%18.8% | 22.5%20.0% |
| 3 Year | 94.1%76.1% | 40.1%32.2% | 49.9%40.3% |
| 5 Year | 170.7%121.6% | 83.5%66.4% | 73.2%54.1% |
Price Volatility Vs. Market
How volatile is CME Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
CME Group Inc. Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For Next Year4 days ago | Simply Wall St
Here's What CME Group Inc.'s (NASDAQ:CME) P/E Ratio Is Telling Us3 weeks ago | Simply Wall St
Is CME Group Inc.'s (NASDAQ:CME) CEO Paid Enough Relative To Peers?Valuation
Is CME Group undervalued compared to its fair value and its price relative to the market?
35.97x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CME ($213.13) is trading above our estimate of fair value ($133.62)
Significantly Below Fair Value: CME is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CME is good value based on its PE Ratio (36x) compared to the Capital Markets industry average (36x).
PE vs Market: CME is poor value based on its PE Ratio (36x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: CME is poor value based on its PEG Ratio (4.4x)
Price to Book Ratio
PB vs Industry: CME is good value based on its PB Ratio (2.9x) compared to the US Capital Markets industry average (6.7x).
Next Steps
Future Growth
How is CME Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
8.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CME's forecast earnings growth (8.1% per year) is above the savings rate (1.7%).
Earnings vs Market: CME's earnings (8.1% per year) are forecast to grow slower than the US market (14.6% per year).
High Growth Earnings: CME's earnings are forecast to grow, but not significantly.
Revenue vs Market: CME's revenue (4.4% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: CME's revenue (4.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CME's Return on Equity is forecast to be low in 3 years time (10.4%).
Next Steps
Past Performance
How has CME Group performed over the past 5 years?
18.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CME has high quality earnings.
Growing Profit Margin: CME's current net profit margins (43.5%) are lower than last year (45.5%).
Past Earnings Growth Analysis
Earnings Trend: CME's earnings have grown by 18.3% per year over the past 5 years.
Accelerating Growth: CME's earnings growth over the past year (7.9%) is below its 5-year average (18.3% per year).
Earnings vs Industry: CME earnings growth over the past year (7.9%) underperformed the Capital Markets industry 8.4%.
Return on Equity
High ROE: CME's Return on Equity (8.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is CME Group's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: CME has a low level of unsold assets or inventory.
Debt Coverage by Assets: CME's debt is covered by short term assets (assets are 12.8x debt).
Financial Institutions Analysis
Asset Level: CME's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if CME has a sufficient allowance for bad loans.
Low Risk Liabilities: CME reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if CME has an acceptable proportion of non-loan assets held.
Low Risk Deposits: CME has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if CME has an appropriate level of bad loans.
Next Steps
Dividend
What is CME Group's current dividend yield, its reliability and sustainability?
2.77%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CME's dividend (2.77%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: CME's dividend (2.77%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: CME's dividend payments have been volatile in the past 10 years.
Growing Dividend: CME's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (50.6%), CME's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CME's dividends in 3 years are not forecast to be well covered by earnings (94.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.0yrs
Average management tenure
CEO
Terry Duffy (61yo)
3.3yrs
Tenure
US$13,416,665
Compensation
Mr. Terrence A. Duffy, also known as Terry, has been Chief Executive Officer and Chairman at CME Group Inc since November 15, 2016. Mr. Duffy is the Chief Executive Officer at New York Mercantile Exchange, ...
CEO Compensation Analysis
Compensation vs Market: Terry's total compensation ($USD13.42M) is about average for companies of similar size in the US market ($USD10.78M).
Compensation vs Earnings: Terry's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3.3yrs | US$13.42m | 0.013% $10.0m | |
| President | 0yrs | US$6.59m | 0.022% $17.1m | |
| Senior MD & CFO | 5.2yrs | US$3.76m | 0.0090% $6.9m | |
| Senior MD & COO | 5.4yrs | US$3.24m | 0.011% $8.6m | |
| Senior MD and Global Head of Financial & OTC Products | 8.5yrs | US$3.08m | 0.0059% $4.5m | |
| Consultant | 1.7yrs | US$980.94k | no data | |
| Consultant | 1.8yrs | US$674.60k | no data | |
| MD & Chief Accounting Officer | 5yrs | no data | 0.0050% $3.8m | |
| Senior MD & Chief Information Officer | 11.6yrs | US$2.71m | 0.019% $14.5m | |
| Managing Director of Investor Relations | 0yrs | no data | no data |
5.0yrs
Average Tenure
55yo
Average Age
Experienced Management: CME's management team is seasoned and experienced (5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3.3yrs | US$13.42m | 0.013% $10.0m | |
| President | 0yrs | US$6.59m | 0.022% $17.1m | |
| Lead Director | 2.5yrs | US$270.16k | 0.0097% $7.4m | |
| Independent Director | 15.8yrs | US$242.83k | 0.0042% $3.2m | |
| Independent Director | 18.5yrs | US$248.00k | 0.0047% $3.6m | |
| Independent Director | 11.5yrs | US$283.58k | 0.0014% $1.0m | |
| Independent Director | 26.1yrs | US$245.33k | 0.0097% $7.4m | |
| Independent Director | 23.1yrs | US$250.50k | 0.055% $41.7m | |
| Independent Director | 20.1yrs | US$259.16k | 0.022% $17.1m | |
| Independent Director | 11.8yrs | US$237.83k | 0.0028% $2.1m |
17.8yrs
Average Tenure
68yo
Average Age
Experienced Board: CME's board of directors are seasoned and experienced ( 17.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CME insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.
Top Shareholders
Company Information
CME Group Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: CME Group Inc.
- Ticker: CME
- Exchange: NasdaqGS
- Founded: 1898
- Industry: Financial Exchanges and Data
- Sector: Diversified Financials
- Market Cap: US$76.378b
- Shares outstanding: 358.36m
- Website: https://www.cmegroup.com
Number of Employees
Location
- CME Group Inc.
- 20 South Wacker Drive
- Chicago
- Illinois
- 60606
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MX4A | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Dec 2002 |
| CME | NasdaqGS (Nasdaq Global Select) | Yes | Class A Common Stock | US | USD | Dec 2002 |
| 0HR2 | LSE (London Stock Exchange) | Yes | Class A Common Stock | GB | USD | Dec 2002 |
| CMEG | WBAG (Wiener Boerse AG) | Yes | Class A Common Stock | AT | EUR | Dec 2002 |
| CHME34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EA REP 0.25 COM USD0.01 CLASS A | BR | BRL | May 2019 |
Biography
CME Group Inc., through its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide. It offers a range of products across various asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, and metals, as well as fixed income products. The company executes trade through its electronic trading platforms, open outcry, and privately negotiated transactions; and provides clearing for exchange-traded contracts and cleared swaps, as well as settlement services. It also offers transaction lifecycle management services, such as trade and portfolio management, financial resource optimization, analytics, and regulatory reporting. In addition, the company provides a range of market data services, including real-time and historical data services. It serves professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, governments, and central banks. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. CME Group Inc. was founded in 1898 and is headquartered in Chicago, Illinois.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/18 00:16 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.