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CME

CME GroupNasdaqGS:CME Stock Report

Market Cap

US$78.3b

7D

2.9%

1Y

33.0%

Updated

24 Oct, 2021

Data

Company Financials +
CME fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance2/6
Financial Health5/6
Dividends4/6

CME Overview

CME Group Inc., together with its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide.

CME Group Competitors

S&P Global

NYSE:SPGI

US$108.5b

Intercontinental Exchange

NYSE:ICE

US$74.1b

Moody's

NYSE:MCO

US$71.1b

Nasdaq

NasdaqGS:NDAQ

US$33.7b

Price History & Performance

Summary of all time highs, changes and price drops for CME Group
Historical stock prices
Current Share PriceUS$217.95
52 Week HighUS$146.89
52 Week LowUS$221.82
Beta0.44
1 Month Change10.07%
3 Month Change3.57%
1 Year Change33.01%
3 Year Change22.01%
5 Year Change118.15%
Change since IPO2,440.21%

Recent News & Updates

Sep 04

CME Group: Hold For Easier Compares, Return Of Higher Rates And Market Volatility

CME is now lapping the easiest compares from mid 2020. Tighter monetary policy and higher stock market volatility typically results in stronger volume at CME. Stable and trending markets are not typically a positive for CME as history shows. CME isn't cheap on a valuation basis.

Shareholder Returns

CMEUS Capital MarketsUS Market
7D2.9%3.5%1.7%
1Y33.0%64.0%30.3%

Return vs Industry: CME underperformed the US Capital Markets industry which returned 64% over the past year.

Return vs Market: CME exceeded the US Market which returned 30.3% over the past year.

Price Volatility

Is CME's price volatile compared to industry and market?
CME volatility
CME Beta0.44
Industry Beta1.19
Market Beta1

Stable Share Price: CME is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CME's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18984,370Terry Duffyhttps://www.cmegroup.com

CME Group Inc., together with its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide. It offers futures and options products based on interest rates, equity indexes, foreign exchange, agricultural commodities, energy, and metals, as well as fixed income products through its electronic trading platforms, open outcry, and privately negotiated transactions. The company also provides clearing for exchange-traded contracts and cleared swaps, as well as settlement services; and transaction lifecycle management services, such as trade and portfolio management, financial resource optimization, regulatory reporting, and trade processing.

CME Group Fundamentals Summary

How do CME Group's earnings and revenue compare to its market cap?
CME fundamental statistics
Market CapUS$78.27b
Earnings (TTM)US$1.92b
Revenue (TTM)US$4.60b

40.8x

P/E Ratio

17.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CME income statement (TTM)
RevenueUS$4.60b
Cost of RevenueUS$0
Gross ProfitUS$4.60b
ExpensesUS$2.68b
EarningsUS$1.92b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 27, 2021

Earnings per share (EPS)5.35
Gross Margin100.00%
Net Profit Margin41.75%
Debt/Equity Ratio12.9%

How did CME perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

65%

Payout Ratio

Valuation

Is CME Group undervalued compared to its fair value and its price relative to the market?

40.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CME ($217.95) is trading above our estimate of fair value ($148.34)

Significantly Below Fair Value: CME is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CME is poor value based on its PE Ratio (40.8x) compared to the US Capital Markets industry average (16.5x).

PE vs Market: CME is poor value based on its PE Ratio (40.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CME is poor value based on its PEG Ratio (5.1x)


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 (61.3x).


Future Growth

How is CME Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CME's forecast earnings growth (8% per year) is above the savings rate (2%).

Earnings vs Market: CME's earnings (8% per year) are forecast to grow slower than the US market (14.7% per year).

High Growth Earnings: CME's earnings are forecast to grow, but not significantly.

Revenue vs Market: CME's revenue (5.5% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: CME's revenue (5.5% 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 (10.7%).


Past Performance

How has CME Group performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CME has high quality earnings.

Growing Profit Margin: CME's current net profit margins (41.7%) are lower than last year (46.5%).


Past Earnings Growth Analysis

Earnings Trend: CME's earnings have grown by 1.1% per year over the past 5 years.

Accelerating Growth: CME's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CME had negative earnings growth (-19.2%) over the past year, making it difficult to compare to the Capital Markets industry average (77.6%).


Return on Equity

High ROE: CME's Return on Equity (7.2%) is considered low.


Financial Health

How is CME Group's financial position?


Financial Position Analysis

Short Term Liabilities: CME's short term assets ($144.8B) exceed its short term liabilities ($142.0B).

Long Term Liabilities: CME's short term assets ($144.8B) exceed its long term liabilities ($9.9B).


Debt to Equity History and Analysis

Debt Level: CME's debt to equity ratio (12.9%) is considered satisfactory.

Reducing Debt: CME's debt to equity ratio has increased from 10.6% to 12.9% over the past 5 years.

Debt Coverage: CME's debt is well covered by operating cash flow (60.2%).

Interest Coverage: CME's interest payments on its debt are well covered by EBIT (133.1x coverage).


Balance Sheet


Dividend

What is CME Group current dividend yield, its reliability and sustainability?

2.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CME's dividend (2.8%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: CME's dividend (2.8%) is low compared to the top 25% of dividend payers in the US market (3.48%).


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 (65.3%), CME's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CME's dividends in 3 years are forecast to be covered by earnings (89.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.7yrs

Average management tenure


CEO

Terry Duffy (63 yo)

4.92yrs

Tenure

US$16,118,467

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 ($USD16.12M) is above average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Terry's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: CME's management team is seasoned and experienced (10.7 years average tenure).


Board Members

Experienced Board: CME's board of directors are seasoned and experienced ( 15.9 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CME Group Inc.'s 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$78.274b
  • Shares outstanding: 359.14m
  • Website: https://www.cmegroup.com

Number of Employees


Location

  • CME Group Inc.
  • 20 South Wacker Drive
  • Chicago
  • Illinois
  • 60606
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 22:08
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.