Market Cap
US$73.3b
Last Updated
2019/11/13 23:57 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
Fundamentals
Average 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
3.0%
CME
0.8%
US Capital Markets
0.4%
US Market
1 Year Return
8.8%
CME
8.7%
US Capital Markets
13.1%
US Market
Return vs Industry: CME matched the US Capital Markets industry which returned 8.7% over the past year.
Return vs Market: CME underperformed the US Market which returned 13.1% over the past year.
Shareholder returns
| CME | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.0% | 0.8% | 0.4% |
| 30 Day | -3.6% | 6.1% | 4.0% |
| 90 Day | -3.8% | 8.4% | 7.4% |
| 1 Year | 11.5%8.8% | 11.2%8.7% | 15.6%13.1% |
| 3 Year | 99.2%77.8% | 42.9%34.7% | 48.2%38.6% |
| 5 Year | 201.6%144.2% | 75.1%58.8% | 62.6%44.6% |
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
1 week ago | Simply Wall St
Results: CME Group Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates2 weeks ago | Simply Wall St
Should You Be Tempted To Sell CME Group Inc. (NASDAQ:CME) Because Of Its P/E Ratio?1 month ago | Simply Wall St
Is CME Group Inc.'s (NASDAQ:CME) CEO Pay Justified?Valuation
Is CME Group undervalued compared to its fair value and its price relative to the market?
35.79x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CME ($204.62) is trading above our estimate of fair value ($103.47)
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 (35.8x) compared to the Capital Markets industry average (39.2x).
PE vs Market: CME is poor value based on its PE Ratio (35.8x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: CME is poor value based on its PEG Ratio (4x)
Price to Book Ratio
PB vs Industry: CME is good value based on its PB Ratio (2.7x) compared to the US Capital Markets industry average (6.5x).
Next Steps
Future Growth
How is CME Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
9.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CME's forecast earnings growth (9% per year) is above the savings rate (2.7%).
Earnings vs Market: CME's earnings (9% per year) are forecast to grow slower than the US market (14.3% 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 (7.3% 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 (10.3%).
Next Steps
Past Performance
How has CME Group performed over the past 5 years?
21.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CME has high quality earnings.
Growing Profit Margin: CME's current net profit margins (41%) are lower than last year (113.7%).
Past Earnings Growth Analysis
Earnings Trend: CME's earnings have grown significantly by 21.3% 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 (-55%) over the past year, making it difficult to compare to the Capital Markets industry average (21%).
Return on Equity
High ROE: CME's Return on Equity (7.6%) 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 11.3x 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?
2.32%
Current Dividend Yield
Upcoming Dividend Payment
Purchase CME Group before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CME's dividend (2.32%) is higher than the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: CME's dividend (2.32%) is low compared to the top 25% of dividend payers in the US market (3.66%).
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 (51.6%), 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 (82.4% payout ratio).
Next Steps
Management
What is the CEO of CME Group's salary, the management and board of directors tenure and is there insider trading?
4.8yrs
Average management tenure
CEO
Terry Duffy (61yo)
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 ($USD10.97M).
Compensation vs Earnings: Terry's compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.8yrs
Average Tenure
55yo
Average Age
Experienced Management: CME's management team is considered experienced (4.8 years average tenure).
Board Age and Tenure
15.6yrs
Average Tenure
71yo
Average Age
Experienced Board: CME's board of directors are seasoned and experienced ( 15.6 years average tenure).
Insider Trading
Insider Buying: CME insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Senior Key Executive Senior MD and Global Head of Financial & OTC Products |
| Shares | 7,200 |
| Max Price | US$223.13 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 500 |
| Max Price | US$216.01 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,500 |
| Max Price | US$212.46 |
| Entity | Individual |
| Shares | 1,990 |
| Max Price | US$202.38 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | US$205.00 |
| Entity | Individual |
| Role | Chief Executive Officer Chairman & CEO |
| Shares | 35,000 |
| Max Price | US$200.15 |
| Entity | Individual |
| Shares | 6,400 |
| Max Price | US$198.83 |
| Entity | Individual |
| Shares | 2,097 |
| Max Price | US$198.10 |
| Entity | Individual |
| Shares | 300 |
| Max Price | US$204.27 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,500 |
| Max Price | US$201.21 |
| Entity | Individual |
| Shares | 500 |
| Max Price | US$199.06 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 700 |
| Max Price | US$194.35 |
| Entity | Company |
| Shares | 10,000 |
| Max Price | US$179.29 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,000 |
| Max Price | US$178.07 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 3,000 |
| Max Price | US$167.91 |
| Entity | Individual |
| Shares | 200 |
| Max Price | US$182.90 |
| Entity | Individual |
| Shares | 10,087 |
| Max Price | US$177.94 |
| Entity | Individual |
| Role | Senior Key Executive Senior MD and Global Head of Financial & OTC Products |
| Shares | 13,500 |
| Max Price | US$192.16 |
| Entity | Individual |
| Shares | 187 |
| Max Price | US$190.00 |
| Entity | Individual |
| Role | Chief Executive Officer Chairman & CEO |
| Shares | 10,000 |
| Max Price | US$188.80 |
| Entity | Company |
| Shares | 5,000 |
| Max Price | US$192.15 |
| Entity | Individual |
| Shares | 1,867 |
| Max Price | US$195.01 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.
Management Team
Jack Sandner (78yo)
Consultant
- Tenure: 1.5yrs
- Compensation: US$674.60k
Terry Duffy (61yo)
Chairman & CEO
- Tenure: 3yrs
- Compensation: US$13.42m
Leo Melamed (87yo)
Consultant
- Tenure: 1.4yrs
- Compensation: US$980.94k
Bryan Durkin (58yo)
President
- Tenure: 0yrs
- Compensation: US$6.59m
John Pietrowicz (54yo)
Senior MD & CFO
- Tenure: 4.9yrs
- Compensation: US$3.76m
Kevin Kometer (54yo)
Senior MD & Chief Information Officer
- Tenure: 11.3yrs
- Compensation: US$2.71m
Julie Holzrichter (50yo)
Senior MD & COO
- Tenure: 5.2yrs
- Compensation: US$3.24m
John Peschier (51yo)
Managing Director of Investor Relations
- Tenure: 0yrs
Sean Tully (55yo)
Senior MD and Global Head of Financial & OTC Products
- Tenure: 8.3yrs
- Compensation: US$3.08m
Jack Tobin (55yo)
MD & Chief Accounting Officer
- Tenure: 4.8yrs
Board Members
Larry Gerdes (70yo)
Lead Director
- Tenure: 2.3yrs
- Compensation: US$270.16k
Dennis Chookaszian (75yo)
Independent Director
- Tenure: 15.6yrs
- Compensation: US$242.83k
Dan Glickman (74yo)
Independent Director
- Tenure: 18.3yrs
- Compensation: US$248.00k
Dennis Suskind (76yo)
Independent Director
- Tenure: 11.3yrs
- Compensation: US$283.58k
Terry Duffy (61yo)
Chairman & CEO
- Tenure: 3yrs
- Compensation: US$13.42m
Martin Gepsman (66yo)
Independent Director
- Tenure: 25.8yrs
- Compensation: US$245.33k
William Shepard (72yo)
Independent Director
- Tenure: 22.8yrs
- Compensation: US$250.50k
Alex Pollock (76yo)
Independent Director
- Tenure: 15.6yrs
- Compensation: US$237.16k
Bryan Durkin (58yo)
President
- Tenure: 0yrs
- Compensation: US$6.59m
Tim Bitsberger (59yo)
Independent Director
- Tenure: 11.5yrs
- Compensation: US$237.83k
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$73.328b
- 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, includ ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/13 23:57 |
| End of Day Share Price | 2019/11/13 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.