CME Group Inc., through its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide.
Second-rate dividend payer and slightly overvalued.
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.
7 Day Return
US Capital Markets
1 Year Return
US Capital Markets
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.
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 StCME Group Inc. Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For Next Year
4 days ago | Simply Wall StHere's What CME Group Inc.'s (NASDAQ:CME) P/E Ratio Is Telling Us
3 weeks ago | Simply Wall StIs CME Group Inc.'s (NASDAQ:CME) CEO Paid Enough Relative To Peers?
Is CME Group undervalued compared to its fair value and its price relative to the market?
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).
How is CME Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
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%).
How has CME Group performed over the past 5 years?
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
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
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.
What is CME Group's current dividend yield, its reliability and sustainability?
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Terry Duffy (61yo)
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.
|Chairman & CEO||3.3yrs||US$13.42m||0.013% $10.0m|
|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|
|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|
Experienced Management: CME's management team is seasoned and experienced (5 years average tenure).
|Chairman & CEO||3.3yrs||US$13.42m||0.013% $10.0m|
|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|
Experienced Board: CME's board of directors are seasoned and experienced ( 17.8 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.
CME Group Inc.'s company bio, employee growth, exchange listings and data sources
- 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
- CME Group Inc.
- 20 South Wacker Drive
- United States
|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|
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|
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.