| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 5/6 |
| Dividends | 4/6 |
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
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$217.95 |
| 52 Week High | US$146.89 |
| 52 Week Low | US$221.82 |
| Beta | 0.44 |
| 1 Month Change | 10.07% |
| 3 Month Change | 3.57% |
| 1 Year Change | 33.01% |
| 3 Year Change | 22.01% |
| 5 Year Change | 118.15% |
| Change since IPO | 2,440.21% |
Recent News & Updates
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
| CME | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | 2.9% | 3.5% | 1.7% |
| 1Y | 33.0% | 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
| CME volatility | |
|---|---|
| CME Beta | 0.44 |
| Industry Beta | 1.19 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1898 | 4,370 | Terry Duffy | https://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
| CME fundamental statistics | |
|---|---|
| Market Cap | US$78.27b |
| Earnings (TTM) | US$1.92b |
| Revenue (TTM) | US$4.60b |
40.8x
P/E Ratio17.0x
P/S RatioIs CME overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CME income statement (TTM) | |
|---|---|
| Revenue | US$4.60b |
| Cost of Revenue | US$0 |
| Gross Profit | US$4.60b |
| Expenses | US$2.68b |
| Earnings | US$1.92b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 27, 2021
| Earnings per share (EPS) | 5.35 |
| Gross Margin | 100.00% |
| Net Profit Margin | 41.75% |
| Debt/Equity Ratio | 12.9% |
How did CME perform over the long term?
See historical performance and comparisonDividends
2.8%
Current Dividend Yield65%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/24 22:08 |
| End of Day Share Price | 2021/10/22 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.