CME Group (NasdaqGS:CME) - Share price, News & Analysis

CME fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	1/6
Past Performance	3/6
Financial Health	5/6
Dividends	3/6

CME Stock Overview

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

Rewards

PE ratio (25.2x) is below the Capital Markets industry average (30.8x)

Earnings are forecast to grow 7.17% per year

Risk Analysis

Dividend of 3.77% is not well covered by earnings

Significant insider selling over the past 3 months

CME Group Competitors

S&P Global

NYSE:SPGI

US$116.4b

Intercontinental Exchange

NYSE:ICE

US$54.7b

Moody's

NYSE:MCO

US$53.3b

MSCI

NYSE:MSCI

US$33.8b

Price History & Performance

Summary of all time highs, changes and price drops for CME Group
Historical stock prices
Current Share Price	US$192.11
52 Week High	US$256.94
52 Week Low	US$185.79
Beta	0.47
1 Month Change	-13.82%
3 Month Change	-18.81%
1 Year Change	-11.79%
3 Year Change	2.23%
5 Year Change	62.83%
Change since IPO	2,139.05%

Recent News & Updates

Apr 30

Why CME Should Be In Our Dividend Growth Portfolios

CME Group is a great mix between growth and value as it offers a good yield and long-term (expected) outperformance. Because of its business model, the company is able to generate high free cash flow used to distribute a high yield as its healthy balance sheet needs no attention. The valuation is getting good, and I'm planning on using market weakness to add it to my dividend growth portfolio.

Apr 15

Is Now The Time To Put CME Group (NASDAQ:CME) On Your Watchlist?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

	CME	US Capital Markets	US Market
7D	-4.0%	-0.8%	-2.7%
1Y	-11.8%	-14.6%	-12.9%

Return vs Industry: CME exceeded the US Capital Markets industry which returned -14.6% over the past year.

Return vs Market: CME exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is CME's price volatile compared to industry and market?
CME volatility
CME Average Weekly Movement	4.6%
Capital Markets Industry Average Movement	0.5%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: CME is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CME's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1898	3,480	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. The company also provides clearing house services, including clearing, settling, and guaranteeing futures and options contracts, and cleared swaps products traded through its exchanges; and trade processing and risk mitigation services.

CME Group Fundamentals Summary

How do CME Group's earnings and revenue compare to its market cap?
CME fundamental statistics
Market Cap	US$69.05b
Earnings (TTM)	US$2.74b
Revenue (TTM)	US$4.77b

25.2x

P/E Ratio

14.5x

P/S Ratio

Is CME overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CME income statement (TTM)
Revenue	US$4.77b
Cost of Revenue	US$0
Gross Profit	US$4.77b
Other Expenses	US$2.03b
Earnings	US$2.74b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	7.64
Gross Margin	100.00%
Net Profit Margin	57.51%
Debt/Equity Ratio	12.4%

How did CME perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

48%

Payout Ratio

Does CME pay a reliable dividends?

See CME dividend history and benchmarks

When do you need to buy CME by to receive an upcoming dividend?
CME Group dividend dates
Ex Dividend Date	Jun 09 2022
Dividend Pay Date	Jun 27 2022
Days until Ex dividend	17 days
Days until Dividend pay date	35 days

Does CME pay a reliable dividends?

See CME dividend history and benchmarks

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

25.16x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: CME ($192.11) is trading above our estimate of fair value ($181.59)

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 (25.2x) compared to the US Capital Markets industry average (30.8x).

PE vs Market: CME is poor value based on its PE Ratio (25.2x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: CME is poor value based on its PEG Ratio (3.5x)

Price to Book Ratio

PB vs Industry: CME is overvalued based on its PB Ratio (2.5x) compared to the US Capital Markets industry average (-17.2x).

Future Growth

How is CME Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CME's forecast earnings growth (7.2% per year) is above the savings rate (1.9%).

Earnings vs Market: CME's earnings (7.2% per year) are forecast to grow slower than the US market (12.5% 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 (7.8% 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 (10.9%).

Past Performance

How has CME Group performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-4.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CME has high quality earnings.

Growing Profit Margin: CME's current net profit margins (57.5%) are higher than last year (41.6%).

Past Earnings Growth Analysis

Earnings Trend: CME's earnings have declined by 4.1% per year over the past 5 years.

Accelerating Growth: CME's earnings growth over the past year (43.4%) exceeds its 5-year average (-4.1% per year).

Earnings vs Industry: CME earnings growth over the past year (43.4%) underperformed the Capital Markets industry 98.3%.

Return on Equity

High ROE: CME's Return on Equity (10%) is considered low.

Financial Health

How is CME Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CME's short term assets ($171.0B) exceed its short term liabilities ($168.5B).

Long Term Liabilities: CME's short term assets ($171.0B) exceed its long term liabilities ($9.7B).

Debt to Equity History and Analysis

Debt Level: CME's net debt to equity ratio (4.6%) is considered satisfactory.

Reducing Debt: CME's debt to equity ratio has increased from 10.9% to 12.4% over the past 5 years.

Debt Coverage: CME's debt is well covered by operating cash flow (75.6%).

Interest Coverage: CME earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.77%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: CME's dividend (3.77%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: CME's dividend (3.77%) is low compared to the top 25% of dividend payers in the US market (4.11%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.3%), CME's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (105.2%), CME's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

11.3yrs

Average management tenure

CEO

Terry Duffy (63 yo)

5.5yrs

Tenure

US$22,924,737

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 ($USD22.92M) is above average for companies of similar size in the US market ($USD13.34M).

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

Leadership Team

Experienced Management: CME's management team is seasoned and experienced (11.3 years average tenure).

Board Members

Experienced Board: CME's board of directors are seasoned and experienced ( 17 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31