NasdaqGS:CME

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid track record with excellent balance sheet.


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

-1.3%

CME

-1.5%

US Capital Markets

-1.4%

US Market


1 Year Return

-18.6%

CME

8.9%

US Capital Markets

17.8%

US Market

Return vs Industry: CME underperformed the US Capital Markets industry which returned 9.9% over the past year.

Return vs Market: CME underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

CMEIndustryMarket
7 Day-1.3%-1.5%-1.4%
30 Day-1.8%5.7%4.7%
90 Day-2.6%3.0%8.2%
1 Year-16.2%-18.6%11.6%8.9%20.5%17.8%
3 Year35.2%23.0%21.7%12.3%42.2%32.7%
5 Year109.0%71.6%68.7%47.6%83.4%62.7%

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

Valuation

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

24.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CME ($164.59) is trading above our estimate of fair value ($104.5)

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 (24.8x) compared to the US Capital Markets industry average (22.9x).

PE vs Market: CME is poor value based on its PE Ratio (24.8x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: CME is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: CME is good value based on its PB Ratio (2.2x) compared to the US Capital Markets industry average (4.8x).


Next Steps

Future Growth

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

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CME's forecast earnings growth (5.8% per year) is above the savings rate (2.2%).

Earnings vs Market: CME's earnings (5.8% per year) are forecast to grow slower than the US market (22.2% per year).

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

Revenue vs Market: CME's revenue (2.5% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: CME's revenue (2.5% 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 (9.7%).


Next Steps

Past Performance

How has CME Group performed over the past 5 years?

13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CME has high quality earnings.

Growing Profit Margin: CME's current net profit margins (46.5%) are higher than last year (39.4%).


Past Earnings Growth Analysis

Earnings Trend: CME's earnings have grown by 13.8% per year over the past 5 years.

Accelerating Growth: CME's earnings growth over the past year (31.2%) exceeds its 5-year average (13.8% per year).

Earnings vs Industry: CME earnings growth over the past year (31.2%) exceeded the Capital Markets industry 11.9%.


Return on Equity

High ROE: CME's Return on Equity (8.9%) is considered low.


Next Steps

Financial Health

How is CME Group's financial position?


Financial Position Analysis

Short Term Liabilities: CME's short term assets ($81.8B) exceed its short term liabilities ($80.2B).

Long Term Liabilities: CME's short term assets ($81.8B) exceed its long term liabilities ($10.2B).


Debt to Equity History and Analysis

Debt Level: CME's debt to equity ratio (12.8%) is considered satisfactory.

Reducing Debt: CME's debt to equity ratio has increased from 10.5% to 12.8% over the past 5 years.

Debt Coverage: CME's debt is well covered by operating cash flow (95.1%).

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


Balance Sheet


Next Steps

Dividend

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

3.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CME's dividend (3.58%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: CME's dividend (3.58%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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 reasonably low payout ratio (48.2%), CME's dividend payments are well 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 (102.4% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Diversified Financials industry.

Management

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

9.7yrs

Average management tenure


CEO

Terry Duffy (62 yo)

3.92yrs

Tenure

US$11,867,214

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 ($USD11.87M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Terry's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Terrence Duffy
Chairman & CEO3.92yrsUS$11.87m0.025%
$ 14.6m
John Pietrowicz
Chief Financial Officer5.83yrsUS$3.30m0.012%
$ 7.0m
Julie Holzrichter
Senior MD & COO6.08yrsUS$3.00m0.011%
$ 6.7m
Kevin Kometer
Senior MD & Chief Information Officer12.25yrsUS$2.82m0.022%
$ 12.7m
Jack Tobin
MD & Chief Accounting Officer5.67yrsno data0.0052%
$ 3.1m
John Peschier
Managing Director of Investor Relationsno datano datano data
Kathleen Cronin
Senior MD17.92yrsno data0.014%
$ 8.1m
Anita Liskey
Senior Managing Director of Corporate Marketing & Communications13.67yrsno datano data
Hilda Piell
Senior MD & Chief Human Resources Officer13.17yrsno data0.012%
$ 6.9m
Eileen Keeve
Managing Director of Organizational Development17.92yrsno datano data
Robert Petrowski
Managing Director of Data Centers & Critical Infrastructure9.67yrsno datano data
Kendal Vroman
Senior Managing Director of International & Optimization Services0.75yrno data0.0040%
$ 2.4m

9.7yrs

Average Tenure

55yo

Average Age

Experienced Management: CME's management team is seasoned and experienced (9.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Terrence Duffy
Chairman & CEO3.92yrsUS$11.87m0.025%
$ 14.6m
Larry Gerdes
Independent Director13.25yrsUS$273.68k0.010%
$ 5.9m
Dennis Chookaszian
Independent Director16.5yrsUS$258.43k0.0044%
$ 2.6m
Terry Savage
Independent Director17.5yrsUS$227.18k0.0050%
$ 2.9m
Daniel Glickman
Independent Lead Director0.42yrUS$279.18k0.0046%
$ 2.7m
Dennis Suskind
Independent Director12.17yrsUS$285.35k0.00099%
$ 584.4k
Martin Gepsman
Independent Director26.75yrsUS$239.68k0.0085%
$ 5.0m
William Shepard
Independent Director23.75yrsUS$233.18k0.056%
$ 32.8m
Howard Siegel
Independent Director20.75yrsUS$246.68k0.023%
$ 13.4m
Charles Carey
Independent Director13.25yrsUS$226.68k0.0010%
$ 613.9k
Timothy Bitsberger
Independent Director12.42yrsUS$253.18k0.0028%
$ 1.7m
Daniel Kaye
Independent Director1.42yrsUS$171.35k0.00037%
$ 218.4k

14.9yrs

Average Tenure

69yo

Average Age

Experienced Board: CME's board of directors are seasoned and experienced ( 14.9 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 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$59.026b
  • Shares outstanding: 358.63m
  • Website: https://www.cmegroup.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MX4ADB (Deutsche Boerse AG)YesClass A Common StockDEEURDec 2002
CMENasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDDec 2002
0HR2LSE (London Stock Exchange)YesClass A Common StockGBUSDDec 2002
CMEGWBAG (Wiener Boerse AG)YesClass A Common StockATEURDec 2002
CME *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNDec 2002
CHME34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REP 1 COM USD0.01 CLASS ABRBRLMay 2019

Biography

CME Group Inc., through 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, eq ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 23:33
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.