CME Group Inc.
CME Group Inc. Fundamental Analysis
CME Group Inc. (CME) shows moderate financial fundamentals with a PE ratio of 27.87, profit margin of 62.02%, and ROE of 14.48%. The company generates $6.5B in annual revenue with moderate year-over-year growth of 9.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CME's fundamental strength across five key dimensions:
Efficiency Score
WeakCME struggles to generate sufficient returns from assets.
Valuation Score
WeakCME trades at a premium to fair value.
Growth Score
ModerateCME shows steady but slowing expansion.
Financial Health Score
ModerateCME shows balanced financial health with some risks.
Profitability Score
ModerateCME maintains healthy but balanced margins.
Key Financial Metrics
Is CME Expensive or Cheap?
P/E Ratio
CME trades at 27.87 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CME's PEG of 3.39 indicates potential overvaluation.
Price to Book
The market values CME Group Inc. at 3.92 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.87 times EBITDA. This signals the market has high growth expectations.
How Well Does CME Make Money?
Net Profit Margin
For every $100 in sales, CME Group Inc. keeps $62.02 as profit after all expenses.
Operating Margin
Core operations generate 64.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.48 in profit for every $100 of shareholder equity.
ROA
CME Group Inc. generates $2.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CME Group Inc. generates strong operating cash flow of $4.16B, reflecting robust business health.
Free Cash Flow
CME Group Inc. generates strong free cash flow of $4.08B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.36 in free cash annually.
FCF Yield
CME converts 3.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
17.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How CME Stacks Against Its Sector Peers
| Metric | CME Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.87 | 18.73 | Worse (Expensive) |
| ROE | 14.48% | 847.00% | Weak |
| Net Margin | 62.02% | 3919.00% | Weak |
| Debt/Equity | 0.12 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 674.76 | Weak Liquidity |
| ROA | 2.04% | -21563.00% (disorted) | Weak |
CME outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CME Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.14%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
65.55%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
37.22%
Industry Style: Value, Dividend, Cyclical
High Growth