Cme Group Inc.

Finance
Investment Bankers/Brokers/Service
www.cmegroup.com

Earnings Score
Moat Score
Safety Score

Market Cap $85.27B
PE 25
Debt $3.43B
Cash $101.79B
EV -$13.09B
FCF $3.63B

Earnings

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Sales & Net Margins

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Earnings	$3.42B
EBIT	$4.45B
ROE	12%
ROA	3%
FCF	$3.63B
Equity	$28.22B
Growth Stability	78%
PE	24.92
PEG	2.25
PB	3.02
P/FCF	23.5
P/S	14.11
Price/Cash	1.19
Debt/Equity	0.12
Debt/FCF	0.94
Net Margins	57%
Op. Margins	74%
Earnings CAGR	8%
Sales Growth YoY	18%
Sales Growth QoQ	3%
Sales CAGR	6%
FCF CAGR	10%
Equity CAGR	4%
Earnings Stability	0.32
Earnings Growth YoY	22%
Earnings Growth QoQ	3%
Earnings CAGR 5Y	11%

Sales CAGR 5Y	4%
FCF CAGR 5Y	9%
Equity CAGR 5Y	1%
Earnings CAGR 3Y	9%
Sales CAGR 3Y	9%
FCF CAGR 3Y	18%
Equity CAGR 3Y	-0%
Market Cap	$85.27B
Revenue	$6.04B
Dividend Yield	4%
Payout Ratio	104%
Assets	$137.80B
Total Debt	$3.43B
Cash	$101.79B
Shares Outstanding	359.09M
EV	-13.09B
Earnings Score	15%
Moat Score	74%
Safety Score	95%
Final Score	61%
Working Capital	2.32B
Current Ratio	1.02
Shares Growth 3y	0%
Equity Growth QoQ	2%
Equity Growth YoY	0%

Assets & ROA

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Stockholders Equity & ROE

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Based in Chicago, CME Group operates exchanges giving investors, suppliers, and businesses the ability to trade futures and derivatives based on interest rates, equity indexes, foreign currencies, energy, metals, and commodities. The CME was founded in 1898 and in 2002 completed its initial public offering. Since then, CME Group has consolidated parts of the industry by merging with crosstown rival, CBOT Holdings in 2007 before acquiring Nymex Holdings in 2008 and NEX in 2018. In addition, the company has a 27% stake in S&P/Dow Jones Indices LLC, making the Chicago Mercantile Exchange the exclusive venue to trade and clear S&P futures contracts. Through CME's acquisition of NEX in 2018 it has also expanded into cash foreign exchange, fixed income trading, and collateral optimization.

SEC Filings

Direct access to Cme Group Inc. (CME) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Cme Group Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Cme Group Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 8%

Stability 32%

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Cme Group Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Cme Group Inc..

Years

Calculation mode

= $72B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$3.6B	$4B	$4.4B	$4.8B	$5.3B	$5.8B	$6.4B	$7B	$7.7B	$8.5B	$9.3B	$93B
DCF		$3.6B	$3.6B	$3.6B	$3.6B	$3.6B	$3.6B	$3.6B	$3.6B	$3.6B	$3.6B	$36B
Value	$72B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	36%	37%	43%	111%	46%	43%	43%	56%	53%	57%	57%
ROA	-	3%	3%	3%	4%	4%	2%	2%	2%	3%	3%
ROE	-	6%	8%	18%	8%	8%	8%	10%	10%	12%	12%

Good Net Margins (56.85%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	1.6	1.37	1.27	1.89	1.54	1.37	1.51	1.16	1.01	0.94
Debt over Equity	0.1	0.11	0.11	0.1	0.17	0.14	0.13	0.13	0.13	0.13	0.12
Growth Stability	-	-	-	100%	86%	84%	78%	100%	100%	100%	78%

Good Debt/FCF ratio (0.94)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.12)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (78%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	7%	8%	1%	18%	13%	0%	-4%	7%	11%	4%
Earnings YoY growth	-	11%	23%	165%	-52%	8%	-1%	24%	2%	20%	11%
Equity YoY growth	-	-2%	-1%	10%	16%	1%	1%	4%	-2%	-1%	1%
FCF YoY growth	-	22%	16%	8%	32%	4%	4%	-10%	30%	14%	9%