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Cme Group Inc.

CME

Security & Commodity Brokers, Dealers, Exchanges & Services

Mkt Cap

$73.66B

PE

24.46

Debt

$3.425B

Cash

$89.5B

EV

-$12.41B

FCF

$3.311B

Market Cap

$73.66B

P/E Ratio

24.46

Debt

$3.425B

Cash

$89.5B

EV

-$12.41B

FCF

$3.311B
Charts data: {"Earnings":[{"time":"2014-12-30","value":1126900000},{"time":"2015-12-30","value":1247000000},{"time":"2016-12-30","value":1534100000},{"time":"2017-12-30","value":4063400000},{"time":"2018-12-30","value":1962200000},{"time":"2019-12-30","value":2115800000},{"time":"2020-12-30","value":2105200000},{"time":"2021-12-30","value":2617100000},{"time":"2022-12-30","value":2657200000}],"Sales":[{"time":"2014-12-30","value":3112500000},{"time":"2015-12-30","value":3326800000},{"time":"2016-12-30","value":3595200000},{"time":"2017-12-30","value":3644700000},{"time":"2018-12-30","value":4309400000},{"time":"2019-12-30","value":4868000000},{"time":"2020-12-30","value":4883600000},{"time":"2021-12-30","value":4689700000},{"time":"2022-12-30","value":5019400000}],"Net Margins":[{"time":"2014-12-30","value":0.3620562248995984},{"time":"2015-12-30","value":0.3748346759648912},{"time":"2016-12-30","value":0.4267078326657766},{"time":"2017-12-30","value":1.11487913957253},{"time":"2018-12-30","value":0.45533020838167726},{"time":"2019-12-30","value":0.4346343467543139},{"time":"2020-12-30","value":0.4310754361536571},{"time":"2021-12-30","value":0.5580527539074994},{"time":"2022-12-30","value":0.5293859823883332}],"Assets":[{"time":"2014-12-30","value":72241500000},{"time":"2015-12-30","value":67371500000},{"time":"2016-12-30","value":69369400000},{"time":"2017-12-30","value":75791200000},{"time":"2018-12-30","value":77475700000},{"time":"2019-12-30","value":75215300000},{"time":"2020-12-30","value":124659600000},{"time":"2021-12-30","value":196780300000},{"time":"2022-12-30","value":174175700000}],"Stockholders Equity":[{"time":"2014-12-30","value":20923500000},{"time":"2015-12-30","value":20551800000},{"time":"2016-12-30","value":20340700000},{"time":"2017-12-30","value":22411800000},{"time":"2018-12-30","value":25965300000},{"time":"2019-12-30","value":26159300000},{"time":"2020-12-30","value":26351500000},{"time":"2021-12-30","value":27399300000},{"time":"2022-12-30","value":26878700000}],"ROE":[{"time":"2014-12-30","value":0.053858102133964206},{"time":"2015-12-30","value":0.06067595052501484},{"time":"2016-12-30","value":0.07542021661004783},{"time":"2017-12-30","value":0.18130627615809528},{"time":"2018-12-30","value":0.07557008777098666},{"time":"2019-12-30","value":0.08088136914978612},{"time":"2020-12-30","value":0.07988919036866972},{"time":"2021-12-30","value":0.09551703875646458},{"time":"2022-12-30","value":0.09885894779137384}],"ROA":[{"time":"2014-12-30","value":0.024520531827273796},{"time":"2015-12-30","value":0.02951841654111902},{"time":"2016-12-30","value":0.03297707634778447},{"time":"2017-12-30","value":0.03333236576277985},{"time":"2018-12-30","value":0.035853822553394164},{"time":"2019-12-30","value":0.035758682076651956},{"time":"2020-12-30","value":0.021836264515528687},{"time":"2021-12-30","value":0.017143992564296325},{"time":"2022-12-30","value":0.020038960658691197}]}

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 and foreign currency trading services. 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. In addition, the company offers a range of market data services, including real-time and historical data services. It serves professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, governments, and central banks. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. CME Group Inc. was founded in 1898 and is headquartered in Chicago, Illinois.

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Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$3.311B$3.646B$3.995B$4.354B$4.72B$5.091B$5.461B$5.827B$6.185B$6.53B$6.856B$68.56B
DCF$3.171B$3.021B$2.863B$2.699B$2.531B$2.361B$2.191B$2.022B$1.856B$1.695B$16.95B
Value$41.36B

In the chart Earnings are multiplied by this value.

Earnings Growth 9.3%
Earnings Stability 35%


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.

Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
Net Margin36%37%43%110%46%43%43%56%53%56%
ROA2.5%3%3.3%3.3%3.6%3.6%2.2%1.7%2%3.2%
ROE5.4%6.1%7.5%18%7.6%8.1%8%9.6%9.9%11%

What is the average Net Margin?

The average Net Margin over the past 5 years is +58.72%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -7.49%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +2.73%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.39%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +10.2%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.01%.


Safety & Stabiliy

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.

Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
Debt FCF-1.601.371.271.891.541.371.511.161.03
Debt Equity0.100.110.110.100.170.140.130.130.130.12
MIN
Graham Stability---100%86%84%78%100%100%78%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 1.03.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.05.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.78.


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.

Years12-201512-201712-201912-2021Trend
Revenue6.1%6.6%1%7%-0.8%
Net Income11%-8.1%7.9%1.5%-5.9%
Stockholders Equity3.9%3.7%0.91%-1.9%-0.23%
FCF11%11%6.9%30%-1.3%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +6.61%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.8%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -8.14%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -5.88%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +3.7%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.23%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +11.02%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -1.3%.