CME Group Inc - Class A
Exchange: NASDAQSector: Financial ServicesIndustry: Financial Data & Stock Exchanges
As the world's leading derivatives marketplace, CME Group ( www.cmegroup.com ) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners. About Purdue University Purdue University is a public research university leading with excellence at scale. Ranked among top 10 public universities in the United States, Purdue discovers, disseminates and deploys knowledge with a quality and at a scale second to none. More than 106,000 students study at Purdue across multiple campuses, locations and modalities, including more than 57,000 at our main campus locations in West Lafayette and Indianapolis. Committed to affordability and accessibility, Purdue's main campus has frozen tuition 14 years in a row. See how Purdue never stops in the persistent pursuit of the next giant leap — including its integrated, comprehensive Indianapolis urban expansion; the Mitch Daniels School of Business; Purdue Computes; and the One Health initiative — at https://www.purdue.edu/president/strategic-initiatives. Source: Michael Langemeier, [email protected], 765-494-9557 CME-G SOURCE CME Group
Did you know?
Earnings per share grew at a 9.5% CAGR.
Current Price
$305.11
+2.75%GoodMoat Value
$292.09
4.3% overvaluedProfile
Valuation (TTM)
Market Cap$110.02B
P/E27.36
EV$109.43B
P/B3.83
Shares Out360.60M
P/Sales16.87
Revenue$6.52B
EV/EBITDA18.83
CME Group Inc - Class A (CME) Stock Analysis
GoodMoat Analysis
CME Group operates a dominant, high-margin financial exchange with a strong moat based on network effects and regulatory barriers. While the business is high quality, its current valuation appears full, offering only a marginal margin of safety.
Read full analysis
CME Group operates the world's leading derivatives marketplace, facilitating trading in futures and options across interest rates, equities, currencies, and commodities. Its primary competitive advantages are a powerful network effect, where liquidity attracts more participants, and significant regulatory barriers to entry, as exchanges are highly regulated and difficult to replicate. Applying the GoodMoat framework, CME likely scores highly on Moat criteria such as Network Effects, Switching Costs, and Regulatory Barriers, easily exceeding the 5+ threshold for a durable moat. The business also exhibits high quality, with an exceptional operating margin of 64.9% and a profit margin of 61.7%, though its debt/equity ratio of 5.68 is elevated. The current P/E of 26.4x and a share price near the GoodMoat Target of $292.09 suggest the valuation is not a bargain. Using the Decision Framework, the stock passes the Moat & Quality Gate but enters the Valuation & Risk Gate with caution. The minimal price discount to the target indicates a marginal margin of safety, requiring perfect execution to justify the current price. For a value investor, CME represents a high-quality business worth understanding, but the entry point may not be favourable without a more attractive price. Analysis based on data as of 2024-05-15.
Market Cap$110.02B
Current Price$305.11
P/E Ratio27.36
Forward P/E—
PEG Ratio0.77
EPS$11.16
Book Value$79.67
P/B Ratio3.83
CME Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 9.5% FCF growth (CAGR)
Cash vs Debt
Net Debt: 158.7B
Revenue
4.9B
FY19
4.9B
FY20
4.7B
FY21
5.0B
FY22
5.6B
FY23
6.1B
FY24
6.5B
FY25
Net Income
2.1B
FY19
2.1B
FY20
2.6B
FY21
2.7B
FY22
3.2B
FY23
3.5B
FY24
4.0B
FY25
CME 52-Week Range
$242.96
$318.71
50-Day MA: $299.22200-Day MA: $272.80
Did you know?
Earnings per share grew at a 9.5% CAGR.
CME Group Inc - Class A (CME) Financial Summary
CME Group Inc - Class A (CME) is a Financial Services company in the Financial Data & Stock Exchanges industry, listed on NASDAQ. The stock currently trades at $305.11 with a market capitalization of $110.02B.
Key valuation metrics include a P/E ratio of 27.36, price-to-book ratio of 3.83, and EPS of $11.16. The company reports a profit margin of 61.7% and return on equity of 14.0%.
CME Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $110.02B |
| P/E Ratio | 27.36 |
| EPS | $11.16 |
| P/B Ratio | 3.83 |
| P/S Ratio | 16.87 |
| EV/EBITDA | 18.83 |
| Dividend Yield | 3.57% |
| Profit Margin | 61.7% |
| Return on Equity | 14.0% |
| Debt/Equity | 5.68 |
CME Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $4.87B | $2.12B |
| FY20 | $4.88B | $2.11B |
| FY21 | $4.69B | $2.64B |
| FY22 | $5.02B | $2.66B |
| FY23 | $5.58B | $3.19B |
| FY24 | $6.13B | $3.48B |
| FY25 | $6.52B | $4.02B |
CME Group Inc - Class A (CME) Valuation
Based on GoodMoat's DCF model, CME Group Inc - Class A has a fair value estimate of $292.09. At the current price of $305.11, the stock appears 4.5% overvalued relative to our intrinsic value estimate.
CME Quality Indicators
CME Group Inc - Class A maintains a profit margin of 61.7% and an operating margin of 64.9%. Return on equity stands at 14.0%. The current ratio is 1.03. Debt-to-equity ratio is 5.68.
About CME Group Inc - Class A
As the world's leading derivatives marketplace, CME Group ( www.cmegroup.com ) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners. About Purdue University Purdue University is a public research university leading with excellence at scale. Ranked among top 10 public universities in the United States, Purdue discovers, disseminates and deploys knowledge with a quality and at a scale second to none. More than 106,000 students study at Purdue across multiple campuses, locations and modalities, including more than 57,000 at our main campus locations in West Lafayette and Indianapolis. Committed to affordability and accessibility, Purdue's main campus has frozen tuition 14 years in a row. See how Purdue never stops in the persistent pursuit of the next giant leap — including its integrated, comprehensive Indianapolis urban expansion; the Mitch Daniels School of Business; Purdue Computes; and the One Health initiative — at https://www.purdue.edu/president/strategic-initiatives. Source: Michael Langemeier, [email protected], 765-494-9557 CME-G SOURCE CME Group
CME Free Cash Flow
CME Group Inc - Class A generated $4.19B in trailing twelve-month free cash flow, representing an FCF yield of 3.81%. This moderate FCF yield indicates reasonable cash generation.
CME Shares Outstanding
CME Group Inc - Class A has 0.36 billion shares outstanding at a share price of $305.11, giving it a market capitalization of $110.02B.
CME Recent Insider Trades
Recent insider transactions at CME Group Inc - Class A include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Marcus Jonathan L (Sr MD General Counsel) | SELL | 3,291 | $1.10M |
| Vroman Ken (Chief Transformation Officer) | SELL | 5,160 | $1.59M |
| Cook Elizabeth A | SELL | 1,000 | $320000.00 |