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CME Group Inc is a financial data & stock exchanges business based in the US. CME Group shares (CME) are listed on the NASDAQ and all prices are listed in US Dollars. CME Group employs 4,360 staff and has a trailing 12-month revenue of around USD$5.1 billion.
|52-week range||USD$131.8 - USD$225.36|
|50-day moving average||USD$170.08|
|200-day moving average||USD$173.4067|
|Wall St. target price||USD$178.26|
|Dividend yield||USD$3.4 (2.07%)|
|Earnings per share (TTM)||USD$6.63|
The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
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Valuing CME Group stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of CME Group's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
CME Group's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 24x. In other words, CME Group shares trade at around 24x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
CME Group's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.2673. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into CME Group's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
CME Group's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$3.4 billion.
The EBITDA is a measure of a CME Group's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||USD$5.1 billion|
|Operating margin TTM||57.25%|
|Gross profit TTM||USD$4.9 billion|
|Return on assets TTM||1.95%|
|Return on equity TTM||8.91%|
|Market capitalisation||USD$59.1 billion|
TTM: trailing 12 months
There are currently 5.6 million CME Group shares held short by investors – that's known as CME Group's "short interest". This figure is 9.9% down from 6.2 million last month.
There are a few different ways that this level of interest in shorting CME Group shares can be evaluated.
CME Group's "short interest ratio" (SIR) is the quantity of CME Group shares currently shorted divided by the average quantity of CME Group shares traded daily (recently around 1.5 million). CME Group's SIR currently stands at 3.77. In other words for every 100,000 CME Group shares traded daily on the market, roughly 3770 shares are currently held short.
However CME Group's short interest can also be evaluated against the total number of CME Group shares, or, against the total number of tradable CME Group shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case CME Group's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 CME Group shares in existence, roughly 20 shares are currently held short) or 0.0177% of the tradable shares (for every 100,000 tradable CME Group shares, roughly 18 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against CME Group.
Find out more about how you can short CME Group stock.
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like CME Group.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 18.6
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and CME Group's overall score of 18.6 (as at 08/01/2020) is excellent – landing it in it in the 14th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like CME Group is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 6.33/100
CME Group's environmental score of 6.33 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that CME Group is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 9.95/100
CME Group's social score of 9.95 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that CME Group is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 10.32/100
CME Group's governance score puts it squarely in the 5th percentile of companies rated in the same sector. That could suggest that CME Group is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
|Total ESG score||18.6|
|Total ESG percentile||14.3|
|Environmental score percentile||5|
|Social score percentile||5|
|Governance score percentile||5|
Dividend payout ratio: 48.27% of net profits
Recently CME Group has paid out, on average, around 48.27% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.07% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), CME Group shareholders could enjoy a 2.07% return on their shares, in the form of dividend payments. In CME Group's case, that would currently equate to about $3.4 per share.
While CME Group's payout ratio might seem fairly standard, it's worth remembering that CME Group may be investing much of the rest of its net profits in future growth.
CME Group's most recent dividend payout was on 25 September 2020. The latest dividend was paid out to all shareholders who bought their shares by 9 September 2020 (the "ex-dividend date").
CME Group's shares were split on a 5:1 basis on 23 July 2012. So if you had owned 1 share the day before before the split, the next day you'd have owned 5 shares. This wouldn't directly have changed the overall worth of your CME Group shares – just the quantity. However, indirectly, the new 80% lower share price could have impacted the market appetite for CME Group shares which in turn could have impacted CME Group's share price.
Over the last 12 months, CME Group's shares have ranged in value from as little as $131.8 up to $225.36. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while CME Group's is 0.32. This would suggest that CME Group's shares are less volatile than average (for this exchange).
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, equity indexes, foreign exchange, agricultural commodities, energy, and metals, as well as fixed income products through its electronic trading platforms, open outcry, and privately negotiated transactions. The company also provides clearing for exchange-traded contracts and cleared swaps, as well as settlement services; and transaction lifecycle management services, such as trade and portfolio management, financial resource optimization, regulatory reporting, and trade processing. 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 has strategic partnership with B3 S.A. to develop risk management products for Brazilian domestic and international market participants. 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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