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CME Group

Nasdaq:CME
Snowflake Description

Excellent balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CME
Nasdaq
$65B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

CME Group Inc., through its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide. The last earnings update was 39 days ago. More info.


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CME Share Price and Events
7 Day Returns
5.5%
NasdaqGS:CME
0.8%
US Capital Markets
-2.6%
US Market
1 Year Returns
6.8%
NasdaqGS:CME
-11.7%
US Capital Markets
-13.3%
US Market
CME Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CME Group (CME) 5.5% -15.6% -11.5% 6.8% 55.8% 100%
US Capital Markets 0.8% -12.7% -23.1% -11.7% 4.6% 22.5%
US Market -2.6% -15.2% -22.2% -13.3% 5.7% 17.2%
1 Year Return vs Industry and Market
  • CME outperformed the Capital Markets industry which returned -11.7% over the past year.
  • CME outperformed the Market in United States of America which returned -13.3% over the past year.
Price Volatility
CME
Industry
5yr Volatility vs Market

Value

 Is CME Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CME Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CME Group.

NasdaqGS:CME Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 8 analysts.
= Stable Book Value * Return on Equity
= $63.57 * 11.3%
$7.21
Book Value of Equity per Share Weighted future Book Value estimates from 4 analysts. $63.57
Discount Rate (Cost of Equity) See below 6.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CME
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.744 (1 + (1- 21%) (6.73%))
0.855
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.855 * 5.44%)
6.39%

Discounted Cash Flow Calculation for NasdaqGS:CME using Excess Returns Model Model

The calculations below outline how an intrinsic value for CME Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:CME Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (11.3% – 6.39%) * $63.57)
$3.14
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $3.14 / (6.39% - 1.74%)
$67.62
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $63.57 + $67.62
$131.19
NasdaqGS:CME Discount to Share Price
Calculation Result
Value per share (USD) From above. $131.19
Current discount Discount to share price of $182.44
= -1 x ($182.44 - $131.19) / $131.19
-39.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of CME Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CME Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CME Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CME PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $5.93
NasdaqGS:CME Share Price ** NasdaqGS (2020-04-06) in USD $182.44
United States of America Capital Markets Industry PE Ratio Median Figure of 90 Publicly-Listed Capital Markets Companies 32.25x
United States of America Market PE Ratio Median Figure of 2,946 Publicly-Listed Companies 12.49x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CME Group.

NasdaqGS:CME PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CME Share Price ÷ EPS (both in USD)

= 182.44 ÷ 5.93

30.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CME Group is good value based on earnings compared to the US Capital Markets industry average.
  • CME Group is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does CME Group's expected growth come at a high price?
Raw Data
NasdaqGS:CME PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 30.79x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
8.3%per year
United States of America Capital Markets Industry PEG Ratio Median Figure of 36 Publicly-Listed Capital Markets Companies 1.87x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.89x

*Line of best fit is calculated by linear regression .

NasdaqGS:CME PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 30.79x ÷ 8.3%

3.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CME Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on CME Group's assets?
Raw Data
NasdaqGS:CME PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $73.09
NasdaqGS:CME Share Price * NasdaqGS (2020-04-06) in USD $182.44
United States of America Capital Markets Industry PB Ratio Median Figure of 189 Publicly-Listed Capital Markets Companies 8.83x
United States of America Market PB Ratio Median Figure of 5,158 Publicly-Listed Companies 1.22x
NasdaqGS:CME PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CME Share Price ÷ Book Value per Share (both in USD)

= 182.44 ÷ 73.09

2.5x

* Primary Listing of CME Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CME Group is good value based on assets compared to the US Capital Markets industry average.
X
Value checks
We assess CME Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. CME Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is CME Group expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CME Group expected to grow at an attractive rate?
  • CME Group's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • CME Group's earnings growth is positive but not above the United States of America market average.
  • CME Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CME Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CME Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 8.3%
NasdaqGS:CME Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 4.1%
United States of America Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 5.1%
United States of America Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 2.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CME Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CME Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 6,313 3,223 1
2023-12-31 6,014 3,003 1
2022-12-31 5,534 3,303 2,962 6
2021-12-31 5,336 3,170 2,655 18
2020-12-31 5,374 3,147 2,550 19
2020-04-07
NasdaqGS:CME Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 4,858 2,673 2,117
2019-09-30 4,959 2,464 2,033
2019-06-30 4,588 2,236 1,808
2019-03-31 4,376 2,285 1,860
2018-12-31 4,309 2,441 1,962
2018-09-30 3,973 2,391 4,516
2018-06-30 3,959 2,316 4,413
2018-03-31 3,824 2,057 4,262
2017-12-31 3,645 1,751 4,063
2017-09-30 3,658 1,801 1,498
2017-06-30 3,609 1,773 1,662
2017-03-31 3,590 1,732 1,566

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CME Group's earnings are expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).
  • CME Group's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CME Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from CME Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CME Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 8.80 8.80 8.80 1.00
2023-12-31 8.24 8.24 8.24 1.00
2022-12-31 7.99 8.68 7.36 4.00
2021-12-31 7.29 7.87 6.69 9.00
2020-12-31 7.10 7.82 6.73 8.00
2020-04-07
NasdaqGS:CME Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 5.93
2019-09-30 5.72
2019-06-30 5.15
2019-03-31 5.37
2018-12-31 5.73
2018-09-30 13.31
2018-06-30 13.01
2018-03-31 12.58
2017-12-31 12.00
2017-09-30 4.43
2017-06-30 4.91
2017-03-31 4.64

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • CME Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess CME Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CME Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has CME Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CME Group's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CME Group's year on year earnings growth rate has been positive over the past 5 years.
  • CME Group's 1-year earnings growth is less than its 5-year average (7.9% vs 18.3%)
  • CME Group's earnings growth has not exceeded the US Capital Markets industry average in the past year (7.9% vs 9.7%).
Earnings and Revenue History
CME Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CME Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CME Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 4,857.80 2,116.50 1,525.00
2019-09-30 4,958.90 2,032.50 1,574.50
2019-06-30 4,587.80 1,808.00 1,426.90
2019-03-31 4,376.40 1,860.30 1,291.90
2018-12-31 4,309.40 1,962.20 1,126.10
2018-09-30 3,972.80 4,515.90 977.00
2018-06-30 3,959.40 4,412.70 995.90
2018-03-31 3,824.40 4,262.40 992.70
2017-12-31 3,644.70 4,063.40 929.40
2017-09-30 3,657.60 1,497.60 1,014.10
2017-06-30 3,608.50 1,661.80 1,000.30
2017-03-31 3,590.30 1,566.10 1,007.60
2016-12-31 3,595.20 1,534.10 971.10
2016-09-30 3,496.10 1,452.40 984.30
2016-06-30 3,504.70 1,339.50 993.80
2016-03-31 3,418.30 1,284.40 986.10
2015-12-31 3,326.80 1,247.00 985.10
2015-09-30 3,354.10 1,261.80 997.90
2015-06-30 3,266.20 1,191.90 985.10
2015-03-31 3,177.80 1,190.70 989.90
2014-12-31 3,112.50 1,127.10 982.30
2014-09-30 2,958.40 1,013.70 964.30
2014-06-30 2,910.60 960.40 965.30
2014-03-31 2,990.00 1,007.80 941.40
2013-12-31 2,931.20 976.80 914.30
2013-09-30 2,905.10 950.50 877.00
2013-06-30 2,873.70 931.80 843.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • CME Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • CME Group used its assets more efficiently than the US Capital Markets industry average last year based on Return on Assets.
  • CME Group's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess CME Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CME Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is CME Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CME Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CME Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • CME Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of CME Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 10.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CME Group Company Filings, last reported 3 months ago.

NasdaqGS:CME Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 26,159.30 3,743.20 1,634.60
2019-09-30 26,813.30 3,873.30 1,290.20
2019-06-30 26,484.90 4,072.90 1,019.50
2019-03-31 26,186.50 4,292.00 1,079.80
2018-12-31 25,965.30 4,401.00 1,447.40
2018-09-30 23,295.70 3,419.60 1,489.10
2018-06-30 23,123.60 3,419.00 1,179.80
2018-03-31 22,772.80 2,233.50 875.00
2017-12-31 22,411.80 2,233.10 1,993.70
2017-09-30 20,863.90 2,232.60 1,719.10
2017-06-30 20,776.80 2,232.10 1,446.60
2017-03-31 20,554.20 2,231.60 1,374.90
2016-12-31 20,340.70 2,231.20 1,951.90
2016-09-30 21,264.90 2,230.70 1,503.80
2016-06-30 21,073.90 2,230.20 1,240.90
2016-03-31 20,841.40 2,229.80 1,225.20
2015-12-31 20,551.80 2,229.30 1,765.10
2015-09-30 21,376.80 2,241.20 1,506.70
2015-06-30 21,258.80 2,241.00 1,227.30
2015-03-31 21,095.50 2,851.90 1,773.60
2014-12-31 20,923.50 2,110.20 1,440.80
2014-09-30 21,537.10 2,107.70 1,160.70
2014-06-30 21,465.40 2,107.50 1,110.20
2014-03-31 21,310.10 2,107.40 1,125.90
2013-12-31 21,160.50 2,857.10 2,538.10
2013-09-30 21,977.90 2,856.70 2,130.00
2013-06-30 21,854.60 2,857.60 2,113.60
  • CME Group's level of debt (14.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (10.1% vs 14.3% today).
  • Debt is well covered by operating cash flow (71.4%, greater than 20% of total debt).
  • CME Group earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess CME Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CME Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is CME Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.23%
Current annual income from CME Group dividends. Estimated to be 3.47% next year.
If you bought $2,000 of CME Group shares you are expected to receive $65 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • CME Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (2.01%).
  • CME Group's dividend is below the markets top 25% of dividend payers in United States of America (5.66%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CME Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
United States of America Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 44 Stocks 2.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1935 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CME Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 7.38 5.00
2021-12-31 6.65 14.00
2020-12-31 5.63 14.00
2020-04-07
NasdaqGS:CME Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-05 5.900 3.140
2019-11-06 5.500 2.677
2019-08-07 4.750 2.255
2019-05-07 4.750 2.425
2019-02-06 4.750 2.743
2018-11-07 4.550 2.450
2018-08-08 6.300 3.606
2018-05-08 6.300 3.822
2018-02-07 6.300 3.883
2017-11-08 6.140 4.115
2017-08-02 5.890 4.479
2017-05-23 5.890 4.813
2017-02-08 5.890 4.925
2016-11-09 5.650 4.811
2016-08-03 5.300 5.040
2016-02-03 5.300 5.571
2015-11-11 4.900 5.342
2015-11-06 4.000 4.107
2015-10-29 4.000 4.167
2015-05-19 4.000 4.244
2015-02-04 4.000 4.259
2014-11-05 3.880 4.455
2014-08-06 4.480 5.708
2014-05-20 4.480 6.233
2014-02-06 4.480 6.172
2013-11-05 4.400 5.623
2013-08-07 1.800 2.443
2013-05-23 1.800 2.451
2013-01-30 1.800 2.977
2012-11-07 1.800 3.339
2012-08-08 1.800 3.209
2012-05-24 1.784 3.373
2012-02-02 1.784 3.210
2011-12-07 1.120 2.327
2011-08-03 1.120 2.177
2011-06-09 1.120 1.972
2011-02-23 1.120 1.894
2010-11-03 0.920 1.500
2010-08-13 0.920 1.742
2010-05-06 0.920 1.572
2010-02-04 0.920 1.488
2009-11-10 0.920 1.427
2009-08-06 0.920 1.574
2009-05-14 0.920 1.554

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of CME Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess CME Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CME Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CME Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of CME Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Terry Duffy
COMPENSATION $11,867,214
AGE 61
TENURE AS CEO 3.4 years
CEO Bio

Mr. Terrence A. Duffy, also known as Terry, has been Chief Executive Officer and Chairman at CME Group Inc since November 15, 2016. Mr. Duffy is the Chief Executive Officer at New York Mercantile Exchange, Inc. Mr. Duffy was the President of TDA Trading Inc. since 1981 until 2002. He served as President at CME Group Inc. from May 2012 to November 15, 2016. He served as an Executive Chairman for Board of Trade of the City of Chicago, Inc. Mr. Duffy was appointed by President Bush to serve on a National Saver Summit on Retirement Savings in 2002. He has been Executive Chairman of CME Group, Inc. since October 2006. He serves as the Chairman at Chicago Mercantile Exchange Inc. He served as the Chairman of CME Group Inc., from April 2002 to 2006. He served as Vice Chairman of CME Holdings' Board from its formation on August 2, 2001 to April 2002. He is a Vice Chairman of the CME Group Foundation He has been Director of CME Holdings for more than 22 years. He is the Chairman of New York Mercantile Exchange, Inc. Since October 2006, he has been a Director of FXMarketSpace Limited, a joint venture between CME and Reuters. He serves as Director of World Business Chicago, the Board of Regents for Mercy Home for Boys and Girls, the Board of Trustees of Saint Xavier University, the Board of Directors of the Illinois Agricultural Leadership Foundation. He serves as a Director of CME Holdings since its formation on August 2, 2001. He has been Member of Competitive Advisory Council of CME Group Inc. since January 2016. He served CME's Board from 1998 until April 2002. He serves as a Co-Chair of the Mayo Clinic Greater Chicago Leadership Council. Mr. Duffy has been a member of board of directors at CME Group Inc. since 1995. He served as Director CME Group Inc.'s subsidiary CME since 1995. He serves as member of the Economic Club of Chicago, the Executives' Club of Chicago and the President's Circle of the Chicago Council on Foreign Relations. He has been appointed by President Bush to the Federal Retirement Thrift Investment Board (FRTIB) until 2013. He was recognized as one of the top 100 Irish Business Leaders by Irish America Magazine in 2003, 2004, and 2005. He attended the University of Wisconsin-Whitewater. In 2007, he received a Doctor of Humane Letters from the DePaul University.

CEO Compensation
  • Terry's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Terry's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the CME Group management team in years:

5.6
Average Tenure
54.5
Average Age
  • The average tenure for the CME Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Terry Duffy

TITLE
Chairman & CEO
COMPENSATION
$12M
AGE
61
TENURE
3.4 yrs

Bryan Durkin

TITLE
Director & Special Advisor
COMPENSATION
$6M
AGE
59
TENURE
3.4 yrs

John Pietrowicz

TITLE
Chief Financial Officer
COMPENSATION
$3M
AGE
55
TENURE
5.3 yrs

Julie Holzrichter

TITLE
Senior MD & COO
COMPENSATION
$3M
AGE
50
TENURE
5.6 yrs

Kevin Kometer

TITLE
Senior MD & Chief Information Officer
COMPENSATION
$3M
AGE
54
TENURE
11.8 yrs

Jack Tobin

TITLE
MD & Chief Accounting Officer
AGE
55
TENURE
5.2 yrs

John Peschier

TITLE
Managing Director of Investor Relations
AGE
51

Kathleen Cronin

TITLE
Senior MD
AGE
56
TENURE
17.4 yrs

Anita Liskey

TITLE
Senior Managing Director of Corporate Marketing & Communications
AGE
54
TENURE
13.2 yrs

Hilda Piell

TITLE
Senior MD & Chief Human Resources Officer
AGE
51
TENURE
12.7 yrs
Board of Directors Tenure

Average tenure and age of the CME Group board of directors in years:

18
Average Tenure
68
Average Age
  • The average tenure for the CME Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Bryan Durkin

TITLE
Director & Special Advisor
COMPENSATION
$6M
AGE
59

Dan Glickman

TITLE
Independent Director
COMPENSATION
$279K
AGE
74
TENURE
18.7 yrs

Terry Duffy

TITLE
Chairman & CEO
COMPENSATION
$12M
AGE
61
TENURE
18 yrs

Dennis Chookaszian

TITLE
Independent Director
COMPENSATION
$258K
AGE
75
TENURE
16 yrs

Larry Gerdes

TITLE
Lead Director
COMPENSATION
$274K
AGE
70
TENURE
2.7 yrs

Tim Bitsberger

TITLE
Independent Director
COMPENSATION
$253K
AGE
59
TENURE
11.9 yrs

Dennis Suskind

TITLE
Independent Director
COMPENSATION
$285K
AGE
76
TENURE
11.7 yrs

Martin Gepsman

TITLE
Independent Director
COMPENSATION
$240K
AGE
66
TENURE
26.3 yrs

William Shepard

TITLE
Independent Director
COMPENSATION
$233K
AGE
72
TENURE
23.3 yrs

Howard Siegel

TITLE
Independent Director
COMPENSATION
$247K
AGE
62
TENURE
20.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
28. Feb 20 Sell Ronald Pankau Individual 06. Jun 19 06. Jun 19 -200 $200.36 $-40,072
07. Jan 20 Sell Martin Gepsman Individual 03. Jan 20 03. Jan 20 -1,000 $201.16 $-201,160
16. Dec 19 Sell Kathleen Cronin Individual 13. Dec 19 13. Dec 19 -3,371 $204.12 $-688,089
13. Dec 19 Sell Terrence Duffy Individual 12. Dec 19 12. Dec 19 -39,309 $202.38 $-7,955,355
15. Nov 19 Sell Ronald Pankau Individual 07. Nov 19 07. Nov 19 -300 $199.02 $-59,706
10. Sep 19 Sell Sean Tully Individual 06. Sep 19 06. Sep 19 -7,200 $223.13 $-1,606,536
28. Aug 19 Sell Daniel Glickman Individual 28. Aug 19 28. Aug 19 -500 $216.01 $-108,005
12. Aug 19 Sell Dennis Suskind Individual 09. Aug 19 09. Aug 19 -1,500 $212.46 $-318,690
08. Aug 19 Sell Sunil Cutinho Individual 06. Aug 19 06. Aug 19 -1,990 $202.38 $-402,736
05. Aug 19 Sell Howard Siegel Individual 02. Aug 19 02. Aug 19 -5,000 $205.00 $-1,025,000
05. Aug 19 Sell Terrence Duffy Individual 01. Aug 19 01. Aug 19 -35,000 $200.15 $-7,005,250
13. Jun 19 Sell Derek Sammann Individual 12. Jun 19 12. Jun 19 -6,400 $198.83 $-1,272,512
13. Jun 19 Sell Julie Winkler Individual 12. Jun 19 12. Jun 19 -2,097 $198.10 $-415,137
12. Jun 19 Sell Elizabeth Cook Individual 10. Jun 19 10. Jun 19 -300 $204.27 $-61,281
10. Jun 19 Sell Martin Gepsman Individual 06. Jun 19 06. Jun 19 -2,500 $201.21 $-503,025
07. Jun 19 Sell Elizabeth Cook Individual 05. Jun 19 05. Jun 19 -500 $199.06 $-99,503
04. Jun 19 Sell Timothy Bitsberger Individual 04. Jun 19 04. Jun 19 -700 $194.35 $-136,045
09. May 19 Sell Henning and Carey Trading Co. Company 07. May 19 08. May 19 -10,000 $179.29 $-1,790,220
09. May 19 Sell Martin Gepsman Individual 07. May 19 07. May 19 -2,000 $178.07 $-356,140
X
Management checks
We assess CME Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CME Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

CME Group Inc. (NASDAQ:CME) Passed Our Checks, And It's About To Pay A 0.3% Dividend

CME Group's next dividend payment will be US$0.75 per share, on the back of last year when the company paid a total of US$4.75 to shareholders. … Last year's total dividend payments show that CME Group has a trailing yield of 2.2% on the current share price of $217.76. … See what the 15 analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow We wouldn't recommend just buying the first dividend stock you see, though.

Simply Wall St -

The CME Group (NASDAQ:CME) Share Price Has Gained 187%, So Why Not Pay It Some Attention?

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. … A Different Perspective It's nice to see that CME Group shareholders have received a total shareholder return of 26% over the last year.

Simply Wall St -

Read This Before Buying CME Group Inc. (NASDAQ:CME) For Its Dividend

CME Group has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see CME Group has grown its earnings per share at 12% per annum over the past five years. … Unfortunately, the company has not been able to generate earnings per share growth, and cut its dividend at least once in the past.

Simply Wall St -

Chairman & CEO Terrence Duffy Just Sold A Bunch Of Shares In CME Group Inc. (NASDAQ:CME)

Check out our latest analysis for CME Group CME Group Insider Transactions Over The Last Year In fact, the recent sale by Terrence Duffy was the biggest sale of CME Group shares made by an insider individual in the last twelve months, according to our records. … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. … NasdaqGS:CME Recent Insider Trading, August 8th 2019 Insider Ownership of CME Group For a common shareholder, it is worth checking how many shares are held by company insiders.

Simply Wall St -

Have Insiders Been Selling CME Group Inc. (NASDAQ:CME) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for CME Group CME Group Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the Senior MD and Global Head of Financial & OTC Products, Sean Tully, sold US$2.6m worth of shares at a price of US$192 per share. … Over the last year, we note insiders sold 77536 shares worth US$14m. … NasdaqGS:CME Recent Insider Trading, July 15th 2019 Insiders at CME Group Have Sold Stock Recently The last quarter saw substantial insider selling of CME Group shares.

Simply Wall St -

How Do Analysts See CME Group Inc. (NASDAQ:CME) Performing In The Year Ahead?

(NASDAQ:CME) released its earnings in March 2019, analyst forecasts seem fairly subdued, as a 17% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 28%. … Currently with trailing-twelve-month earnings of US$2.0b, we can expect this to reach US$2.3b by 2020. … NasdaqGS:CME Past and Future Earnings, July 4th 2019 This results in an annual growth rate of 11% based on the most recent earnings level of US$2.0b to the final forecast of US$2.9b by 2022.

Simply Wall St -

How Much Did CME Group Inc.'s (NASDAQ:CME) CEO Pocket Last Year?

First, this article will compare CEO compensation with compensation at other large companies. … See our latest analysis for CME Group How Does Terry Duffy's Compensation Compare With Similar Sized Companies? … We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m.

Simply Wall St -

If You Had Bought CME Group (NASDAQ:CME) Stock Five Years Ago, You Could Pocket A 165% Gain Today

During five years of share price growth, CME Group achieved compound earnings per share (EPS) growth of 12% per year. … This EPS growth is slower than the share price growth of 21% per year, over the same period. … When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return.

Simply Wall St -

Is CME Group Inc. (NASDAQ:CME) A Great Dividend Stock?

A dividend paying company with growing earnings can be rewarding in the long term. … Unfortunately, one common occurrence with dividend companies is for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. … NasdaqGS:CME Historical Dividend Yield, May 3rd 2019

Simply Wall St -

What Does CME Group Inc.'s (NASDAQ:CME) P/E Ratio Tell You?

We'll apply a basic P/E ratio analysis to CME Group Inc.'s (NASDAQ:CME), to help you decide if the stock is worth further research. … How Do I Calculate CME Group's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

CME Group Inc., through its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide. It offers a range of products across various asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, and metals, as well as fixed income products. The company executes trade through its electronic trading platforms, open outcry, and privately negotiated transactions; and provides clearing for exchange-traded contracts and cleared swaps, as well as settlement services. It also offers transaction lifecycle management services, such as trade and portfolio management, financial resource optimization, analytics, and regulatory reporting. In addition, the company provides 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.

Details
Name: CME Group Inc.
CME
Exchange: NasdaqGS
Founded: 1898
$65,401,017,311
358,479,595
Website: http://www.cmegroup.com
Address: CME Group Inc.
20 South Wacker Drive,
Chicago,
Illinois, 60606,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CME Class A Common Stock Nasdaq Global Select US USD 06. Dec 2002
DB MX4A Class A Common Stock Deutsche Boerse AG DE EUR 06. Dec 2002
LSE 0HR2 Class A Common Stock London Stock Exchange GB USD 06. Dec 2002
BRSE MX4A Class A Common Stock Berne Stock Exchange CH CHF 06. Dec 2002
WBAG CMEG Class A Common Stock Wiener Boerse AG AT EUR 06. Dec 2002
BMV CME * Class A Common Stock Bolsa Mexicana de Valores MX MXN 06. Dec 2002
BOVESPA CHME34 BDR EA REP 0.25 COM USD0.01 CLASS A Bolsa de Valores de Sao Paulo BR BRL 20. May 2019
Number of employees
Current staff
Staff numbers
4,360
CME Group employees.
Industry
Financial Exchanges and Data
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 07:01
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/04/06
Last earnings filing: 2020/02/28
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.