CME Group (CME) AI Stock Analysis

• Market Cap: $96.59B
• Dividend Yield: 3.99%
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 26.0
• Beta (1Y): 0.03
• Revenue Growth: 5.84%
• EPS Growth: 8.51%
• Country: US
• Employees: 3,760
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 2.68
• Shares Outstanding: 360,596,650
• 10 Day Avg. Volume: 1,715,627
• 30 Day Avg. Volume: 1,824,249
• PEG Ratio: 2.56
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 13.61
• P/FCF Ratio: 23.21
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 15.41
• Enterprise Value/Gross Profit: 17.89
• Enterprise Value/Ebitda: 18.42
• 1Y Price Target: $283.17
• Price Target Upside: 4.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $301.00 ▲(10.90% Upside)

CME Group's overall stock score reflects strong financial performance and a solid dividend yield, offset by mixed technical indicators and challenges highlighted in the earnings call. The company's strategic focus on growth areas like crypto and market data provides resilience against revenue declines and regulatory challenges.

Positive Factors

Strong Profitability

High profit margins indicate efficient operations and strong pricing power, providing a solid foundation for long-term financial stability and growth.

Record Market Data Revenue

Increasing market data revenue demonstrates growing demand for CME's data services, enhancing its revenue diversification and resilience.

Expansion into New Markets

Expanding into new regions like the Middle East opens up additional revenue streams and strengthens CME's global market presence.

Negative Factors

Revenue Decline

A decline in revenue suggests potential challenges in maintaining growth momentum, which could impact future financial performance.

Energy Volumes Decline

Decreased energy volumes may indicate reduced demand in a key segment, potentially affecting transaction fees and overall revenue.

Regulatory Challenges

Regulatory hurdles in launching new products could delay revenue diversification efforts and limit growth opportunities in emerging markets.

CME Group Business Overview & Revenue Model

Company Description

CME Group Inc. is a global leader in derivatives and futures exchanges, headquartered in Chicago, Illinois. The company operates four major exchanges: the Chicago Mercantile Exchange, the Chicago Board of Trade, the New York Mercantile Exchange, and the Commodity Exchange. CME Group provides a diverse range of products across various asset classes, including agricultural commodities, energy, equity indexes, interest rates, foreign exchange, and metals. Through its electronic trading platform and clearing services, CME Group facilitates price discovery and risk management for market participants worldwide.

How the Company Makes Money

CME Group primarily generates revenue through transaction fees, which are charged to market participants for executing trades on its exchanges. The company earns income from various sources, including exchange fees, clearing fees, and market data services. Key revenue streams include trading volume across different asset classes, with higher volumes leading to increased transaction fees. Additionally, CME Group provides clearing services that offer risk management and settlement solutions, further contributing to its revenue. The company also benefits from partnerships and collaborations with financial institutions, proprietary trading firms, and other market participants, which help drive trading activity and enhance its service offerings. Overall, CME Group's business model is heavily reliant on the volume of trading activities and the associated fees collected from its users.

CME Group Financial Statement Overview

Summary

CME Group demonstrates strong profitability with high margins and steady revenue growth. The balance sheet is solid with low debt and strong return on equity. Cash flow is positive with room for improvement in cash generation efficiency.

Income Statement

CME Group demonstrates strong profitability with a high gross profit margin of 86.53% and a net profit margin of 58.28% in the TTM period. Revenue growth is steady at 2.54% TTM, indicating consistent performance. The EBIT and EBITDA margins are robust, reflecting efficient operations. Overall, the income statement shows a healthy financial position with consistent growth and strong profitability metrics.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.12, indicating prudent financial leverage. Return on equity is strong at 13.72%, showcasing effective use of equity to generate profits. The equity ratio is healthy, suggesting a stable financial structure. Overall, the balance sheet reflects financial stability and effective management of liabilities.

Cash Flow

CME Group's cash flow statement shows positive trends with a 7.36% growth in free cash flow TTM. The operating cash flow to net income ratio is modest, suggesting room for improvement in cash generation relative to net income. The free cash flow to net income ratio is nearly 1, indicating efficient conversion of income to cash. Overall, the cash flow statement reflects solid cash management with potential for further optimization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.40B	6.13B	5.58B	5.02B	4.69B	4.88B
Gross Profit	5.51B	5.28B	4.75B	4.27B	3.85B	4.03B
EBITDA	5.35B	5.04B	4.67B	4.02B	3.93B	3.35B
Net Income	3.75B	3.53B	3.23B	2.69B	2.64B	2.11B
Balance Sheet
Total Assets	187.14B	137.45B	129.71B	174.18B	196.78B	124.66B
Cash, Cash Equivalents and Short-Term Investments	2.58B	3.01B	3.02B	2.82B	2.95B	1.73B
Total Debt	3.42B	3.43B	3.43B	3.44B	3.45B	3.44B
Total Liabilities	158.95B	110.96B	102.97B	147.30B	169.38B	98.31B
Stockholders Equity	28.19B	26.49B	26.74B	26.88B	27.40B	26.32B
Cash Flow
Free Cash Flow	3.13B	3.60B	3.38B	2.97B	2.28B	2.52B
Operating Cash Flow	3.19B	3.69B	3.45B	3.06B	2.40B	2.72B
Investing Cash Flow	-59.30M	-82.60M	20.90M	-489.80M	58.40M	-175.50M
Financing Cash Flow	39.23B	5.08B	-48.34B	-25.38B	69.91B	-2.46B

CME Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 271.42
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CME, the sentiment is Positive. The current price of 271.42 is above the 20-day moving average (MA) of 267.36, above the 50-day MA of 265.44, and above the 200-day MA of 264.48, indicating a bullish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 52.44 is Neutral, neither overbought nor oversold. The STOCH value of 58.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CME.

CME Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CME	76 Outperform	$96.59B	25.96	13.35%	3.99%	5.84%	8.51%
CBOE	75 Outperform	$26.19B	26.87	21.51%	1.09%	16.74%	26.74%
NDAQ	73 Outperform	$48.85B	30.51	14.07%	1.17%	16.41%	68.03%
ICE	71 Outperform	$83.80B	26.76	11.32%	1.28%	8.96%	30.16%
TW	68 Neutral	$24.79B	35.81	10.51%	0.44%	22.17%	40.13%
COIN	68 Neutral	$82.87B	27.64	26.00%	―	47.86%	96.46%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

CME Group Corporate Events

CME Group Earnings Call: Mixed Sentiments and Future Outlook

CME Group Inc’s recent earnings call painted a picture of mixed sentiments. On the one hand, the company celebrated strong performances in average daily volume, open interest, and market data revenue. On the other hand, concerns were raised due to a decline in overall revenue and energy volumes, coupled with regulatory challenges in prediction markets.

CME Group Reports Strong Q3 2025 Performance

CME Group Inc., a leading derivatives marketplace, facilitates trading across various asset classes, including futures, options, and cryptocurrencies, providing risk management and market opportunities for global participants.