CME Group (CME) AI Stock Analysis

• Market Cap: $101.28B
• Dividend Yield: 3.87%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.04
• 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: 2,441,176
• 30 Day Avg. Volume: 1,945,017
• 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: 0.97
• Enterprise Value/Revenue: 15.41
• Enterprise Value/Gross Profit: 17.89
• Enterprise Value/Ebitda: 18.42
• 1Y Price Target: $284.58
• Price Target Upside: 1.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $319.00 ▲(13.58% Upside)

CME Group's strong financial performance and strategic growth in market data and crypto trading are significant strengths. However, high valuation and potential overbought technical indicators pose risks. The earnings call revealed both resilience and challenges, with cost discipline and strategic focus providing a balanced outlook.

Positive Factors

Market Data Revenue Growth

The growth in market data revenue reflects strong demand for CME's data products, enhancing its revenue diversification and stability.

Crypto Trading Expansion

Significant growth in crypto trading positions CME as a leader in this emerging market, providing long-term growth opportunities.

Record Trading Volumes

Record trading volumes indicate strong market engagement and demand for CME's diverse product offerings, supporting future revenue growth.

Negative Factors

Revenue Decline

The decline in revenue suggests potential challenges in maintaining growth momentum, which could impact future profitability.

Energy Volumes Decline

Decreased energy volumes may indicate reduced demand in this segment, affecting CME's revenue from a key product area.

Regulatory Challenges

Regulatory challenges in new markets could hinder CME's ability to expand its product offerings, impacting future growth.

CME Group Business Overview & Revenue Model

Company Description

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 products. 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.

How the Company Makes Money

CME Group generates revenue through several key streams, primarily focusing on transaction fees and market data services. The company charges fees for trades executed on its platforms, which are driven by trading volumes across its diverse product offerings. Additionally, CME earns revenue from clearing services, where it processes and settles trades on behalf of its clients, providing essential risk management functions. The firm also offers market data products, which provide real-time and historical information to clients for a fee. Significant partnerships with financial institutions and technology providers enhance CME's trading capabilities and expand its market reach, contributing to its overall earnings. Furthermore, CME Group benefits from the increasing demand for risk management solutions and the global trend towards electronic trading, which supports its revenue growth.

CME Group Financial Statement Overview

Summary

CME Group demonstrates strong profitability and a solid balance sheet with low leverage. While cash flow metrics show some volatility, the company's overall financial health remains robust, supported by efficient operations and effective capital management.

Income Statement

CME Group shows strong profitability with a high gross profit margin of 86.1% and a net profit margin of 58.6% for TTM. Despite a slight revenue decline in the TTM period, historical revenue growth has been positive. EBIT and EBITDA margins are robust, indicating efficient operations.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.12, reflecting prudent financial leverage. Return on equity is healthy at 13.7%, showcasing effective use of equity capital. The equity ratio is stable, indicating a solid capital structure.

Cash Flow

CME Group's cash flow performance is mixed, with a decline in free cash flow growth in the TTM period. However, the free cash flow to net income ratio remains high at 98.2%, suggesting strong cash conversion. Operating cash flow coverage is low, indicating potential liquidity constraints.

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	4.08B	3.60B	3.38B	2.97B	2.28B	2.52B
Operating Cash Flow	4.16B	3.69B	3.45B	3.06B	2.40B	2.72B
Investing Cash Flow	-78.40M	-82.60M	20.90M	-489.80M	58.40M	-175.50M
Financing Cash Flow	45.63B	5.08B	-48.34B	-25.38B	69.91B	-2.46B

CME Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 280.87
• 50DMA: Positive
• 100DMA: Positive
• 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 280.87 is above the 20-day moving average (MA) of 274.67, above the 50-day MA of 269.79, and above the 200-day MA of 267.68, indicating a bullish trend. The MACD of 2.46 indicates Positive momentum. The RSI at 60.08 is Neutral, neither overbought nor oversold. The STOCH value of 47.57 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
CBOE	75 Outperform	$27.01B	27.71	21.51%	1.05%	16.74%	26.74%
CME	74 Outperform	$101.28B	27.23	13.35%	3.87%	5.84%	8.51%
NDAQ	73 Outperform	$51.38B	32.08	14.07%	1.17%	16.41%	68.03%
ICE	71 Outperform	$89.11B	28.45	11.32%	1.21%	8.96%	30.16%
TW	68 Neutral	$25.52B	36.86	10.51%	0.44%	22.17%	40.13%
COIN	68 Neutral	$71.45B	22.94	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.