0.10%
1.69%
4.79%
21.91%
14.73%
2.90%
8.77%
AI Spotlight on CME
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.
Market Data
| Last Price | 236.16 |
| Change Percentage | 0.10% |
| Open | 235.28 |
| Previous Close | 235.92 |
| Market Cap ( Millions) | 85102 |
| Volume | 439602 |
| Year High | 249.02 |
| Year Low | 190.7 |
| M A 50 | 233.65 |
| M A 200 | 216.17 |
Financial Ratios
| FCF Yield | 4.26% |
| Dividend Yield | 4.40% |
| ROE | 12.51% |
| Debt / Equity | 12.15% |
| Net Debt / EBIDTA | 25.23% |
| Price To Book | 3.01 |
| Price Earnings Ratio | 24.73 |
| Price To FCF | 23.46 |
| Price To sales | 14.08 |
| EV / EBITDA | 19.68 |
News
- Jan -30 - CME Group to Launch Micro-Sized Grains and Oilseed Futures on February 24
- Jan -29 - CME Group to Launch Options on Bitcoin Friday Futures
- Jan -29 - CME Group Futures to Launch on Robinhood, Bringing New Trading Opportunities to Retail Investors
- Jan -19 - 5 Top Cyclical Stocks to Buy Now
- Jan -13 - CME Group International Average Daily Volume Reaches Record 7.8 Million Contracts in 2024, Up 14% from 2023
- Jan -09 - 100% Payout Cash Flow Kings - 2 Of My Favorite High-Yield Stocks
- Jan -08 - CME Group to Launch Hard Red Spring Wheat Futures and Options
- Jan -07 - CME Group Stock Trades Above 50-Day SMA: What Should You Do Now?
- Jan -06 - CME Group Inc. Announces Fourth-Quarter and Year-End 2024 Earnings Release, Conference Call
- Jan -03 - CME Group Reports Record Annual ADV of 26.5 Million Contracts in 2024, Driven by Growth Across All Six Asset Classes
- Jan -02 - 4 Top Dividend Stocks to Buy in January
- Dec -30 - CME Group Announces Trading Hours for U.S. National Day of Mourning to Honor Former President Jimmy Carter
- Dec -30 - CME Group: Exchanges And Data Will Keep Growing, And So Could Its Dividend
- Dec -29 - Hold Tight: What Every Dividend Investor Needs To Know Now
- Dec -15 - Inflation-Proof Profits: My Favorite Dividend Stocks For Any Market
- Dec -13 - Trade Tracker: Kevin Simpson buys RTX and more CME Group
- Dec -12 - Dividend Dynasty: My Blueprint For Market-Beating Returns
- Dec -12 - Zacks Industry Outlook Intercontinental Exchange, CME Group, Nasdaq, Cboe Global Markets and MarketAxess
- Dec -11 - 4 Stocks Planning to Return Capital With Hefty Buyback Programs
- Dec -10 - CME Group Announces 2025 Annual Meeting Date
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Clearing and Transaction
Expected Growth : 4.5 %
What the company do ?
CME Group's Clearing and Transaction services enable secure, efficient, and reliable trade processing, settlement, and risk management for market participants.
Why we expect these perspectives ?
CME Group's 4.5% growth in Clearing and Transaction is driven by increasing trading volumes, particularly in Interest Rate and Equity Index products. Strong demand for risk management solutions, expansion of emerging market offerings, and growth in OTC clearing also contribute to this growth. Additionally, the company's investments in technology and strategic partnerships have improved operational efficiency and enhanced customer experience.
Segment nΒ°2 -> Market Data and Information
Expected Growth : 4.8 %
What the company do ?
Market Data and Information from CME Group Inc. provides real-time and historical data on futures, options, and commodities, empowering traders and investors to make informed decisions.
Why we expect these perspectives ?
CME Group Inc.'s 4.8% growth is driven by increasing demand for risk management solutions, expansion of its derivatives market, and growth in its non-transactional revenue streams, such as market data and information services, indexing, and optimization services.
Segment nΒ°3 -> Other
Expected Growth : 3.8 %
What the company do ?
The 'Other' segment from CME Group Inc. includes revenue from non-exchange related activities, such as indices, market data, and optimization services.
Why we expect these perspectives ?
CME Group Inc.'s 3.8% growth in 'Other' segment is driven by increasing demand for its post-trade services, growth in its optimization businesses, and expansion of its S&P Dow Jones Indices franchise. Additionally, the company's investments in emerging markets and its efforts to develop new products and services are contributing to its growth.
Cme Group Inc. Products
| Product Range | What is it ? |
|---|---|
| Futures | A futures contract is a standardized agreement to buy or sell an asset at a predetermined price on a specific date. |
| Options | An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price. |
| Swaps | A swap is a derivative in which two parties agree to exchange a series of cash flows over time based on underlying assets or indices. |
| FX Products | FX products allow customers to trade currencies and manage foreign exchange risk. |
| Equity Index Products | Equity index products allow customers to trade on the performance of a particular stock market index. |
| Agricultural Products | Agricultural products allow customers to trade on the price of agricultural commodities such as corn, soybeans, and wheat. |
| Energy Products | Energy products allow customers to trade on the price of energy commodities such as crude oil, natural gas, and electricity. |
| Metal Products | Metal products allow customers to trade on the price of metals such as gold, silver, and copper. |
| Interest Rate Products | Interest rate products allow customers to trade on the direction of interest rates. |
CME Group Inc.'s Porter Forces
Threat Of Substitutes
CME Group Inc. operates in a highly regulated industry, and the threat of substitutes is moderate. While there are some alternative exchanges and trading platforms, CME's strong brand and established customer base mitigate the threat of substitutes.
Bargaining Power Of Customers
CME Group Inc. has a diverse customer base, including institutional investors, hedge funds, and individual traders. While customers have some bargaining power, CME's strong brand and market position limit their ability to negotiate prices.
Bargaining Power Of Suppliers
CME Group Inc. has a strong market position and is not heavily dependent on a single supplier. The company's suppliers have limited bargaining power, and CME is able to negotiate favorable terms.
Threat Of New Entrants
The threat of new entrants in the exchange industry is low due to high barriers to entry, including regulatory hurdles and significant capital requirements. CME Group Inc. has a strong market position and is well-positioned to defend its market share.
Intensity Of Rivalry
The exchange industry is highly competitive, with several established players competing for market share. CME Group Inc. faces intense rivalry from other exchanges, including the Intercontinental Exchange (ICE) and the NASDAQ OMX Group.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 11.52% |
| Debt Cost | 5.28% |
| Equity Weight | 88.48% |
| Equity Cost | 6.39% |
| WACC | 6.26% |
| Leverage | 13.02% |
CME Group Inc. : Quality Control
CME Group Inc. passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| MSCI | MSCI Inc., together with its subsidiaries, provides investment decision support tools for the clients to manage their investment processes worldwide. It operates through four segments: Index, Analytics, ESG and Climate, β¦ |
| NDAQ | Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide. The Market Technology segment includes anti financial crime technology business, which offers Nasdaq Trade Surveillance, β¦ |
| ICE | Intercontinental Exchange, Inc., together with its subsidiaries, operates regulated exchanges, clearing houses, and listings venues for commodity, financial, fixed income, and equity markets in the United States, the United Kingdom, β¦ |
| SPGI | S&P Global Inc., together with its subsidiaries, provides credit ratings, benchmarks, analytics, and workflow solutions in the global capital, commodity, and automotive markets. It operates in six divisions: S&P Global β¦ |
| TFC | Truist Financial Corporation, a holding company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and β¦ |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
π₯
Truist
A-Score
1-Year Total Return ->
π₯
CME Group
A-Score
1-Year Total Return ->
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Nasdaq
A-Score
1-Year Total Return ->
4
MSCI
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5
ICE
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1-Year Total Return ->
6
