CME Group, Inc. (CME) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Cboe Global Markets, Inc.

The Charles Schwab Corp.

Nasdaq, Inc.

Ameriprise Financial, Inc.

Intercontinental Exchange, Inc.

CME Group, Inc.

LPL Financial Holdings, Inc.

The Bank of New York Mellon Corp.

Morgan Stanley

State Street Corp.

The Goldman Sachs Group, Inc.

Why is CME Group, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.95% and Operating profit at 13.76%

The company has declared Positive results for the last 10 consecutive quarters

ROCE(HY) Highest at 14.63%
RAW MATERIAL COST(Y) Fallen by 1.01% (YoY)
CASH AND EQV(HY) Highest at USD 7,124.9 MM

With ROE of 14.06%, it has a fair valuation with a 3.92 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 15.32%, its profits have risen by 14.4% ; the PEG ratio of the company is 1.9

High Institutional Holdings at 91.57%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating performance in long term as well as near term

Along with generating 15.32% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CME Group, Inc. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is CME Group, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

CME Group, Inc.

15.32%

2.76

19.88%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.95%

EBIT Growth (5y)

13.76%

EBIT to Interest (avg)

23.69

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

22.38%

Dividend Payout Ratio

44.80%

Pledged Shares

Institutional Holding

91.57%

ROCE (avg)

15.09%

ROE (avg)

10.54%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.92

EV to EBIT

25.53

EV to EBITDA

23.68

EV to Capital Employed

4.47

EV to Sales

16.56

PEG Ratio

1.94

Dividend Yield

3.59%

ROCE (Latest)

17.49%

ROE (Latest)

14.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

ROCE(HY)

Highest at 14.63%

RAW MATERIAL COST(Y)

Fallen by 1.01% (YoY

CASH AND EQV(HY)

Highest at USD 7,124.9 MM

DEBT-EQUITY RATIO (HY)

Lowest at -3.92 %

DEBTORS TURNOVER RATIO(HY)

Highest at 10.76 times

PRE-TAX PROFIT(Q)

Highest at USD 1,578.4 MM

NET PROFIT(Q)

Highest at USD 1,168 MM

EPS(Q)

Highest at USD 3.24

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 3,143.2 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 38.58%

DIVIDEND PER SHARE(HY)

Lowest at USD 10.76

Here's what is working for CME Group, Inc.

Pre-Tax Profit

Highest at USD 1,578.4 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 1,168 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 3.24

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 7,124.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -3.92 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 10.76 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.01% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for CME Group, Inc.

Operating Cash Flow

Lowest at USD 3,143.2 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Dividend per share

Lowest at USD 10.76

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Dividend Payout Ratio

Lowest at 38.58%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income

Highest at USD 0.38 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income