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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Charles Schwab Corp.

Nasdaq, Inc.

Ameriprise Financial, Inc.

Cboe Global Markets, Inc.

Intercontinental Exchange, Inc.

The Goldman Sachs Group, Inc.

CME Group, Inc.

LPL Financial Holdings, Inc.

Morgan Stanley

The Bank of New York Mellon Corp.

State Street Corp.

Why is CME Group, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.71% and Operating profit at 9.64%

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

OPERATING CASH FLOW(Y) Highest at USD 4,196 MM
ROCE(HY) Highest at 13.62%
DIVIDEND PER SHARE(HY) Highest at USD 10.17

With ROE of 13.43%, it has a expensive valuation with a 3.66 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 20.76%, its profits have risen by 13.4% ; the PEG ratio of the company is 2.1
At the current price, the company has a high dividend yield of 337.2

High Institutional Holdings at 92.38%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.76% over the previous quarter.

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.

13.48%

2.10

18.80%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.71%

EBIT Growth (5y)

9.64%

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

107.52%

Pledged Shares

Institutional Holding

92.38%

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

3.66

EV to EBIT

23.85

EV to EBITDA

22.04

EV to Capital Employed

3.81

EV to Sales

15.48

PEG Ratio

2.06

Dividend Yield

337.18%

ROCE (Latest)

16.00%

ROE (Latest)

13.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 4,196 MM

ROCE(HY)

Highest at 13.62%

DIVIDEND PER SHARE(HY)

Highest at USD 10.17

RAW MATERIAL COST(Y)

Fallen by -0.65% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 10.17 times

NET SALES(Q)

Highest at USD 1,692 MM

PRE-TAX PROFIT(Q)

Highest at USD 1,330.3 MM

NET PROFIT(Q)

Highest at USD 1,017.9 MM

EPS(Q)

Highest at USD 2.81

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 44.5%

INTEREST(Q)

Highest at USD 44 MM

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

Operating Cash Flow

Highest at USD 4,196 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 10.17 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 1,692 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 1,330.3 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 1,017.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 2.81

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Highest at 10.17 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 -0.65% (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.

Dividend Payout Ratio

Lowest at 44.5% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Interest

Highest at USD 44 MM

in the last five periods and Increased by 5.52% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Non Operating Income

Highest at USD 0.18 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income