CME GROUP INC. (CME) Stock Analysis
CME GROUP INC. (CME) Stock Analysis
Analysis from 10-Q filed 2025-10-24. Data as of Q4 2025.
Overall Grade: F (Concerning)
CME GROUP INC. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 64.3% | Strong cash generation |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 64.3% provides financial flexibility for growth and shareholder returns.
Explore CME GROUP INC.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: CME GROUP INC. earns N/A ROIC
CME GROUP INC.'s trailing-twelve-month ROIC of N/A (sector median: 9.2%). Source: 10-Q filed 2025-10-24.
| Metric | CME | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 9.2% |
| Return on Equity (ROE) | 14.5% | Adequate | Moderate equity returns |
Cash Flow: CME GROUP INC. generates $4.2B FCF at 64.3% margin, positive NaN/8 quarters
CME GROUP INC. generated $4.2B in free cash flow (TTM), a 64.3% FCF margin, a margin that ranks Top 5% in Financials. Operating cash flow exceeds net income by 1.1x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-24.
| Metric | CME | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 64.3% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $4.2B | Good | Positive cash generation |
| OCF/Net Income | 1.1x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: CME GROUP INC. at 0.0x leverage
CME GROUP INC.'s debt-to-equity ratio of 0.0x reflects conservative leverage. Source: 10-Q filed 2025-10-24.
| Metric | CME | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: CME GROUP INC. trades at 24.4x earnings
CME GROUP INC. trades at a P/E of 24.4x. Free cash flow yield of 4.3% reflects market expectations for growth.
| Metric | CME | Rating | Context |
|---|---|---|---|
| P/E Ratio | 24.4x | Adequate | Premium valuation |
| EV/Sales | -6.1x | Excellent | Attractive revenue multiple |
| FCF Yield | 4.3% | Good | Lower cash yield |
| Dividend Yield | 4.0% | Good | Meaningful income |
Capital Allocation: CME GROUP INC. returns 4.0% shareholder yield
CME GROUP INC.'s total shareholder yield is 4.0% (dividends 4.0% + buybacks). Source: 10-Q filed 2025-10-24.
| Metric | CME | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 4.0% | Good | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $3.9B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 64.3% | Top 5% | 3.0x above |
| Return on Equity (ROE) | 14.5% | Top 50% | 1.4x above |
| P/E Ratio | 24.4x | N/A | - |
Financial Scorecard
| Metric | CME | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 64.3% | Excellent | Top 5% of sector (median: 21.1%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 24.4x | Adequate | Fair value |
| Free Cash Flow Yield | 4.3% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is CME GROUP INC.'s Return on Invested Capital (ROIC)?
CME GROUP INC. (CME) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 9.2%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is CME GROUP INC.'s Free Cash Flow Margin?
CME GROUP INC. (CME) has a free cash flow margin of 64.3%, generating $4.2 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is CME GROUP INC. stock overvalued or undervalued?
CME GROUP INC. (CME) trades at a P/E ratio of 24.4x, which is above the sector median of N/A. The EV/Sales multiple is -6.1x. Free cash flow yield is 4.3%, which is in line with market averages.
Q: Does CME GROUP INC. pay a dividend?
CME GROUP INC. (CME) currently pays a dividend yield of 4.0%. Including share buybacks, the total shareholder yield is 4.0%. A yield above 4% is attractive for income investors, though sustainability should be verified through payout ratio analysis.
Q: What is CME GROUP INC.'s revenue and earnings growth?
CME GROUP INC. (CME) grew revenue by 6.4% year-over-year. Earnings per share increased by 15.4% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: How does CME GROUP INC. compare to competitors in Financials?
Compared to other companies in Financials, CME GROUP INC. (CME) shows: ROIC of N/A is below the sector median of 9.2% (NaNx median). FCF margin of 64.3% exceeds the sector median of 21.1% (Top 0% of sector). These rankings are based on MetricDuck's analysis of all Financials companies with available SEC filings.
Q: What warning signs should I watch for with CME GROUP INC.?
CME GROUP INC. (CME) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-24. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.