Is CME Stock a Good Investment?
CME Investment Advice | CME |
- Examine CME's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research CME's leadership team and their track record. Good management can help CME navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Financial Exchanges & Data space and any emerging trends that could impact CME's business and its evolving consumer preferences.
- Compare CME's performance and market position to its competitors. Analyze how CME is positioned in terms of product offerings, innovation, and market share.
- Check if CME pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about CME's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in CME Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if CME Group is a good investment.
Sell | Buy |
Buy
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Not Available | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine CME Stock
Researching CME's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 90.0% of the company shares are held by institutions such as insurance companies. The book value of CME was currently reported as 73.66. The company recorded earning per share (EPS) of 9.68. CME Group last dividend was issued on the 7th of March 2025. The entity had 5:1 split on the 23rd of July 2012.
To determine if CME is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding CME's research are outlined below:
| Over 90.0% of the company shares are held by institutions such as insurance companies | |
| On 16th of January 2025 CME paid $ 5.8 per share dividend to its current shareholders |
CME uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in CME Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to CME's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 14th of February 2024 Upcoming Quarterly Report | View | |
| 24th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 14th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
CME's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 89.28 B.CME's profitablity analysis
The company has Net Profit Margin of 0.58 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.62 %, which entails that for every 100 dollars of revenue, it generated $0.62 of operating income.Determining CME's profitability involves analyzing its financial statements and using various financial metrics to determine if CME is a good buy. For example, gross profit margin measures CME's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of CME's profitability and make more informed investment decisions.
Please note, the presentation of CME's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, CME's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of CME's management manipulating its earnings.
Basic technical analysis of CME Stock
As of the 25th of February, CME shows the Downside Deviation of 1.25, risk adjusted performance of 0.1034, and Mean Deviation of 0.7996. CME Group technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm CME Group downside deviation, treynor ratio, expected short fall, as well as the relationship between the variance and potential upside to decide if CME Group is priced adequately, providing market reflects its regular price of 247.75 per share. Given that CME has jensen alpha of 0.1387, we suggest you to validate CME Group's prevailing market performance to make sure the company can sustain itself in the future.CME's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific CME insiders, such as employees or executives, is commonly permitted as long as it does not rely on CME's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases CME insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Mccourt Timothy Francis over a month ago Disposition of tradable shares by Mccourt Timothy Francis of CME at 206.775 subject to Rule 16b-3 | ||
Mccourt Timothy Francis over six months ago Disposition of tradable shares by Mccourt Timothy Francis of CME at 217.5 subject to Rule 16b-3 | ||
Julie Winkler over a year ago Acquisition by Julie Winkler of 3808 shares of CME subject to Rule 16b-3 | ||
Julie Winkler over a year ago Payment of 1513 shares by Julie Winkler of CME subject to Rule 16b-3 |
CME's Outstanding Corporate Bonds
CME issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. CME Group uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most CME bonds can be classified according to their maturity, which is the date when CME Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| CME GROUP INC Corp BondUS12572QAF28 | View | |
| CME GROUP INC Corp BondUS12572QAH83 | View | |
| CME GROUP INC Corp BondUS12572QAG01 | View | |
| CME GROUP INC Corp BondUS12572QAJ40 | View | |
| CME 265 15 MAR 32 Corp BondUS12572QAK13 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand CME's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing CME's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1034 | |||
| Market Risk Adjusted Performance | 0.8804 | |||
| Mean Deviation | 0.7996 | |||
| Semi Deviation | 1.06 | |||
| Downside Deviation | 1.25 | |||
| Coefficient Of Variation | 733.81 | |||
| Standard Deviation | 1.1 | |||
| Variance | 1.2 | |||
| Information Ratio | 0.1226 | |||
| Jensen Alpha | 0.1387 | |||
| Total Risk Alpha | 0.1321 | |||
| Sortino Ratio | 0.1073 | |||
| Treynor Ratio | 0.8704 | |||
| Maximum Drawdown | 5.05 | |||
| Value At Risk | (2.04) | |||
| Potential Upside | 1.94 | |||
| Downside Variance | 1.57 | |||
| Semi Variance | 1.12 | |||
| Expected Short fall | (0.80) | |||
| Skewness | (0.45) | |||
| Kurtosis | 1.07 |
| Risk Adjusted Performance | 0.1034 | |||
| Market Risk Adjusted Performance | 0.8804 | |||
| Mean Deviation | 0.7996 | |||
| Semi Deviation | 1.06 | |||
| Downside Deviation | 1.25 | |||
| Coefficient Of Variation | 733.81 | |||
| Standard Deviation | 1.1 | |||
| Variance | 1.2 | |||
| Information Ratio | 0.1226 | |||
| Jensen Alpha | 0.1387 | |||
| Total Risk Alpha | 0.1321 | |||
| Sortino Ratio | 0.1073 | |||
| Treynor Ratio | 0.8704 | |||
| Maximum Drawdown | 5.05 | |||
| Value At Risk | (2.04) | |||
| Potential Upside | 1.94 | |||
| Downside Variance | 1.57 | |||
| Semi Variance | 1.12 | |||
| Expected Short fall | (0.80) | |||
| Skewness | (0.45) | |||
| Kurtosis | 1.07 |
Consider CME's intraday indicators
CME intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of CME stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
CME time-series forecasting models is one of many CME's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary CME's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
CME Stock media impact
Far too much social signal, news, headlines, and media speculation about CME that are available to investors today. That information is available publicly through CME media outlets and privately through word of mouth or via CME internal channels. However, regardless of the origin, that massive amount of CME data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of CME news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of CME relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to CME's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive CME alpha.
CME Corporate Directors
| Hilda Piell | Chief Human Resource Officer, Senior Managing Director | Profile | |
| Jack Tobin | Chief Accounting Officer, Managing Director | Profile | |
| Derek Sammann | Senior Managing Director - Financial Products and Services | Profile | |
| Julie Winkler | Senior Managing Director - Research and Product Development | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CME Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Is Financial Exchanges & Data space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CME. If investors know CME will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CME listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of CME Group is measured differently than its book value, which is the value of CME that is recorded on the company's balance sheet. Investors also form their own opinion of CME's value that differs from its market value or its book value, called intrinsic value, which is CME's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CME's market value can be influenced by many factors that don't directly affect CME's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between CME's value and its price, as these two are different measures arrived at by various means. Investors typically determine if CME is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CME's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.