CME Group Inc. (Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, The Commodity Exchange) is an American global markets company. It is the world's largest financial derivatives exchange, and trades in asset classes that include agricultural products, currencies, energy, interest rates, metals, stock indexes and cryptocurrencies futures.
| Revenue (TTM) | $6.96B |
| Gross Profit (TTM) | $6.96B |
| EBITDA | $4.94B |
| Operating Margin | 65.80% |
| Return on Equity | 16.10% |
| Return on Assets | 1.52% |
| Revenue/Share (TTM) | $19.35 |
| Book Value | $74.31 |
| Price-to-Book | 4.14 |
| Price-to-Sales (TTM) | 15.74 |
| EV/Revenue | 15.93 |
| EV/EBITDA | 17.69 |
| Quarterly Earnings Growth (YoY) | 16.10% |
| Quarterly Revenue Growth (YoY) | 13.00% |
| Shares Outstanding | $357.93M |
| Float | $353.02M |
| % Insiders | 0.44% |
| % Institutions | 91.68% |
Volatility is currently expanding
CME Group dominates the global derivatives market with industry-leading net margins. Nu is rapidly scaling its digital banking platform across Latin America with high revenue growth.
The Commodity Futures Trading Commission (CFTC), which regulates futures markets in the U.S., has recently approved stock perpetual futures. This means that contracts based on individual stocks can now begin trading for the first time on CFTC-registered exchanges.
CME Group operates a dominant global derivatives marketplace with high net margins. Interactive Brokers Group provides automated trading access to over 175 global markets.
Trading activity remains strong across equity, futures, options, and commodities markets. Trading isn't all that most exchanges do in order to generate revenue, however.
CME (CME) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
CME Group dominates the global derivatives market with industry-leading net margins. Mastercard leverages a massive payments network to capture the ongoing shift toward digital transactions.
Parnassus Value Equity Fund (Investor Shares) returned -1.38% (net of fees) for the quarter, underperforming the Russell 1000 Value Index's 2.61%. Top contributors include Thermo Fisher, CME Group, NICE, Willis Towers Watson and Verizon. Bottom contributors include Cummins, Applied Materials, Brookfield Renewable, Home Depot and AstraZeneca.
CME currently leads Coinbase Global in revenue, as it maintains a consistent performance across recent periods while the latter company navigates a prolonged downward trend. Over roughly the last eight quarters, CME displayed mostly stable quarter-over-quarter results with a slight upward trajectory.
CME Group delivers strong revenue and profit growth, but valuation remains elevated, justifying my continued 'hold' rating. Q3 revenue rose 13% to $1.74B, with broad-based volume gains across all product lines, despite a slight decline in average rate per contract. Adjusted net profit margin stands at 62.4%, and net debt is minimal relative to CME's $106B+ market cap, underscoring a low risk profile.
Average daily volume reached 29.4 million contracts in the third quarter. CME Group provided clients an average $100 billion daily margin savings.
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