📊 CME Key Takeaways
Is Cme Group Inc.. (CME) a Good Investment?
CME Group demonstrates exceptional financial health with industry-leading profitability metrics (62.5% net margin, 64.9% operating margin) and strong cash generation (4.2B free cash flow, 64.3% FCF margin). The company's capital-light business model, zero debt-to-equity ratio, and consistent revenue growth (+6.4% YoY) position it as a high-quality financial infrastructure provider with substantial competitive moats.
CME Group shows exceptional fundamental quality, with very high operating and net margins, strong free cash flow generation, and a conservatively structured balance sheet with no meaningful debt burden. Growth is moderate rather than explosive, but the combination of resilient profitability, cash conversion, and financial stability supports a favorable long-term fundamental view.
Why Buy Cme Group Inc.. Stock? CME Key Strengths
- Exceptional profitability with 62.5% net margin and 64.9% operating margin indicating pricing power and operational excellence
- Fortress balance sheet with zero leverage (0.00x debt/equity) and 4.4B in cash providing financial flexibility
- High-quality cash generation with 4.2B free cash flow (64.3% FCF margin) supporting capital allocation flexibility
- Strong revenue growth (+6.4% YoY) with net income growth of 1.3% YoY despite margin compression, showing resilience
- Capital-efficient business model with minimal capex (83.5M) relative to operating cash flow (4.3B)
- Exceptional profitability with 64.9% operating margin and 62.5% net margin
- Very strong cash generation, with $4.19B of free cash flow and 64.3% FCF margin
- Solid financial health supported by $4.42B cash, 1.03x liquidity ratios, and effectively no leverage
CME Stock Risks: Cme Group Inc.. Investment Risks
- Tight current ratio (1.03x) suggests limited short-term liquidity cushion despite strong cash generation
- Net income growth (1.3% YoY) lags revenue growth (6.4% YoY), indicating potential margin compression or operational headwinds
- High leverage of long-term assets (198.4B total assets vs 28.7B equity) concentrated in derivative clearing operations creates systemic risk exposure
- ROA of only 2.1% despite high profitability suggests significant asset base may not be generating proportional returns
- Heavily regulated industry subject to regulatory changes affecting clearing operations and market structure
- Revenue and net income growth are relatively modest, which may limit upside from fundamentals alone
- Low ROA of 2.1% reflects a very large asset base and may indicate limited asset efficiency on reported balances
- Balance sheet size and liability structure can be complex for exchange businesses, so changes in clearing-related obligations should be monitored closely
Key Metrics to Watch
- Operating margin sustainability (current 64.9%)
- Free cash flow generation and capital allocation decisions
- Revenue growth rates by business segment (derivatives clearing vs listed products)
- Regulatory changes impacting clearing house operations
- Current ratio improvement to strengthen liquidity position
- Revenue and net income growth rate
- Free cash flow margin
Cme Group Inc.. (CME) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 64.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
CME Profit Margin, ROE & Profitability Analysis
CME vs Services Sector: How Cme Group Inc.. Compares
How Cme Group Inc.. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Cme Group Inc.. Stock Overvalued? CME Valuation Analysis 2026
Based on fundamental analysis, Cme Group Inc.. appears fundamentally strong relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Cme Group Inc.. Balance Sheet: CME Debt, Cash & Liquidity
CME Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Cme Group Inc..'s revenue has grown significantly by 34% over the 5-year period, indicating strong business expansion. The most recent EPS of $8.86 reflects profitable operations.
CME Revenue Growth, EPS Growth & YoY Performance
CME Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.5B | $908.0M | $2.49 |
| Q2 2025 | $1.5B | $883.2M | $2.42 |
| Q1 2025 | $1.5B | $855.2M | $2.35 |
| Q3 2024 | $1.3B | $750.2M | $2.06 |
| Q2 2024 | $1.4B | $777.6M | $2.14 |
| Q1 2024 | $1.4B | $855.2M | $2.35 |
| Q3 2023 | $1.2B | $679.6M | $1.87 |
| Q2 2023 | $1.2B | $662.5M | $1.82 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Cme Group Inc.. Dividends, Buybacks & Capital Allocation
CME SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Cme Group Inc.. (CIK: 0001156375)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CME
What is the AI rating for CME?
Cme Group Inc.. (CME) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CME's key strengths?
Claude: Exceptional profitability with 62.5% net margin and 64.9% operating margin indicating pricing power and operational excellence. Fortress balance sheet with zero leverage (0.00x debt/equity) and 4.4B in cash providing financial flexibility. ChatGPT: Exceptional profitability with 64.9% operating margin and 62.5% net margin. Very strong cash generation, with $4.19B of free cash flow and 64.3% FCF margin.
What are the risks of investing in CME?
Claude: Tight current ratio (1.03x) suggests limited short-term liquidity cushion despite strong cash generation. Net income growth (1.3% YoY) lags revenue growth (6.4% YoY), indicating potential margin compression or operational headwinds. ChatGPT: Revenue and net income growth are relatively modest, which may limit upside from fundamentals alone. Low ROA of 2.1% reflects a very large asset base and may indicate limited asset efficiency on reported balances.
What is CME's revenue and growth?
Cme Group Inc.. reported revenue of $6.5B.
Does CME pay dividends?
Cme Group Inc.. pays dividends, with $3,933.0M distributed to shareholders in the trailing twelve months.
Where can I find CME SEC filings?
Official SEC filings for Cme Group Inc.. (CIK: 0001156375) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CME's EPS?
Cme Group Inc.. has a diluted EPS of $11.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CME a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Cme Group Inc.. has a BUY rating with 86% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CME stock overvalued or undervalued?
Valuation metrics for CME: ROE of 14.2% (sector avg: 16%), net margin of 62.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy CME stock in 2026?
Our dual AI analysis gives Cme Group Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CME's free cash flow?
Cme Group Inc..'s operating cash flow is $4.3B, with capital expenditures of $83.5M. FCF margin is 64.3%.
How does CME compare to other Services stocks?
Vs Services sector averages: Net margin 62.5% (avg: 10%), ROE 14.2% (avg: 16%), current ratio 1.03 (avg: 1.5).