📊 CME Key Takeaways
Is Cme Group Inc.. (CME) a Good Investment?
CME Group demonstrates exceptional profitability with a 69.7% operating margin and 62.1% net margin, coupled with strong free cash flow generation of $1.2B (65.9% FCF margin) and zero debt, indicating a financially fortress-like business. However, concerning trends emerge as net income growth (1.3% YoY) lags revenue growth (6.4% YoY), and ROE/ROA remain depressed at 4.4%/0.6% despite outstanding margins, suggesting capital efficiency challenges and potential margin compression risks.
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: 69.7% operating margin and 62.1% net margin demonstrate pricing power and cost discipline
- Strong free cash flow: $1.2B FCF with 65.9% margin and minimal $21.8M CapEx reveals cash generation excellence
- Zero leverage: Debt/Equity of 0.00x with no long-term debt provides financial flexibility and stability
- EPS growth outpacing revenue: 15.4% EPS growth vs 6.4% revenue growth indicates share buybacks and operational efficiency gains
- 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
- Deteriorating profitability growth: Net income growth of 1.3% YoY significantly underperforming revenue growth of 6.4% signals potential margin compression
- Poor capital returns: ROE of 4.4% and ROA of 0.6% despite 60%+ margins indicate inefficient deployment of the large $202B asset base
- Tight liquidity: Current and Quick ratios of 1.02x are uncomfortably tight; company relies heavily on continuous operating cash generation
- Low cash position: Only $2.4B cash against $175.4B liabilities creates refinancing risk if operating cash flow declines
- 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 trend and sustainability
- Net income growth acceleration vs. revenue growth
- Return on Equity and Return on Assets improvement
- Operating cash flow stability and conversion rates
- Free cash flow maintenance amid market conditions
- Revenue and net income growth rate
- Free cash flow margin
Cme Group Inc.. (CME) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 65.9% 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.. has mixed fundamental signals 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 |
|---|---|---|---|
| Q1 2026 | $1.6B | $956.2M | $2.62 |
| 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 |
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 (BUY) and ChatGPT (BUY) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CME's key strengths?
Claude: Exceptional profitability: 69.7% operating margin and 62.1% net margin demonstrate pricing power and cost discipline. Strong free cash flow: $1.2B FCF with 65.9% margin and minimal $21.8M CapEx reveals cash generation excellence. 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: Deteriorating profitability growth: Net income growth of 1.3% YoY significantly underperforming revenue growth of 6.4% signals potential margin compression. Poor capital returns: ROE of 4.4% and ROA of 0.6% despite 60%+ margins indicate inefficient deployment of the large $202B asset base. 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 $1.9B.
Does CME pay dividends?
Cme Group Inc.. pays dividends, with $2,697.6M 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 $3.18.
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 May 2026, Cme Group Inc.. has a BUY rating with 80% 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 4.4% (sector avg: 16%), net margin of 62.1% (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 $1.3B, with capital expenditures of $21.8M. FCF margin is 65.9%.
How does CME compare to other Services stocks?
Vs Services sector averages: Net margin 62.1% (avg: 10%), ROE 4.4% (avg: 16%), current ratio 1.02 (avg: 1.5).