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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 8.36
CME's Cash to Debt is ranked higher than
58% of the 377 Companies
in the Global Financial Exchanges industry.

( Industry Median: 101.40 vs. CME: 8.36 )
CME' s 10-Year Cash to Debt Range
Min: 0.19   Max: 21748.63
Current: 8.36

0.19
21748.63
Equity to Asset 0.39
CME's Equity to Asset is ranked higher than
65% of the 367 Companies
in the Global Financial Exchanges industry.

( Industry Median: 0.37 vs. CME: 0.39 )
CME' s 10-Year Equity to Asset Range
Min: 0.09   Max: 0.72
Current: 0.39

0.09
0.72
Interest Coverage 12.80
CME's Interest Coverage is ranked higher than
65% of the 317 Companies
in the Global Financial Exchanges industry.

( Industry Median: 13.05 vs. CME: 12.80 )
CME' s 10-Year Interest Coverage Range
Min: 6.74   Max: 23.58
Current: 12.8

6.74
23.58
F-Score: 6
Z-Score: 0.68
M-Score: -2.83
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 58.05
CME's Operating margin (%) is ranked higher than
94% of the 387 Companies
in the Global Financial Exchanges industry.

( Industry Median: 17.69 vs. CME: 58.05 )
CME' s 10-Year Operating margin (%) Range
Min: -3.57   Max: 61.78
Current: 58.05

-3.57
61.78
Net-margin (%) 30.75
CME's Net-margin (%) is ranked higher than
85% of the 391 Companies
in the Global Financial Exchanges industry.

( Industry Median: 11.99 vs. CME: 30.75 )
CME' s 10-Year Net-margin (%) Range
Min: -2.61   Max: 55.24
Current: 30.75

-2.61
55.24
ROE (%) 4.18
CME's ROE (%) is ranked higher than
61% of the 388 Companies
in the Global Financial Exchanges industry.

( Industry Median: 5.64 vs. CME: 4.18 )
CME' s 10-Year ROE (%) Range
Min: -3.61   Max: 27.5
Current: 4.18

-3.61
27.5
ROA (%) 2.31
CME's ROA (%) is ranked higher than
75% of the 391 Companies
in the Global Financial Exchanges industry.

( Industry Median: 1.58 vs. CME: 2.31 )
CME' s 10-Year ROA (%) Range
Min: -1.55   Max: 9.46
Current: 2.31

-1.55
9.46
ROC (Joel Greenblatt) (%) 233.70
CME's ROC (Joel Greenblatt) (%) is ranked higher than
80% of the 376 Companies
in the Global Financial Exchanges industry.

( Industry Median: 107.26 vs. CME: 233.70 )
CME' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -6.8   Max: 367.9
Current: 233.7

-6.8
367.9
Revenue Growth (%) 3.80
CME's Revenue Growth (%) is ranked higher than
75% of the 295 Companies
in the Global Financial Exchanges industry.

( Industry Median: -1.20 vs. CME: 3.80 )
CME' s 10-Year Revenue Growth (%) Range
Min: 3.8   Max: 26.3
Current: 3.8

3.8
26.3
EBITDA Growth (%) 4.50
CME's EBITDA Growth (%) is ranked higher than
78% of the 255 Companies
in the Global Financial Exchanges industry.

( Industry Median: -4.10 vs. CME: 4.50 )
CME' s 10-Year EBITDA Growth (%) Range
Min: 1.2   Max: 106.3
Current: 4.5

1.2
106.3
EPS Growth (%) 2.90
CME's EPS Growth (%) is ranked higher than
74% of the 252 Companies
in the Global Financial Exchanges industry.

( Industry Median: 0.80 vs. CME: 2.90 )
CME' s 10-Year EPS Growth (%) Range
Min: -1.5   Max: 47.7
Current: 2.9

-1.5
47.7
» CME's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

CME Guru Trades in Q1 2013

Steve Mandel 3,541,560 sh (New)
PRIMECAP Management 829,700 sh (New)
John Hussman 3,400 sh (+78.95%)
Jeremy Grantham 79,110 sh (+6.46%)
Ron Baron 53,041 sh (+5.83%)
George Soros 30,000 sh (unchged)
Louis Moore Bacon 105,000 sh (unchged)
Steve Mandel 2,000,000 sh (unchged)
Mario Gabelli 21,250 sh (unchged)
Ray Dalio Sold Out
Diamond Hill Capital Sold Out
Chris Davis 1,507,810 sh (-0.3%)
Paul Tudor Jones 30,032 sh (-17.57%)
Steven Cohen 38,390 sh (-22.69%)
RS Investment Management 342,017 sh (-31.12%)
Murray Stahl 264,402 sh (-36.48%)
Joel Greenblatt 10,307 sh (-55.5%)
Jim Simons 434,495 sh (-66.5%)
» More
Q2 2013

CME Guru Trades in Q2 2013

Ray Dalio 29,611 sh (New)
Ron Baron 114,803 sh (+116.44%)
PRIMECAP Management 1,640,700 sh (+97.75%)
Paul Tudor Jones 56,532 sh (+88.24%)
Steve Mandel 3,899,076 sh (+10.09%)
Jeremy Grantham 79,510 sh (+0.51%)
Mario Gabelli 21,250 sh (unchged)
George Soros 30,000 sh (unchged)
Steve Mandel 2,000,000 sh (unchged)
Louis Moore Bacon 105,000 sh (unchged)
Joel Greenblatt Sold Out
Steven Cohen 33,381 sh (-13.05%)
RS Investment Management 270,617 sh (-20.88%)
John Hussman 2,400 sh (-29.41%)
Chris Davis 885,160 sh (-41.29%)
Murray Stahl 81,933 sh (-69.01%)
Jim Simons 30,000 sh (-93.1%)
» More
Q3 2013

CME Guru Trades in Q3 2013

Jim Simons 985,995 sh (+3186.65%)
PRIMECAP Management 2,509,350 sh (+52.94%)
Steve Mandel 5,623,300 sh (+44.22%)
Ray Dalio 38,080 sh (+28.6%)
Steven Cohen 38,151 sh (+14.29%)
Ron Baron 122,697 sh (+6.88%)
Mario Gabelli 21,250 sh (unchged)
Louis Moore Bacon 105,000 sh (unchged)
George Soros 30,000 sh (unchged)
Steve Mandel 2,000,000 sh (unchged)
John Hussman Sold Out
Chris Davis Sold Out
Murray Stahl 79,486 sh (-2.99%)
Jeremy Grantham 73,810 sh (-7.17%)
RS Investment Management 195,617 sh (-27.71%)
Paul Tudor Jones 37,132 sh (-34.32%)
» More
Q4 2013

CME Guru Trades in Q4 2013

Pioneer Investments 19,228 sh (New)
Paul Tudor Jones 367,198 sh (+888.9%)
Ray Dalio 74,868 sh (+96.61%)
Steven Cohen 44,791 sh (+17.4%)
PRIMECAP Management 2,550,050 sh (+1.62%)
Jeremy Grantham 74,910 sh (+1.49%)
George Soros 30,000 sh (unchged)
Louis Moore Bacon 105,000 sh (unchged)
Steve Mandel 2,000,000 sh (unchged)
Murray Stahl 79,055 sh (-0.54%)
Mario Gabelli 16,250 sh (-23.53%)
Steve Mandel 3,614,948 sh (-35.71%)
RS Investment Management 124,917 sh (-36.14%)
Ron Baron 59,197 sh (-51.75%)
Jim Simons 30,000 sh (-96.96%)
» More
» Details

Insider Trades

Latest Guru Trades with CME

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Steve Mandel 2013-12-31 Reduce -35.71%0.68%$72.04 - $84.64 $ 69.3-12%3614948
Ron Baron 2013-12-31 Reduce -51.75%0.02%$72.04 - $84.64 $ 69.3-12%59197
Ray Dalio 2013-12-31 Add 96.61%0.02%$72.04 - $84.64 $ 69.3-12%74868
Mario Gabelli 2013-12-31 Reduce -23.53%$72.04 - $84.64 $ 69.3-12%16250
Steve Mandel 2013-09-30 Add 44.22%0.58%$70.47 - $77.61 $ 69.3-6%5623300
PRIMECAP Management 2013-09-30 Add 52.94%0.08%$70.47 - $77.61 $ 69.3-6%2509350
Ray Dalio 2013-09-30 Add 28.6%0.01%$70.47 - $77.61 $ 69.3-6%38080
John Hussman 2013-09-30 Sold Out 0.01%$70.47 - $77.61 $ 69.3-6%0
Steve Mandel 2013-06-30 Add 10.09%0.13%$58.53 - $77.28 $ 69.36%3899076
PRIMECAP Management 2013-06-30 Add 97.75%0.09%$58.53 - $77.28 $ 69.36%1640700
Joel Greenblatt 2013-06-30 Sold Out 0.03%$58.53 - $77.28 $ 69.36%0
Ron Baron 2013-06-30 Add 116.44%0.02%$58.53 - $77.28 $ 69.36%114803
Ray Dalio 2013-06-30 New Buy0.02%$58.53 - $77.28 $ 69.36%29611
John Hussman 2013-06-30 Reduce -29.41%$58.53 - $77.28 $ 69.36%2400
Steve Mandel 2013-03-31 New Buy1.1%$50.67 - $63.14 $ 69.319%3541560
PRIMECAP Management 2013-03-31 New Buy0.08%$50.67 - $63.14 $ 69.319%829700
Joel Greenblatt 2013-03-31 Reduce -55.5%0.04%$50.67 - $63.14 $ 69.319%10307
Ray Dalio 2013-03-31 Sold Out 0.0047%$50.67 - $63.14 $ 69.319%0
John Hussman 2013-03-31 Add 78.95%$50.67 - $63.14 $ 69.319%3400
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on CME Group, Inc.

Baron Funds Comments on CME Group Inc. - Aug 09, 2013

We re-established an investment in CME Group, Inc. (CME) during the period. CME is the largest and most diversified derivatives marketplace in the U.S. Its exchanges support trading across a variety of asset classes, including interest rates, equity indexes, energy, agricultural commodities, foreign exchange and metals. We believe CME has the opportunity to significantly accelerate its growth rates due to the eventual normalization of interest rates and the attendant interest rate volatility. CME's interest rate trading volumes (ADV) have been depressed as a result of the Fed's zero interest rate policy and low interest rate volatility. For example, interest rate ADV was 4.8 million in 2012compared to 7.1 million in 2007, before the financial crisis. However, given the Fed's recent policy statements (discussed above), market participants are starting to anticipate an end to quantitative easing (QE). On May 30, CME experienced record volume for interest rate derivatives with ADV of 19.4 million. With the globalization of CME's business, a host of new products, and the regulatory requirement for interest rate swaps to be cleared on an exchange, we believe CME's interest rate volumes can surpass their prior peak, significantly driving earnings growth for the company.

From Baron Funds second quarter 2013 commentary.


Check out Ron Baron latest stock trades

Top Ranked Articles about CME Group, Inc.

Baron Funds Comments on CME Group Inc.
We re-established an investment in CME Group, Inc. (CME) during the period. CME is the largest and most diversified derivatives marketplace in the U.S. Its exchanges support trading across a variety of asset classes, including interest rates, equity indexes, energy, agricultural commodities, foreign exchange and metals. We believe CME has the opportunity to significantly accelerate its growth rates due to the eventual normalization of interest rates and the attendant interest rate volatility. CME's interest rate trading volumes (ADV) have been depressed as a result of the Fed's zero interest rate policy and low interest rate volatility. For example, interest rate ADV was 4.8 million in 2012compared to 7.1 million in 2007, before the financial crisis. However, given the Fed's recent policy statements (discussed above), market participants are starting to anticipate an end to quantitative easing (QE). On May 30, CME experienced record volume for interest rate derivatives with ADV of 19.4 million. With the globalization of CME's business, a host of new products, and the regulatory requirement for interest rate swaps to be cleared on an exchange, we believe CME's interest rate volumes can Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 23.70
CME's P/E(ttm) is ranked higher than
53% of the 322 Companies
in the Global Financial Exchanges industry.

( Industry Median: 20.50 vs. CME: 23.70 )
CME' s 10-Year P/E(ttm) Range
Min: 8.6   Max: 53.37
Current: 23.7

8.6
53.37
P/B 1.10
CME's P/B is ranked higher than
65% of the 355 Companies
in the Global Financial Exchanges industry.

( Industry Median: 1.36 vs. CME: 1.10 )
CME' s 10-Year P/B Range
Min: 0.6   Max: 14.35
Current: 1.1

0.6
14.35
P/S 7.88
CME's P/S is ranked lower than
70% of the 391 Companies
in the Global Financial Exchanges industry.

( Industry Median: 3.03 vs. CME: 7.88 )
CME' s 10-Year P/S Range
Min: 3.72   Max: 18.96
Current: 7.88

3.72
18.96
PFCF 20.03
CME's PFCF is ranked lower than
55% of the 207 Companies
in the Global Financial Exchanges industry.

( Industry Median: 12.01 vs. CME: 20.03 )
CME' s 10-Year PFCF Range
Min: 9.96   Max: 64.54
Current: 20.03

9.96
64.54
EV-to-EBIT 1.36
CME's EV-to-EBIT is ranked higher than
96% of the 293 Companies
in the Global Financial Exchanges industry.

( Industry Median: 15.95 vs. CME: 1.36 )
CME' s 10-Year EV-to-EBIT Range
Min: 0.9   Max: 37.4
Current: 1.36

0.9
37.4
PEG 4.31
CME's PEG is ranked lower than
54% of the 120 Companies
in the Global Financial Exchanges industry.

( Industry Median: 1.60 vs. CME: 4.31 )
CME' s 10-Year PEG Range
Min: 0.33   Max: 6.83
Current: 4.31

0.33
6.83
Shiller P/E 20.93
CME's Shiller P/E is ranked higher than
62% of the 196 Companies
in the Global Financial Exchanges industry.

( Industry Median: 18.20 vs. CME: 20.93 )
CME' s 10-Year Shiller P/E Range
Min: 14.44   Max: 83.58
Current: 20.93

14.44
83.58

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.60
CME's Dividend Yield is ranked higher than
58% of the 299 Companies
in the Global Financial Exchanges industry.

( Industry Median: 2.49 vs. CME: 2.60 )
CME' s 10-Year Dividend Yield Range
Min: 0.36   Max: 3.58
Current: 2.6

0.36
3.58
Dividend Payout 0.69
CME's Dividend Payout is ranked lower than
57% of the 263 Companies
in the Global Financial Exchanges industry.

( Industry Median: 0.44 vs. CME: 0.69 )
CME' s 10-Year Dividend Payout Range
Min: 0.12   Max: 1.24
Current: 0.69

0.12
1.24
Dividend growth (3y) 24.90
CME's Dividend growth (3y) is ranked higher than
92% of the 169 Companies
in the Global Financial Exchanges industry.

( Industry Median: 0.20 vs. CME: 24.90 )
CME' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 58.7
Current: 24.9

0
58.7
Yield on cost (5-Year) 7.11
CME's Yield on cost (5-Year) is ranked higher than
87% of the 305 Companies
in the Global Financial Exchanges industry.

( Industry Median: 2.55 vs. CME: 7.11 )
CME' s 10-Year Yield on cost (5-Year) Range
Min: 0.98   Max: 9.8
Current: 7.11

0.98
9.8

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 0.85
CME's Price/DCF (Projected) is ranked higher than
68% of the 203 Companies
in the Global Financial Exchanges industry.

( Industry Median: 0.91 vs. CME: 0.85 )
CME' s 10-Year Price/DCF (Projected) Range
Min: 0.59   Max: 5.74
Current: 0.85

0.59
5.74
Price/Median PS Value 1.02
CME's Price/Median PS Value is ranked higher than
62% of the 363 Companies
in the Global Financial Exchanges industry.

( Industry Median: 1.10 vs. CME: 1.02 )
CME' s 10-Year Price/Median PS Value Range
Min: 0.36   Max: 2.25
Current: 1.02

0.36
2.25
Earnings Yield (Greenblatt) 73.50
CME's Earnings Yield (Greenblatt) is ranked higher than
96% of the 338 Companies
in the Global Financial Exchanges industry.

( Industry Median: 6.30 vs. CME: 73.50 )
CME' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.7   Max: 115.2
Current: 73.5

2.7
115.2
Forward Rate of Return (Yacktman) 8.14
CME's Forward Rate of Return (Yacktman) is ranked higher than
78% of the 271 Companies
in the Global Financial Exchanges industry.

( Industry Median: 3.80 vs. CME: 8.14 )
CME' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 8.1   Max: 40.9
Current: 8.14

8.1
40.9

Business Description

Industry: Brokers & Exchanges » Financial Exchanges
Compare:DBOEY, ICE, SPXCF, NYX, NDAQ » details
Traded in other countries:MX4A.Germany
CME Group, Inc., was founded in 1898 as a not-for-profit corporation. The Company offers products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. Its products include exchange-traded and over-the-counter derivatives. It brings buyers and sellers together through its CME Globex electronic trading platform across the globe and its open outcry trading facilities in Chicago, New York City and Kansas City, and provides hosting, connectivity and customer support for electronic trading through co-location services. The Company's CME Direct technology offers side-by-side trading of exchange-listed and over-the-counter markets. It also provides clearing and settlement services for exchange-traded contracts, as well as for cleared over-the-counter derivatives transactions. Finally, it offers market data services including live quotes, delayed quotes, market reports and a comprehensive historical data service. The Company's customer base includes professional traders, financial institutions, institutional and individual investors, major corporations, manufacturers, producers and governments. Its customers can access CME Globex trading platform across the globe. Customers may be members of one or more of its CME, CBOT, NYMEX or COMEX exchanges or a permit holder at KCBT. The industry in which the Company operates is highly competitive and expects competition to continue to intensify, especially in light of the enactment of the Dodd-Frank Act. The Company's operation of futures exchanges is subject to extensive regulation by the CFTC under its principles-based approach which requires that its exchange subsidiaries satisfy the requirements of certain core principles relating to the operation and oversight of its markets and clearing house.

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