GURUFOCUS.COM » STOCK LIST » USA » NAS » CME Group Inc (NAS:CME) » Definitions » Piotroski F-Score
Switch to:

CME Group Piotroski F-Score

: 4 (As of Today)
View and export this data going back to 2002. Start your Free Trial

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

CME Group has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for CME Group's Piotroski F-Score or its related term are showing as below:

CME' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 4

During the past 13 years, the highest Piotroski F-Score of CME Group was 9. The lowest was 3. And the median was 6.


CME Group Piotroski F-Score Historical Data

The historical data trend for CME Group's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CME Group Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 4.00 7.00 7.00 3.00

CME Group Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 3.00 3.00 5.00 4.00

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, CME Group's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

CME Group Piotroski F-Score Distribution

For the Capital Markets industry and Financial Services sector, CME Group's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where CME Group's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 926.5 + 625.2 + 711 + 662.5 = $2,925 Mil.
Cash Flow from Operations was 631.6 + 668.3 + 799.1 + 617.6 = $2,717 Mil.
Revenue was 1109.9 + 1147.3 + 1346.6 + 1237.2 = $4,841 Mil.
Gross Profit was 911.3 + 945.6 + 1161.4 + 1051.9 = $4,070 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(178699.1 + 186774.3 + 196780.3 + 205917.7 + 176671.3) / 5 = $188968.54 Mil.
Total Assets at the begining of this year (Jun21) was $178,699 Mil.
Long-Term Debt & Capital Lease Obligation was $3,437 Mil.
Total Current Assets was $141,451 Mil.
Total Current Liabilities was $139,000 Mil.
Net Income was 411.7 + 424 + 574.4 + 510.3 = $1,920 Mil.

Revenue was 1080.7 + 1098.5 + 1253.3 + 1179.2 = $4,612 Mil.
Gross Profit was 864.3 + 882.9 + 1028.3 + 967.5 = $3,743 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(117214.8 + 125758.8 + 124659.6 + 160652.1 + 178699.1) / 5 = $141396.88 Mil.
Total Assets at the begining of last year (Jun20) was $117,215 Mil.
Long-Term Debt & Capital Lease Obligation was $3,445 Mil.
Total Current Assets was $144,849 Mil.
Total Current Liabilities was $142,013 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

CME Group's current Net Income (TTM) was 2,925. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

CME Group's current Cash Flow from Operations (TTM) was 2,717. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=2925.2/178699.1
=0.01636942

ROA (Last Year)=Net Income/Total Assets (Jun20)
=1920.4/117214.8
=0.0163836

CME Group's return on assets of this year was 0.01636942. CME Group's return on assets of last year was 0.0163836. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

CME Group's current Net Income (TTM) was 2,925. CME Group's current Cash Flow from Operations (TTM) was 2,717. ==> 2,717 <= 2,925 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=3436.7/188968.54
=0.01818663

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=3444.6/141396.88
=0.02436122

CME Group's gearing of this year was 0.01818663. CME Group's gearing of last year was 0.02436122. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=141451/139000.1
=1.01763236

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=144849/142012.8
=1.01997144

CME Group's current ratio of this year was 1.01763236. CME Group's current ratio of last year was 1.01997144. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

CME Group's number of shares in issue this year was 359.205. CME Group's number of shares in issue last year was 358.888. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=4070.2/4841
=0.8407767

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3743/4611.7
=0.81163129

CME Group's gross margin of this year was 0.8407767. CME Group's gross margin of last year was 0.81163129. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=4841/178699.1
=0.02709023

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=4611.7/117214.8
=0.03934401

CME Group's asset turnover of this year was 0.02709023. CME Group's asset turnover of last year was 0.03934401. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+0+1+0+0+1+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

CME Group has an F-score of 4 indicating the company's financial situation is typical for a stable company.

CME Group  (NAS:CME) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


CME Group Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of CME Group's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


CME Group Business Description

CME Group logo
Address
20 South Wacker Drive, Chicago, IL, USA, 60606
Based in Chicago, CME Group operates exchanges giving investors, suppliers, and businesses the ability to trade futures and derivatives based on interest rates, equity indexes, foreign currencies, energy, metals, and commodities. The CME was founded in 1898 and in 2002 completed its initial public offering. Since then, CME Group has consolidated parts of the industry by merging with crosstown rival, CBOT Holdings in 2007 before acquiring Nymex Holdings in 2008 and NEX in 2018. In addition, the company has a 27% stake in S&P/Dow Jones Indices LLC, making the Chicago Mercantile Exchange the exclusive venue to trade and clear S&P futures contracts. Through CME's acquisition of NEX in 2018 it has also expanded into cash foreign exchange, fixed income trading, and collateral optimization.
Executives
Mccourt Timothy Francis officer: Sr MD Global Head Equity & FX 20 S WACKER DRIVE CHICAGO IL 60606
Fitzpatrick Lynne officer: Sr MD Deputy CFO 20 S WACKER DRIVE CHICAGO IL 60606
Sprague Suzanne officer: Sr MD Global Head of Clearing 20 SOUTH WACKER DRIVE 18S CHICAGO IL 60606
Dennis Michael G. director 20 S. WACKER DR. CHICAGO IL 60606
Maloney Patrick W director 20 S. WACKER DR. CHICAGO IL 60201
Mulchrone Patrick J director 20 S. WACKER DR. CHICAGO IL 60606
Seifu Rahael director 20 S. WACKER CHICAGO IL 60606
Harris Yra G director 20 S. WACKER DR CHICAGO IL 60606
Lockett Phyllis M director 20 S. WACKER DR. CHICAGO IL 60606
Tierney Robert J Jr director 20 S. WACKER DR. CHICAGO IL 60606
Kaye Daniel G director 1742 APPLEBY ROAD INVERNESS IL 60067
Spencer Michael A director 20 S. WACKER DR. CHICAGO IL 60606
Lucas Deborah J director C/O ANTHRACITE CAPITAL, INC. 40 EAST 52ND STREET NEW YORK NY 10022
Hertshten Gedon director 20 S. WACKER DR. CHICAGO IL 60606
Winkler Julie officer: Chief Commercial Officer 20 S. WACKER DR. CHICAGO IL 60606

CME Group Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)