{"id":12536,"date":"2023-05-23T07:54:17","date_gmt":"2023-05-23T11:54:17","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/what-to-expect-from-cme-group-stock\/"},"modified":"2023-05-23T07:54:18","modified_gmt":"2023-05-23T11:54:18","slug":"what-to-expect-from-cme-group-stock","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=12536","title":{"rendered":"What To Expect From CME Group Stock?"},"content":{"rendered":"<div>\n<p>CME Group\u2019s stock (NYSE: CME) has gained 8% YTD, as compared to the 9% rise in the S&amp;P500 over the same period. Further, at its current price of $182 per share, it is trading 12% below its fair value of $208 \u2013 Trefis\u2019 estimate for <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/CME\/no-login-required\/LXN1bTZb\/CME-Group-CME-Valuation-Is-CME-Stock-Expensive-Or-Cheap-?fromforbesandarticle=trefis230523\">CME Group\u2019s valuation<\/strong><strong>. <\/strong>The company outperformed the consensus estimates in the first quarter of 2023, with total revenues increasing by 7% y-o-y to $1.4 billion. It was primarily driven by a 5% improvement in clearing &amp; transaction fees, followed by a 9% increase in market data &amp; information services revenues. Notably, the clearing &amp; transaction fees benefited from a 4% growth in the aggregate average daily volume, mainly driven by a 26% jump in the interest rates contracts. On the cost front, total expenses rose by 8% y-o-y, reducing the operating margin from 63.8% to 63.4%. However, the non-operating income increased from $57.2 million to $243.2 million, more than making up for higher expenses. Overall, the net income grew 24% y-o-y to $883.8 million.<\/p>\n<p>The company\u2019s top line grew 7% y-o-y to $5 billion in FY 2022, driven by a 10% improvement in clearing &amp; transaction fees and a 6% increase in market data &amp; information services revenues. The growth in clearing &amp; transaction fees was driven by higher trading activity \u2013 aggregate ADV was up 19% y-o-y. That said, the non-operating income decreased from $728.4 million to $474.4 million in the year. It resulted in a net income of $2.7 billion \u2013 up 2% y-o-y.<\/p>\n<p>Moving forward, we expect the higher trading volumes to continue in the subsequent quarters. Altogether, <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/CME\/no-login-required\/A2O0ZSYc\/CME-Group-Revenues-How-Does-CME-Make-Money-?fromforbesandarticle=trefis230523\">CME Group revenues<\/strong> are estimated to touch $5.36 billion in FY2023. Additionally, CME\u2019s adjusted net income margin is likely to be around $3.1 billion in the year. This coupled with an annual EPS of $8.55 and a P\/E multiple of just above 24x will lead to a valuation of $208.<\/p>\n<p>What if you\u2019re looking for a more balanced portfolio instead? Our <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/PORTFOLIOS\/no-login-required\/ixlFNWUX\/High-Quality-Portfolio-30-Stocks-with-134-Return-Since-2016-vs-70-for-S-P-500?fromforbesandarticle=trefis230523\">high-quality portfolio<\/strong> and <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/PORTFOLIOS\/no-login-required\/M7MacZNG\/Multi-Strategy-Portfolio-262-Return-Since-2016-vs-102-for-S-P-500?fromforbesandarticle=trefis230523\">multi-strategy portfolio<\/strong> have beaten the market consistently since the end of 2016.<\/p>\n<p><fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad><\/p>\n<p>Invest with <strong>Trefis <\/strong><strong data-ga-track=\"ExternalLink:https:\/\/dashboards.trefis.com\/data\/companies\/PORTFOLIOS\/no-login-required\/M7MacZNG?fromforbes\">Market Beating Portfolios<\/strong><\/p>\n<p>See all <strong>Trefis <\/strong><strong data-ga-track=\"ExternalLink:https:\/\/dashboards.trefis.com\/data\/price-estimates?fromforbes\">Price Estimates<\/strong><\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/greatspeculations\/2023\/05\/23\/what-to-expect-from-cme-group-stock\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>CME Group\u2019s stock (NYSE: CME) has gained 8% YTD, as compared to the 9% rise in the S&amp;P500 over the same period. Further, at its current price of $182 per share, it is trading 12% below its fair value of $208 \u2013 Trefis\u2019 estimate for CME Group\u2019s valuation. The company outperformed the consensus estimates in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12537,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-12536","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What To Expect From CME Group Stock? | iFintechWorld<\/title>\n<meta name=\"description\" content=\"CME Group\u2019s stock (NYSE: CME) has gained 8% YTD, as compared to the 9% rise in the S&amp;P500 over the same period. 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