Added to YB: 2026-04-29
Pitch date: 2026-04-26
CME [bullish]
CME Group Inc.
-0.69%
current return
Author Info
No bio for this author
Company Info
CME Group Inc., together with its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide.
Market Cap
$102.2B
Pitch Price
$286.50
Price Target
N/A
Dividend
4.03%
EV/EBITDA
19.86
P/E
24.06
EV/Sales
15.33
Sector
Capital Markets
Category
growth
CME: The House That Treasuries Built
CME: Largest derivatives exchange with near-monopoly in US Treasury futures (largest complex by ADV/rev). Structural tailwinds: federal debt doubled since 2019 driving hedging activity, micro contracts (MES/MNQ/micro Treasuries) expanding TAM without cannibalizing institutional flow, 12% market data segment compounding quietly at high margins. 70% op margin, ~100% FCF conversion, variable dividend returns all excess cash (4-5% yield in strong years). Moat: liquidity gravity + cross-margining offsets + basis trade ecosystem integration. Risk: FMX (dealer-backed competitor) gaining share. Not cheap at mid-20s P/E, but consensus under-modeling rate complex ADV trajectory. 10-12% rev growth + margin expansion + dividend = mid-teens total return base case.
Read full article (15 min)