CME Group Reports Q2 Earnings: How Did Key Metrics Stack Up?

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CME ($NASDAQ:CME) Group is a leading global financial market firm providing the widest range of products and services across global markets. It facilitates the trading of futures and options on stock indexes, commodities, interest rates, energies, currencies, and other financial instruments. Furthermore, CME Group saw an increase in average daily volume (ADV) in its derivatives markets.

Overall, CME Group’s Q2 results indicate that the company is on an upward trajectory compared to the previous quarter. Its total revenues and adjusted EBITDA increased year-over-year, and its ADV and RPC also experienced positive growth.

Earnings

CME Group, one of the world’s leading derivatives exchanges, reported second quarter earnings ending June 30 2021. The report showed total revenue of 1179.2M USD and net income of 510.3M USD. Compared to the previous year, this marks a 4.7% decrease in total revenue and a 23.0% decrease in net income. Although this marks a decline from last year, CME Group has seen an overall increase in total revenue over the last three years, rising from 1179.2M USD to 1360.2M USD.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Cme Group. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Cme Group. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Cme Group. More…

Key Ratios Snapshot

Some of the financial key ratios for Cme Group are shown below. More…

Stock Price

On Thursday, CME Group reported its Q2 earnings and their stock opened at $199.8 and closed at $198.7. Overall, CME Group reported solid results for Q2, with strong growth in key metrics. Live Quote…

Analysis

GoodWhale conducted an analysis of CME GROUP‘s wellbeing and found that the company is strong in dividend and profitability, and medium in asset and growth. According to our Star Chart, CME GROUP was given a health score of 8/10, indicating that the company has a good cashflow and debt level that allows it to survive a crisis without going bankrupt. We determined that CME GROUP is a ‘cow’, meaning that it has a track record of paying out consistent and sustainable dividends. Given its reliable income and potential for growth, CME GROUP would likely appeal to long-term investors looking for a safe investment. Additionally, it may also appeal to income-seeking investors looking for consistent dividend payouts. More…

Peers

CME Group Inc is a Chicago-based financial markets company. It is the largest futures exchange in the world by trading volume and average daily volume, and operates the largest options exchange. CME Group also owns and operates the New York Mercantile Exchange, the Chicago Board of Trade, the Chicago Stock Exchange, and the Dow Jones-UBS Commodity Index. CME Group competes with TMX Group Ltd, MarketAxess Holdings Inc, Global Brokerage Inc, and other financial markets companies.

– TMX Group Ltd ($TSX:X)

TMX Group Ltd is a Canadian financial services company that operates exchanges for multiple asset classes including equities, fixed income, derivatives, and energy. The company also provides clearing and settlement services for financial instruments. TMX Group Ltd has a market cap of 7.19B as of 2022 and a Return on Equity of 13.93%. The company’s main exchanges are the Toronto Stock Exchange, the TSX Venture Exchange, the Montreal Exchange, and the NGX Exchange.

– MarketAxess Holdings Inc ($NASDAQ:MKTX)

As of 2022, MarketAxess Holdings Inc has a market cap of 8.79B and a Return on Equity of 20.2%. The company operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments.

– Global Brokerage Inc ($OTCPK:GLBR)

Global Brokerage Inc is a financial services company that offers online brokerages and related services to customers around the world. The company has a market capitalization of $137,000 as of 2022 and a return on equity of -19.36%. Global Brokerage Inc provides its customers with access to a variety of financial markets, including equities, options, futures, and foreign exchange. The company offers its services through a variety of online platforms and mobile apps.

Summary

All in all, CME Group proved to be a reliable and profitable investment opportunity for investors.