CME Price to Sales Ratio vs Net Income Analysis

CME Stock  USD 215.60  2.72  1.28%   
CME financial indicator trend analysis is way more than just evaluating CME Group prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether CME Group is a good investment. Please check the relationship between CME Price To Sales Ratio and its Net Income accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CME Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.

Price To Sales Ratio vs Net Income

Price to Sales Ratio vs Net Income Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of CME Group Price to Sales Ratio account and Net Income. At this time, the significance of the direction appears to have fragmental relationship.
The correlation between CME's Price to Sales Ratio and Net Income is 0.56. Overlapping area represents the amount of variation of Price to Sales Ratio that can explain the historical movement of Net Income in the same time period over historical financial statements of CME Group, assuming nothing else is changed. The correlation between historical values of CME's Price to Sales Ratio and Net Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Price to Sales Ratio of CME Group are associated (or correlated) with its Net Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Net Income has no effect on the direction of Price to Sales Ratio i.e., CME's Price to Sales Ratio and Net Income go up and down completely randomly.

Correlation Coefficient

0.56
Relationship DirectionPositive 
Relationship StrengthWeak

Price To Sales Ratio

Price to Sales Ratio is figured by comparing CME Group stock price to its revenues. An advantage to using Price to Sales ratio is that it is based on CME sales, a figure that is much harder to manipulate than other CME Group multiples. Because sales tend to be more stable P/S ratio can be a good tool for screening cyclical companies fluctuating earnings patterns. A valuation ratio that compares a company’s stock price to its revenues, calculated by dividing the company’s market cap by its total sales or revenue over a 12-month period.

Net Income

Net income is one of the most important fundamental items in finance. It plays a large role in CME Group financial statement analysis. It represents the amount of money remaining after all of CME Group operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.
Most indicators from CME's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into CME Group current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CME Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
The current year's Selling General Administrative is expected to grow to about 265.9 M, whereas Tax Provision is forecasted to decline to about 536.7 M.
 2021 2022 2023 2024 (projected)
Gross Profit3.9B4.3B4.5B2.5B
Total Revenue4.7B5.0B5.6B3.0B

CME fundamental ratios Correlations

0.580.990.990.63-0.060.150.080.580.580.80.55-0.24-0.240.60.020.540.630.550.34-0.290.631.00.350.990.52
0.580.490.490.90.260.510.710.870.790.560.890.020.050.950.030.440.70.810.76-0.110.890.520.320.490.76
0.990.491.00.52-0.120.05-0.010.480.520.750.44-0.28-0.280.5-0.030.510.550.430.21-0.280.521.00.291.00.44
0.990.491.00.52-0.120.04-0.010.490.530.750.44-0.3-0.270.51-0.030.50.550.430.21-0.270.521.00.291.00.44
0.630.90.520.520.260.640.50.940.610.60.990.130.080.90.220.330.680.970.890.01.00.560.290.520.78
-0.060.26-0.12-0.120.260.33-0.040.19-0.040.350.30.230.880.120.28-0.010.130.320.390.040.26-0.10.12-0.120.15
0.150.510.050.040.640.330.340.630.180.30.670.430.330.470.650.270.220.690.72-0.190.630.080.590.050.24
0.080.71-0.01-0.010.5-0.040.340.580.62-0.090.520.19-0.070.720.00.20.280.40.470.070.470.020.12-0.010.31
0.580.870.480.490.940.190.630.580.610.470.910.180.10.860.290.260.520.860.750.070.90.520.250.490.62
0.580.790.520.530.61-0.040.180.620.610.410.57-0.49-0.210.8-0.050.450.480.460.4-0.170.60.550.230.530.5
0.80.560.750.750.60.350.3-0.090.470.410.56-0.20.060.510.050.690.770.620.45-0.530.620.770.60.750.58
0.550.890.440.440.990.30.670.520.910.570.560.170.120.890.230.30.680.980.950.030.990.480.280.440.78
-0.240.02-0.28-0.30.130.230.430.190.18-0.49-0.20.170.35-0.060.4-0.17-0.150.190.260.150.1-0.280.07-0.3-0.12
-0.240.05-0.28-0.270.080.880.33-0.070.1-0.210.060.120.35-0.110.31-0.29-0.150.120.220.230.06-0.26-0.05-0.27-0.06
0.60.950.50.510.90.120.470.720.860.80.510.89-0.06-0.110.060.490.70.820.77-0.130.890.540.340.510.72
0.020.03-0.03-0.030.220.280.650.00.29-0.050.050.230.40.310.060.05-0.360.260.25-0.060.2-0.010.35-0.02-0.38
0.540.440.510.50.33-0.010.270.20.260.450.690.3-0.17-0.290.490.050.610.330.21-0.910.340.510.880.50.29
0.630.70.550.550.680.130.220.280.520.480.770.68-0.15-0.150.7-0.360.610.710.62-0.360.710.580.420.550.87
0.550.810.430.430.970.320.690.40.860.460.620.980.190.120.820.260.330.710.95-0.030.980.480.340.440.77
0.340.760.210.210.890.390.720.470.750.40.450.950.260.220.770.250.210.620.950.070.910.260.270.220.72
-0.29-0.11-0.28-0.270.00.04-0.190.070.07-0.17-0.530.030.150.23-0.13-0.06-0.91-0.36-0.030.07-0.02-0.28-0.89-0.28-0.03
0.630.890.520.521.00.260.630.470.90.60.620.990.10.060.890.20.340.710.980.91-0.020.560.30.530.81
1.00.521.01.00.56-0.10.080.020.520.550.770.48-0.28-0.260.54-0.010.510.580.480.26-0.280.560.311.00.47
0.350.320.290.290.290.120.590.120.250.230.60.280.07-0.050.340.350.880.420.340.27-0.890.30.310.290.1
0.990.491.01.00.52-0.120.05-0.010.490.530.750.44-0.3-0.270.51-0.020.50.550.440.22-0.280.531.00.290.44
0.520.760.440.440.780.150.240.310.620.50.580.78-0.12-0.060.72-0.380.290.870.770.72-0.030.810.470.10.44
Click cells to compare fundamentals

CME Account Relationship Matchups

CME fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets75.2B124.7B196.8B174.2B129.8B136.3B
Short Long Term Debt Total3.7B3.4B3.4B3.4B3.9B2.4B
Other Current Liab38.5B88.1B159.6B132.2B93.3B98.0B
Total Current Liabilities38.5B88.2B160.4B137.7B93.4B98.1B
Total Stockholder Equity26.1B26.3B27.4B26.9B26.7B17.6B
Other Liab6.2B6.7B6.3B5.7B6.6B6.2B
Property Plant And Equipment Net544M579.2M505.3M455.5M681.5M483.4M
Net Debt2.2B1.8B610.2M718.3M966.7M843.5M
Retained Earnings5.0B5.0B5.2B4.7B4.5B3.0B
Accounts Payable61.9M69.3M48.8M121.4M90.6M51.7M
Cash1.6B1.6B2.8B2.7B2.9B3.1B
Non Current Assets Total35.6B35.4B35.0B35.1B34.8B24.0B
Non Currrent Assets Other2.1B2.0B3.3B(3.1B)514.1M1.0B
Other Assets545.9M7.3B3.3B574M134.4M127.7M
Long Term Debt3.7B3.4B2.7B3.4B3.4B2.5B
Cash And Short Term Investments1.6B1.7B2.9B2.8B3.0B2.7B
Net Receivables491.8M461.3M434.5M483.2M1.3B1.3B
Common Stock Shares Outstanding358.2M358.5M358.9M359.2M359.5M311.9M
Liabilities And Stockholders Equity75.2B124.7B196.8B174.2B129.8B136.3B
Non Current Liabilities Total10.5B10.1B9.0B9.6B9.6B7.4B
Other Current Assets360.1M302M423M524.9M(4.3B)(4.1B)
Other Stockholder Equity21.1B21.2B22.2B22.3B22.3B14.5B
Total Liab49.1B98.3B169.4B147.3B103.1B108.3B
Property Plant And Equipment Gross544M579.2M505.3M455.5M1.3B1.4B
Total Current Assets39.6B89.3B161.8B139.1B94.9B99.6B
Accumulated Other Comprehensive Income3.4M134.9M53.5M(133.3M)(55.6M)(52.8M)
Property Plant Equipment544M579.2M505.3M837.6M963.2M490.1M
Short Term Investments83.2M100.9M115M96M111.7M106.1M
Inventory37.1B86.8B158.0B135.3B155.5B163.3B
Short Term Debt49.7M52.2M749.4M16M55.1M52.3M
Intangible Assets22.3B22.0B20.7B20.4B20.2B18.4B
Good Will10.7B10.8B10.5B10.5B10.5B8.9B
Retained Earnings Total Equity4.9B5.0B5.0B5.2B5.9B3.7B
Deferred Long Term Liab5.7B5.6B5.6B5.4B6.2B4.7B
Net Tangible Assets(6.9B)(6.5B)(3.8B)(4.0B)(4.7B)(4.9B)
Long Term Debt Total3.8B3.7B3.4B2.7B3.1B2.9B

Pair Trading with CME

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CME position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CME will appreciate offsetting losses from the drop in the long position's value.

Moving together with CME Stock

  0.81MORN MorningstarPairCorr

Moving against CME Stock

  0.67DHIL Diamond Hill InvestmentPairCorr
  0.63MCBC Macatawa Bank Fiscal Quarter End 31st of March 2024 PairCorr
  0.61MBCN Middlefield Banc Fiscal Quarter End 31st of March 2024 PairCorr
  0.56VALU Value LinePairCorr
  0.51SPGI SP Global Financial Report 25th of April 2024 PairCorr
The ability to find closely correlated positions to CME could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CME when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CME - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CME Group to buy it.
The correlation of CME is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CME moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CME Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CME can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether CME Group is a strong investment it is important to analyze CME's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CME's future performance. For an informed investment choice regarding CME Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CME Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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Is CME's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CME. If investors know CME will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CME listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.276
Dividend Share
4.4
Earnings Share
8.86
Revenue Per Share
15.512
Quarterly Revenue Growth
0.192
The market value of CME Group is measured differently than its book value, which is the value of CME that is recorded on the company's balance sheet. Investors also form their own opinion of CME's value that differs from its market value or its book value, called intrinsic value, which is CME's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CME's market value can be influenced by many factors that don't directly affect CME's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CME's value and its price as these two are different measures arrived at by different means. Investors typically determine if CME is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CME's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.