CME

CME

CME Group

Platform / Network

★ Quality 58/100
Fair price

Price today

$281.29

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A monopoly position

This company has a competitive advantage so strong that its rivals find it practically impossible to replicate.

What this business is made of

58qualityReturnsMoatBalance sheetPricing power *Reinvestment
* This axis is an estimate: we don't have the figure that measures it for this company.

The business

CME is the casino where the world hedges: it sets the table and takes a cut of every chip.

CME Group runs the world's largest derivatives markets: futures and options on interest rates, indexes, energy, metals, and agriculture. It charges a fee for every contract traded and cleared, plus revenue from market data. In 2025 it billed $6.5B with $4.2B in FCF — it turns nearly two-thirds of every dollar of revenue into free cash.

It's a liquidity network: traders go where the volume is, and volume goes where the traders are. Breaking that loop takes decades. On top of that, CME clears its own contracts, so a buyer is locked into its ecosystem from day one. Zero debt, $4.4B in cash — it needs no one.

Revenue history

$4.7B
2021
$5.0B
2022
$5.6B
2023
$6.1B
2024
$6.5B
2025
CAGR 5 años: +8%

From $4.7B to $6.5B in 4 years. The business grows steadily.

Where each $100 of sales goes

Revenue $6.5B · FY2025

Costs and operations$2.4B · 38%
Net profit$4.1B · 63%

Of every $100 in sales, $37 goes to costs and operations; $63 is left as net profit (63% margin).

Catalysts and risks

Sustained rate volatility after the Fed cycle raises the volume of rate contracts, its largest category.

Growth in regulated crypto products (Bitcoin and Ether futures) captures fresh institutional flow.

Annual variable dividend policy: with $4.1B of net income in 2025, the special payout tends to surprise to the upside.

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Revenue depends on volume: a flat, volatility-free market dries up its best fee source.

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Competition from new exchanges and platforms looking to fragment liquidity, especially in digital derivatives.

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Regulatory risk: changes to clearing or margin rules can alter the business economics.

Charlie's note

A toll on the fear and greed of the financial world. Brutal margin, zero debt, and every crisis sends it more traffic. At 23 times cash flow they're not giving anything away, but network monopolies rarely come cheap.

Analysis · June 2026

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