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Why CME GROUP INC (NASDAQ:CME) Deserves Consideration as a Quality Investment.

By Mill Chart

Last update: Sep 22, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if CME GROUP INC (NASDAQ:CME) is suited for quality investing. Investors should of course do their own research, but we spotted CME GROUP INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NASDAQ:CME highlighted

  • The 5-year revenue growth of CME GROUP INC has been remarkable, with 14.64% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • CME GROUP INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 134.0% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • With a favorable Debt/Free Cash Flow Ratio of 1.12, CME GROUP INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • CME GROUP INC demonstrates consistent Profit Quality over the past 5 years, with a strong 110.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • CME GROUP INC has experienced impressive EBIT growth over the past 5 years, with 17.68% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • CME GROUP INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental Analysis Observations

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to CME. CME was compared to 206 industry peers in the Capital Markets industry. CME has only an average score on both its financial health and profitability. CME is valied quite expensively at the moment, while it does show a decent growth rate.

Check the latest full fundamental report of CME for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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