Should you consider CME GROUP INC (NASDAQ:CME) for quality investing?

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.

A Deep Dive into CME GROUP INC's Quality Metrics.

• Over the past 5 years, CME GROUP INC has experienced impressive revenue growth, with 14.64% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a notable ROIC excluding cash and goodwill at 134.0%, CME GROUP INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• CME GROUP INC maintains a healthy Debt/Free Cash Flow Ratio of 1.12, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a favorable Profit Quality (5-year) ratio of 110.0%, CME GROUP INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• With a robust 5-year EBIT growth of 17.68%, CME GROUP INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• CME GROUP INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Zooming in on the fundamentals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall CME gets a fundamental rating of 4 out of 10. We evaluated CME against 208 industry peers in the Capital Markets industry. CME has an average financial health and profitability rating. CME is valied quite expensively at the moment, while it does show a decent growth rate.

Our latest full fundamental report of CME contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.