Why NASDAQ:CME qualifies as a quality stock.

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.

Looking into the quality metrics of CME GROUP INC

• The 5-year revenue growth of CME GROUP INC has been remarkable, with 20.29% 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 158.0% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a Debt/Free Cash Flow Ratio of 0.96, CME GROUP INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• CME GROUP INC exhibits impressive Profit Quality (5-year) with a 108.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• CME GROUP INC has consistently achieved strong EBIT growth over the past 5 years, with a 27.28% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• CME GROUP INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Zooming in on the fundamentals.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall CME gets a fundamental rating of 5 out of 10. We evaluated CME against 220 industry peers in the Capital Markets industry. While CME belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, CME is valued expensive at the moment.

For an up to date full fundamental analysis you can check the fundamental report of CME

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

Disclaimer

This article should in no way be interpreted as advice. 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.