Exploring NASDAQ:CME's quality characteristics.

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.

What matters for quality investors.

• 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.
• The Debt/Free Cash Flow Ratio of CME GROUP INC stands at 0.96, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• With a robust Profit Quality (5-year) ratio of 108.0%, CME GROUP INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• The 5-year EBIT growth of CME GROUP INC has been remarkable, with 27.28% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, CME GROUP INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

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.

We assign a fundamental rating of 5 out of 10 to CME. CME was compared to 223 industry peers in the Capital Markets industry. While CME has a great profitability rating, there are some minor concerns on its financial health. 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.

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

Keep in mind

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.