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Exploring NASDAQ:CME's quality characteristics.

By Mill Chart

Last update: Sep 1, 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 couse 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

  • CME GROUP INC has achieved substantial revenue growth over the past 5 years, with a 14.64% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • 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.
  • The Profit Quality (5-year) of CME GROUP INC stands at 110.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • CME GROUP INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 17.68%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • 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 of NASDAQ:CME

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Taking everything into account, CME scores 5 out of 10 in our fundamental rating. CME was compared to 208 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.

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.


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.



NASDAQ:CME (2/20/2024, 10:06:24 AM)


+0.24 (+0.11%)

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