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Should Quality Investors Include NASDAQ:CME in Their Portfolio?

By Mill Chart

Last update: Nov 27, 2023

In this article we will dive into CME GROUP INC (NASDAQ:CME) as a possible candidate for quality investing. Investors should always do their own research, but we noticed CME GROUP INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

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

  • CME GROUP INC has demonstrated significant revenue growth over the past 5 years, with a 14.64% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • CME GROUP INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 146.0% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • CME GROUP INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.06, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • 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.
  • 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 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.

How does the complete fundamental picture look for NASDAQ:CME?

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 5 out of 10. We evaluated CME against 206 industry peers in the Capital Markets industry. CME has only an average score on both its financial health and profitability. CME is quite expensive at the moment. It does show a decent growth rate.

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

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

Keep in mind

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.



NASDAQ:CME (2/22/2024, 12:33:58 PM)


+2.04 (+0.95%)

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