Is CME GROUP INC (NASDAQ:CME) suited 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.

Why CME may be interesting for quality investors.

• CME has achieved substantial revenue growth over the past 5 years, with a 13.14% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• The ROIC excluding cash and goodwill of CME stands at 378.0%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• The Debt/Free Cash Flow Ratio of CME stands at 0.97, 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 106.0%, CME 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 has been remarkable, with 19.95% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• CME 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.

Fundamental analysis of CME

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.

Taking everything into account, CME scores 5 out of 10 in our fundamental rating. CME was compared to 231 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.

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

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

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.