CME Group Inc. (CME) on Decifer

Why it ranks here

• Its returns on invested money are modest, around 2% and it turns most of its profit into real cash.
• Revenue is growing about 6% a year and profits grew 15% over the past year.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• And it returns cash to shareholders.
• CME is one of 1 credible suppliers of rates and energy futures for the thesis: Retail and institutional capital trades, hedges and pays on always-on, low-cost electronic rails whose volumes rise with volatility and participation, whatever the fate of US crypto law. Pricing of this thesis has not been assessed.

The current read

The evidence on CME lines up on the supportive side: the intelligence feed flags this name as connected to what is moving markets now. The independent signals we track are telling the same story.

Read the full CME research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.