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Why NYSE:CMG qualifies as a quality stock.

By Mill Chart

Last update: May 27, 2024

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


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A Deep Dive into CHIPOTLE MEXICAN GRILL INC's Quality Metrics.

  • CHIPOTLE MEXICAN GRILL INC has achieved substantial revenue growth over the past 5 years, with a 15.2% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • CHIPOTLE MEXICAN GRILL INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 21.2% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • With a Debt/Free Cash Flow Ratio of 0.0, CHIPOTLE MEXICAN GRILL INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • CHIPOTLE MEXICAN GRILL INC demonstrates consistent Profit Quality over the past 5 years, with a strong 103.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • CHIPOTLE MEXICAN GRILL INC has consistently achieved strong EBIT growth over the past 5 years, with a 35.3% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • CHIPOTLE MEXICAN GRILL 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 NYSE:CMG?

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 CMG gets a fundamental rating of 7 out of 10. We evaluated CMG against 134 industry peers in the Hotels, Restaurants & Leisure industry. Both the health and profitability get an excellent rating, making CMG a very profitable company, without any liquidiy or solvency issues. CMG is valued quite expensively, but it does show have an excellent growth rating. This makes CMG very considerable for growth and quality investing!

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

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

Keep in mind

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.

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