Why NYSE:CMG Is a Promising High-Growth Stock in the Midst of Consolidation.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if CHIPOTLE MEXICAN GRILL INC (NYSE:CMG) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted CHIPOTLE MEXICAN GRILL INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Analyzing Growth Metrics

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:CMG, the assigned 8 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 27.20% over the past year.
• Measured over the past years, CMG shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.26% on average per year.
• Looking at the last year, CMG shows a quite strong growth in Revenue. The Revenue has grown by 14.85% in the last year.
• The Revenue has been growing by 15.20% on average over the past years. This is quite good.
• CMG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.75% yearly.
• Based on estimates for the next years, CMG will show a quite strong growth in Revenue. The Revenue will grow by 14.15% on average per year.

How do we evaluate the Health for NYSE:CMG?

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CMG has received a 9 out of 10:

• CMG has an Altman-Z score of 11.79. This indicates that CMG is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of CMG (11.79) is better than 98.50% of its industry peers.
• CMG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• CMG's Current ratio of 1.71 is amongst the best of the industry. CMG outperforms 80.45% of its industry peers.
• CMG has a Quick ratio of 1.68. This is amongst the best in the industry. CMG outperforms 81.95% of its industry peers.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:CMG was assigned a score of 8 for profitability:

• Looking at the Return On Assets, with a value of 15.81%, CMG belongs to the top of the industry, outperforming 93.23% of the companies in the same industry.
• CMG has a better Return On Equity (37.99%) than 87.97% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 17.46%, CMG belongs to the top of the industry, outperforming 87.97% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for CMG is above the industry average of 10.28%.
• The 3 year average ROIC (14.38%) for CMG is below the current ROIC(17.46%), indicating increased profibility in the last year.
• The Profit Margin of CMG (13.23%) is better than 79.70% of its industry peers.
• In the last couple of years the Profit Margin of CMG has grown nicely.
• With a decent Operating Margin value of 16.98%, CMG is doing good in the industry, outperforming 70.68% of the companies in the same industry.
• CMG's Operating Margin has improved in the last couple of years.
• In the last couple of years the Gross Margin of CMG has grown nicely.

Why is NYSE:CMG a setup?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:CMG is 7:

Although CMG has an excellent technical rating, the quality of the presented setup is not ideal at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Our latest full fundamental report of CMG contains the most current fundamental analsysis.

Check the latest full technical report of CMG for a complete technical analysis.

Keep in mind

This article should in no way be interpreted as advice. 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.