CHIPOTLE MEXICAN GRILL INC (NYSE:CMG) can be considered a quality stock. Here's why.

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.

What matters for quality investors.

• Over the past 5 years, CMG has experienced impressive revenue growth, with 15.16% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• CMG demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 22.43% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a favorable Debt/Free Cash Flow Ratio of 0.0, CMG showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• With a favorable Profit Quality (5-year) ratio of 100.0%, CMG showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• CMG has experienced impressive EBIT growth over the past 5 years, with 32.3% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• CMG 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.

What else is there to say on the fundamentals of CMG?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, CMG scores 6 out of 10 in our fundamental rating. CMG was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. CMG gets an excellent profitability rating and is at the same time showing great financial health properties. CMG shows excellent growth, but is valued quite expensive already. These ratings would make CMG suitable for growth and quality investing!

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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.