CHIPOTLE MEXICAN GRILL INC (CMG)
US1696561059 - Common Stock
We assign a fundamental rating of 7 out of 10 to CMG. CMG was compared to 135 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!
1. Profitability
1.1 Basic Checks
CMG had positive earnings in the past year.
CMG had a positive operating cash flow in the past year.
In the past 5 years CMG has always been profitable.
Each year in the past 5 years CMG had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 15.27%, CMG belongs to the best of the industry, outperforming 92.54% of the companies in the same industry.
With an excellent Return On Equity value of 40.13%, CMG belongs to the best of the industry, outperforming 88.81% of the companies in the same industry.
CMG has a better Return On Invested Capital (17.29%) than 89.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CMG is above the industry average of 10.33%.
The 3 year average ROIC (14.38%) for CMG is below the current ROIC(17.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.27% | ||
| ROE | 40.13% | ||
| ROIC | 17.29% |
ROA(3y)12.69%
ROA(5y)10.18%
ROE(3y)35.51%
ROE(5y)28.99%
ROIC(3y)14.38%
ROIC(5y)11.23%
1.3 Margins
Looking at the Profit Margin, with a value of 12.45%, CMG is in the better half of the industry, outperforming 79.85% of the companies in the same industry.
CMG's Profit Margin has improved in the last couple of years.
CMG has a Operating Margin of 16.17%. This is in the better half of the industry: CMG outperforms 69.40% of its industry peers.
In the last couple of years the Operating Margin of CMG has grown nicely.
Looking at the Gross Margin, with a value of 31.30%, CMG is doing worse than 75.37% of the companies in the same industry.
CMG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.17% | ||
| PM (TTM) | 12.45% | ||
| GM | 31.3% |
OM growth 3Y43.54%
OM growth 5Y17.44%
PM growth 3Y27.93%
PM growth 5Y27.95%
GM growth 3Y8.6%
GM growth 5Y3.83%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CMG is creating value.
The number of shares outstanding for CMG has been reduced compared to 1 year ago.
The number of shares outstanding for CMG has been reduced compared to 5 years ago.
There is no outstanding debt for CMG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CMG has an Altman-Z score of 12.69. This indicates that CMG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.69, CMG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
There is no outstanding debt for CMG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 12.69 |
ROIC/WACC1.86
WACC9.29%
2.3 Liquidity
A Current Ratio of 1.57 indicates that CMG should not have too much problems paying its short term obligations.
CMG's Current ratio of 1.57 is fine compared to the rest of the industry. CMG outperforms 76.87% of its industry peers.
CMG has a Quick Ratio of 1.53. This is a normal value and indicates that CMG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CMG (1.53) is better than 76.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
CMG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.80%, which is quite impressive.
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.
CMG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.33%.
CMG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.20% yearly.
EPS 1Y (TTM)36.8%
EPS 3Y61.16%
EPS 5Y38.26%
EPS growth Q2Q24.97%
Revenue 1Y (TTM)14.33%
Revenue growth 3Y18.15%
Revenue growth 5Y15.2%
Revenue growth Q2Q15.4%
3.2 Future
Based on estimates for the next years, CMG will show a very strong growth in Earnings Per Share. The EPS will grow by 20.44% on average per year.
CMG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.09% yearly.
EPS Next Y20.53%
EPS Next 2Y20.93%
EPS Next 3Y20.62%
EPS Next 5Y20.44%
Revenue Next Year14.12%
Revenue Next 2Y13.78%
Revenue Next 3Y13.9%
Revenue Next 5Y13.09%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 69.36 indicates a quite expensive valuation of CMG.
64.18% of the companies in the same industry are cheaper than CMG, based on the Price/Earnings ratio.
CMG is valuated expensively when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 57.54 indicates a quite expensive valuation of CMG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CMG indicates a slightly more expensive valuation: CMG is more expensive than 61.19% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CMG to the average of the S&P500 Index (21.63), we can say CMG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.36 | ||
| Fwd PE | 57.54 |
4.2 Price Multiples
CMG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CMG is more expensive than 79.10% of the companies in the same industry.
CMG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.79 | ||
| EV/EBITDA | 40.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CMG has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CMG's earnings are expected to grow with 20.62% in the coming years.
PEG (NY)3.38
PEG (5Y)1.81
EPS Next 2Y20.93%
EPS Next 3Y20.62%
5. Dividend
5.1 Amount
No dividends for CMG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CHIPOTLE MEXICAN GRILL INC
NYSE:CMG (4/25/2024, 5:40:00 PM)
After market: 3128 +16.03 (+0.52%)3111.97
+185.21 (+6.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap85.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.36 | ||
| Fwd PE | 57.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.38
PEG (5Y)1.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.27% | ||
| ROE | 40.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.17% | ||
| PM (TTM) | 12.45% | ||
| GM | 31.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)36.8%
EPS 3Y61.16%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.33%
Revenue growth 3Y18.15%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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