Why quality investors should have a look at CHIPOTLE MEXICAN GRILL INC (NYSE:CMG).

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if CHIPOTLE MEXICAN GRILL INC (NYSE:CMG) is suited for quality investing. Investors should of course do their own research, but we spotted CHIPOTLE MEXICAN GRILL INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of CHIPOTLE MEXICAN GRILL INC

• CHIPOTLE MEXICAN GRILL INC has shown strong performance in revenue growth over the past 5 years, with a 14.04% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a notable ROIC excluding cash and goodwill at 22.35%, CHIPOTLE MEXICAN GRILL INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• The Debt/Free Cash Flow Ratio of CHIPOTLE MEXICAN GRILL INC stands at 0.0, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• CHIPOTLE MEXICAN GRILL INC demonstrates consistent Profit Quality over the past 5 years, with a strong 121.0%. 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 33.12% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• The EBIT 5-year growth of CHIPOTLE MEXICAN GRILL INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental Analysis Observations

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

Taking everything into account, CMG scores 7 out of 10 in our fundamental rating. CMG was compared to 136 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. These ratings could make CMG a good candidate for growth and quality investing.

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

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

Disclaimer

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