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Why CHIPOTLE MEXICAN GRILL INC (NYSE:CMG) Deserves Consideration as a Quality Investment.

By Mill Chart

Last update: May 6, 2024

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.

Why NYSE:CMG may be interesting for quality investors.

  • Over the past 5 years, CHIPOTLE MEXICAN GRILL INC has experienced impressive revenue growth, with 15.2% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a notable ROIC excluding cash and goodwill at 21.2%, 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.
  • 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 exhibits impressive Profit Quality (5-year) with a 103.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • CHIPOTLE MEXICAN GRILL INC has experienced impressive EBIT growth over the past 5 years, with 35.3% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • 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.

Zooming in on the fundamentals.

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.

CMG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. CMG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CMG shows excellent growth, but is valued quite expensive already. These ratings would make CMG suitable for growth and quality investing!

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

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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