Should Quality Investors Include NYSE:CMG in Their Portfolio?

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.
• CHIPOTLE MEXICAN GRILL INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 21.2% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• 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 103.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• With a robust 5-year EBIT growth of 35.3%, CHIPOTLE MEXICAN GRILL INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• CHIPOTLE MEXICAN GRILL INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental analysis of NYSE:CMG

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.

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 is valued quite expensive, but it does show an excellent growth. This makes CMG very considerable 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.

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.