NYSE:CMG is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Jul 19, 2024

CHIPOTLE MEXICAN GRILL INC (NYSE:CMG) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:CMG showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

How do we evaluate the Valuation for NYSE:CMG?

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:CMG boasts a 9 out of 10:

The Price/Earnings ratio is 2.18, which indicates a rather cheap valuation of CMG.
CMG's Price/Earnings ratio is rather cheap when compared to the industry. CMG is cheaper than 98.50% of the companies in the same industry.
CMG is valuated cheaply when we compare the Price/Earnings ratio to 28.83, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 0.79, the valuation of CMG can be described as very cheap.
CMG's Price/Forward Earnings ratio is rather cheap when compared to the industry. CMG is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.60. CMG is valued rather cheaply when compared to this.
99.25% of the companies in the same industry are more expensive than CMG, based on the Price/Free Cash Flow ratio.
CMG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CMG has an outstanding profitability rating, which may justify a higher PE ratio.
CMG's earnings are expected to grow with 32.64% in the coming years. This may justify a more expensive valuation.

Assessing Profitability for NYSE:CMG

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:CMG, the assigned 8 is a significant indicator of profitability:

With an excellent Return On Assets value of 15.41%, CMG belongs to the best of the industry, outperforming 91.73% of the companies in the same industry.
CMG's Return On Equity of 38.57% is amongst the best of the industry. CMG outperforms 87.22% of its industry peers.
CMG has a better Return On Invested Capital (17.08%) than 89.47% of its industry peers.
CMG had an Average Return On Invested Capital over the past 3 years of 14.38%. This is above the industry average of 10.08%.
The 3 year average ROIC (14.38%) for CMG is below the current ROIC(17.08%), indicating increased profibility in the last year.
CMG's Profit Margin of 12.70% is fine compared to the rest of the industry. CMG outperforms 78.95% of its industry peers.
In the last couple of years the Profit Margin of CMG has grown nicely.
CMG has a better Operating Margin (16.34%) than 69.92% of its industry peers.
CMG's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of CMG has grown nicely.

Understanding NYSE:CMG's Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CMG has received a 8 out of 10:

CMG has an Altman-Z score of 3.20. This indicates that CMG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CMG (3.20) is better than 84.21% of its industry peers.
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.
CMG has a Current ratio of 1.65. This is in the better half of the industry: CMG outperforms 78.95% of its industry peers.
CMG's Quick ratio of 1.61 is fine compared to the rest of the industry. CMG outperforms 79.70% of its industry peers.

Growth Assessment of NYSE:CMG

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:CMG boasts a 6 out of 10:

The Earnings Per Share has been growing by 31.35% on average over the past years. This is a very strong growth
The Revenue has grown by 13.61% in the past year. This is quite good.
The Revenue has been growing by 15.20% on average over the past years. This is quite good.
The Earnings Per Share is expected to grow by 27.11% on average over the next years. This is a very strong growth
CMG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.15% yearly.

More Decent Value stocks can be found in our Decent Value screener.

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

Disclaimer

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