Is NYSE:CMG on the Verge of a Major Breakout as a Strong Growth Stock?

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether CHIPOTLE MEXICAN GRILL INC (NYSE:CMG) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but CHIPOTLE MEXICAN GRILL INC has surfaced on our radar for growth with base formation, warranting further examination.

Growth Analysis for 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 8 out of 10:

• CMG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.20%, which is quite impressive.
• CMG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.26% yearly.
• The Revenue has grown by 14.85% in the past year. This is quite good.
• Measured over the past years, CMG shows a quite strong growth in Revenue. The Revenue has been growing by 15.20% on average per year.
• CMG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.75% yearly.
• The Revenue is expected to grow by 14.15% on average over the next years. This is quite good.

Health Assessment of NYSE:CMG

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:CMG, the assigned 9 for health provides valuable insights:

• CMG has an Altman-Z score of 10.40. This indicates that CMG is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 10.40, CMG belongs to the best of the industry, outperforming 98.52% 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.
• CMG has a Current ratio of 1.71. This is amongst the best in the industry. CMG outperforms 80.74% of its industry peers.
• The Quick ratio of CMG (1.68) is better than 82.22% of its industry peers.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:CMG scores a 8 out of 10:

• CMG's Return On Assets of 15.81% is amongst the best of the industry. CMG outperforms 92.59% of its industry peers.
• With an excellent Return On Equity value of 37.99%, CMG belongs to the best of the industry, outperforming 87.41% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 17.46%, CMG belongs to the top of the industry, outperforming 89.63% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for CMG is above the industry average of 10.12%.
• The 3 year average ROIC (14.38%) for CMG is below the current ROIC(17.46%), indicating increased profibility in the last year.
• CMG has a better Profit Margin (13.23%) than 79.26% of its industry peers.
• In the last couple of years the Profit Margin of CMG has grown nicely.
• CMG's Operating Margin of 16.98% is fine compared to the rest of the industry. CMG outperforms 70.37% of its industry peers.
• In the last couple of years the Operating Margin of CMG has grown nicely.
• In the last couple of years the Gross Margin of CMG has grown nicely.

How does the Setup look for NYSE:CMG

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:CMG currently has a 8 as setup rating:

CMG has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 54.84. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 50.87, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

For an up to date full technical analysis you can check the technical report of CMG

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.