Exploring the Growth Potential of NYSE:CMG as It Nears a Breakout.

In this article we will dive into CHIPOTLE MEXICAN GRILL INC (NYSE:CMG) as a possible candidate for growth investing. Investors should always do their own research, but we noticed CHIPOTLE MEXICAN GRILL INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

ChartMill's Evaluation of Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:CMG, the assigned 8 reflects its growth potential:

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

Health Analysis for 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:

• An Altman-Z score of 10.78 indicates that CMG is not in any danger for bankruptcy at the moment.
• The Altman-Z score of CMG (10.78) is better than 98.52% 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.
• Looking at the Current ratio, with a value of 1.71, CMG belongs to the top of the industry, outperforming 80.74% of the companies in the same industry.
• The Quick ratio of CMG (1.68) is better than 82.22% of its industry peers.

Analyzing Profitability Metrics

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:CMG, the assigned 8 is noteworthy for profitability:

• With an excellent Return On Assets value of 15.81%, CMG belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
• The Return On Equity of CMG (37.99%) is better than 87.41% of its industry peers.
• With an excellent Return On Invested Capital value of 17.46%, CMG belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
• CMG had an Average Return On Invested Capital over the past 3 years of 14.38%. This is above the industry average of 10.11%.
• The 3 year average ROIC (14.38%) for CMG is below the current ROIC(17.46%), indicating increased profibility in the last year.
• With a decent Profit Margin value of 13.23%, CMG is doing good in the industry, outperforming 80.00% of the companies in the same industry.
• In the last couple of years the Profit Margin of CMG has grown nicely.
• CMG has a Operating Margin of 16.98%. This is in the better half of the industry: CMG outperforms 71.11% of its industry peers.
• CMG's Operating Margin has improved in the last couple of years.
• CMG's Gross Margin has improved in the last couple of years.

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:CMG is 7:

Although the technical rating is bad, CMG does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 53.78, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

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

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

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.