Should you consider NYSE:CMG for quality investing?

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.

Some of the quality metrics of NYSE:CMG highlighted

• 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.
• The ROIC excluding cash and goodwill of CHIPOTLE MEXICAN GRILL INC stands at 21.61%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• CHIPOTLE MEXICAN GRILL INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.0, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• 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 demonstrated consistent growth in EBIT over the past 5 years, with a strong 35.3%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• 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 Observations

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, CMG scores 7 out of 10 in our fundamental rating. CMG was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. CMG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CMG shows excellent growth, but is valued quite expensive already. These ratings could make CMG a good candidate for growth and quality investing.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

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.