Why NYSE:CMG Is a Standout High-Growth Stock in a Consolidation Phase.

Last update: Oct 7, 2024

In this article, we'll take a closer look at CHIPOTLE MEXICAN GRILL INC (NYSE:CMG) as a potential candidate for growth investing. While it's important for investors to conduct their own research, CHIPOTLE MEXICAN GRILL INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

A Closer Look at Growth 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:

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

A Closer Look at Health 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 11.24 indicates that CMG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 11.24, CMG belongs to the best of the industry, outperforming 97.01% 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.
With a decent Current ratio value of 1.71, CMG is doing good in the industry, outperforming 79.85% of the companies in the same industry.
Looking at the Quick ratio, with a value of 1.68, CMG belongs to the top of the industry, outperforming 81.34% of the companies in the same industry.

Profitability Assessment of NYSE:CMG

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:CMG has achieved a 8:

With an excellent Return On Assets value of 15.81%, CMG belongs to the best of the industry, outperforming 93.28% of the companies in the same industry.
CMG's Return On Equity of 37.99% is amongst the best of the industry. CMG outperforms 87.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.46%, CMG belongs to the top of the industry, outperforming 88.81% 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 10.10%.
The 3 year average ROIC (14.38%) for CMG is below the current ROIC(17.46%), indicating increased profibility in the last year.
The Profit Margin of CMG (13.23%) is better than 79.85% of its industry peers.
CMG's Profit Margin has improved in the last couple of years.
CMG's Operating Margin of 16.98% is fine compared to the rest of the industry. CMG outperforms 70.90% 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.

Why is NYSE:CMG a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:CMG scores a 7 out of 10:

CMG has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 55.43, a Stop Loss order could be placed below this zone.

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

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

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

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.