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Why Quality-Oriented Investors Should Consider NYSE:CMG.

By Mill Chart

Last update: Oct 17, 2024

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.


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Why NYSE:CMG may be interesting for quality investors.

  • CHIPOTLE MEXICAN GRILL INC has demonstrated significant revenue growth over the past 5 years, with a 15.2% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a notable ROIC excluding cash and goodwill at 21.61%, CHIPOTLE MEXICAN GRILL INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a favorable Debt/Free Cash Flow Ratio of 0.0, CHIPOTLE MEXICAN GRILL INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • With a favorable Profit Quality (5-year) ratio of 103.0%, CHIPOTLE MEXICAN GRILL INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • CHIPOTLE MEXICAN GRILL INC has consistently achieved strong EBIT growth over the past 5 years, with a 35.3% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • The EBIT 5-year growth of CHIPOTLE MEXICAN GRILL INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental analysis of NYSE:CMG

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to CMG. CMG was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. CMG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CMG is valued quite expensively, but it does show have an excellent growth rating. With these ratings, CMG could be worth investigating further for growth and quality investing!.

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

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.

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