NYSE:CMG qualifies as a high growth stock and is consolidating.

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.

Growth Assessment of NYSE:CMG

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:CMG scores a 8 out of 10:

• CMG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.71%, which is quite impressive.
• The Earnings Per Share has been growing by 38.26% on average over the past years. This is a very strong growth
• Looking at the last year, CMG shows a quite strong growth in Revenue. The Revenue has grown by 15.19% in the last year.
• The Revenue has been growing by 15.20% on average over the past years. This is quite good.
• 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.

Evaluating Health: NYSE:CMG

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CMG has achieved a 8 out of 10:

• An Altman-Z score of 11.14 indicates that CMG is not in any danger for bankruptcy at the moment.
• The Altman-Z score of CMG (11.14) is better than 97.76% of its industry peers.
• CMG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• Looking at the Current ratio, with a value of 1.62, CMG is in the better half of the industry, outperforming 77.61% of the companies in the same industry.
• With a decent Quick ratio value of 1.57, CMG is doing good in the industry, outperforming 77.61% of the companies in the same industry.

Profitability Assessment of NYSE:CMG

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:

• Looking at the Return On Assets, with a value of 16.47%, CMG belongs to the top of the industry, outperforming 96.27% of the companies in the same industry.
• With an excellent Return On Equity value of 41.08%, CMG belongs to the best of the industry, outperforming 93.28% of the companies in the same industry.
• The Return On Invested Capital of CMG (18.07%) is better than 91.79% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for CMG is above the industry average of 10.40%.
• The 3 year average ROIC (14.38%) for CMG is below the current ROIC(18.07%), indicating increased profibility in the last year.
• CMG's Profit Margin of 13.51% is amongst the best of the industry. CMG outperforms 82.09% of its industry peers.
• In the last couple of years the Profit Margin of CMG has grown nicely.
• CMG has a better Operating Margin (17.27%) than 73.88% 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.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:CMG this score is currently 8:

Although the technical rating is only medium, CMG does present a nice setup opportunity. 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 resistance zone just above the current price starting at 60.09. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 58.58, a Stop Loss order could be placed below this zone.

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

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

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.