Is CHIPOTLE MEXICAN GRILL INC (NYSE:CMG) a Strong Candidate for Quality Investing?

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

What matters for quality investors.

• 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.
• CHIPOTLE MEXICAN GRILL INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 21.88% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• CHIPOTLE MEXICAN GRILL INC maintains a healthy Debt/Free Cash Flow Ratio of 0.0, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• 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.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, CHIPOTLE MEXICAN GRILL INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What is the full fundamental picture of NYSE:CMG telling us.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall CMG gets a fundamental rating of 7 out of 10. We evaluated CMG against 134 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 is valued quite expensively, but it does show have an excellent growth rating. These ratings would make CMG suitable 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.