CHIPOTLE MEXICAN GRILL INC (CMG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CMG - US1696561059 - Common Stock
39.73 USD
-1.14 (-2.79%)
Taking everything into account, CMG scores 6 out of 10 in our fundamental rating. CMG was compared to 132 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make CMG a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- CMG had positive earnings in the past year.
- In the past year CMG had a positive cash flow from operations.
- CMG had positive earnings in each of the past 5 years.
- CMG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 16.55%, CMG belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
- With an excellent Return On Equity value of 47.69%, CMG belongs to the best of the industry, outperforming 90.15% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 18.25%, CMG belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- CMG had an Average Return On Invested Capital over the past 3 years of 16.89%. This is significantly above the industry average of 10.36%.
- The 3 year average ROIC (16.89%) for CMG is below the current ROIC(18.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.55% | ||
| ROE | 47.69% | ||
| ROIC | 18.25% |
ROA(3y)14.97%
ROA(5y)12.14%
ROE(3y)40.02%
ROE(5y)33.22%
ROIC(3y)16.89%
ROIC(5y)13.28%
1.3 Margins
- With an excellent Profit Margin value of 13.04%, CMG belongs to the best of the industry, outperforming 82.58% of the companies in the same industry.
- In the last couple of years the Profit Margin of CMG has grown nicely.
- CMG has a Operating Margin of 16.55%. This is in the better half of the industry: CMG outperforms 74.24% of its industry peers.
- In the last couple of years the Operating Margin of CMG has grown nicely.
- Looking at the Gross Margin, with a value of 30.89%, CMG is doing worse than 73.48% of the companies in the same industry.
- In the last couple of years the Gross Margin of CMG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.55% | ||
| PM (TTM) | 13.04% | ||
| GM | 30.89% |
OM growth 3Y16.04%
OM growth 5Y14.88%
PM growth 3Y16.16%
PM growth 5Y16.69%
GM growth 3Y3.22%
GM growth 5Y2.96%
2. Health
2.1 Basic Checks
- CMG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for CMG has been reduced compared to 1 year ago.
- Compared to 5 years ago, CMG has less shares outstanding
- CMG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- CMG has an Altman-Z score of 7.55. This indicates that CMG is financially healthy and has little risk of bankruptcy at the moment.
- CMG has a better Altman-Z score (7.55) than 93.94% of its industry peers.
- 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.55 |
ROIC/WACC2.06
WACC8.88%
2.3 Liquidity
- CMG has a Current Ratio of 1.54. This is a normal value and indicates that CMG is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.54, CMG is doing good in the industry, outperforming 71.97% of the companies in the same industry.
- CMG has a Quick Ratio of 1.50. This is a normal value and indicates that CMG is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.50, CMG is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
- CMG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.95%.
- The Earnings Per Share has been growing by 31.99% on average over the past years. This is a very strong growth
- CMG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.31%.
- CMG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.16% yearly.
EPS 1Y (TTM)6.95%
EPS 3Y30.4%
EPS 5Y31.99%
EPS Q2Q%7.41%
Revenue 1Y (TTM)7.31%
Revenue growth 3Y14.45%
Revenue growth 5Y15.16%
Sales Q2Q%7.51%
3.2 Future
- CMG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.65% yearly.
- The Revenue is expected to grow by 10.26% on average over the next years. This is quite good.
EPS Next Y3.51%
EPS Next 2Y4.31%
EPS Next 3Y8.81%
EPS Next 5Y11.65%
Revenue Next Year5.19%
Revenue Next 2Y7.51%
Revenue Next 3Y8.79%
Revenue Next 5Y10.26%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 34.25 indicates a quite expensive valuation of CMG.
- CMG's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, CMG is valued a bit more expensive.
- With a Price/Forward Earnings ratio of 32.39, CMG can be considered very expensive at the moment.
- CMG's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. CMG is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.25 | ||
| Fwd PE | 32.39 |
4.2 Price Multiples
- CMG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CMG is more expensive than 71.21% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as CMG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.4 | ||
| EV/EBITDA | 22.53 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of CMG may justify a higher PE ratio.
PEG (NY)9.75
PEG (5Y)1.07
EPS Next 2Y4.31%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
- CMG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CHIPOTLE MEXICAN GRILL INC / CMG FAQ
Can you provide the ChartMill fundamental rating for CHIPOTLE MEXICAN GRILL INC?
ChartMill assigns a fundamental rating of 6 / 10 to CMG.
Can you provide the valuation status for CHIPOTLE MEXICAN GRILL INC?
ChartMill assigns a valuation rating of 2 / 10 to CHIPOTLE MEXICAN GRILL INC (CMG). This can be considered as Overvalued.
How profitable is CHIPOTLE MEXICAN GRILL INC (CMG) stock?
CHIPOTLE MEXICAN GRILL INC (CMG) has a profitability rating of 9 / 10.
What is the financial health of CHIPOTLE MEXICAN GRILL INC (CMG) stock?
The financial health rating of CHIPOTLE MEXICAN GRILL INC (CMG) is 8 / 10.