Is Chipotle Mexican Stock a Good Investment?
Chipotle Mexican Investment Advice | CMG |
- Examine Chipotle Mexican's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Chipotle Mexican's leadership team and their track record. Good management can help Chipotle Mexican navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Hotels, Restaurants & Leisure space and any emerging trends that could impact Chipotle Mexican's business and its evolving consumer preferences.
- Compare Chipotle Mexican's performance and market position to its competitors. Analyze how Chipotle Mexican is positioned in terms of product offerings, innovation, and market share.
- Check if Chipotle Mexican pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Chipotle Mexican's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Chipotle Mexican Grill stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Chipotle Mexican Grill is a good investment.
Sell | Buy |
Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Chipotle Mexican Stock
Researching Chipotle Mexican's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 87.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.15. Chipotle Mexican Grill had not issued any dividends in recent years. The entity had 50:1 split on the 26th of June 2024.
To determine if Chipotle Mexican is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Chipotle Mexican's research are outlined below:
| Chipotle Mexican is unlikely to experience financial distress in the next 2 years | |
| Over 87.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from gurufocus.com: CMG Investors Have Opportunity to Lead Chipotle Mexican Grill, Inc. Securities Fraud Lawsuit |
Chipotle Mexican Quarterly Accounts Payable |
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Chipotle Mexican uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Chipotle Mexican Grill. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Chipotle Mexican's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 23rd of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Chipotle Mexican's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Chipotle Mexican's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2020-07-22 | 2020-06-30 | 0.007 | 0.008 | 0.001 | 14 | ||
2007-02-15 | 2006-12-31 | 0.0056 | 0.0066 | 0.001 | 17 | ||
2006-03-13 | 2005-12-31 | 0.0022 | 0.0032 | 0.001 | 45 | ||
2007-05-01 | 2007-03-31 | 0.0064 | 0.0076 | 0.0012 | 18 | ||
2006-07-31 | 2006-06-30 | 0.005 | 0.0066 | 0.0016 | 32 | ||
2007-10-30 | 2007-09-30 | 0.0106 | 0.0124 | 0.0018 | 16 | ||
2006-10-31 | 2006-09-30 | 0.0054 | 0.0072 | 0.0018 | 33 | ||
2006-05-08 | 2006-03-31 | 0.0024 | 0.0052 | 0.0028 | 116 |
Know Chipotle Mexican's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Chipotle Mexican is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Chipotle Mexican Grill backward and forwards among themselves. Chipotle Mexican's institutional investor refers to the entity that pools money to purchase Chipotle Mexican's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Alliancebernstein L.p. | 2024-06-30 | 21.6 M | Edgewood Management Llc | 2024-09-30 | 21.3 M | American Century Companies Inc | 2024-09-30 | 20.1 M | Norges Bank | 2024-06-30 | 17.7 M | Wellington Management Company Llp | 2024-06-30 | 16.4 M | Franklin Resources Inc | 2024-09-30 | 13.8 M | Arrowstreet Capital Limited Partnership | 2024-06-30 | 13.5 M | Northern Trust Corp | 2024-09-30 | 13 M | Nuveen Asset Management, Llc | 2024-06-30 | 12.1 M | Vanguard Group Inc | 2024-09-30 | 120.7 M | Blackrock Inc | 2024-06-30 | 109.5 M |
Chipotle Mexican's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 83.83 B.Market Cap |
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Chipotle Mexican's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.15 | 0.16 | |
| Return On Capital Employed | 0.22 | 0.11 | |
| Return On Assets | 0.15 | 0.16 | |
| Return On Equity | 0.40 | 0.42 |
Determining Chipotle Mexican's profitability involves analyzing its financial statements and using various financial metrics to determine if Chipotle Mexican is a good buy. For example, gross profit margin measures Chipotle Mexican's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Chipotle Mexican's profitability and make more informed investment decisions.
Evaluate Chipotle Mexican's management efficiency
Chipotle Mexican Grill has Return on Asset of 0.1401 % which means that on every $100 spent on assets, it made $0.1401 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.4567 %, implying that it generated $0.4567 on every 100 dollars invested. Chipotle Mexican's management efficiency ratios could be used to measure how well Chipotle Mexican manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Chipotle Mexican's Return On Equity is most likely to increase slightly in the upcoming years. At this time, Chipotle Mexican's Other Current Assets are most likely to increase significantly in the upcoming years. The Chipotle Mexican's current Total Current Assets is estimated to increase to about 1.7 B, while Other Assets are projected to decrease to roughly 83.5 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 2.22 | 2.33 | |
| Tangible Book Value Per Share | 2.21 | 2.32 | |
| Enterprise Value Over EBITDA | 34.28 | 20.46 | |
| Price Book Value Ratio | 20.58 | 21.61 | |
| Enterprise Value Multiple | 34.28 | 20.46 | |
| Price Fair Value | 20.58 | 21.61 | |
| Enterprise Value | 23 B | 24.2 B |
Chipotle Mexican Grill has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.
Beta 1.266 |
Basic technical analysis of Chipotle Stock
As of the 30th of November, Chipotle Mexican shows the Mean Deviation of 1.28, risk adjusted performance of 0.0739, and Downside Deviation of 2.17. Chipotle Mexican Grill technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Chipotle Mexican Grill standard deviation, value at risk, kurtosis, as well as the relationship between the jensen alpha and semi variance to decide if Chipotle Mexican Grill is priced correctly, providing market reflects its regular price of 61.52 per share. Given that Chipotle Mexican has jensen alpha of 0.0312, we suggest you to validate Chipotle Mexican Grill's prevailing market performance to make sure the company can sustain itself at a future point.Chipotle Mexican's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Chipotle Mexican insiders, such as employees or executives, is commonly permitted as long as it does not rely on Chipotle Mexican's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Chipotle Mexican insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Laurie Schalow over a year ago Sale by Laurie Schalow of 162 shares of Chipotle Mexican | ||
Laurie Schalow over a year ago Exercise or conversion by Laurie Schalow of 1666 shares of Chipotle Mexican subject to Rule 16b-3 |
Chipotle Mexican's Outstanding Corporate Bonds
Chipotle Mexican issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Chipotle Mexican Grill uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Chipotle bonds can be classified according to their maturity, which is the date when Chipotle Mexican Grill has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Chipotle Mexican's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Chipotle Mexican's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0739 | |||
| Market Risk Adjusted Performance | 0.1695 | |||
| Mean Deviation | 1.28 | |||
| Semi Deviation | 2.01 | |||
| Downside Deviation | 2.17 | |||
| Coefficient Of Variation | 1123.5 | |||
| Standard Deviation | 1.87 | |||
| Variance | 3.49 | |||
| Information Ratio | 0.0153 | |||
| Jensen Alpha | 0.0312 | |||
| Total Risk Alpha | (0.16) | |||
| Sortino Ratio | 0.0132 | |||
| Treynor Ratio | 0.1595 | |||
| Maximum Drawdown | 10.78 | |||
| Value At Risk | (2.68) | |||
| Potential Upside | 2.74 | |||
| Downside Variance | 4.7 | |||
| Semi Variance | 4.06 | |||
| Expected Short fall | (1.34) | |||
| Skewness | (1.23) | |||
| Kurtosis | 5.12 |
| Risk Adjusted Performance | 0.0739 | |||
| Market Risk Adjusted Performance | 0.1695 | |||
| Mean Deviation | 1.28 | |||
| Semi Deviation | 2.01 | |||
| Downside Deviation | 2.17 | |||
| Coefficient Of Variation | 1123.5 | |||
| Standard Deviation | 1.87 | |||
| Variance | 3.49 | |||
| Information Ratio | 0.0153 | |||
| Jensen Alpha | 0.0312 | |||
| Total Risk Alpha | (0.16) | |||
| Sortino Ratio | 0.0132 | |||
| Treynor Ratio | 0.1595 | |||
| Maximum Drawdown | 10.78 | |||
| Value At Risk | (2.68) | |||
| Potential Upside | 2.74 | |||
| Downside Variance | 4.7 | |||
| Semi Variance | 4.06 | |||
| Expected Short fall | (1.34) | |||
| Skewness | (1.23) | |||
| Kurtosis | 5.12 |
Consider Chipotle Mexican's intraday indicators
Chipotle Mexican intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Chipotle Mexican stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 36981.76 | |||
| Daily Balance Of Power | (0.87) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 61.83 | |||
| Day Typical Price | 61.72 | |||
| Price Action Indicator | (0.57) | |||
| Period Momentum Indicator | (0.53) | |||
| Relative Strength Index | 54.26 |
Chipotle Mexican Corporate Filings
F4 | 14th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 12th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 4th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
10Q | 30th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Chipotle Stock media impact
Far too much social signal, news, headlines, and media speculation about Chipotle Mexican that are available to investors today. That information is available publicly through Chipotle media outlets and privately through word of mouth or via Chipotle internal channels. However, regardless of the origin, that massive amount of Chipotle data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Chipotle Mexican news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Chipotle Mexican relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Chipotle Mexican's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Chipotle Mexican alpha.
Chipotle Mexican Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Chipotle Mexican can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Chipotle Mexican Grill Historical Investor Sentiment
Investor biases related to Chipotle Mexican's public news can be used to forecast risks associated with an investment in Chipotle. The trend in average sentiment can be used to explain how an investor holding Chipotle can time the market purely based on public headlines and social activities around Chipotle Mexican Grill. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Chipotle Mexican's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Chipotle Mexican and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Chipotle Mexican news discussions. The higher the estimate score, the more favorable the investor's outlook on Chipotle Mexican.
Chipotle Mexican Corporate Directors
| Ali Namvar | Independent Director | Profile | |
| Neil Flanzraich | Lead Independent Director | Profile | |
| Robin Hickenlooper | Independent Director | Profile | |
| Scott Maw | Lead Independent Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Chipotle Mexican Grill. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Chipotle Mexican. If investors know Chipotle will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Chipotle Mexican listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.231 | Earnings Share 1.08 | Revenue Per Share 8.012 | Quarterly Revenue Growth 0.13 | Return On Assets 0.1401 |
The market value of Chipotle Mexican Grill is measured differently than its book value, which is the value of Chipotle that is recorded on the company's balance sheet. Investors also form their own opinion of Chipotle Mexican's value that differs from its market value or its book value, called intrinsic value, which is Chipotle Mexican's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Chipotle Mexican's market value can be influenced by many factors that don't directly affect Chipotle Mexican's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Chipotle Mexican's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Chipotle Mexican is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chipotle Mexican's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.