Chipotle Mexican Grill, Inc. [NYSE:CMG]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Chipotle Mexican Grill, Inc. [CMG], the latest average analyst recommendation we can see is from the quarter closing in December. On average, stock market experts give CMG an Hold rating. The average 12-month price forecast for this stock is $464.55, with the high estimate being $600.00, the low estimate being $330.00 and the median estimate amounting to $465.00. This is compared to its latest closing price of $498.48.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Chipotle Mexican Grill, Inc. [CMG] is sitting at 2.64. This is compared to 1 month ago, when its average rating was 2.64.
For the quarter ending in Sep-18 Chipotle Mexican Grill, Inc. [CMG] generated $1.23 billion in sales. That’s 0.71% lower than the average estimate of $1.23 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Wed 6 Feb (In 26 Days).
Fundamental Analysis of Chipotle Mexican Grill, Inc. [CMG]
Now let’s turn to look at profitability: with a current Operating Margin for Chipotle Mexican Grill, Inc. [CMG] sitting at +6.98 and its Gross Margin at +13.24, this company’s Net Margin is now 4.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 22.60, and its Return on Invested Capital has reached 12.60%. Its Return on Equity is 12.74, and its Return on Assets is 7.99. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates CMG financial performance.
What about valuation? This company’s Enterprise Value to EBITDA is 25.49. The Enterprise Value to Sales for this firm is now 2.55. Chipotle Mexican Grill, Inc. [CMG] has a Price to Book Ratio of 5.94, a Price to Cash Flow Ratio of 17.67 and P/E Ratio of 75.84. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Chipotle Mexican Grill, Inc. [CMG] earns $64,979 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 93.88 and its Total Asset Turnover is 2.03. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.88 and its Current Ratio is 1.94. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Chipotle Mexican Grill, Inc. [CMG] has 27.80M shares outstanding, amounting to a total market cap of $14.17B. Its stock price has been found in the range of 247.51 to 530.68. At its current price, it has moved by -3.97% from its 52-week high, and it has moved 105.89% from its 52-week low.
This stock’s Beta value is currently 0.35, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 69.47. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Chipotle Mexican Grill, Inc. [CMG] a Reliable Buy?
Shares of Chipotle Mexican Grill, Inc. [CMG], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.