Chipotle Mexican Grill, Inc.
Chipotle Mexican Grill, Inc. Fundamental Analysis
Chipotle Mexican Grill, Inc. (CMG) shows moderate financial fundamentals with a PE ratio of 29.22, profit margin of 11.96%, and ROE of 48.45%. The company generates $12.0B in annual revenue with moderate year-over-year growth of 5.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CMG's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCMG demonstrates superior asset utilization.
Valuation Score
ModerateCMG shows balanced valuation metrics.
Growth Score
ModerateCMG shows steady but slowing expansion.
Financial Health Score
WeakCMG carries high financial risk with limited liquidity.
Profitability Score
ModerateCMG maintains healthy but balanced margins.
Key Financial Metrics
Is CMG Expensive or Cheap?
P/E Ratio
CMG trades at 29.22 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CMG's PEG of -6.66 indicates potential undervaluation.
Price to Book
The market values Chipotle Mexican Grill, Inc. at 17.62 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.15 times EBITDA. This signals the market has high growth expectations.
How Well Does CMG Make Money?
Net Profit Margin
For every $100 in sales, Chipotle Mexican Grill, Inc. keeps $11.96 as profit after all expenses.
Operating Margin
Core operations generate 15.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $48.45 in profit for every $100 of shareholder equity.
ROA
Chipotle Mexican Grill, Inc. generates $16.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Chipotle Mexican Grill, Inc. produces operating cash flow of $2.18B, showing steady but balanced cash generation.
Free Cash Flow
Chipotle Mexican Grill, Inc. generates strong free cash flow of $1.49B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.16 in free cash annually.
FCF Yield
CMG converts 3.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
17.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.48
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How CMG Stacks Against Its Sector Peers
| Metric | CMG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.22 | 23.70 | Worse (Expensive) |
| ROE | 48.45% | 1185.00% | Weak |
| Net Margin | 11.96% | 2505.00% | Weak |
| Debt/Equity | 2.18 | 0.77 | Weak (High Leverage) |
| Current Ratio | 0.92 | 2.86 | Weak Liquidity |
| ROA | 16.49% | -8133.00% (disorted) | Strong |
CMG outperforms its industry in 1 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Chipotle Mexican Grill, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
107.99%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
350.56%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
232.37%
Industry Style: Cyclical, Growth, Discretionary
High Growth