Chipotle Mexican Price To Earning vs. Net Income
| CMG Stock | USD 62.01 2.03 3.38% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.26 | 0.262 |
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For Chipotle Mexican profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Chipotle Mexican to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Chipotle Mexican Grill utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Chipotle Mexican's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Chipotle Mexican Grill over time as well as its relative position and ranking within its peers.
Chipotle |
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.
Please note, there is a significant difference between Chipotle Mexican's value and its price as these two are different measures arrived at by different 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.
Chipotle Mexican Grill Net Income vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Chipotle Mexican's current stock value. Our valuation model uses many indicators to compare Chipotle Mexican value to that of its competitors to determine the firm's financial worth. Chipotle Mexican Grill is rated third in price to earning category among its peers. It is rated fourth in net income category among its peers making up about 11,573,298 of Net Income per Price To Earning. At this time, Chipotle Mexican's Net Income is most likely to increase significantly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Chipotle Mexican by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Chipotle Net Income vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Chipotle Mexican |
| = | 106.17 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Chipotle Mexican |
| = | 1.23 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Chipotle Net Income Comparison
Chipotle Mexican is currently under evaluation in net income category among its peers.
Chipotle Mexican Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Chipotle Mexican, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Chipotle Mexican will eventually generate negative long term returns. The profitability progress is the general direction of Chipotle Mexican's change in net profit over the period of time. It can combine multiple indicators of Chipotle Mexican, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -6.7 M | -7 M | |
| Operating Income | 1.6 B | 1.6 B | |
| Income Before Tax | 1.6 B | 1.7 B | |
| Total Other Income Expense Net | 62.7 M | 65.8 M | |
| Net Income | 1.2 B | 1.3 B | |
| Income Tax Expense | 391.8 M | 411.4 M | |
| Net Income Applicable To Common Shares | 1 B | 1.1 B | |
| Net Income From Continuing Ops | 1.2 B | 1.2 B | |
| Non Operating Income Net Other | 24.3 M | 25.5 M | |
| Interest Income | 50.8 M | 53.4 M | |
| Net Interest Income | 50.8 M | 53.4 M | |
| Change To Netincome | 43.6 M | 82.9 M | |
| Net Income Per Share | 0.89 | 0.94 | |
| Income Quality | 1.45 | 1.38 | |
| Net Income Per E B T | 0.76 | 0.58 |
Chipotle Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Chipotle Mexican. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Chipotle Mexican position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Chipotle Mexican's important profitability drivers and their relationship over time.
Use Chipotle Mexican in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Chipotle Mexican position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chipotle Mexican will appreciate offsetting losses from the drop in the long position's value.Chipotle Mexican Pair Trading
Chipotle Mexican Grill Pair Trading Analysis
The ability to find closely correlated positions to Chipotle Mexican could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Chipotle Mexican when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Chipotle Mexican - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Chipotle Mexican Grill to buy it.
The correlation of Chipotle Mexican is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Chipotle Mexican moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Chipotle Mexican Grill moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Chipotle Mexican can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Chipotle Mexican position
In addition to having Chipotle Mexican in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project Chipotle Mexican's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Chipotle Mexican Grill at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Chipotle Mexican's income statement, its balance sheet, and the statement of cash flows.