On May 18, 2026, Chipotle Mexican Grill Inc CMG shares rose 3.4% today, bringing the current price to $33.75. This move comes amidst a 52-week range of $29.75 to $58.42, indicating significant volatility over the past year.
- GF Valueâ„¢ verdict: Current price of $33.75 is 42.8% below the GF Valueâ„¢ estimate of $59.01, showing a substantial upside potential.
- GF Scoreâ„¢: 85/100, indicating a strong overall company performance.
- Most notable signal: Insiders sold $0.1M in the last 3 months, with no buying activity.
Is CMG Overvalued or Undervalued?
Chipotle Mexican Grill Inc CMG is currently trading at $33.75, which is significantly below the GF Valueâ„¢ of $59.01, representing a 42.8% margin of safety for potential investors. The GF Valuation label indicates that CMG is significantly undervalued, suggesting that the current market price does not fully reflect the company's intrinsic value based on its future growth prospects and past performance. GF Valueâ„¢ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
This valuation presents an opportunity for investors who may believe in the company's future growth, although it is important to consider the risks associated with its financial strength, which currently scores 4/10. The market's perception and the recent decline in share price of 35.5% over the past year may indicate underlying challenges that could affect future performance.
How Does CMG's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 31.0x | 52.5x |
| Forward P/E | 29.8x | N/A |
Chipotle's current P/E ratio of 31.0x is significantly below its 5-year median P/E of 52.5x, indicating that the stock is trading at a lower valuation compared to its historical levels. This analysis aligns with the GF Valueâ„¢ verdict, which suggests that the stock is undervalued based on intrinsic measures.
What Does CMG's GF Scoreâ„¢ Tell Us?
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 85/100 |
| Financial Strength | 4/10 |
| Profitability | 9/10 |
| Growth | 10/10 |
| Valuation | 4/10 |
| Momentum | 4/10 |
The GF Scoreâ„¢ of 85/100 indicates a strong overall performance, particularly in the areas of growth (10/10) and profitability (9/10). However, the weaker ratings in financial strength (4/10) and valuation (4/10) highlight potential concerns regarding the company's stability and current market perception.
What Are Insiders Doing with CMG Stock?
In the past three months, insiders have sold $0.1 million worth of CMG shares, with no recorded buying activity. This pattern of insider selling may suggest a lack of confidence from management regarding the stock's near-term performance or a response to personal financial strategies. The absence of buying signals could be interpreted as a cautious approach from those who understand the company's inner workings.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, Chipotle Mexican Grill Inc CMG is currently undervalued. While the stock price reflects a significant margin of safety, potential investors should remain cautious due to the company's financial strength and the recent insider selling activity.
For the complete analysis, visit the Chipotle Mexican Grill Inc CMG stock page. You can also explore the GF Valueâ„¢ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is CMG's GF Scoreâ„¢?
CMG's GF Scoreâ„¢ is 85/100, indicating a strong overall company performance and potential for higher long-term returns.
Is CMG overvalued or undervalued?
CMG is currently undervalued, with a current price of $33.75 being significantly below the GF Valueâ„¢ estimate of $59.01.
What is CMG's P/E ratio?
CMG's P/E (TTM) is 31.0x, which is 41% below its 5-year median P/E of 52.5x, indicating a lower valuation compared to its historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
