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Chipotle Mexican Grill Inc  (NYSE:CMG) Piotroski F-Score: 8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Chipotle Mexican Grill Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

NYSE:CMG' s Piotroski F-Score Range Over the Past 10 Years
Min: 5   Max: 9
Current: 8

5
9

During the past 13 years, the highest Piotroski F-Score of Chipotle Mexican Grill Inc was 9. The lowest was 5. And the median was 7.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Chipotle Mexican Grill Inc Annual Data

Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 8.00 5.00 5.00 9.00

Chipotle Mexican Grill Inc Quarterly Data

Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.00 9.00 8.00 8.00 8.00

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Chipotle Mexican Grill Inc Distribution

* The bar in red indicates where Chipotle Mexican Grill Inc's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep18) TTM:Last Year (Sep17) TTM:
Net Income was 43.793 + 59.446 + 46.884 + 38.204 = $188 Mil.
Cash Flow from Operations was 87.798 + 201.116 + 94.302 + 197.079 = $580 Mil.
Revenue was 1110.1 + 1148.397 + 1266.52 + 1225.007 = $4,750 Mil.
Gross Profit was 165.07 + 224.294 + 249.639 + 228.75 = $868 Mil.
Average Total Assets from the begining of this year (Sep17)
to the end of this year (Sep18) was
(2064.377 + 2045.692 + 2097.444 + 2128.622 + 2230.872) / 5 = $2113.4014 Mil.
Total Assets at the begining of this year (Sep17) was $2,064 Mil.
Long-Term Debt & Capital Lease Obligation was $0 Mil.
Total Current Assets was $793 Mil.
Total Current Liabilities was $403 Mil.
Net Income was 15.975 + 46.12 + 66.73 + 19.61 = $148 Mil.

Revenue was 1034.56 + 1068.829 + 1169.409 + 1128.074 = $4,401 Mil.
Gross Profit was 139.646 + 189.612 + 220.4 + 181.134 = $731 Mil.
Average Net Income from the begining of last year (Sep16)
to the end of last year (Sep17) was
(2067.033 + 2026.103 + 2062.262 + 2068.551 + 2064.377) / 5 = $2057.6652 Mil.
Total Assets at the begining of last year (Sep16) was $2,067 Mil.
Long-Term Debt & Capital Lease Obligation was $0 Mil.
Total Current Assets was $656 Mil.
Total Current Liabilities was $323 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Chipotle Mexican Grill Inc's current Net Income (TTM) was 188. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Chipotle Mexican Grill Inc's current Cash Flow from Operations (TTM) was 580. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets(Sep17)
=188.327/2064.377
=0.09122704

ROA (Last Year)=Net Income/Total Assets(Sep16)
=148.435/2067.033
=0.07181066

Chipotle Mexican Grill Inc's return on assets of this year was 0.09122704. Chipotle Mexican Grill Inc's return on assets of last year was 0.07181066. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Chipotle Mexican Grill Inc's current Net Income (TTM) was 188. Chipotle Mexican Grill Inc's current Cash Flow from Operations (TTM) was 580. ==> 580 > 188 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Chipotle Mexican Grill Inc's gearing of this year was 0. Chipotle Mexican Grill Inc's gearing of last year was 0. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep18)=Total Current Assets/Total Current Liabilities
=793.071/402.786
=1.96896367

Current Ratio (Last Year: Sep17)=Total Current Assets/Total Current Liabilities
=655.936/323.402
=2.0282373

Chipotle Mexican Grill Inc's current ratio of this year was 1.96896367. Chipotle Mexican Grill Inc's current ratio of last year was 2.0282373. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Chipotle Mexican Grill Inc's number of shares in issue this year was 28. Chipotle Mexican Grill Inc's number of shares in issue last year was 28.4. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=867.753/4750.024
=0.18268392

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=730.792/4400.872
=0.16605618

Chipotle Mexican Grill Inc's gross margin of this year was 0.18268392. Chipotle Mexican Grill Inc's gross margin of last year was 0.16605618. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep17)
=4750.024/2064.377
=2.30094794

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep16)
=4400.872/2067.033
=2.1290768

Chipotle Mexican Grill Inc's asset turnover of this year was 2.30094794. Chipotle Mexican Grill Inc's asset turnover of last year was 2.1290768. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Chipotle Mexican Grill Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


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