This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

TSC Ratings' Updates: Chipotle

Revenue rose by 18.8% since the year-ago quarter, though EPS declined. Chipotle's deb-to-equity ratio or 2.5 is low but is above the industry average. Its quick ratio of 2.5 demonstrates the ability to cover short-term liquidity needs. Net operating cash flow rose 15.7% to $47.9 million compared with the year-ago quarter. Chipotle's 21.3% gross profit margin has decreased from the year-ago quarter, and its net profit margin of 4.8% trails the industry average.

Shares have plunged 41.3% over the past year, probably driven by the decline of simila magnitude in the overall market. Don't assume that the stock can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, Chipotle is still more expensive than most of the other companies in its industry.

We've upgraded Lawson Software (LWSN), which provides enterprise software, from sell to hold. Strengths include the company's increase in net income, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, we also find weaknesses including disappointing return on equity, weak operating cash flow and a decline in the stock price during the past year.

EPS have improved in the most recent quarter compared with the year-earlier quarter, and we feel that Lawson's year-long trend of EPS growth should continue. Net income rose 916.1%, from $730,000 in the year-ago quarter to $7.4 million in the most recent quarter. The company's gross profit margin is 56.9%, having increased from the year-ago quarter. Its net profit margin of 4.2% trails the industry average. Net operating cash flow fell 34.7% to $15.9 million compared with the year-ago quarter. Return on equity slightly decreased, implying a minor weakness in the organization.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ADVS $44.09 0.00%
MRTN $23.36 -1.02%
SWM $45.26 0.42%
AAPL $124.24 0.70%
FB $83.01 0.11%


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs