El Pollo Loco Stock Buy Hold or Sell Recommendation

LOCO Stock  USD 9.74  0.34  3.62%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding El Pollo Loco is 'Strong Hold'. Macroaxis provides El Pollo buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding El Pollo positions. The advice algorithm takes into account all of El Pollo's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting El Pollo's buy or sell advice are summarized below:
Real Value
10.04
Target Price
10.67
Hype Value
9.75
Market Value
9.74
Naive Value
9.84
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell El Pollo Loco given historical horizon and risk tolerance towards El Pollo. When Macroaxis issues a 'buy' or 'sell' recommendation for El Pollo Loco, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out El Pollo Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as LOCO and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards El Pollo Loco. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators.

Execute El Pollo Buy or Sell Advice

The LOCO recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on El Pollo Loco. Macroaxis does not own or have any residual interests in El Pollo Loco or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute El Pollo's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell El PolloBuy El Pollo
Strong Hold

Market Performance

OKDetails

Volatility

Not too volatileDetails

Hype Condition

Low keyDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Actively responds to the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

FrailDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon El Pollo Loco has a Risk Adjusted Performance of 0.0599, Jensen Alpha of (0.06), Total Risk Alpha of (0.24), Sortino Ratio of 0.0175 and Treynor Ratio of 0.0891
We provide trade recommendation to complement the latest expert consensus on El Pollo Loco. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available right now. To make sure El Pollo Loco is not overpriced, please confirm all El Pollo Loco fundamentals, including its shares owned by insiders, cash and equivalents, target price, as well as the relationship between the price to sales and book value per share . Given that El Pollo Loco has a price to earning of 14.03 X, we urge you to verify El Pollo market performance and probability of bankruptcy to ensure the company can sustain itself in the future given your latest risk tolerance and investing horizon.

El Pollo Trading Alerts and Improvement Suggestions

The company currently holds 273.33 M in liabilities with Debt to Equity (D/E) ratio of 0.72, which is about average as compared to similar companies. El Pollo Loco has a current ratio of 0.77, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist El Pollo until it has trouble settling it off, either with new capital or with free cash flow. So, El Pollo's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like El Pollo Loco sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for LOCO to invest in growth at high rates of return. When we think about El Pollo's use of debt, we should always consider it together with cash and equity.
El Pollo Loco has a frail financial position based on the latest SEC disclosures
Over 88.0% of El Pollo shares are owned by institutional investors
Latest headline from benzinga.com: El Pollo Loco Announces Exciting National Burrito Day Offers 0 Delivery Fees on April 1st and BOGO on April 4th

El Pollo Returns Distribution Density

The distribution of El Pollo's historical returns is an attempt to chart the uncertainty of El Pollo's future price movements. The chart of the probability distribution of El Pollo daily returns describes the distribution of returns around its average expected value. We use El Pollo Loco price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of El Pollo returns is essential to provide solid investment advice for El Pollo.
Mean Return
0.17
Value At Risk
-2.84
Potential Upside
2.89
Standard Deviation
1.75
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of El Pollo historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

LOCO Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as El Pollo is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading El Pollo Loco backward and forwards among themselves. El Pollo's institutional investor refers to the entity that pools money to purchase El Pollo's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Geode Capital Management, Llc2023-12-31
608.9 K
State Street Corporation2023-12-31
524.9 K
Two Sigma Investments Llc2023-12-31
460.4 K
Renaissance Technologies Corp2023-12-31
459.5 K
Two Sigma Advisers, Llc2023-12-31
390.4 K
Assenagon Asset Management Sa2023-12-31
355.8 K
Bridgeway Capital Management, Llc2023-12-31
294.5 K
Northern Trust Corp2023-12-31
228.3 K
Ameriprise Financial Inc2023-12-31
222.7 K
Biglari Capital Corp.2023-12-31
M
Blackrock Inc2023-12-31
2.5 M
Note, although El Pollo's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

El Pollo Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory338K(92K)(218K)(125K)531K557.6K
Change In Cash1.1M5.1M16.8M(9.6M)(13.2M)(12.5M)
Free Cash Flow20.7M33.9M35.1M18.6M19.4M19.4M
Depreciation17.9M16.9M15.2M14.4M15.2M16.1M
Other Non Cash Items9.1M4.1M2.8M138K(2.9M)(2.8M)
Capital Expenditures15.4M6.7M17.0M19.9M21.3M17.9M
Net Income24.9M24.5M29.1M20.8M25.6M16.9M
End Period Cash Flow8.1M13.2M30.0M20.5M7.3M14.0M
Change To Netincome20.9M11.1M6M7.4M8.5M5.6M
Change Receivables1.1M(1.2M)(3.4M)3.3M3.8M4.0M
Net Borrowings22.9M(34.2M)(22.8M)25.2M28.9M30.4M
Dividends Paid1.5M(5.5M)(161K)55.6M(35.7M)(33.9M)
Investments(10.7M)(6.7M)(12.5M)(18.9M)(13.3M)(14.0M)

El Pollo Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to El Pollo or Hotels, Restaurants & Leisure sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that El Pollo's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a LOCO stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.06
β
Beta against NYSE Composite1.77
σ
Overall volatility
1.77
Ir
Information ratio 0.02

El Pollo Volatility Alert

El Pollo Loco has relatively low volatility with skewness of -0.38 and kurtosis of 0.13. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure El Pollo's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact El Pollo's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

El Pollo Fundamentals Vs Peers

Comparing El Pollo's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze El Pollo's direct or indirect competition across all of the common fundamentals between El Pollo and the related equities. This way, we can detect undervalued stocks with similar characteristics as El Pollo or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of El Pollo's fundamental indicators could also be used in its relative valuation, which is a method of valuing El Pollo by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare El Pollo to competition
FundamentalsEl PolloPeer Average
Return On Equity0.0961-0.31
Return On Asset0.0379-0.14
Profit Margin0.05 %(1.27) %
Operating Margin0.06 %(5.51) %
Current Valuation560.1 M16.62 B
Shares Outstanding31.28 M571.82 M
Shares Owned By Insiders11.80 %10.09 %
Shares Owned By Institutions87.70 %39.21 %
Number Of Shares Shorted1.36 M4.71 M
Price To Earning14.03 X28.72 X
Price To Book1.17 X9.51 X
Price To Sales0.64 X11.42 X
Revenue468.66 M9.43 B
Gross Profit83.7 M27.38 B
EBITDA52.99 M3.9 B
Net Income25.55 M570.98 M
Cash And Equivalents34.31 M2.7 B
Cash Per Share0.93 X5.01 X
Total Debt273.33 M5.32 B
Debt To Equity0.72 %48.70 %
Current Ratio0.79 X2.16 X
Book Value Per Share8.00 X1.93 K
Cash Flow From Operations40.69 M971.22 M
Short Ratio7.26 X4.00 X
Earnings Per Share0.74 X3.12 X
Price To Earnings To Growth1.16 X4.89 X
Target Price10.5
Number Of Employees4.36 K18.84 K
Beta1.33-0.15
Market Capitalization300.78 M19.03 B
Total Asset592.3 M29.47 B
Retained Earnings13.96 M9.33 B
Working Capital(47.45 M)1.48 B
Note: Disposition of 4121 shares by Laurance Roberts of El Pollo at 10.94 subject to Rule 16b-3 [view details]

El Pollo Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as LOCO . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About El Pollo Buy or Sell Advice

When is the right time to buy or sell El Pollo Loco? Buying financial instruments such as LOCO Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total233.5M252.9M273.3M225.4M
Total Assets613.8M597.2M592.3M563.6M

Use Investing Ideas to Build Portfolios

In addition to having El Pollo 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?

Run Drugs Thematic Idea Now

Drugs
Drugs Theme
Companies involved in medical and pharmaceutical drug research, manufacturing, and delivery. The Drugs theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Drugs Theme or any other thematic opportunities.
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When determining whether El Pollo Loco offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of El Pollo's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of El Pollo Loco Stock. Outlined below are crucial reports that will aid in making a well-informed decision on El Pollo Loco Stock:
Check out El Pollo Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note that the El Pollo Loco information on this page should be used as a complementary analysis to other El Pollo's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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When running El Pollo's price analysis, check to measure El Pollo's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy El Pollo is operating at the current time. Most of El Pollo's value examination focuses on studying past and present price action to predict the probability of El Pollo's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move El Pollo's price. Additionally, you may evaluate how the addition of El Pollo to your portfolios can decrease your overall portfolio volatility.
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Is El Pollo's industry 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 El Pollo. If investors know LOCO 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 El Pollo 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
(0.25)
Earnings Share
0.74
Revenue Per Share
13.682
Quarterly Revenue Growth
(0.03)
Return On Assets
0.0379
The market value of El Pollo Loco is measured differently than its book value, which is the value of LOCO that is recorded on the company's balance sheet. Investors also form their own opinion of El Pollo's value that differs from its market value or its book value, called intrinsic value, which is El Pollo'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 El Pollo's market value can be influenced by many factors that don't directly affect El Pollo'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 El Pollo's value and its price as these two are different measures arrived at by different means. Investors typically determine if El Pollo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, El Pollo'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.