PAPA JOHN'S INTL INC (PZZA)
US6988131024 - Common Stock
Overall PZZA gets a fundamental rating of 5 out of 10. We evaluated PZZA against 134 industry peers in the Hotels, Restaurants & Leisure industry. PZZA has an excellent profitability rating, but there are some minor concerns on its financial health. PZZA has a decent growth rate and is not valued too expensively. PZZA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PZZA was profitable.
PZZA had a positive operating cash flow in the past year.
PZZA had positive earnings in 4 of the past 5 years.
In the past 5 years PZZA always reported a positive cash flow from operatings.
1.2 Ratios
PZZA has a Return On Assets of 8.79%. This is amongst the best in the industry. PZZA outperforms 81.95% of its industry peers.
PZZA has a better Return On Invested Capital (22.91%) than 93.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PZZA is significantly above the industry average of 10.05%.
The last Return On Invested Capital (22.91%) for PZZA is above the 3 year average (21.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.79% | ||
| ROE | N/A | ||
| ROIC | 22.91% |
ROA(3y)5.88%
ROA(5y)4.28%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)21.12%
ROIC(5y)15.8%
1.3 Margins
PZZA has a Profit Margin (3.51%) which is comparable to the rest of the industry.
PZZA's Profit Margin has improved in the last couple of years.
PZZA's Operating Margin of 7.49% is in line compared to the rest of the industry. PZZA outperforms 45.11% of its industry peers.
In the last couple of years the Operating Margin of PZZA has grown nicely.
PZZA has a worse Gross Margin (30.77%) than 77.44% of its industry peers.
PZZA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.49% | ||
| PM (TTM) | 3.51% | ||
| GM | 30.77% |
OM growth 3Y13.66%
OM growth 5Y30.68%
PM growth 3Y18.68%
PM growth 5Y91.22%
GM growth 3Y0.81%
GM growth 5Y2.95%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PZZA is creating value.
PZZA has less shares outstanding than it did 1 year ago.
PZZA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PZZA has a worse debt to assets ratio.
2.2 Solvency
PZZA has an Altman-Z score of 4.11. This indicates that PZZA is financially healthy and has little risk of bankruptcy at the moment.
PZZA's Altman-Z score of 4.11 is amongst the best of the industry. PZZA outperforms 87.22% of its industry peers.
The Debt to FCF ratio of PZZA is 8.56, which is on the high side as it means it would take PZZA, 8.56 years of fcf income to pay off all of its debts.
PZZA has a Debt to FCF ratio of 8.56. This is in the better half of the industry: PZZA outperforms 64.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.56 | ||
| Altman-Z | 4.11 |
ROIC/WACC2.75
WACC8.32%
2.3 Liquidity
A Current Ratio of 0.80 indicates that PZZA may have some problems paying its short term obligations.
With a Current ratio value of 0.80, PZZA perfoms like the industry average, outperforming 41.35% of the companies in the same industry.
PZZA has a Quick Ratio of 0.80. This is a bad value and indicates that PZZA is not financially healthy enough and could expect problems in meeting its short term obligations.
PZZA has a Quick ratio of 0.66. This is in the lower half of the industry: PZZA underperforms 64.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
PZZA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.12%.
PZZA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.13% yearly.
The Revenue has been growing slightly by 1.73% in the past year.
PZZA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.13% yearly.
EPS 1Y (TTM)1.12%
EPS 3Y18.22%
EPS 5Y15.13%
EPS Q2Q%-1.47%
Revenue 1Y (TTM)1.73%
Revenue growth 3Y5.61%
Revenue growth 5Y5.13%
Sales Q2Q%-2.49%
3.2 Future
PZZA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.93% yearly.
Based on estimates for the next years, PZZA will show a small growth in Revenue. The Revenue will grow by 4.14% on average per year.
EPS Next Y-9.22%
EPS Next 2Y3.06%
EPS Next 3Y6.58%
EPS Next 5Y17.93%
Revenue Next Year-1.83%
Revenue Next 2Y1.09%
Revenue Next 3Y1.37%
Revenue Next 5Y4.14%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.21, which indicates a rather expensive current valuation of PZZA.
PZZA's Price/Earnings ratio is a bit cheaper when compared to the industry. PZZA is cheaper than 72.18% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.05. PZZA is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.14 indicates a correct valuation of PZZA.
60.90% of the companies in the same industry are more expensive than PZZA, based on the Price/Forward Earnings ratio.
PZZA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.07, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 16.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PZZA is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PZZA indicates a somewhat cheap valuation: PZZA is cheaper than 75.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.48 | ||
| EV/EBITDA | 10.18 |
4.3 Compensation for Growth
PZZA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.14
EPS Next 2Y3.06%
EPS Next 3Y6.58%
5. Dividend
5.1 Amount
PZZA has a Yearly Dividend Yield of 3.89%.
The stock price of PZZA dropped by -33.57% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
PZZA's Dividend Yield is rather good when compared to the industry average which is at 2.93. PZZA pays more dividend than 90.98% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, PZZA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
5.2 History
The dividend of PZZA is nicely growing with an annual growth rate of 14.39%!
PZZA has paid a dividend for at least 10 years, which is a reliable track record.
PZZA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.39%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
79.16% of the earnings are spent on dividend by PZZA. This is not a sustainable payout ratio.
PZZA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP79.16%
EPS Next 2Y3.06%
EPS Next 3Y6.58%
PAPA JOHN'S INTL INC
NASDAQ:PZZA (5/31/2024, 7:01:52 PM)
After market: 46.6 +0.14 (+0.3%)46.46
-0.09 (-0.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
Dividend Growth(5Y)
DP
Div Incr Years
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Ex-Date
Surprises & Revisions
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EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 16.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.79% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.49% | ||
| PM (TTM) | 3.51% | ||
| GM | 30.77% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)1.12%
EPS 3Y18.22%
EPS 5Y
EPS Q2Q%
EPS Next Y-9.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.73%
Revenue growth 3Y5.61%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y