DOMINO'S PIZZA INC (DPZ) Stock Fundamental Analysis
NASDAQ:DPZ - Nasdaq - US25754A2015 - Common Stock - Currency: USD
DPZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. While DPZ has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, DPZ is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DPZ was profitable.
In the past year DPZ had a positive cash flow from operations.
In the past 5 years DPZ has always been profitable.
Each year in the past 5 years DPZ had a positive operating cash flow.
1.2 Ratios
DPZ has a better Return On Assets (32.38%) than 99.26% of its industry peers.
The Return On Invested Capital of DPZ (389.78%) is better than 100.00% of its industry peers.
DPZ had an Average Return On Invested Capital over the past 3 years of 227.47%. This is significantly above the industry average of 14.12%.
The 3 year average ROIC (227.47%) for DPZ is below the current ROIC(389.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.38% | ||
| ROE | N/A | ||
| ROIC | 389.78% |
ROA(3y)30.95%
ROA(5y)30.95%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)227.47%
ROIC(5y)158.69%
1.3 Margins
DPZ has a better Profit Margin (12.84%) than 82.22% of its industry peers.
DPZ's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 18.56%, DPZ is doing good in the industry, outperforming 77.04% of the companies in the same industry.
DPZ's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 39.50%, DPZ is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of DPZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.56% | ||
| PM (TTM) | 12.84% | ||
| GM | 39.5% |
OM growth 3Y1.41%
OM growth 5Y1.44%
PM growth 3Y1.95%
PM growth 5Y2.31%
GM growth 3Y0.46%
GM growth 5Y0.27%
2. Health
2.1 Basic Checks
DPZ has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for DPZ has been reduced compared to 1 year ago.
The number of shares outstanding for DPZ has been reduced compared to 5 years ago.
DPZ has a better debt/assets ratio than last year.
2.2 Solvency
DPZ has an Altman-Z score of 2.48. This is not the best score and indicates that DPZ is in the grey zone with still only limited risk for bankruptcy at the moment.
DPZ's Altman-Z score of 2.48 is fine compared to the rest of the industry. DPZ outperforms 68.89% of its industry peers.
DPZ has a debt to FCF ratio of 8.68. This is a slightly negative value and a sign of low solvency as DPZ would need 8.68 years to pay back of all of its debts.
DPZ has a Debt to FCF ratio of 8.68. This is in the better half of the industry: DPZ outperforms 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.68 | ||
| Altman-Z | 2.48 |
ROIC/WACC45.96
WACC8.48%
2.3 Liquidity
A Current Ratio of 0.60 indicates that DPZ may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.60, DPZ is doing worse than 68.15% of the companies in the same industry.
DPZ has a Quick Ratio of 0.60. This is a bad value and indicates that DPZ is not financially healthy enough and could expect problems in meeting its short term obligations.
DPZ has a worse Quick ratio (0.56) than 65.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
DPZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.84%, which is quite good.
Measured over the past years, DPZ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.77% on average per year.
The Revenue has been growing slightly by 4.28% in the past year.
The Revenue has been growing slightly by 5.40% on average over the past years.
EPS 1Y (TTM)13.84%
EPS 3Y7.04%
EPS 5Y11.77%
EPS Q2Q%20.95%
Revenue 1Y (TTM)4.28%
Revenue growth 3Y2.6%
Revenue growth 5Y5.4%
Sales Q2Q%2.53%
3.2 Future
The Earnings Per Share is expected to grow by 8.50% on average over the next years. This is quite good.
DPZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.67% yearly.
EPS Next Y7.47%
EPS Next 2Y8.26%
EPS Next 3Y8.75%
EPS Next 5Y8.5%
Revenue Next Year4.09%
Revenue Next 2Y5.34%
Revenue Next 3Y5.18%
Revenue Next 5Y5.67%
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 decreasing.
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
A Price/Earnings ratio of 28.27 indicates a quite expensive valuation of DPZ.
The rest of the industry has a similar Price/Earnings ratio as DPZ.
DPZ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.60.
DPZ is valuated quite expensively with a Price/Forward Earnings ratio of 25.21.
DPZ's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.43. DPZ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.27 | ||
| Fwd PE | 25.21 |
4.2 Price Multiples
DPZ's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DPZ is more expensive than 69.63% of the companies in the same industry.
DPZ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.46 | ||
| EV/EBITDA | 22.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DPZ does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of DPZ may justify a higher PE ratio.
PEG (NY)3.79
PEG (5Y)2.4
EPS Next 2Y8.26%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
DPZ has a Yearly Dividend Yield of 1.43%.
DPZ's Dividend Yield is a higher than the industry average which is at 3.55.
Compared to the average S&P500 Dividend Yield of 2.36, DPZ is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
The dividend of DPZ is nicely growing with an annual growth rate of 32.15%!
DPZ has paid a dividend for at least 10 years, which is a reliable track record.
DPZ has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)32.15%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
34.58% of the earnings are spent on dividend by DPZ. This is a low number and sustainable payout ratio.
DPZ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.58%
EPS Next 2Y8.26%
EPS Next 3Y8.75%
493.07
-4.45 (-0.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners95.21%
Inst Owner Change-1.86%
Ins Owners0.4%
Ins Owner Change0.41%
Market Cap16.88B
Analysts78.38
Price Target522.15 (5.9%)
Short Float %5.02%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend6.08
Dividend Growth(5Y)32.15%
DP34.58%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.98%
Min EPS beat(2)-1.25%
Max EPS beat(2)5.22%
EPS beat(4)3
Avg EPS beat(4)6.52%
Min EPS beat(4)-1.25%
Max EPS beat(4)13.76%
EPS beat(8)6
Avg EPS beat(8)7.13%
EPS beat(12)7
Avg EPS beat(12)4.34%
EPS beat(16)9
Avg EPS beat(16)2.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.72%
Min Revenue beat(2)-3.16%
Max Revenue beat(2)-2.28%
Revenue beat(4)0
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)-1.46%
Revenue beat(8)0
Avg Revenue beat(8)-2.64%
Revenue beat(12)1
Avg Revenue beat(12)-2.27%
Revenue beat(16)2
Avg Revenue beat(16)-2.09%
PT rev (1m)3.87%
PT rev (3m)5.48%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-1.38%
EPS NY rev (1m)1.83%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-1.37%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.27 | ||
| Fwd PE | 25.21 | ||
| P/S | 3.57 | ||
| P/FCF | 29.46 | ||
| P/OCF | 24.81 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.37 |
EPS(TTM)17.44
EY3.54%
EPS(NY)19.56
Fwd EY3.97%
FCF(TTM)16.74
FCFY3.39%
OCF(TTM)19.87
OCFY4.03%
SpS138.25
BVpS-114.27
TBVpS-119.19
PEG (NY)3.79
PEG (5Y)2.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.38% | ||
| ROE | N/A | ||
| ROCE | 485.85% | ||
| ROIC | 389.78% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 18.56% | ||
| PM (TTM) | 12.84% | ||
| GM | 39.5% | ||
| FCFM | 12.11% |
ROA(3y)30.95%
ROA(5y)30.95%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)227.47%
ROIC(5y)158.69%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)283.54%
ROCE(5y)197.8%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y1.41%
OM growth 5Y1.44%
PM growth 3Y1.95%
PM growth 5Y2.31%
GM growth 3Y0.46%
GM growth 5Y0.27%
F-Score7
Asset Turnover2.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.68 | ||
| Debt/EBITDA | 3.96 | ||
| Cap/Depr | 121.79% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.38% | ||
| Profit Quality | 94.25% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.48 |
F-Score7
WACC8.48%
ROIC/WACC45.96
Cap/Depr(3y)122.69%
Cap/Depr(5y)126.74%
Cap/Sales(3y)2.22%
Cap/Sales(5y)2.2%
Profit Quality(3y)88.99%
Profit Quality(5y)95.86%
High Growth Momentum
Growth
EPS 1Y (TTM)13.84%
EPS 3Y7.04%
EPS 5Y11.77%
EPS Q2Q%20.95%
EPS Next Y7.47%
EPS Next 2Y8.26%
EPS Next 3Y8.75%
EPS Next 5Y8.5%
Revenue 1Y (TTM)4.28%
Revenue growth 3Y2.6%
Revenue growth 5Y5.4%
Sales Q2Q%2.53%
Revenue Next Year4.09%
Revenue Next 2Y5.34%
Revenue Next 3Y5.18%
Revenue Next 5Y5.67%
EBIT growth 1Y3.06%
EBIT growth 3Y4.05%
EBIT growth 5Y6.91%
EBIT Next Year17.38%
EBIT Next 3Y10.31%
EBIT Next 5Y8.48%
FCF growth 1Y37.29%
FCF growth 3Y-2.94%
FCF growth 5Y4.47%
OCF growth 1Y33.12%
OCF growth 3Y-1.52%
OCF growth 5Y4.69%