DOMINO'S PIZZA INC (DPZ) Stock Fundamental Analysis
USA - NASDAQ:DPZ - US25754A2015 - Common Stock
401.795 USD
+1.38 (+0.35%)
Taking everything into account, DPZ scores 5 out of 10 in our fundamental rating. DPZ was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. DPZ has an excellent profitability rating, but 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.
DPZ had a positive operating cash flow in the past year.
DPZ had positive earnings in each of the past 5 years.
Each year in the past 5 years DPZ had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 35.51%, DPZ belongs to the top of the industry, outperforming 99.24% of the companies in the same industry.
DPZ has a Return On Invested Capital of 66.41%. This is amongst the best in the industry. DPZ outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DPZ is significantly above the industry average of 10.76%.
The 3 year average ROIC (227.47%) for DPZ is well above the current ROIC(66.41%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.51% | ||
| ROE | N/A | ||
| ROIC | 66.41% |
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
The Profit Margin of DPZ (12.16%) is better than 80.30% of its industry peers.
DPZ's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 19.14%, DPZ is doing good in the industry, outperforming 78.03% of the companies in the same industry.
DPZ's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 39.81%, DPZ is doing worse than 62.12% of the companies in the same industry.
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 | 19.14% | ||
| PM (TTM) | 12.16% | ||
| GM | 39.81% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DPZ is creating value.
DPZ has less shares outstanding than it did 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 3.11. This indicates that DPZ is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DPZ (3.11) is better than 76.52% of its industry peers.
DPZ has a debt to FCF ratio of 7.63. This is a slightly negative value and a sign of low solvency as DPZ would need 7.63 years to pay back of all of its debts.
The Debt to FCF ratio of DPZ (7.63) is better than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.63 | ||
| Altman-Z | 3.11 |
ROIC/WACC9.04
WACC7.35%
2.3 Liquidity
DPZ has a Current Ratio of 1.61. This is a normal value and indicates that DPZ is financially healthy and should not expect problems in meeting its short term obligations.
DPZ has a Current ratio of 1.61. This is in the better half of the industry: DPZ outperforms 73.48% of its industry peers.
A Quick Ratio of 1.48 indicates that DPZ should not have too much problems paying its short term obligations.
DPZ's Quick ratio of 1.48 is fine compared to the rest of the industry. DPZ outperforms 76.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.10% over the past year.
The Earnings Per Share has been growing by 11.77% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.92% in the past year.
DPZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.40% yearly.
EPS 1Y (TTM)5.1%
EPS 3Y7.04%
EPS 5Y11.77%
EPS Q2Q%-2.63%
Revenue 1Y (TTM)3.92%
Revenue growth 3Y2.6%
Revenue growth 5Y5.4%
Sales Q2Q%6.2%
3.2 Future
Based on estimates for the next years, DPZ will show a small growth in Earnings Per Share. The EPS will grow by 7.79% on average per year.
The Revenue is expected to grow by 5.20% on average over the next years.
EPS Next Y6.56%
EPS Next 2Y8.85%
EPS Next 3Y8.97%
EPS Next 5Y7.79%
Revenue Next Year3.9%
Revenue Next 2Y5.21%
Revenue Next 3Y4.93%
Revenue Next 5Y5.2%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.48, DPZ is valued on the expensive side.
DPZ's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.13, DPZ is valued at the same level.
DPZ is valuated rather expensively with a Price/Forward Earnings ratio of 20.32.
DPZ's Price/Forward Earnings is on the same level as the industry average.
DPZ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.48 | ||
| Fwd PE | 20.32 |
4.2 Price Multiples
64.39% of the companies in the same industry are cheaper than DPZ, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DPZ indicates a somewhat cheap valuation: DPZ is cheaper than 68.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.5 | ||
| EV/EBITDA | 17.81 |
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)3.58
PEG (5Y)2
EPS Next 2Y8.85%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.72%, DPZ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.14, DPZ pays a bit more dividend than its industry peers.
DPZ's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
On average, the dividend of DPZ grows each year by 32.15%, which is quite nice.
DPZ has been paying a dividend for at least 10 years, so it has 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
DPZ pays out 37.90% of its income as dividend. This is a sustainable payout ratio.
DPZ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP37.9%
EPS Next 2Y8.85%
EPS Next 3Y8.97%
NASDAQ:DPZ (11/6/2025, 9:45:55 AM)
401.795
+1.38 (+0.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners94.09%
Inst Owner Change-0.62%
Ins Owners0.42%
Ins Owner Change-0.05%
Market Cap13.58B
Revenue(TTM)4.85B
Net Income(TTM)589.50M
Analysts75.38
Price Target513.52 (27.81%)
Short Float %6.99%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend6.09
Dividend Growth(5Y)32.15%
DP37.9%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.43%
Min EPS beat(2)-4.59%
Max EPS beat(2)1.73%
EPS beat(4)2
Avg EPS beat(4)0.28%
Min EPS beat(4)-4.59%
Max EPS beat(4)5.22%
EPS beat(8)6
Avg EPS beat(8)3.61%
EPS beat(12)8
Avg EPS beat(12)5.01%
EPS beat(16)8
Avg EPS beat(16)1.79%
Revenue beat(2)0
Avg Revenue beat(2)-0.55%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-0.08%
Revenue beat(4)0
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)-0.08%
Revenue beat(8)0
Avg Revenue beat(8)-1.69%
Revenue beat(12)0
Avg Revenue beat(12)-2.36%
Revenue beat(16)1
Avg Revenue beat(16)-2.18%
PT rev (1m)-1.82%
PT rev (3m)-1.35%
EPS NQ rev (1m)-2.6%
EPS NQ rev (3m)-2.66%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.64%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.48 | ||
| Fwd PE | 20.32 | ||
| P/S | 2.8 | ||
| P/FCF | 21.5 | ||
| P/OCF | 18.59 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.81 |
EPS(TTM)17.11
EY4.26%
EPS(NY)19.77
Fwd EY4.92%
FCF(TTM)18.69
FCFY4.65%
OCF(TTM)21.61
OCFY5.38%
SpS143.48
BVpS-117.25
TBVpS-122.28
PEG (NY)3.58
PEG (5Y)2
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.51% | ||
| ROE | N/A | ||
| ROCE | 82.78% | ||
| ROIC | 66.41% | ||
| ROICexc | 85.4% | ||
| ROICexgc | 106.09% | ||
| OM | 19.14% | ||
| PM (TTM) | 12.16% | ||
| GM | 39.81% | ||
| FCFM | 13.03% |
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%
ROICexgc growth 3YN/A
ROICexgc 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 Turnover2.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.63 | ||
| Debt/EBITDA | 4.73 | ||
| Cap/Depr | 112.36% | ||
| Cap/Sales | 2.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.88% | ||
| Profit Quality | 107.13% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 3.11 |
F-Score7
WACC7.35%
ROIC/WACC9.04
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)5.1%
EPS 3Y7.04%
EPS 5Y11.77%
EPS Q2Q%-2.63%
EPS Next Y6.56%
EPS Next 2Y8.85%
EPS Next 3Y8.97%
EPS Next 5Y7.79%
Revenue 1Y (TTM)3.92%
Revenue growth 3Y2.6%
Revenue growth 5Y5.4%
Sales Q2Q%6.2%
Revenue Next Year3.9%
Revenue Next 2Y5.21%
Revenue Next 3Y4.93%
Revenue Next 5Y5.2%
EBIT growth 1Y7.58%
EBIT growth 3Y4.05%
EBIT growth 5Y6.91%
EBIT Next Year18.17%
EBIT Next 3Y10.27%
EBIT Next 5Y7.82%
FCF growth 1Y34%
FCF growth 3Y-2.94%
FCF growth 5Y4.47%
OCF growth 1Y28.73%
OCF growth 3Y-1.52%
OCF growth 5Y4.69%
DOMINO'S PIZZA INC / DPZ FAQ
Can you provide the ChartMill fundamental rating for DOMINO'S PIZZA INC?
ChartMill assigns a fundamental rating of 5 / 10 to DPZ.
Can you provide the valuation status for DOMINO'S PIZZA INC?
ChartMill assigns a valuation rating of 3 / 10 to DOMINO'S PIZZA INC (DPZ). This can be considered as Overvalued.
How profitable is DOMINO'S PIZZA INC (DPZ) stock?
DOMINO'S PIZZA INC (DPZ) has a profitability rating of 7 / 10.
What is the financial health of DOMINO'S PIZZA INC (DPZ) stock?
The financial health rating of DOMINO'S PIZZA INC (DPZ) is 6 / 10.
What is the earnings growth outlook for DOMINO'S PIZZA INC?
The Earnings per Share (EPS) of DOMINO'S PIZZA INC (DPZ) is expected to grow by 6.56% in the next year.