DOMINO'S PIZZA INC (DPZ) Stock Fundamental Analysis
USA - NASDAQ:DPZ - US25754A2015 - Common Stock
424.23 USD
+15.97 (+3.91%)
424.95 USD
+0.72 (+0.17%)
We assign a fundamental rating of 5 out of 10 to DPZ. DPZ was compared to 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. DPZ is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DPZ was profitable.
DPZ had a positive operating cash flow in the past year.
In the past 5 years DPZ has always been profitable.
In the past 5 years DPZ always reported a positive cash flow from operatings.
1.2 Ratios
DPZ has a better Return On Assets (32.97%) than 99.26% of its industry peers.
With an excellent Return On Invested Capital value of 588.92%, DPZ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DPZ is significantly above the industry average of 15.69%.
The last Return On Invested Capital (588.92%) for DPZ is above the 3 year average (227.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.97% | ||
| ROE | N/A | ||
| ROIC | 588.92% |
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 Profit Margin of 12.49%. This is amongst the best in the industry. DPZ outperforms 81.48% of its industry peers.
In the last couple of years the Profit Margin of DPZ has grown nicely.
The Operating Margin of DPZ (18.90%) is better than 77.78% of its industry peers.
DPZ's Operating Margin has been stable in the last couple of years.
The Gross Margin of DPZ (39.61%) is worse than 62.22% of its industry peers.
DPZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.9% | ||
| PM (TTM) | 12.49% | ||
| GM | 39.61% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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 2.20. 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.
Looking at the Altman-Z score, with a value of 2.20, DPZ is in line with its industry, outperforming 60.00% of the companies in the same industry.
The Debt to FCF ratio of DPZ is 8.11, which is on the high side as it means it would take DPZ, 8.11 years of fcf income to pay off all of its debts.
DPZ has a Debt to FCF ratio of 8.11. This is in the better half of the industry: DPZ outperforms 65.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.11 | ||
| Altman-Z | 2.2 |
ROIC/WACC79.26
WACC7.43%
2.3 Liquidity
DPZ has a Current 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.
Looking at the Current ratio, with a value of 0.60, DPZ is doing worse than 68.89% 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 Quick ratio of 0.56. This is in the lower half of the industry: DPZ underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.84% over the past year.
DPZ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.77% yearly.
Looking at the last year, DPZ shows a small growth in Revenue. The Revenue has grown by 3.65% in the last 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)5.84%
EPS 3Y7.04%
EPS 5Y11.77%
EPS Q2Q%-5.46%
Revenue 1Y (TTM)3.65%
Revenue growth 3Y2.6%
Revenue growth 5Y5.4%
Sales Q2Q%4.32%
3.2 Future
DPZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.79% yearly.
Based on estimates for the next years, DPZ will show a small growth in Revenue. The Revenue will grow by 5.20% on average per year.
EPS Next Y6.63%
EPS Next 2Y8.6%
EPS Next 3Y8.72%
EPS Next 5Y7.79%
Revenue Next Year4.03%
Revenue Next 2Y5.25%
Revenue Next 3Y5.02%
Revenue Next 5Y5.2%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 24.64, the valuation of DPZ can be described as rather expensive.
62.96% of the companies in the same industry are more expensive than DPZ, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DPZ to the average of the S&P500 Index (27.50), we can say DPZ is valued inline with the index average.
The Price/Forward Earnings ratio is 21.55, which indicates a rather expensive current valuation of DPZ.
The rest of the industry has a similar Price/Forward Earnings ratio as DPZ.
When comparing the Price/Forward Earnings ratio of DPZ to the average of the S&P500 Index (22.99), we can say DPZ is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.64 | ||
| Fwd PE | 21.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DPZ indicates a slightly more expensive valuation: DPZ is more expensive than 67.41% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DPZ is valued a bit cheaper than the industry average as 68.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.49 | ||
| EV/EBITDA | 18.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of DPZ may justify a higher PE ratio.
PEG (NY)3.71
PEG (5Y)2.09
EPS Next 2Y8.6%
EPS Next 3Y8.72%
5. Dividend
5.1 Amount
DPZ has a Yearly Dividend Yield of 1.72%.
Compared to an average industry Dividend Yield of 6.98, DPZ pays a bit more dividend than its industry peers.
DPZ's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
The dividend of DPZ is nicely growing with an annual growth rate of 32.15%!
DPZ has been paying a dividend for at least 10 years, so it has a reliable track record.
DPZ has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)32.15%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
36.36% 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.
DP36.36%
EPS Next 2Y8.6%
EPS Next 3Y8.72%
424.23
+15.97 (+3.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners94.09%
Inst Owner Change0.06%
Ins Owners0.42%
Ins Owner Change0.59%
Market Cap14.40B
Analysts75.38
Price Target522.32 (23.12%)
Short Float %9.9%
Short Ratio4.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend6.09
Dividend Growth(5Y)32.15%
DP36.36%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.31%
Min EPS beat(2)-4.59%
Max EPS beat(2)5.22%
EPS beat(4)2
Avg EPS beat(4)3.28%
Min EPS beat(4)-4.59%
Max EPS beat(4)13.76%
EPS beat(8)6
Avg EPS beat(8)6.58%
EPS beat(12)7
Avg EPS beat(12)4.29%
EPS beat(16)8
Avg EPS beat(16)1.87%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-1.02%
Revenue beat(4)0
Avg Revenue beat(4)-2.29%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)-1.02%
Revenue beat(8)0
Avg Revenue beat(8)-2.08%
Revenue beat(12)0
Avg Revenue beat(12)-2.4%
Revenue beat(16)1
Avg Revenue beat(16)-2.47%
PT rev (1m)-0.13%
PT rev (3m)0.8%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.64 | ||
| Fwd PE | 21.55 | ||
| P/S | 3.01 | ||
| P/FCF | 23.49 | ||
| P/OCF | 20.07 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.61 |
EPS(TTM)17.22
EY4.06%
EPS(NY)19.68
Fwd EY4.64%
FCF(TTM)18.06
FCFY4.26%
OCF(TTM)21.14
OCFY4.98%
SpS140.83
BVpS-117.07
TBVpS-122.05
PEG (NY)3.71
PEG (5Y)2.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.97% | ||
| ROE | N/A | ||
| ROCE | 734.08% | ||
| ROIC | 588.92% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 18.9% | ||
| PM (TTM) | 12.49% | ||
| GM | 39.61% | ||
| FCFM | 12.82% |
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-Score8
Asset Turnover2.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.11 | ||
| Debt/EBITDA | 3.86 | ||
| Cap/Depr | 118.37% | ||
| Cap/Sales | 2.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.34% | ||
| Profit Quality | 102.69% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.2 |
F-Score8
WACC7.43%
ROIC/WACC79.26
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)5.84%
EPS 3Y7.04%
EPS 5Y11.77%
EPS Q2Q%-5.46%
EPS Next Y6.63%
EPS Next 2Y8.6%
EPS Next 3Y8.72%
EPS Next 5Y7.79%
Revenue 1Y (TTM)3.65%
Revenue growth 3Y2.6%
Revenue growth 5Y5.4%
Sales Q2Q%4.32%
Revenue Next Year4.03%
Revenue Next 2Y5.25%
Revenue Next 3Y5.02%
Revenue Next 5Y5.2%
EBIT growth 1Y5.91%
EBIT growth 3Y4.05%
EBIT growth 5Y6.91%
EBIT Next Year18.17%
EBIT Next 3Y10.27%
EBIT Next 5Y7.82%
FCF growth 1Y30.01%
FCF growth 3Y-2.94%
FCF growth 5Y4.47%
OCF growth 1Y27.19%
OCF growth 3Y-1.52%
OCF growth 5Y4.69%