412.76 USD
+1.26 (+0.31%)
DPZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. DPZ scores excellent on profitability, 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.
- In the past year DPZ had a positive cash flow from operations.
- Each year in the past 5 years DPZ has been profitable.
- In the past 5 years DPZ always reported a positive cash flow from operatings.
1.2 Ratios
- DPZ's Return On Assets of 35.51% is amongst the best of the industry. DPZ outperforms 99.24% of its industry peers.
- The Return On Invested Capital of DPZ (66.41%) 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 10.36%.
- The last Return On Invested Capital (66.41%) for DPZ is well below the 3 year average (227.47%), which needs to be investigated, but indicates that DPZ had better years and this may not be a problem.
| 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
- DPZ has a better Profit Margin (12.16%) than 80.30% of its industry peers.
- In the last couple of years the Profit Margin of DPZ has grown nicely.
- DPZ's Operating Margin of 19.14% is fine compared to the rest of the industry. DPZ outperforms 78.79% of its industry peers.
- In the last couple of years the Operating Margin of DPZ has remained more or less at the same level.
- DPZ has a worse Gross Margin (39.81%) than 62.12% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DPZ is creating value.
- Compared to 1 year ago, DPZ has less shares outstanding
- The number of shares outstanding for DPZ has been reduced compared to 5 years ago.
- Compared to 1 year ago, DPZ has an improved debt to assets ratio.
2.2 Solvency
- DPZ has an Altman-Z score of 3.15. This indicates that DPZ is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.15, DPZ is doing good in the industry, outperforming 78.03% of the companies in the same industry.
- The Debt to FCF ratio of DPZ is 7.63, which is on the high side as it means it would take DPZ, 7.63 years of fcf income to pay off all of its debts.
- DPZ has a better Debt to FCF ratio (7.63) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.63 | ||
| Altman-Z | 3.15 |
ROIC/WACC8.9
WACC7.46%
2.3 Liquidity
- A Current Ratio of 1.61 indicates that DPZ should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.61, DPZ is in the better half of the industry, outperforming 74.24% of the companies in the same industry.
- A Quick Ratio of 1.48 indicates that DPZ should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.48, DPZ is in the better half of the industry, outperforming 73.48% of the companies in the same industry.
| 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.
- 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 3.92% in the past year.
- Measured over the past years, DPZ shows a small growth in Revenue. The Revenue has been growing by 5.40% on average per year.
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
- The Earnings Per Share is expected to grow by 8.77% 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 5.18% yearly.
EPS Next Y6.51%
EPS Next 2Y8.78%
EPS Next 3Y8.92%
EPS Next 5Y8.77%
Revenue Next Year3.86%
Revenue Next 2Y5.15%
Revenue Next 3Y4.86%
Revenue Next 5Y5.18%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- With a Price/Earnings ratio of 24.12, DPZ is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of DPZ indicates a somewhat cheap valuation: DPZ is cheaper than 62.88% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, DPZ is valued at the same level.
- With a Price/Forward Earnings ratio of 20.90, DPZ is valued on the expensive side.
- 61.36% of the companies in the same industry are more expensive than DPZ, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. DPZ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.12 | ||
| Fwd PE | 20.9 |
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 65.15% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, DPZ is valued a bit cheaper than 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.09 | ||
| EV/EBITDA | 18.18 |
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)3.71
PEG (5Y)2.05
EPS Next 2Y8.78%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
- DPZ has a Yearly Dividend Yield of 1.72%.
- Compared to an average industry Dividend Yield of 1.21, DPZ pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, DPZ has a dividend comparable with the average S&P500 company.
| 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 paid a dividend for at least 10 years, which is 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
- DPZ pays out 37.90% of its income as dividend. This is a sustainable payout ratio.
- The dividend of DPZ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP37.9%
EPS Next 2Y8.78%
EPS Next 3Y8.92%
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.
What is the valuation status for DPZ stock?
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.
Can you provide the expected EPS growth for DPZ stock?
The Earnings per Share (EPS) of DOMINO'S PIZZA INC (DPZ) is expected to grow by 6.51% in the next year.
Can you provide the dividend sustainability for DPZ stock?
The dividend rating of DOMINO'S PIZZA INC (DPZ) is 6 / 10 and the dividend payout ratio is 37.9%.