DOMINO'S PIZZA INC (DPZ)
US25754A2015 - Common Stock
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. DPZ scores excellent on profitability, but 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.
In the past year DPZ had a positive cash flow from operations.
Each year in the past 5 years DPZ has been profitable.
DPZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DPZ (30.99%) is better than 99.25% of its industry peers.
With an excellent Return On Invested Capital value of 57.62%, DPZ belongs to the best of the industry, outperforming 99.25% 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 10.31%.
The 3 year average ROIC (57.32%) for DPZ is below the current ROIC(57.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.99% | ||
| ROE | N/A | ||
| ROIC | 57.62% |
ROA(3y)29.92%
ROA(5y)30.02%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)57.32%
ROIC(5y)55.63%
1.3 Margins
The Profit Margin of DPZ (11.59%) is better than 76.87% of its industry peers.
In the last couple of years the Profit Margin of DPZ has grown nicely.
DPZ's Operating Margin of 18.30% is fine compared to the rest of the industry. DPZ outperforms 76.12% of its industry peers.
In the last couple of years the Operating Margin of DPZ has grown nicely.
The Gross Margin of DPZ (38.56%) is worse than 66.42% 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 | 18.3% | ||
| PM (TTM) | 11.59% | ||
| GM | 38.56% |
OM growth 3Y1.26%
OM growth 5Y1.9%
PM growth 3Y-0.97%
PM growth 5Y1.91%
GM growth 3Y-0.14%
GM growth 5Y0.32%
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.
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.
The debt/assets ratio for DPZ has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.80 indicates that DPZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
DPZ has a Altman-Z score of 2.80. This is in the better half of the industry: DPZ outperforms 79.10% of its industry peers.
The Debt to FCF ratio of DPZ is 10.28, which is on the high side as it means it would take DPZ, 10.28 years of fcf income to pay off all of its debts.
DPZ's Debt to FCF ratio of 10.28 is in line compared to the rest of the industry. DPZ outperforms 58.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.28 | ||
| Altman-Z | 2.8 |
ROIC/WACC6.95
WACC8.29%
2.3 Liquidity
DPZ has a Current Ratio of 1.49. This is a normal value and indicates that DPZ is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DPZ (1.49) is better than 72.39% of its industry peers.
DPZ has a Quick Ratio of 1.34. This is a normal value and indicates that DPZ is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.34, DPZ is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.44% 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 decreased by -1.27% in the past year.
DPZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.47% yearly.
EPS 1Y (TTM)21.44%
EPS 3Y5.76%
EPS 5Y11.77%
EPS growth Q2Q12.85%
Revenue 1Y (TTM)-1.27%
Revenue growth 3Y2.85%
Revenue growth 5Y5.47%
Revenue growth Q2Q0.77%
3.2 Future
Based on estimates for the next years, DPZ will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.95% on average per year.
Based on estimates for the next years, DPZ will show a small growth in Revenue. The Revenue will grow by 5.34% on average per year.
EPS Next Y8.64%
EPS Next 2Y10.53%
EPS Next 3Y10.74%
EPS Next 5Y8.95%
Revenue Next Year6.71%
Revenue Next 2Y6.65%
Revenue Next 3Y6.61%
Revenue Next 5Y5.34%
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
The Price/Earnings ratio is 32.13, which means the current valuation is very expensive for DPZ.
The rest of the industry has a similar Price/Earnings ratio as DPZ.
DPZ is valuated rather expensively when we compare the Price/Earnings ratio to 24.95, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 29.57, which means the current valuation is very expensive for DPZ.
DPZ's Price/Forward Earnings is on the same level as the industry average.
DPZ's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.13 | ||
| Fwd PE | 29.57 |
4.2 Price Multiples
72.39% of the companies in the same industry are cheaper than DPZ, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as DPZ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.81 | ||
| EV/EBITDA | 23.55 |
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)3.72
PEG (5Y)2.73
EPS Next 2Y10.53%
EPS Next 3Y10.74%
5. Dividend
5.1 Amount
DPZ has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
DPZ's Dividend Yield is a higher than the industry average which is at 2.63.
Compared to an average S&P500 Dividend Yield of 2.45, DPZ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
On average, the dividend of DPZ grows each year by 35.91%, 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)35.91%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
DPZ pays out 32.70% 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.
DP32.7%
EPS Next 2Y10.53%
EPS Next 3Y10.74%
DOMINO'S PIZZA INC
NYSE:DPZ (4/22/2024, 7:04:00 PM)
After market: 471.85 +0.57 (+0.12%)471.28
-2.27 (-0.48%)
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 Cap16.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.13 | ||
| Fwd PE | 29.57 | ||
| 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)3.72
PEG (5Y)2.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.99% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.3% | ||
| PM (TTM) | 11.59% | ||
| GM | 38.56% | ||
| 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 Turnover2.67
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 | 1.49 | ||
| Quick Ratio | 1.34 | ||
| 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)
Growth
EPS 1Y (TTM)21.44%
EPS 3Y5.76%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.27%
Revenue growth 3Y2.85%
Revenue growth 5Y
Revenue growth 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