DOMINO'S PIZZA INC (DPZ) Stock Fundamental Analysis
NASDAQ:DPZ - US25754A2015 - Common Stock
450.99 USD
+4.13 (+0.92%)
450.99 USD
0 (0%)
Taking everything into account, DPZ scores 5 out of 10 in our fundamental rating. DPZ was compared to 131 industry peers in the Hotels, Restaurants & Leisure industry. DPZ has an excellent profitability rating, but there are some minor concerns on its financial health. DPZ is valied quite expensively at the moment, while 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 (32.97%) is better than 99.24% of its industry peers.
DPZ has a Return On Invested Capital of 588.92%. This is amongst the best in the industry. DPZ outperforms 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 15.87%.
The 3 year average ROIC (227.47%) for DPZ is below the current ROIC(588.92%), indicating increased profibility in the last year.
| 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
The Profit Margin of DPZ (12.49%) is better than 81.68% of its industry peers.
DPZ's Profit Margin has improved in the last couple of years.
DPZ has a better Operating Margin (18.90%) than 77.10% 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's Gross Margin of 39.61% is on the low side compared to the rest of the industry. DPZ is outperformed by 61.83% 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 | 18.9% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DPZ is creating value.
The number of shares outstanding for DPZ has been reduced compared to 1 year ago.
DPZ has less shares outstanding than it did 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 2.35. 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.
The Altman-Z score of DPZ (2.35) is better than 61.07% of its industry peers.
DPZ has a debt to FCF ratio of 8.11. This is a slightly negative value and a sign of low solvency as DPZ would need 8.11 years to pay back of all of its debts.
The Debt to FCF ratio of DPZ (8.11) is better than 68.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.11 | ||
| Altman-Z | 2.35 |
ROIC/WACC69.45
WACC8.48%
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.
With a Current ratio value of 0.60, DPZ is not doing good in the industry: 70.99% of the companies in the same industry are doing better.
A Quick Ratio of 0.56 indicates that DPZ may have some problems paying its short term obligations.
The Quick ratio of DPZ (0.56) is worse than 67.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
DPZ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.84%.
The Earnings Per Share has been growing by 11.77% on average over the past years. This is quite good.
DPZ shows a small growth in Revenue. In the last year, the Revenue has grown by 3.65%.
The Revenue has been growing slightly by 5.40% on average over the past years.
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
The Earnings Per Share is expected to grow by 8.33% on average over the next years. This is quite good.
Based on estimates for the next years, DPZ will show a small growth in Revenue. The Revenue will grow by 5.19% on average per year.
EPS Next Y6.61%
EPS Next 2Y8.61%
EPS Next 3Y8.86%
EPS Next 5Y8.33%
Revenue Next Year4.05%
Revenue Next 2Y5.28%
Revenue Next 3Y5.08%
Revenue Next 5Y5.19%
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
DPZ is valuated quite expensively with a Price/Earnings ratio of 26.19.
DPZ's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.24, DPZ is valued at the same level.
With a Price/Forward Earnings ratio of 22.91, DPZ is valued on the expensive side.
DPZ's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, DPZ is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.19 | ||
| Fwd PE | 22.91 |
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 66.41% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DPZ indicates a somewhat cheap valuation: DPZ is cheaper than 68.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.97 | ||
| EV/EBITDA | 20.08 |
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.
DPZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.96
PEG (5Y)2.23
EPS Next 2Y8.61%
EPS Next 3Y8.86%
5. Dividend
5.1 Amount
DPZ has a Yearly Dividend Yield of 1.56%.
DPZ's Dividend Yield is a higher than the industry average which is at 4.19.
DPZ's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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
36.36% of the earnings are spent on dividend by DPZ. This is a low number and sustainable payout ratio.
The dividend of DPZ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36.36%
EPS Next 2Y8.61%
EPS Next 3Y8.86%
450.99
+4.13 (+0.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners94.15%
Inst Owner Change-1.32%
Ins Owners0.42%
Ins Owner Change-1.08%
Market Cap15.31B
Analysts75.38
Price Target522.85 (15.93%)
Short Float %9.75%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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)0.44%
PT rev (3m)0.13%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)0.46%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)-0.79%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.19 | ||
| Fwd PE | 22.91 | ||
| P/S | 3.2 | ||
| P/FCF | 24.97 | ||
| P/OCF | 21.34 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.08 |
EPS(TTM)17.22
EY3.82%
EPS(NY)19.69
Fwd EY4.37%
FCF(TTM)18.06
FCFY4%
OCF(TTM)21.14
OCFY4.69%
SpS140.83
BVpS-117.07
TBVpS-122.05
PEG (NY)3.96
PEG (5Y)2.23
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 | 2.35 |
F-Score8
WACC8.48%
ROIC/WACC69.45
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 Y6.61%
EPS Next 2Y8.61%
EPS Next 3Y8.86%
EPS Next 5Y8.33%
Revenue 1Y (TTM)3.65%
Revenue growth 3Y2.6%
Revenue growth 5Y5.4%
Sales Q2Q%4.32%
Revenue Next Year4.05%
Revenue Next 2Y5.28%
Revenue Next 3Y5.08%
Revenue Next 5Y5.19%
EBIT growth 1Y5.91%
EBIT growth 3Y4.05%
EBIT growth 5Y6.91%
EBIT Next Year18.17%
EBIT Next 3Y10.49%
EBIT Next 5Y8.19%
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%