PIZZA PIZZA ROYALTY CORP (PZA.CA) Stock Fundamental Analysis
TSX:PZA - Toronto Stock Exchange - CA72585V1031 - Common Stock - Currency: CAD
Overall PZA gets a fundamental rating of 5 out of 10. We evaluated PZA against 17 industry peers in the Hotels, Restaurants & Leisure industry. PZA scores excellent on profitability, but there are some minor concerns on its financial health. PZA has a correct valuation and a medium growth rate. Finally PZA also has an excellent dividend rating. These ratings would make PZA suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year PZA was profitable.
In the past year PZA had a positive cash flow from operations.
PZA had positive earnings in each of the past 5 years.
In the past 5 years PZA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.29%, PZA belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
PZA has a Return On Equity of 10.38%. This is in the better half of the industry: PZA outperforms 64.71% of its industry peers.
PZA's Return On Invested Capital of 9.75% is amongst the best of the industry. PZA outperforms 82.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PZA is in line with the industry average of 8.02%.
The last Return On Invested Capital (9.75%) for PZA is above the 3 year average (8.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.29% | ||
| ROE | 10.38% | ||
| ROIC | 9.75% |
ROA(3y)8.05%
ROA(5y)7.5%
ROE(3y)10.12%
ROE(5y)9.41%
ROIC(3y)8.8%
ROIC(5y)8.08%
1.3 Margins
The Profit Margin of PZA (77.80%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of PZA has remained more or less at the same level.
With an excellent Operating Margin value of 98.20%, PZA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of PZA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 98.2% | ||
| PM (TTM) | 77.8% | ||
| GM | N/A |
OM growth 3Y-0.02%
OM growth 5Y-0.08%
PM growth 3Y1.25%
PM growth 5Y0.48%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
PZA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PZA has more shares outstanding
PZA has a better debt/assets ratio than last year.
2.2 Solvency
PZA has an Altman-Z score of 3.00. This indicates that PZA is financially healthy and has little risk of bankruptcy at the moment.
PZA has a better Altman-Z score (3.00) than 88.24% of its industry peers.
PZA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 3 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
PZA has a Current Ratio of 0.19. This is a bad value and indicates that PZA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of PZA (0.19) is worse than 76.47% of its industry peers.
A Quick Ratio of 0.19 indicates that PZA may have some problems paying its short term obligations.
PZA has a worse Quick ratio (0.19) than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
The earnings per share for PZA have decreased by -2.86% in the last year.
Measured over the past 5 years, PZA shows a small growth in Earnings Per Share. The EPS has been growing by 2.06% on average per year.
The Revenue has decreased by -1.02% in the past year.
Measured over the past years, PZA shows a small growth in Revenue. The Revenue has been growing by 2.06% on average per year.
EPS 1Y (TTM)-2.86%
EPS 3Y7.33%
EPS 5Y2.06%
EPS Q2Q%-3.92%
Revenue 1Y (TTM)-1.02%
Revenue growth 3Y7.64%
Revenue growth 5Y2.06%
Sales Q2Q%-1.94%
3.2 Future
The Earnings Per Share is expected to grow by 3.51% on average over the next years.
Based on estimates for the next years, PZA will show a small growth in Revenue. The Revenue will grow by 3.12% on average per year.
EPS Next Y3.97%
EPS Next 2Y3.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.42%
Revenue Next 2Y3.01%
Revenue Next 3Y3.12%
Revenue Next 5YN/A
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.39, PZA is valued correctly.
Based on the Price/Earnings ratio, PZA is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
PZA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.82.
A Price/Forward Earnings ratio of 14.77 indicates a correct valuation of PZA.
Based on the Price/Forward Earnings ratio, PZA is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, PZA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 14.77 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PZA is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.69 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PZA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.88
PEG (5Y)7.48
EPS Next 2Y3.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PZA has a Yearly Dividend Yield of 6.28%, which is a nice return.
PZA's Dividend Yield is rather good when compared to the industry average which is at 4.62. PZA pays more dividend than 82.35% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, PZA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.28% |
5.2 History
The dividend of PZA has a limited annual growth rate of 2.57%.
PZA has paid a dividend for at least 10 years, which is a reliable track record.
PZA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.57%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
PZA pays out 108.23% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PZA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP108.23%
EPS Next 2Y3.51%
EPS Next 3YN/A
TSX:PZA (5/23/2025, 7:00:00 PM)
14.62
+0.21 (+1.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners16.99%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap359.94M
Analysts45.71
Price Target14.28 (-2.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.28% |
Yearly Dividend1.03
Dividend Growth(5Y)2.57%
DP108.23%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.16%
Min EPS beat(2)-5.35%
Max EPS beat(2)-2.97%
EPS beat(4)0
Avg EPS beat(4)-2.78%
Min EPS beat(4)-5.35%
Max EPS beat(4)-0.99%
EPS beat(8)4
Avg EPS beat(8)0.29%
EPS beat(12)6
Avg EPS beat(12)1.45%
EPS beat(16)8
Avg EPS beat(16)0.94%
Revenue beat(2)0
Avg Revenue beat(2)-50.54%
Min Revenue beat(2)-93.92%
Max Revenue beat(2)-7.15%
Revenue beat(4)0
Avg Revenue beat(4)-26.24%
Min Revenue beat(4)-93.92%
Max Revenue beat(4)-0.93%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)7.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 14.77 | ||
| P/S | 9.04 | ||
| P/FCF | 11.69 | ||
| P/OCF | 11.69 | ||
| P/B | 1.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.95
EY6.5%
EPS(NY)0.99
Fwd EY6.77%
FCF(TTM)1.25
FCFY8.56%
OCF(TTM)1.25
OCFY8.56%
SpS1.62
BVpS12.11
TBVpS-2.67
PEG (NY)3.88
PEG (5Y)7.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.29% | ||
| ROE | 10.38% | ||
| ROCE | 12.09% | ||
| ROIC | 9.75% | ||
| ROICexc | 9.93% | ||
| ROICexgc | N/A | ||
| OM | 98.2% | ||
| PM (TTM) | 77.8% | ||
| GM | N/A | ||
| FCFM | 77.36% |
ROA(3y)8.05%
ROA(5y)7.5%
ROE(3y)10.12%
ROE(5y)9.41%
ROIC(3y)8.8%
ROIC(5y)8.08%
ROICexc(3y)8.99%
ROICexc(5y)8.24%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)10.92%
ROCE(5y)10.03%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y11.61%
ROICexc growth 5Y4.14%
OM growth 3Y-0.02%
OM growth 5Y-0.08%
PM growth 3Y1.25%
PM growth 5Y0.48%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.53 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 38.25 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 99.44% | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | 3 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)101.95%
Profit Quality(5y)102.46%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.86%
EPS 3Y7.33%
EPS 5Y2.06%
EPS Q2Q%-3.92%
EPS Next Y3.97%
EPS Next 2Y3.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.02%
Revenue growth 3Y7.64%
Revenue growth 5Y2.06%
Sales Q2Q%-1.94%
Revenue Next Year2.42%
Revenue Next 2Y3.01%
Revenue Next 3Y3.12%
Revenue Next 5YN/A
EBIT growth 1Y-1.23%
EBIT growth 3Y7.62%
EBIT growth 5Y1.97%
EBIT Next Year2.66%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1.77%
FCF growth 3Y7.55%
FCF growth 5Y1.7%
OCF growth 1Y-1.77%
OCF growth 3Y7.55%
OCF growth 5Y1.7%