PIZZA PIZZA ROYALTY CORP (PZA.CA) Stock Fundamental Analysis
TSX:PZA - Toronto Stock Exchange - CA72585V1031 - Common Stock - Currency: CAD
Taking everything into account, PZA scores 5 out of 10 in our fundamental rating. PZA was compared to 20 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. 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.
Each year in the past 5 years PZA has been profitable.
PZA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PZA (8.29%) is better than 90.00% of its industry peers.
The Return On Equity of PZA (10.38%) is better than 75.00% of its industry peers.
PZA's Return On Invested Capital of 9.75% is amongst the best of the industry. PZA outperforms 85.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PZA is in line with the industry average of 7.62%.
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
With an excellent Profit Margin value of 77.80%, 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 Profit Margin of PZA has remained more or less at the same level.
PZA's Operating Margin of 98.20% is amongst the best of the industry. PZA outperforms 100.00% of its industry peers.
PZA's Operating Margin has been stable in the last couple of years.
| 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.
PZA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PZA has an improved debt to assets ratio.
2.2 Solvency
PZA has an Altman-Z score of 2.99. This is not the best score and indicates that PZA is in the grey zone with still only limited risk for bankruptcy at the moment.
PZA has a better Altman-Z score (2.99) than 90.00% 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 | 2.99 |
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.
PZA's Current ratio of 0.19 is on the low side compared to the rest of the industry. PZA is outperformed by 75.00% of its industry peers.
PZA has a Quick 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 Quick ratio of PZA (0.19) is worse than 75.00% 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.
The Earnings Per Share has been growing slightly by 2.06% on average over the past years.
The Revenue has decreased by -1.02% in the past year.
The Revenue has been growing slightly by 2.06% on average over the past years.
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
Based on estimates for the next years, PZA will show a small growth in Earnings Per Share. The EPS will grow by 3.51% on average per year.
PZA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.70% yearly.
EPS Next Y3.97%
EPS Next 2Y3.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.77%
Revenue Next 2Y2.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.15, the valuation of PZA can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of PZA indicates a somewhat cheap valuation: PZA is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PZA to the average of the S&P500 Index (28.22), we can say PZA is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.54, the valuation of PZA can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PZA indicates a somewhat cheap valuation: PZA is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.86. PZA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 14.54 |
4.2 Price Multiples
65.00% of the companies in the same industry are more expensive than PZA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.5 | ||
| 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.
The decent profitability rating of PZA may justify a higher PE ratio.
PEG (NY)3.81
PEG (5Y)7.36
EPS Next 2Y3.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.62%, PZA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.63, PZA pays a better dividend. On top of this PZA pays more dividend than 85.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, PZA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
5.2 History
The dividend of PZA has a limited annual growth rate of 2.57%.
PZA has been paying a dividend for at least 10 years, so it has 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
108.23% of the earnings are spent on dividend by PZA. 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 (5/2/2025, 7:00:00 PM)
14.39
+0.04 (+0.28%)
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 Cap354.28M
Analysts45.71
Price Target14.28 (-0.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
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)7.69%
PT rev (3m)7.69%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.03%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.94%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 14.54 | ||
| P/S | 8.9 | ||
| P/FCF | 11.5 | ||
| P/OCF | 11.5 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.95
EY6.6%
EPS(NY)0.99
Fwd EY6.88%
FCF(TTM)1.25
FCFY8.69%
OCF(TTM)1.25
OCFY8.69%
SpS1.62
BVpS12.11
TBVpS-2.67
PEG (NY)3.81
PEG (5Y)7.36
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 | 2.99 |
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 Year1.77%
Revenue Next 2Y2.7%
Revenue Next 3YN/A
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%