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PIZZA PIZZA ROYALTY CORP (PZA.CA) Stock Fundamental Analysis

TSX:PZA - Toronto Stock Exchange - CA72585V1031 - Common Stock - Currency: CAD

13.15  -0.06 (-0.45%)

Fundamental Rating

5

Overall PZA gets a fundamental rating of 5 out of 10. We evaluated PZA against 19 industry peers in the Hotels, Restaurants & Leisure industry. While PZA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PZA has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

PZA had positive earnings in the past year.
In the past year PZA had a positive cash flow from operations.
PZA had positive earnings in each of the past 5 years.
Each year in the past 5 years PZA had a positive operating cash flow.
PZA.CA Yearly Net Income VS EBIT VS OCF VS FCFPZA.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M

1.2 Ratios

PZA has a Return On Assets of 8.32%. This is amongst the best in the industry. PZA outperforms 88.24% of its industry peers.
PZA's Return On Equity of 10.42% is fine compared to the rest of the industry. PZA outperforms 64.71% of its industry peers.
PZA has a better Return On Invested Capital (9.70%) than 88.24% 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 7.70%.
The last Return On Invested Capital (9.70%) for PZA is above the 3 year average (7.82%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 8.32%
ROE 10.42%
ROIC 9.7%
ROA(3y)7.48%
ROA(5y)7.37%
ROE(3y)9.4%
ROE(5y)9.24%
ROIC(3y)7.82%
ROIC(5y)7.67%
PZA.CA Yearly ROA, ROE, ROICPZA.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

1.3 Margins

PZA has a Profit Margin of 77.80%. This is amongst the best in the industry. PZA outperforms 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.
PZA's Operating Margin of 98.19% is amongst the best of the industry. PZA outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of PZA has remained more or less at the same level.
Industry RankSector Rank
OM 98.19%
PM (TTM) 77.8%
GM N/A
OM growth 3Y0.14%
OM growth 5Y0%
PM growth 3Y0.02%
PM growth 5Y0.28%
GM growth 3YN/A
GM growth 5YN/A
PZA.CA Yearly Profit, Operating, Gross MarginsPZA.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60 80

5

2. Health

2.1 Basic Checks

Compared to 1 year ago, PZA has more shares outstanding
Compared to 5 years ago, PZA has more shares outstanding
PZA has a better debt/assets ratio than last year.
PZA.CA Yearly Shares OutstandingPZA.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
PZA.CA Yearly Total Debt VS Total AssetsPZA.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

2.2 Solvency

An Altman-Z score of 2.77 indicates that PZA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.77, PZA is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
PZA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 1.5
Altman-Z 2.77
ROIC/WACCN/A
WACCN/A
PZA.CA Yearly LT Debt VS Equity VS FCFPZA.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

2.3 Liquidity

A Current Ratio of 0.19 indicates that PZA may have some problems paying its short term obligations.
PZA has a Current ratio of 0.19. This is amonst the worse of the industry: PZA underperforms 88.24% of its industry peers.
A Quick Ratio of 0.19 indicates that PZA may have some problems paying its short term obligations.
The Quick ratio of PZA (0.19) is worse than 88.24% of its industry peers.
Industry RankSector Rank
Current Ratio 0.19
Quick Ratio 0.19
PZA.CA Yearly Current Assets VS Current LiabilitesPZA.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M 8M 10M

3

3. Growth

3.1 Past

PZA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.10%.
Measured over the past 5 years, PZA shows a small growth in Earnings Per Share. The EPS has been growing by 2.72% on average per year.
Looking at the last year, PZA shows a small growth in Revenue. The Revenue has grown by 1.24% in the last year.
The Revenue has been growing slightly by 2.58% on average over the past years.
EPS 1Y (TTM)-0.1%
EPS 3Y8.37%
EPS 5Y2.72%
EPS Q2Q%-6.27%
Revenue 1Y (TTM)1.24%
Revenue growth 3Y8.16%
Revenue growth 5Y2.58%
Sales Q2Q%1393.37%

3.2 Future

PZA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.01% yearly.
PZA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.77% yearly.
EPS Next Y-1.06%
EPS Next 2Y-0.02%
EPS Next 3Y1.01%
EPS Next 5YN/A
Revenue Next Year-1.11%
Revenue Next 2Y0.79%
Revenue Next 3Y1.77%
Revenue Next 5YN/A

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 decreasing: in the next years the growth will be less than in the last years.
PZA.CA Yearly Revenue VS EstimatesPZA.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M
PZA.CA Yearly EPS VS EstimatesPZA.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.70, which indicates a correct valuation of PZA.
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.
The average S&P500 Price/Earnings ratio is at 30.43. PZA is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 13.42 indicates a correct valuation of PZA.
PZA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PZA is cheaper than 76.47% of the companies in the same industry.
PZA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.7
Fwd PE 13.42
PZA.CA Price Earnings VS Forward Price EarningsPZA.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

PZA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PZA is cheaper than 64.71% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.3
EV/EBITDA N/A
PZA.CA Per share dataPZA.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

The decent profitability rating of PZA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.04
EPS Next 2Y-0.02%
EPS Next 3Y1.01%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 7.04%, PZA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.43, PZA pays a better dividend. On top of this PZA pays more dividend than 88.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, PZA pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.04%

5.2 History

The dividend of PZA has a limited annual growth rate of 0.95%.
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)0.95%
Div Incr Years3
Div Non Decr Years3
PZA.CA Yearly Dividends per sharePZA.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

PZA pays out 106.60% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PZA is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP106.6%
EPS Next 2Y-0.02%
EPS Next 3Y1.01%
PZA.CA Yearly Income VS Free CF VS DividendPZA.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
PZA.CA Dividend Payout.PZA.CA Dividend Payout, showing the Payout Ratio.PZA.CA Dividend Payout.PayoutRetained Earnings

PIZZA PIZZA ROYALTY CORP

TSX:PZA (2/14/2025, 7:00:00 PM)

13.15

-0.06 (-0.45%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-04 2024-11-04/amc
Earnings (Next)03-11 2025-03-11/amc
Inst Owners16.41%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap323.75M
Analysts45.71
Price Target13.26 (0.84%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 7.04%
Yearly Dividend0.95
Dividend Growth(5Y)0.95%
DP106.6%
Div Incr Years3
Div Non Decr Years3
Ex-Date01-31 2025-01-31 (0.0775)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.58%
Min EPS beat(2)-5.35%
Max EPS beat(2)-1.82%
EPS beat(4)1
Avg EPS beat(4)-1.79%
Min EPS beat(4)-5.35%
Max EPS beat(4)0.99%
EPS beat(8)5
Avg EPS beat(8)0.97%
EPS beat(12)7
Avg EPS beat(12)2.2%
EPS beat(16)8
Avg EPS beat(16)0.48%
Revenue beat(2)0
Avg Revenue beat(2)-5.06%
Min Revenue beat(2)-7.15%
Max Revenue beat(2)-2.96%
Revenue beat(4)0
Avg Revenue beat(4)-26.17%
Min Revenue beat(4)-93.64%
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.8%
Valuation
Industry RankSector Rank
PE 13.7
Fwd PE 13.42
P/S 8.09
P/FCF 10.3
P/OCF 10.3
P/B 1.08
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.96
EY7.3%
EPS(NY)0.98
Fwd EY7.45%
FCF(TTM)1.28
FCFY9.71%
OCF(TTM)1.28
OCFY9.71%
SpS1.63
BVpS12.14
TBVpS-2.64
PEG (NY)N/A
PEG (5Y)5.04
Profitability
Industry RankSector Rank
ROA 8.32%
ROE 10.42%
ROCE 12.13%
ROIC 9.7%
ROICexc 9.89%
ROICexgc N/A
OM 98.19%
PM (TTM) 77.8%
GM N/A
FCFM 78.54%
ROA(3y)7.48%
ROA(5y)7.37%
ROE(3y)9.4%
ROE(5y)9.24%
ROIC(3y)7.82%
ROIC(5y)7.67%
ROICexc(3y)7.99%
ROICexc(5y)7.81%
ROICexgc(3y)3415.44%
ROICexgc(5y)4417.02%
ROCE(3y)9.79%
ROCE(5y)9.6%
ROICexcg growth 3Y-34.84%
ROICexcg growth 5Y-16.25%
ROICexc growth 3Y7.98%
ROICexc growth 5Y2.09%
OM growth 3Y0.14%
OM growth 5Y0%
PM growth 3Y0.02%
PM growth 5Y0.28%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.11
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 1.5
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 38.44
Cash Conversion N/A
Profit Quality 100.95%
Current Ratio 0.19
Quick Ratio 0.19
Altman-Z 2.77
F-Score7
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)103.3%
Profit Quality(5y)103.29%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.1%
EPS 3Y8.37%
EPS 5Y2.72%
EPS Q2Q%-6.27%
EPS Next Y-1.06%
EPS Next 2Y-0.02%
EPS Next 3Y1.01%
EPS Next 5YN/A
Revenue 1Y (TTM)1.24%
Revenue growth 3Y8.16%
Revenue growth 5Y2.58%
Sales Q2Q%1393.37%
Revenue Next Year-1.11%
Revenue Next 2Y0.79%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
EBIT growth 1Y1.06%
EBIT growth 3Y8.31%
EBIT growth 5Y2.58%
EBIT Next Year-0.2%
EBIT Next 3Y2.01%
EBIT Next 5YN/A
FCF growth 1Y12.44%
FCF growth 3Y7.56%
FCF growth 5Y2.54%
OCF growth 1Y12.44%
OCF growth 3Y7.56%
OCF growth 5Y2.54%