PAPA JOHN'S INTL INC (PZZA) Stock Fundamental Analysis
USA - NASDAQ:PZZA - US6988131024 - Common Stock
40.215 USD
-0.88 (-2.15%)
40.51 USD
+0.29 (+0.73%)
Overall PZZA gets a fundamental rating of 5 out of 10. We evaluated PZZA against 132 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of PZZA while its profitability can be described as average. PZZA is not valued too expensively and it also shows a decent growth rate. PZZA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PZZA had positive earnings in the past year.
PZZA had a positive operating cash flow in the past year.
PZZA had positive earnings in each of the past 5 years.
In the past 5 years PZZA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PZZA (4.23%) is better than 62.12% of its industry peers.
The Return On Invested Capital of PZZA (15.12%) is better than 84.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PZZA is significantly above the industry average of 10.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | N/A | ||
| ROIC | 15.12% |
ROA(3y)8.86%
ROA(5y)6.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.1%
ROIC(5y)18.49%
1.3 Margins
With a Profit Margin value of 1.79%, PZZA perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
PZZA's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 5.41%, PZZA is not doing good in the industry: 62.12% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of PZZA has grown nicely.
PZZA's Gross Margin of 26.62% is on the low side compared to the rest of the industry. PZZA is outperformed by 78.79% of its industry peers.
In the last couple of years the Gross Margin of PZZA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.41% | ||
| PM (TTM) | 1.79% | ||
| GM | 26.62% |
OM growth 3Y-6.37%
OM growth 5Y42.55%
PM growth 3Y174.07%
PM growth 5YN/A
GM growth 3Y-3.81%
GM growth 5Y-0.4%
2. Health
2.1 Basic Checks
PZZA 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, PZZA has more shares outstanding
The number of shares outstanding for PZZA has been increased compared to 5 years ago.
PZZA has a better debt/assets ratio than last year.
2.2 Solvency
PZZA has an Altman-Z score of 3.68. This indicates that PZZA is financially healthy and has little risk of bankruptcy at the moment.
PZZA has a Altman-Z score of 3.68. This is amongst the best in the industry. PZZA outperforms 85.61% of its industry peers.
The Debt to FCF ratio of PZZA is 9.68, which is on the high side as it means it would take PZZA, 9.68 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.68, PZZA is in line with its industry, outperforming 59.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.68 | ||
| Altman-Z | 3.68 |
ROIC/WACC1.99
WACC7.6%
2.3 Liquidity
PZZA has a Current Ratio of 0.87. This is a bad value and indicates that PZZA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of PZZA (0.87) is comparable to the rest of the industry.
A Quick Ratio of 0.76 indicates that PZZA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.76, PZZA is in line with its industry, outperforming 42.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for PZZA have decreased strongly by -34.35% in the last year.
Measured over the past years, PZZA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.87% on average per year.
The Revenue has decreased by -0.64% in the past year.
The Revenue has been growing slightly by 4.93% on average over the past years.
EPS 1Y (TTM)-34.35%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-25.58%
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%0.27%
3.2 Future
Based on estimates for the next years, PZZA will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.87% on average per year.
PZZA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.01% yearly.
EPS Next Y-25.05%
EPS Next 2Y-2.2%
EPS Next 3Y4.35%
EPS Next 5Y17.87%
Revenue Next Year2.97%
Revenue Next 2Y1.94%
Revenue Next 3Y1.99%
Revenue Next 5Y6.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 23.38, PZZA is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as PZZA.
The average S&P500 Price/Earnings ratio is at 25.89. PZZA is around the same levels.
Based on the Price/Forward Earnings ratio of 17.97, the valuation of PZZA can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PZZA indicates a somewhat cheap valuation: PZZA is cheaper than 62.12% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, PZZA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.38 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
PZZA's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, PZZA is valued a bit cheaper than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.62 | ||
| EV/EBITDA | 10.82 |
4.3 Compensation for Growth
The decent profitability rating of PZZA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.57
EPS Next 2Y-2.2%
EPS Next 3Y4.35%
5. Dividend
5.1 Amount
PZZA has a Yearly Dividend Yield of 4.52%, which is a nice return.
PZZA's Dividend Yield is rather good when compared to the industry average which is at 4.57. PZZA pays more dividend than 92.42% of the companies in the same industry.
PZZA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
5.2 History
The dividend of PZZA is nicely growing with an annual growth rate of 8.81%!
PZZA has paid a dividend for at least 10 years, which is a reliable track record.
PZZA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.81%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
PZZA pays out 163.20% of its income as dividend. This is not a sustainable payout ratio.
PZZA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP163.2%
EPS Next 2Y-2.2%
EPS Next 3Y4.35%
40.215
-0.88 (-2.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners112.39%
Inst Owner Change0.77%
Ins Owners1.1%
Ins Owner Change-0.75%
Market Cap1.32B
Revenue(TTM)2.09B
Net Income(TTM)37.38M
Analysts73.91
Price Target52.85 (31.42%)
Short Float %10.67%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
Yearly Dividend1.86
Dividend Growth(5Y)8.81%
DP163.2%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.56%
Min EPS beat(2)-22.66%
Max EPS beat(2)21.54%
EPS beat(4)3
Avg EPS beat(4)5.78%
Min EPS beat(4)-22.66%
Max EPS beat(4)24.17%
EPS beat(8)6
Avg EPS beat(8)9.02%
EPS beat(12)7
Avg EPS beat(12)5.3%
EPS beat(16)8
Avg EPS beat(16)3.07%
Revenue beat(2)1
Avg Revenue beat(2)-2.18%
Min Revenue beat(2)-4.89%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)0.85%
Revenue beat(8)2
Avg Revenue beat(8)-2.45%
Revenue beat(12)2
Avg Revenue beat(12)-2.73%
Revenue beat(16)2
Avg Revenue beat(16)-2.57%
PT rev (1m)-0.7%
PT rev (3m)7.72%
EPS NQ rev (1m)-20.1%
EPS NQ rev (3m)-22.93%
EPS NY rev (1m)-1.55%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)-2.34%
Revenue NQ rev (3m)-3.53%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.38 | ||
| Fwd PE | 17.97 | ||
| P/S | 0.63 | ||
| P/FCF | 16.62 | ||
| P/OCF | 8.39 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.82 |
EPS(TTM)1.72
EY4.28%
EPS(NY)2.24
Fwd EY5.57%
FCF(TTM)2.42
FCFY6.02%
OCF(TTM)4.79
OCFY11.91%
SpS63.69
BVpS-13.41
TBVpS-15.47
PEG (NY)N/A
PEG (5Y)1.57
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | N/A | ||
| ROCE | 19.69% | ||
| ROIC | 15.12% | ||
| ROICexc | 16.23% | ||
| ROICexgc | 18.57% | ||
| OM | 5.41% | ||
| PM (TTM) | 1.79% | ||
| GM | 26.62% | ||
| FCFM | 3.8% |
ROA(3y)8.86%
ROA(5y)6.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.1%
ROIC(5y)18.49%
ROICexc(3y)20.56%
ROICexc(5y)20.67%
ROICexgc(3y)23.77%
ROICexgc(5y)24.21%
ROCE(3y)24.87%
ROCE(5y)24.07%
ROICexgc growth 3Y-9.79%
ROICexgc growth 5Y44.21%
ROICexc growth 3Y-9.04%
ROICexc growth 5Y45.25%
OM growth 3Y-6.37%
OM growth 5Y42.55%
PM growth 3Y174.07%
PM growth 5YN/A
GM growth 3Y-3.81%
GM growth 5Y-0.4%
F-Score6
Asset Turnover2.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.68 | ||
| Debt/EBITDA | 3.94 | ||
| Cap/Depr | 98.38% | ||
| Cap/Sales | 3.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.82% | ||
| Profit Quality | 212.08% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 3.68 |
F-Score6
WACC7.6%
ROIC/WACC1.99
Cap/Depr(3y)124.88%
Cap/Depr(5y)117.36%
Cap/Sales(3y)3.61%
Cap/Sales(5y)3.22%
Profit Quality(3y)80.41%
Profit Quality(5y)690.68%
High Growth Momentum
Growth
EPS 1Y (TTM)-34.35%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-25.58%
EPS Next Y-25.05%
EPS Next 2Y-2.2%
EPS Next 3Y4.35%
EPS Next 5Y17.87%
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%0.27%
Revenue Next Year2.97%
Revenue Next 2Y1.94%
Revenue Next 3Y1.99%
Revenue Next 5Y6.01%
EBIT growth 1Y-28.28%
EBIT growth 3Y-6.51%
EBIT growth 5Y49.57%
EBIT Next Year43.01%
EBIT Next 3Y17.52%
EBIT Next 5Y19.41%
FCF growth 1Y-9.22%
FCF growth 3Y-33.5%
FCF growth 5Y7.27%
OCF growth 1Y-6.69%
OCF growth 3Y-16.73%
OCF growth 5Y11.55%
PAPA JOHN'S INTL INC / PZZA FAQ
What is the fundamental rating for PZZA stock?
ChartMill assigns a fundamental rating of 5 / 10 to PZZA.
What is the valuation status of PAPA JOHN'S INTL INC (PZZA) stock?
ChartMill assigns a valuation rating of 4 / 10 to PAPA JOHN'S INTL INC (PZZA). This can be considered as Fairly Valued.
What is the profitability of PZZA stock?
PAPA JOHN'S INTL INC (PZZA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of PAPA JOHN'S INTL INC (PZZA) stock?
The Price/Earnings (PE) ratio for PAPA JOHN'S INTL INC (PZZA) is 23.38 and the Price/Book (PB) ratio is -3.
How financially healthy is PAPA JOHN'S INTL INC?
The financial health rating of PAPA JOHN'S INTL INC (PZZA) is 3 / 10.