PAPA JOHN'S INTL INC (PZZA) Stock Fundamental Analysis
NASDAQ:PZZA - Nasdaq - US6988131024 - Common Stock - Currency: USD
Taking everything into account, PZZA scores 5 out of 10 in our fundamental rating. PZZA was compared to 131 industry peers in the Hotels, Restaurants & Leisure industry. PZZA has a medium profitability rating, but doesn't score so well on its financial health evaluation. PZZA has a correct valuation and a medium growth rate. PZZA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PZZA was profitable.
PZZA had a positive operating cash flow in the past year.
Each year in the past 5 years PZZA has been profitable.
Each year in the past 5 years PZZA had a positive operating cash flow.
1.2 Ratios
PZZA's Return On Assets of 8.65% is amongst the best of the industry. PZZA outperforms 81.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.55%, PZZA belongs to the top of the industry, outperforming 85.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PZZA is above the industry average of 15.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.65% | ||
| ROE | N/A | ||
| ROIC | 16.55% |
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
PZZA has a Profit Margin of 3.77%. This is comparable to the rest of the industry: PZZA outperforms 54.20% of its industry peers.
PZZA's Profit Margin has improved in the last couple of years.
PZZA has a Operating Margin (6.42%) which is in line with its industry peers.
PZZA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 27.67%, PZZA is doing worse than 80.15% of the companies in the same industry.
PZZA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.42% | ||
| PM (TTM) | 3.77% | ||
| GM | 27.67% |
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.
The number of shares outstanding for PZZA has been increased compared to 1 year ago.
The number of shares outstanding for PZZA has been increased compared to 5 years ago.
The debt/assets ratio for PZZA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.69 indicates that PZZA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.69, PZZA belongs to the top of the industry, outperforming 80.92% of the companies in the same industry.
PZZA has a debt to FCF ratio of 14.46. This is a negative value and a sign of low solvency as PZZA would need 14.46 years to pay back of all of its debts.
PZZA has a Debt to FCF ratio of 14.46. This is comparable to the rest of the industry: PZZA outperforms 49.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.46 | ||
| Altman-Z | 3.69 |
ROIC/WACC1.95
WACC8.48%
2.3 Liquidity
A Current Ratio of 0.86 indicates that PZZA may have some problems paying its short term obligations.
PZZA has a Current ratio of 0.86. This is comparable to the rest of the industry: PZZA outperforms 45.80% of its industry peers.
PZZA has a Quick Ratio of 0.86. This is a bad value and indicates that PZZA is not financially healthy enough and could expect problems in meeting its short term obligations.
PZZA's Quick ratio of 0.72 is in line compared to the rest of the industry. PZZA outperforms 42.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
PZZA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.81%.
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.
PZZA shows a decrease in Revenue. In the last year, the revenue decreased by -2.77%.
The Revenue has been growing slightly by 4.93% on average over the past years.
EPS 1Y (TTM)-24.81%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-46.27%
Revenue 1Y (TTM)-2.77%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%0.85%
3.2 Future
PZZA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.87% yearly.
The Revenue is expected to grow by 6.01% on average over the next years.
EPS Next Y-25.65%
EPS Next 2Y-1.15%
EPS Next 3Y5.97%
EPS Next 5Y17.87%
Revenue Next Year2.87%
Revenue Next 2Y3.09%
Revenue Next 3Y2.6%
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.
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 19.96, the valuation of PZZA can be described as rather expensive.
PZZA's Price/Earnings ratio is a bit cheaper when compared to the industry. PZZA is cheaper than 68.70% of the companies in the same industry.
PZZA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.72, which indicates a rather expensive current valuation of PZZA.
Based on the Price/Forward Earnings ratio, PZZA is valued a bit cheaper than 63.36% of the companies in the same industry.
PZZA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 17.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PZZA is valued a bit cheaper than 65.65% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PZZA indicates a somewhat cheap valuation: PZZA is cheaper than 68.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.42 | ||
| EV/EBITDA | 10.15 |
4.3 Compensation for Growth
The decent profitability rating of PZZA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.34
EPS Next 2Y-1.15%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
PZZA has a Yearly Dividend Yield of 4.34%, which is a nice return.
Compared to an average industry Dividend Yield of 4.71, PZZA pays a better dividend. On top of this PZZA pays more dividend than 91.60% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, PZZA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
5.2 History
On average, the dividend of PZZA grows each year by 8.81%, which is quite nice.
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
78.06% of the earnings are spent on dividend by PZZA. This is not a sustainable payout ratio.
The dividend of PZZA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP78.06%
EPS Next 2Y-1.15%
EPS Next 3Y5.97%
40.52
+0.35 (+0.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners118.63%
Inst Owner Change-0.47%
Ins Owners1.13%
Ins Owner Change4.23%
Market Cap1.33B
Analysts74.55
Price Target48.72 (20.24%)
Short Float %11.87%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
Yearly Dividend1.86
Dividend Growth(5Y)8.81%
DP78.06%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.12%
Min EPS beat(2)0.08%
Max EPS beat(2)24.17%
EPS beat(4)3
Avg EPS beat(4)8.64%
Min EPS beat(4)-1.65%
Max EPS beat(4)24.17%
EPS beat(8)5
Avg EPS beat(8)7.81%
EPS beat(12)6
Avg EPS beat(12)4.1%
EPS beat(16)9
Avg EPS beat(16)5.66%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-1.05%
Max Revenue beat(2)0.85%
Revenue beat(4)1
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-4.34%
Max Revenue beat(4)0.85%
Revenue beat(8)1
Avg Revenue beat(8)-2.97%
Revenue beat(12)1
Avg Revenue beat(12)-2.85%
Revenue beat(16)3
Avg Revenue beat(16)-2.11%
PT rev (1m)0%
PT rev (3m)-8.3%
EPS NQ rev (1m)-3.34%
EPS NQ rev (3m)-33.95%
EPS NY rev (1m)2.02%
EPS NY rev (3m)-6.42%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 17.72 | ||
| P/S | 0.64 | ||
| P/FCF | 24.42 | ||
| P/OCF | 10.53 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.15 |
EPS(TTM)2.03
EY5.01%
EPS(NY)2.29
Fwd EY5.64%
FCF(TTM)1.66
FCFY4.09%
OCF(TTM)3.85
OCFY9.5%
SpS63.04
BVpS-13.19
TBVpS-15.51
PEG (NY)N/A
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.65% | ||
| ROE | N/A | ||
| ROCE | 21.54% | ||
| ROIC | 16.55% | ||
| ROICexc | 17.82% | ||
| ROICexgc | 20.55% | ||
| OM | 6.42% | ||
| PM (TTM) | 3.77% | ||
| GM | 27.67% | ||
| FCFM | 2.63% |
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%
ROICexcg growth 3Y-9.79%
ROICexcg 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 Turnover2.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.46 | ||
| Debt/EBITDA | 3.83 | ||
| Cap/Depr | 102.26% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.19% | ||
| Profit Quality | 69.9% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.69 |
F-Score6
WACC8.48%
ROIC/WACC1.95
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)-24.81%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-46.27%
EPS Next Y-25.65%
EPS Next 2Y-1.15%
EPS Next 3Y5.97%
EPS Next 5Y17.87%
Revenue 1Y (TTM)-2.77%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%0.85%
Revenue Next Year2.87%
Revenue Next 2Y3.09%
Revenue Next 3Y2.6%
Revenue Next 5Y6.01%
EBIT growth 1Y-17.31%
EBIT growth 3Y-6.51%
EBIT growth 5Y49.57%
EBIT Next Year39.87%
EBIT Next 3Y18.66%
EBIT Next 5Y19.41%
FCF growth 1Y16.49%
FCF growth 3Y-33.5%
FCF growth 5Y7.27%
OCF growth 1Y-5.42%
OCF growth 3Y-16.73%
OCF growth 5Y11.55%