PAPA JOHN'S INTL INC (PZZA) Stock Fundamental Analysis
NASDAQ:PZZA - Nasdaq - US6988131024 - Common Stock - Currency: USD
PZZA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 134 industry peers in the Hotels, Restaurants & Leisure industry. PZZA scores excellent on profitability, but there are some minor concerns on its financial health. PZZA is not valued too expensively and it also shows a decent growth rate. Finally 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.
PZZA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PZZA has a better Return On Assets (32.17%) than 98.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 42.90%, PZZA belongs to the top of the industry, outperforming 97.76% of the companies in the same industry.
PZZA had an Average Return On Invested Capital over the past 3 years of 18.40%. This is above the industry average of 14.01%.
The 3 year average ROIC (18.40%) for PZZA is below the current ROIC(42.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.17% | ||
| ROE | N/A | ||
| ROIC | 42.9% |
ROA(3y)8.86%
ROA(5y)6.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.4%
ROIC(5y)18.07%
1.3 Margins
With an excellent Profit Margin value of 12.70%, PZZA belongs to the best of the industry, outperforming 80.60% of the companies in the same industry.
In the last couple of years the Profit Margin of PZZA has grown nicely.
With a decent Operating Margin value of 15.10%, PZZA is doing good in the industry, outperforming 66.42% of the companies in the same industry.
In the last couple of years the Operating Margin of PZZA has grown nicely.
PZZA's Gross Margin of 34.38% is on the low side compared to the rest of the industry. PZZA is outperformed by 72.39% 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 | 15.1% | ||
| PM (TTM) | 12.7% | ||
| GM | 34.38% |
OM growth 3Y-6.37%
OM growth 5Y42.54%
PM growth 3Y173.47%
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.
PZZA has more shares outstanding than it did 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 4.83 indicates that PZZA is not in any danger for bankruptcy at the moment.
PZZA has a Altman-Z score of 4.83. This is amongst the best in the industry. PZZA outperforms 86.57% of its industry peers.
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 (14.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.46 | ||
| Altman-Z | 4.83 |
ROIC/WACC5.8
WACC7.39%
2.3 Liquidity
A Current Ratio of 0.86 indicates that PZZA may have some problems paying its short term obligations.
With a Current ratio value of 0.86, PZZA perfoms like the industry average, outperforming 46.27% of the companies in the same industry.
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 has a Quick ratio of 0.72. This is comparable to the rest of the industry: PZZA outperforms 43.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for PZZA have decreased strongly by -24.81% 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.
Looking at the last year, PZZA shows a small growth in Revenue. The Revenue has grown by 7.17% in the last year.
PZZA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.93% yearly.
EPS 1Y (TTM)-24.81%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-46.27%
Revenue 1Y (TTM)7.17%
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-22.23%
EPS Next 2Y1.07%
EPS Next 3Y9.26%
EPS Next 5Y17.87%
Revenue Next Year2.82%
Revenue Next 2Y2.99%
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
PZZA is valuated rather expensively with a Price/Earnings ratio of 24.13.
Based on the Price/Earnings ratio, PZZA is valued a bit cheaper than the industry average as 61.94% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.34, PZZA is valued at the same level.
A Price/Forward Earnings ratio of 20.49 indicates a rather expensive valuation of PZZA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PZZA is on the same level as its industry peers.
PZZA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.13 | ||
| Fwd PE | 20.49 |
4.2 Price Multiples
91.04% of the companies in the same industry are more expensive than PZZA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PZZA is valued a bit cheaper than the industry average as 61.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.52 | ||
| EV/EBITDA | 5.67 |
4.3 Compensation for Growth
PZZA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.62
EPS Next 2Y1.07%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.63%, PZZA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.59, PZZA pays a better dividend. On top of this PZZA pays more dividend than 87.31% of the companies listed in the same industry.
PZZA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
5.2 History
On average, the dividend of PZZA grows each year by 8.80%, 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)8.8%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
PZZA pays out 21.00% of its income as dividend. This is a sustainable payout ratio.
PZZA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21%
EPS Next 2Y1.07%
EPS Next 3Y9.26%
48.98
-0.12 (-0.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners118.63%
Inst Owner Change-5.49%
Ins Owners1.13%
Ins Owner Change4.25%
Market Cap1.60B
Analysts74.55
Price Target48.72 (-0.53%)
Short Float %11.53%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
Yearly Dividend1.86
Dividend Growth(5Y)8.8%
DP21%
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)-7.35%
PT rev (3m)-16.01%
EPS NQ rev (1m)-17.8%
EPS NQ rev (3m)-44.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-26.65%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.13 | ||
| Fwd PE | 20.49 | ||
| P/S | 0.7 | ||
| P/FCF | 29.52 | ||
| P/OCF | 12.73 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.67 |
EPS(TTM)2.03
EY4.14%
EPS(NY)2.39
Fwd EY4.88%
FCF(TTM)1.66
FCFY3.39%
OCF(TTM)3.85
OCFY7.86%
SpS69.48
BVpS-13.19
TBVpS-15.51
PEG (NY)N/A
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.17% | ||
| ROE | N/A | ||
| ROCE | 55.84% | ||
| ROIC | 42.9% | ||
| ROICexc | 46.2% | ||
| ROICexgc | 53.29% | ||
| OM | 15.1% | ||
| PM (TTM) | 12.7% | ||
| GM | 34.38% | ||
| FCFM | 2.39% |
ROA(3y)8.86%
ROA(5y)6.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.4%
ROIC(5y)18.07%
ROICexc(3y)19.79%
ROICexc(5y)20.21%
ROICexgc(3y)22.89%
ROICexgc(5y)23.68%
ROCE(3y)23.95%
ROCE(5y)23.52%
ROICexcg growth 3Y-9.78%
ROICexcg growth 5Y44.21%
ROICexc growth 3Y-9.04%
ROICexc growth 5Y45.24%
OM growth 3Y-6.37%
OM growth 5Y42.54%
PM growth 3Y173.47%
PM growth 5YN/A
GM growth 3Y-3.81%
GM growth 5Y-0.4%
F-Score8
Asset Turnover2.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.46 | ||
| Debt/EBITDA | 1.87 | ||
| Cap/Depr | 102.26% | ||
| Cap/Sales | 3.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 30.46% | ||
| Profit Quality | 18.8% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 4.83 |
F-Score8
WACC7.39%
ROIC/WACC5.8
Cap/Depr(3y)124.92%
Cap/Depr(5y)117.43%
Cap/Sales(3y)3.61%
Cap/Sales(5y)3.22%
Profit Quality(3y)80.39%
Profit Quality(5y)686.86%
High Growth Momentum
Growth
EPS 1Y (TTM)-24.81%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-46.27%
EPS Next Y-22.23%
EPS Next 2Y1.07%
EPS Next 3Y9.26%
EPS Next 5Y17.87%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%0.85%
Revenue Next Year2.82%
Revenue Next 2Y2.99%
Revenue Next 3Y2.6%
Revenue Next 5Y6.01%
EBIT growth 1Y116.02%
EBIT growth 3Y-6.5%
EBIT growth 5Y49.56%
EBIT Next Year39.87%
EBIT Next 3Y18.66%
EBIT Next 5Y19.41%
FCF growth 1Y16.58%
FCF growth 3Y-33.5%
FCF growth 5Y7.31%
OCF growth 1Y-5.42%
OCF growth 3Y-16.73%
OCF growth 5Y11.56%