PAPA JOHN'S INTL INC (PZZA) Stock Fundamental Analysis
USA - NASDAQ:PZZA - US6988131024 - Common Stock
55.31 USD
+2.39 (+4.52%)
55.5282 USD
+0.22 (+0.39%)
Overall PZZA gets a fundamental rating of 4 out of 10. We evaluated PZZA against 133 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 quite expensive at the moment. It does show 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.
In the past year PZZA had a positive cash flow from operations.
In the past 5 years PZZA has always 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 8.39% is amongst the best of the industry. PZZA outperforms 80.60% of its industry peers.
With an excellent Return On Invested Capital value of 15.93%, PZZA belongs to the best of the industry, outperforming 83.58% of the companies in the same industry.
PZZA had an Average Return On Invested Capital over the past 3 years of 19.10%. This is significantly above the industry average of 10.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | N/A | ||
| ROIC | 15.93% |
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 (3.58%) which is in line with its industry peers.
In the last couple of years the Profit Margin of PZZA has grown nicely.
Looking at the Operating Margin, with a value of 5.95%, PZZA is in line with its industry, outperforming 42.54% of the companies in the same industry.
PZZA's Operating Margin has improved in the last couple of years.
PZZA's Gross Margin of 27.24% is on the low side compared to the rest of the industry. PZZA is outperformed by 79.10% of its industry peers.
PZZA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.95% | ||
| PM (TTM) | 3.58% | ||
| GM | 27.24% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PZZA is creating value.
PZZA has more shares outstanding than it did 1 year ago.
PZZA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PZZA has an improved debt to assets ratio.
2.2 Solvency
PZZA has an Altman-Z score of 3.91. This indicates that PZZA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.91, PZZA belongs to the top of the industry, outperforming 82.09% of the companies in the same industry.
PZZA has a debt to FCF ratio of 13.58. This is a negative value and a sign of low solvency as PZZA would need 13.58 years to pay back of all of its debts.
With a Debt to FCF ratio value of 13.58, PZZA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.58 | ||
| Altman-Z | 3.91 |
ROIC/WACC2.07
WACC7.68%
2.3 Liquidity
PZZA has a Current Ratio of 0.82. 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 Current ratio of 0.82. This is comparable to the rest of the industry: PZZA outperforms 43.28% of its industry peers.
PZZA has a Quick Ratio of 0.82. 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 Quick ratio of PZZA (0.69) is worse than 61.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
PZZA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.72%.
PZZA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.87% yearly.
Looking at the last year, PZZA shows a decrease in Revenue. The Revenue has decreased by -1.46% 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)-32.72%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-32.79%
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%4.19%
3.2 Future
The Earnings Per Share is expected to grow by 17.87% on average over the next years. This is quite good.
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-25.03%
EPS Next 2Y-2.12%
EPS Next 3Y4.35%
EPS Next 5Y17.87%
Revenue Next Year2.97%
Revenue Next 2Y1.97%
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
A Price/Earnings ratio of 30.22 indicates a quite expensive valuation of PZZA.
PZZA's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PZZA to the average of the S&P500 Index (26.89), we can say PZZA is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 24.67, the valuation of PZZA can be described as rather expensive.
PZZA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.99. PZZA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.22 | ||
| Fwd PE | 24.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PZZA is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PZZA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.06 | ||
| EV/EBITDA | 13.04 |
4.3 Compensation for Growth
The decent profitability rating of PZZA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.03
EPS Next 2Y-2.12%
EPS Next 3Y4.35%
5. Dividend
5.1 Amount
PZZA has a Yearly Dividend Yield of 3.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.90, PZZA pays a better dividend. On top of this PZZA pays more dividend than 88.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, PZZA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.81%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
PZZA pays out 81.41% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PZZA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP81.41%
EPS Next 2Y-2.12%
EPS Next 3Y4.35%
55.31
+2.39 (+4.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners112.39%
Inst Owner Change0.88%
Ins Owners1.1%
Ins Owner Change0.62%
Market Cap1.81B
Revenue(TTM)2.09B
Net Income(TTM)74.74M
Analysts74.55
Price Target53.23 (-3.76%)
Short Float %13.42%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
Yearly Dividend1.86
Dividend Growth(5Y)8.81%
DP81.41%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.81%
Min EPS beat(2)0.08%
Max EPS beat(2)21.54%
EPS beat(4)3
Avg EPS beat(4)11.03%
Min EPS beat(4)-1.65%
Max EPS beat(4)24.17%
EPS beat(8)6
Avg EPS beat(8)10.84%
EPS beat(12)7
Avg EPS beat(12)6.12%
EPS beat(16)9
Avg EPS beat(16)5.49%
Revenue beat(2)1
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-1.05%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)0.06%
Min Revenue beat(4)-1.05%
Max Revenue beat(4)0.85%
Revenue beat(8)2
Avg Revenue beat(8)-2.25%
Revenue beat(12)2
Avg Revenue beat(12)-2.54%
Revenue beat(16)3
Avg Revenue beat(16)-2.23%
PT rev (1m)0%
PT rev (3m)9.24%
EPS NQ rev (1m)-3.17%
EPS NQ rev (3m)-4.31%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.22 | ||
| Fwd PE | 24.67 | ||
| P/S | 0.87 | ||
| P/FCF | 32.06 | ||
| P/OCF | 13.78 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.04 |
EPS(TTM)1.83
EY3.31%
EPS(NY)2.24
Fwd EY4.05%
FCF(TTM)1.73
FCFY3.12%
OCF(TTM)4.01
OCFY7.26%
SpS63.65
BVpS-13.19
TBVpS-15.53
PEG (NY)N/A
PEG (5Y)2.03
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | N/A | ||
| ROCE | 20.74% | ||
| ROIC | 15.93% | ||
| ROICexc | 16.87% | ||
| ROICexgc | 19.53% | ||
| OM | 5.95% | ||
| PM (TTM) | 3.58% | ||
| GM | 27.24% | ||
| FCFM | 2.71% |
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 Turnover2.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.58 | ||
| Debt/EBITDA | 3.88 | ||
| Cap/Depr | 105.19% | ||
| Cap/Sales | 3.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.36% | ||
| Profit Quality | 75.62% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 3.91 |
F-Score6
WACC7.68%
ROIC/WACC2.07
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)-32.72%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-32.79%
EPS Next Y-25.03%
EPS Next 2Y-2.12%
EPS Next 3Y4.35%
EPS Next 5Y17.87%
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%4.19%
Revenue Next Year2.97%
Revenue Next 2Y1.97%
Revenue Next 3Y1.99%
Revenue Next 5Y6.01%
EBIT growth 1Y-23.35%
EBIT growth 3Y-6.51%
EBIT growth 5Y49.57%
EBIT Next Year43.01%
EBIT Next 3Y17.52%
EBIT Next 5Y19.41%
FCF growth 1Y-32.36%
FCF growth 3Y-33.5%
FCF growth 5Y7.27%
OCF growth 1Y-20.75%
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 4 / 10 to PZZA.
What is the valuation status of PAPA JOHN'S INTL INC (PZZA) stock?
ChartMill assigns a valuation rating of 2 / 10 to PAPA JOHN'S INTL INC (PZZA). This can be considered as Overvalued.
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 30.22 and the Price/Book (PB) ratio is -4.19.
How financially healthy is PAPA JOHN'S INTL INC?
The financial health rating of PAPA JOHN'S INTL INC (PZZA) is 3 / 10.