PAPA JOHN'S INTL INC (PZZA) Stock Fundamental Analysis
USA - NASDAQ:PZZA - US6988131024 - Common Stock
47.51 USD
+1.75 (+3.82%)
47.5608 USD
+0.05 (+0.11%)
PZZA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 134 industry peers in the Hotels, Restaurants & Leisure industry. While PZZA is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
PZZA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PZZA has a better Return On Assets (8.39%) than 81.34% 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.
Measured over the past 3 years, the Average Return On Invested Capital for PZZA is above the industry average of 15.68%.
| 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 comparable to the rest of the industry.
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 43.28% of the companies in the same industry.
PZZA's Operating Margin has improved in the last couple of years.
The Gross Margin of PZZA (27.24%) is worse than 79.85% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PZZA is creating value.
Compared to 1 year ago, PZZA has more shares outstanding
PZZA has more shares outstanding than it did 5 years ago.
PZZA has a better debt/assets ratio than last year.
2.2 Solvency
PZZA has an Altman-Z score of 3.80. 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 3.80, PZZA is in the better half of the industry, outperforming 79.85% 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.
PZZA has a Debt to FCF ratio of 13.58. This is comparable to the rest of the industry: PZZA outperforms 50.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.58 | ||
| Altman-Z | 3.8 |
ROIC/WACC1.86
WACC8.56%
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.
With a Current ratio value of 0.82, PZZA perfoms like the industry average, outperforming 44.78% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that PZZA may have some problems paying its short term obligations.
The Quick ratio of PZZA (0.69) is comparable to the rest of the industry.
| 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%.
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 decrease in Revenue. The Revenue has decreased by -1.46% in the last year.
Measured over the past years, PZZA shows a small growth in Revenue. The Revenue has been growing by 4.93% on average per year.
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-23.57%
EPS Next 2Y-0.67%
EPS Next 3Y4.53%
EPS Next 5Y17.87%
Revenue Next Year3.06%
Revenue Next 2Y1.99%
Revenue Next 3Y2.02%
Revenue Next 5Y6.01%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 25.96 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 (27.38), we can say PZZA is valued inline with the index average.
PZZA is valuated rather expensively with a Price/Forward Earnings ratio of 20.58.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PZZA is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, PZZA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.96 | ||
| Fwd PE | 20.58 |
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.
Based on the Price/Free Cash Flow ratio, PZZA is valued a bit cheaper than the industry average as 64.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.54 | ||
| EV/EBITDA | 11.73 |
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)1.75
EPS Next 2Y-0.67%
EPS Next 3Y4.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.02%, PZZA is a good candidate for dividend investing.
PZZA's Dividend Yield is rather good when compared to the industry average which is at 4.92. PZZA pays more dividend than 90.30% of the companies in the same industry.
PZZA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
5.2 History
On average, the dividend of PZZA grows each year by 8.81%, which is quite nice.
PZZA has been paying a dividend for at least 10 years, so it has 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 81.41% 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.
DP81.41%
EPS Next 2Y-0.67%
EPS Next 3Y4.53%
47.51
+1.75 (+3.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners118.39%
Inst Owner Change-1.38%
Ins Owners1.13%
Ins Owner Change0.62%
Market Cap1.56B
Analysts74.55
Price Target53.23 (12.04%)
Short Float %13.62%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
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)8.48%
PT rev (3m)9.24%
EPS NQ rev (1m)1.82%
EPS NQ rev (3m)-1.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.73%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.96 | ||
| Fwd PE | 20.58 | ||
| P/S | 0.75 | ||
| P/FCF | 27.54 | ||
| P/OCF | 11.83 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.73 |
EPS(TTM)1.83
EY3.85%
EPS(NY)2.31
Fwd EY4.86%
FCF(TTM)1.73
FCFY3.63%
OCF(TTM)4.01
OCFY8.45%
SpS63.65
BVpS-13.19
TBVpS-15.53
PEG (NY)N/A
PEG (5Y)1.75
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%
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 Turnover2.34
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 | 3.8 |
F-Score6
WACC8.56%
ROIC/WACC1.86
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-23.57%
EPS Next 2Y-0.67%
EPS Next 3Y4.53%
EPS Next 5Y17.87%
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%4.19%
Revenue Next Year3.06%
Revenue Next 2Y1.99%
Revenue Next 3Y2.02%
Revenue Next 5Y6.01%
EBIT growth 1Y-23.35%
EBIT growth 3Y-6.51%
EBIT growth 5Y49.57%
EBIT Next Year39.73%
EBIT Next 3Y18.32%
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%