PAPA JOHN'S INTL INC (PZZA) Stock Fundamental Analysis
NASDAQ:PZZA - Nasdaq - US6988131024 - Common Stock - Currency: USD
PZZA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. PZZA has an excellent profitability rating, 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.
In the past year PZZA had a positive cash flow from operations.
PZZA had positive earnings in each of the past 5 years.
Each year in the past 5 years PZZA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 32.17%, PZZA belongs to the top of the industry, outperforming 98.52% of the companies in the same industry.
The Return On Invested Capital of PZZA (42.90%) is better than 97.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PZZA is above the industry average of 14.12%.
The last Return On Invested Capital (42.90%) for PZZA is above the 3 year average (18.40%), which is a sign of increasing profitability.
| 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
PZZA has a Profit Margin of 12.70%. This is in the better half of the industry: PZZA outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of PZZA has grown nicely.
PZZA has a better Operating Margin (15.10%) than 65.19% of its industry peers.
PZZA's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 34.38%, PZZA is not doing good in the industry: 71.85% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PZZA 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.
Compared to 1 year ago, PZZA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.70 indicates that PZZA is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.70, PZZA belongs to the best of the industry, outperforming 87.41% of the companies in the same industry.
The Debt to FCF ratio of PZZA is 14.46, which is on the high side as it means it would take PZZA, 14.46 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.46, PZZA is in line with its industry, outperforming 47.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.46 | ||
| Altman-Z | 4.7 |
ROIC/WACC5.06
WACC8.47%
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 (0.86) which is in line with its industry peers.
A Quick Ratio of 0.72 indicates that PZZA may have some problems paying its short term obligations.
With a Quick ratio value of 0.72, PZZA perfoms like the industry average, outperforming 42.96% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 14.87% on average over the past years. This is quite good.
PZZA shows a small growth in Revenue. In the last year, the Revenue has grown by 7.17%.
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
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-22.23%
EPS Next 2Y1.07%
EPS Next 3Y9.26%
EPS Next 5Y17.87%
Revenue Next Year2.78%
Revenue Next 2Y3.23%
Revenue Next 3Y3.6%
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.
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 20.33, PZZA is valued on the expensive side.
Based on the Price/Earnings ratio, PZZA is valued a bit cheaper than 71.11% of the companies in the same industry.
When comparing the Price/Earnings ratio of PZZA to the average of the S&P500 Index (26.68), we can say PZZA is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.26, PZZA is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PZZA indicates a somewhat cheap valuation: PZZA is cheaper than 71.11% of the companies listed in the same industry.
PZZA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 17.26 |
4.2 Price Multiples
94.81% of the companies in the same industry are more expensive than PZZA, based on the Enterprise Value to EBITDA ratio.
65.93% of the companies in the same industry are more expensive than PZZA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.85 | ||
| EV/EBITDA | 4.98 |
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)1.37
EPS Next 2Y1.07%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
PZZA has a Yearly Dividend Yield of 4.59%, which is a nice return.
Compared to an average industry Dividend Yield of 3.55, PZZA pays a better dividend. On top of this PZZA pays more dividend than 92.59% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
On average, the dividend of PZZA grows each year by 8.80%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.8%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
21.00% of the earnings are spent on dividend by PZZA. This is a low number and sustainable payout ratio.
The dividend of PZZA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21%
EPS Next 2Y1.07%
EPS Next 3Y9.26%
41.27
+0.93 (+2.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners129.84%
Inst Owner Change-5.67%
Ins Owners1.29%
Ins Owner Change4.16%
Market Cap1.35B
Analysts75.65
Price Target52.59 (27.43%)
Short Float %10.67%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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)-7.2%
PT rev (3m)-9.24%
EPS NQ rev (1m)-16.87%
EPS NQ rev (3m)-31.91%
EPS NY rev (1m)-2.12%
EPS NY rev (3m)-26.62%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 17.26 | ||
| P/S | 0.59 | ||
| P/FCF | 24.85 | ||
| P/OCF | 10.72 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.98 |
EPS(TTM)2.03
EY4.92%
EPS(NY)2.39
Fwd EY5.79%
FCF(TTM)1.66
FCFY4.02%
OCF(TTM)3.85
OCFY9.33%
SpS69.54
BVpS-13.2
TBVpS-15.53
PEG (NY)N/A
PEG (5Y)1.37
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 | 4.7 |
F-Score8
WACC8.47%
ROIC/WACC5.06
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 Year2.78%
Revenue Next 2Y3.23%
Revenue Next 3Y3.6%
Revenue Next 5Y6.01%
EBIT growth 1Y116.02%
EBIT growth 3Y-6.5%
EBIT growth 5Y49.56%
EBIT Next Year37.74%
EBIT Next 3Y19.35%
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%