PAPA JOHN'S INTL INC (PZZA)
US6988131024 - Common Stock
We assign a fundamental rating of 5 out of 10 to PZZA. PZZA was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. While PZZA has a great profitability rating, there are quite some concerns on its financial health. PZZA has a decent growth rate and is not valued too expensively. Finally PZZA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PZZA was profitable.
In the past year PZZA had a positive cash flow from operations.
Of the past 5 years PZZA 4 years were profitable.
In the past 5 years PZZA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.39%, PZZA belongs to the top of the industry, outperforming 83.58% of the companies in the same industry.
PZZA's Return On Invested Capital of 22.10% is amongst the best of the industry. PZZA outperforms 94.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PZZA is significantly above the industry average of 10.32%.
The last Return On Invested Capital (22.10%) for PZZA is above the 3 year average (21.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.39% | ||
| ROE | N/A | ||
| ROIC | 22.1% |
ROA(3y)5.88%
ROA(5y)4.28%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)21.12%
ROIC(5y)15.8%
1.3 Margins
PZZA has a Profit Margin of 3.85%. This is comparable to the rest of the industry: PZZA outperforms 51.49% of its industry peers.
PZZA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.26%, PZZA is in line with its industry, outperforming 44.78% of the companies in the same industry.
PZZA's Operating Margin has improved in the last couple of years.
PZZA has a Gross Margin of 30.76%. This is in the lower half of the industry: PZZA underperforms 76.12% of its industry peers.
In the last couple of years the Gross Margin of PZZA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.26% | ||
| PM (TTM) | 3.85% | ||
| GM | 30.76% |
OM growth 3Y13.66%
OM growth 5Y30.68%
PM growth 3Y18.68%
PM growth 5Y91.22%
GM growth 3Y0.81%
GM growth 5Y2.95%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PZZA is creating value.
The number of shares outstanding for PZZA has been reduced compared to 1 year ago.
PZZA has more shares outstanding than it did 5 years ago.
PZZA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.19 indicates that PZZA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.19, PZZA belongs to the top of the industry, outperforming 87.31% of the companies in the same industry.
The Debt to FCF ratio of PZZA is 6.79, which is on the high side as it means it would take PZZA, 6.79 years of fcf income to pay off all of its debts.
PZZA has a better Debt to FCF ratio (6.79) than 68.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.79 | ||
| Altman-Z | 4.19 |
ROIC/WACC2.59
WACC8.52%
2.3 Liquidity
PZZA has a Current Ratio of 0.76. 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 0.76. This is in the lower half of the industry: PZZA underperforms 63.43% of its industry peers.
PZZA has a Quick Ratio of 0.76. 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 (0.64) is worse than 67.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The earnings per share for PZZA have decreased by -7.82% in the last year.
The Earnings Per Share has been growing by 15.13% on average over the past years. This is quite good.
Looking at the last year, PZZA shows a small growth in Revenue. The Revenue has grown by 1.59% in the last year.
PZZA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.13% yearly.
EPS 1Y (TTM)-7.82%
EPS 3Y18.22%
EPS 5Y15.13%
EPS growth Q2Q28.17%
Revenue 1Y (TTM)1.59%
Revenue growth 3Y5.61%
Revenue growth 5Y5.13%
Revenue growth Q2Q8.58%
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 16.37% yearly.
PZZA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.79% yearly.
EPS Next Y-0.74%
EPS Next 2Y8.63%
EPS Next 3Y12.22%
EPS Next 5Y16.37%
Revenue Next Year1.88%
Revenue Next 2Y3.11%
Revenue Next 3Y3.51%
Revenue Next 5Y4.79%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.78, which indicates a rather expensive current valuation of PZZA.
PZZA's Price/Earnings ratio is a bit cheaper when compared to the industry. PZZA is cheaper than 61.94% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.93, PZZA is valued at the same level.
PZZA is valuated rather expensively with a Price/Forward Earnings ratio of 22.95.
The rest of the industry has a similar Price/Forward Earnings ratio as PZZA.
PZZA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.78 | ||
| Fwd PE | 22.95 |
4.2 Price Multiples
PZZA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PZZA is valued a bit cheaper than the industry average as 73.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.38 | ||
| EV/EBITDA | 12.68 |
4.3 Compensation for Growth
The decent profitability rating of PZZA may justify a higher PE ratio.
PZZA's earnings are expected to grow with 12.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.51
EPS Next 2Y8.63%
EPS Next 3Y12.22%
5. Dividend
5.1 Amount
PZZA has a Yearly Dividend Yield of 2.93%. Purely for dividend investing, there may be better candidates out there.
PZZA's Dividend Yield is rather good when compared to the industry average which is at 2.55. PZZA pays more dividend than 86.57% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, PZZA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
On average, the dividend of PZZA grows each year by 14.39%, 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)14.39%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
71.11% of the earnings are spent on dividend by PZZA. This is not a sustainable payout ratio.
PZZA's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP71.11%
EPS Next 2Y8.63%
EPS Next 3Y12.22%
PAPA JOHN'S INTL INC
NASDAQ:PZZA (4/16/2024, 3:18:55 PM)
After market: 61.74 0 (0%)61.74
-0.16 (-0.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Dividend Growth(5Y)
DP
Div Incr Years
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Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.78 | ||
| Fwd PE | 22.95 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.39% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.26% | ||
| PM (TTM) | 3.85% | ||
| GM | 30.76% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-7.82%
EPS 3Y18.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.59%
Revenue growth 3Y5.61%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
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