413.91 USD
+2.41 (+0.59%)
413.91 USD
0 (0%)
Taking everything into account, DPZ scores 5 out of 10 in our fundamental rating. DPZ was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. While DPZ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DPZ is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- DPZ had positive earnings in the past year.
- In the past year DPZ had a positive cash flow from operations.
- Each year in the past 5 years DPZ has been profitable.
- Each year in the past 5 years DPZ had a positive operating cash flow.
1.2 Ratios
- DPZ has a better Return On Assets (35.51%) than 99.24% of its industry peers.
- DPZ has a better Return On Invested Capital (66.41%) than 100.00% of its industry peers.
- DPZ had an Average Return On Invested Capital over the past 3 years of 227.47%. This is significantly above the industry average of 10.36%.
- The last Return On Invested Capital (66.41%) for DPZ is well below the 3 year average (227.47%), which needs to be investigated, but indicates that DPZ had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.51% | ||
| ROE | N/A | ||
| ROIC | 66.41% |
ROA(3y)30.95%
ROA(5y)30.95%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)227.47%
ROIC(5y)158.69%
1.3 Margins
- Looking at the Profit Margin, with a value of 12.16%, DPZ belongs to the top of the industry, outperforming 80.30% of the companies in the same industry.
- DPZ's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 19.14%, DPZ is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
- In the last couple of years the Operating Margin of DPZ has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 39.81%, DPZ is doing worse than 62.12% of the companies in the same industry.
- In the last couple of years the Gross Margin of DPZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.14% | ||
| PM (TTM) | 12.16% | ||
| GM | 39.81% |
OM growth 3Y1.41%
OM growth 5Y1.44%
PM growth 3Y1.95%
PM growth 5Y2.31%
GM growth 3Y0.46%
GM growth 5Y0.27%
2. Health
2.1 Basic Checks
- DPZ has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, DPZ has less shares outstanding
- Compared to 5 years ago, DPZ has less shares outstanding
- The debt/assets ratio for DPZ has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.16 indicates that DPZ is not in any danger for bankruptcy at the moment.
- The Altman-Z score of DPZ (3.16) is better than 78.03% of its industry peers.
- DPZ has a debt to FCF ratio of 7.63. This is a slightly negative value and a sign of low solvency as DPZ would need 7.63 years to pay back of all of its debts.
- DPZ has a better Debt to FCF ratio (7.63) than 68.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.63 | ||
| Altman-Z | 3.16 |
ROIC/WACC8.9
WACC7.46%
2.3 Liquidity
- DPZ has a Current Ratio of 1.61. This is a normal value and indicates that DPZ is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of DPZ (1.61) is better than 74.24% of its industry peers.
- DPZ has a Quick Ratio of 1.48. This is a normal value and indicates that DPZ is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.48, DPZ is in the better half of the industry, outperforming 73.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.10% over the past year.
- DPZ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.77% yearly.
- The Revenue has been growing slightly by 3.92% in the past year.
- The Revenue has been growing slightly by 5.40% on average over the past years.
EPS 1Y (TTM)5.1%
EPS 3Y7.04%
EPS 5Y11.77%
EPS Q2Q%-2.63%
Revenue 1Y (TTM)3.92%
Revenue growth 3Y2.6%
Revenue growth 5Y5.4%
Sales Q2Q%6.2%
3.2 Future
- DPZ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.77% yearly.
- The Revenue is expected to grow by 5.18% on average over the next years.
EPS Next Y6.51%
EPS Next 2Y8.78%
EPS Next 3Y8.92%
EPS Next 5Y8.77%
Revenue Next Year3.86%
Revenue Next 2Y5.15%
Revenue Next 3Y4.86%
Revenue Next 5Y5.18%
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 decreasing.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 24.19, the valuation of DPZ can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of DPZ indicates a somewhat cheap valuation: DPZ is cheaper than 62.88% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, DPZ is valued at the same level.
- A Price/Forward Earnings ratio of 20.96 indicates a rather expensive valuation of DPZ.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DPZ indicates a somewhat cheap valuation: DPZ is cheaper than 60.61% of the companies listed in the same industry.
- DPZ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.19 | ||
| Fwd PE | 20.96 |
4.2 Price Multiples
- 64.39% of the companies in the same industry are cheaper than DPZ, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DPZ indicates a somewhat cheap valuation: DPZ is cheaper than 69.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.15 | ||
| EV/EBITDA | 18.26 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DPZ does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of DPZ may justify a higher PE ratio.
PEG (NY)3.72
PEG (5Y)2.06
EPS Next 2Y8.78%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
- DPZ has a Yearly Dividend Yield of 1.72%.
- Compared to an average industry Dividend Yield of 1.21, DPZ pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, DPZ has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
- On average, the dividend of DPZ grows each year by 32.15%, which is quite nice.
- DPZ has paid a dividend for at least 10 years, which is a reliable track record.
- DPZ has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)32.15%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- 37.90% of the earnings are spent on dividend by DPZ. This is a low number and sustainable payout ratio.
- DPZ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP37.9%
EPS Next 2Y8.78%
EPS Next 3Y8.92%
DOMINO'S PIZZA INC / DPZ FAQ
Can you provide the ChartMill fundamental rating for DOMINO'S PIZZA INC?
ChartMill assigns a fundamental rating of 5 / 10 to DPZ.
What is the valuation status for DPZ stock?
ChartMill assigns a valuation rating of 3 / 10 to DOMINO'S PIZZA INC (DPZ). This can be considered as Overvalued.
How profitable is DOMINO'S PIZZA INC (DPZ) stock?
DOMINO'S PIZZA INC (DPZ) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for DPZ stock?
The Earnings per Share (EPS) of DOMINO'S PIZZA INC (DPZ) is expected to grow by 6.51% in the next year.
Can you provide the dividend sustainability for DPZ stock?
The dividend rating of DOMINO'S PIZZA INC (DPZ) is 6 / 10 and the dividend payout ratio is 37.9%.