DOMINO'S PIZZA INC (DPZ) Stock Fundamental Analysis
NASDAQ:DPZ - Nasdaq - US25754A2015 - Common Stock - Currency: USD
Overall DPZ gets a fundamental rating of 5 out of 10. We evaluated DPZ against 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. While showing a medium growth rate, DPZ is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DPZ was profitable.
DPZ had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 32.38%, DPZ belongs to the top of the industry, outperforming 99.24% of the companies in the same industry.
DPZ has a Return On Invested Capital of 389.78%. This is amongst the best in the industry. DPZ outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DPZ is significantly above the industry average of 13.91%.
The last Return On Invested Capital (389.78%) for DPZ is above the 3 year average (227.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.38% | ||
| ROE | N/A | ||
| ROIC | 389.78% |
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
The Profit Margin of DPZ (12.84%) is better than 81.82% of its industry peers.
DPZ's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.56%, DPZ is in the better half of the industry, outperforming 76.52% of the companies in the same industry.
DPZ's Operating Margin has been stable in the last couple of years.
DPZ's Gross Margin of 39.50% is on the low side compared to the rest of the industry. DPZ is outperformed by 62.88% of its industry peers.
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 | 18.56% | ||
| PM (TTM) | 12.84% | ||
| GM | 39.5% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DPZ is creating value.
Compared to 1 year ago, DPZ has less shares outstanding
DPZ has less shares outstanding than it did 5 years ago.
DPZ has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.37 indicates that DPZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
DPZ has a Altman-Z score of 2.37. This is in the better half of the industry: DPZ outperforms 62.88% of its industry peers.
The Debt to FCF ratio of DPZ is 8.68, which is on the high side as it means it would take DPZ, 8.68 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 8.68, DPZ is doing good in the industry, outperforming 67.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.68 | ||
| Altman-Z | 2.37 |
ROIC/WACC44.65
WACC8.73%
2.3 Liquidity
A Current Ratio of 0.60 indicates that DPZ may have some problems paying its short term obligations.
DPZ has a worse Current ratio (0.60) than 68.94% of its industry peers.
DPZ has a Quick Ratio of 0.60. This is a bad value and indicates that DPZ is not financially healthy enough and could expect problems in meeting its short term obligations.
DPZ's Quick ratio of 0.56 is on the low side compared to the rest of the industry. DPZ is outperformed by 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
DPZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.84%, which is quite good.
Measured over the past years, DPZ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.77% on average per year.
Looking at the last year, DPZ shows a small growth in Revenue. The Revenue has grown by 4.28% in the last year.
Measured over the past years, DPZ shows a small growth in Revenue. The Revenue has been growing by 5.40% on average per year.
EPS 1Y (TTM)13.84%
EPS 3Y7.04%
EPS 5Y11.77%
EPS Q2Q%20.95%
Revenue 1Y (TTM)4.28%
Revenue growth 3Y2.6%
Revenue growth 5Y5.4%
Sales Q2Q%2.53%
3.2 Future
Based on estimates for the next years, DPZ will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.37% on average per year.
The Revenue is expected to grow by 5.42% on average over the next years.
EPS Next Y7.25%
EPS Next 2Y8.13%
EPS Next 3Y8.4%
EPS Next 5Y8.37%
Revenue Next Year4.11%
Revenue Next 2Y5.32%
Revenue Next 3Y5.07%
Revenue Next 5Y5.42%
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
The Price/Earnings ratio is 27.12, which means the current valuation is very expensive for DPZ.
Compared to the rest of the industry, the Price/Earnings ratio of DPZ is on the same level as its industry peers.
DPZ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.52, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 24.24, which indicates a rather expensive current valuation of DPZ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DPZ is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, DPZ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.12 | ||
| Fwd PE | 24.24 |
4.2 Price Multiples
68.18% 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 | 28.26 | ||
| EV/EBITDA | 21.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of DPZ may justify a higher PE ratio.
PEG (NY)3.74
PEG (5Y)2.3
EPS Next 2Y8.13%
EPS Next 3Y8.4%
5. Dividend
5.1 Amount
DPZ has a Yearly Dividend Yield of 1.48%.
Compared to an average industry Dividend Yield of 3.47, DPZ pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.35, DPZ is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
The dividend of DPZ is nicely growing with an annual growth rate of 32.15%!
DPZ has been paying a dividend for at least 10 years, so it has 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
34.58% of the earnings are spent on dividend by DPZ. This is a low number and sustainable payout ratio.
The dividend of DPZ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.58%
EPS Next 2Y8.13%
EPS Next 3Y8.4%
472.94
+8.46 (+1.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners93.29%
Inst Owner Change-0.01%
Ins Owners0.41%
Ins Owner Change0.65%
Market Cap16.19B
Analysts76.32
Price Target518.17 (9.56%)
Short Float %5.03%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend6.08
Dividend Growth(5Y)32.15%
DP34.58%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.98%
Min EPS beat(2)-1.25%
Max EPS beat(2)5.22%
EPS beat(4)3
Avg EPS beat(4)6.52%
Min EPS beat(4)-1.25%
Max EPS beat(4)13.76%
EPS beat(8)6
Avg EPS beat(8)7.13%
EPS beat(12)7
Avg EPS beat(12)4.34%
EPS beat(16)9
Avg EPS beat(16)2.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.72%
Min Revenue beat(2)-3.16%
Max Revenue beat(2)-2.28%
Revenue beat(4)0
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)-1.46%
Revenue beat(8)0
Avg Revenue beat(8)-2.64%
Revenue beat(12)1
Avg Revenue beat(12)-2.27%
Revenue beat(16)2
Avg Revenue beat(16)-2.09%
PT rev (1m)-1.17%
PT rev (3m)3.08%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-0.65%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.12 | ||
| Fwd PE | 24.24 | ||
| P/S | 3.42 | ||
| P/FCF | 28.26 | ||
| P/OCF | 23.8 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.2 |
EPS(TTM)17.44
EY3.69%
EPS(NY)19.51
Fwd EY4.13%
FCF(TTM)16.74
FCFY3.54%
OCF(TTM)19.87
OCFY4.2%
SpS138.25
BVpS-114.27
TBVpS-119.19
PEG (NY)3.74
PEG (5Y)2.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.38% | ||
| ROE | N/A | ||
| ROCE | 485.85% | ||
| ROIC | 389.78% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 18.56% | ||
| PM (TTM) | 12.84% | ||
| GM | 39.5% | ||
| FCFM | 12.11% |
ROA(3y)30.95%
ROA(5y)30.95%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)227.47%
ROIC(5y)158.69%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)283.54%
ROCE(5y)197.8%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y1.41%
OM growth 5Y1.44%
PM growth 3Y1.95%
PM growth 5Y2.31%
GM growth 3Y0.46%
GM growth 5Y0.27%
F-Score7
Asset Turnover2.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.68 | ||
| Debt/EBITDA | 3.96 | ||
| Cap/Depr | 121.79% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.38% | ||
| Profit Quality | 94.25% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.37 |
F-Score7
WACC8.73%
ROIC/WACC44.65
Cap/Depr(3y)122.69%
Cap/Depr(5y)126.74%
Cap/Sales(3y)2.22%
Cap/Sales(5y)2.2%
Profit Quality(3y)88.99%
Profit Quality(5y)95.86%
High Growth Momentum
Growth
EPS 1Y (TTM)13.84%
EPS 3Y7.04%
EPS 5Y11.77%
EPS Q2Q%20.95%
EPS Next Y7.25%
EPS Next 2Y8.13%
EPS Next 3Y8.4%
EPS Next 5Y8.37%
Revenue 1Y (TTM)4.28%
Revenue growth 3Y2.6%
Revenue growth 5Y5.4%
Sales Q2Q%2.53%
Revenue Next Year4.11%
Revenue Next 2Y5.32%
Revenue Next 3Y5.07%
Revenue Next 5Y5.42%
EBIT growth 1Y3.06%
EBIT growth 3Y4.05%
EBIT growth 5Y6.91%
EBIT Next Year17.04%
EBIT Next 3Y10.4%
EBIT Next 5Y8.25%
FCF growth 1Y37.29%
FCF growth 3Y-2.94%
FCF growth 5Y4.47%
OCF growth 1Y33.12%
OCF growth 3Y-1.52%
OCF growth 5Y4.69%