DOMINO'S PIZZA INC (DPZ)
US25754A2015 - Common Stock
DPZ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. DPZ has an excellent profitability rating, but 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
DPZ had positive earnings in the past year.
In the past year DPZ had a positive cash flow from operations.
In the past 5 years DPZ has always been profitable.
DPZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DPZ has a Return On Assets of 32.23%. This is amongst the best in the industry. DPZ outperforms 99.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 54.07%, DPZ belongs to the top of the industry, outperforming 99.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DPZ is significantly above the industry average of 10.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.23% | ||
| ROE | N/A | ||
| ROIC | 54.07% |
ROA(3y)29.92%
ROA(5y)30.02%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)57.32%
ROIC(5y)55.63%
1.3 Margins
DPZ's Profit Margin of 12.26% is fine compared to the rest of the industry. DPZ outperforms 79.10% 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 18.49%, DPZ is in the better half of the industry, outperforming 76.12% of the companies in the same industry.
DPZ's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 39.05%, DPZ is not doing good in the industry: 65.67% of the companies in the same industry are doing better.
DPZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.49% | ||
| PM (TTM) | 12.26% | ||
| GM | 39.05% |
OM growth 3Y1.26%
OM growth 5Y1.9%
PM growth 3Y-0.97%
PM growth 5Y1.91%
GM growth 3Y-0.14%
GM growth 5Y0.32%
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
The number of shares outstanding for DPZ has been reduced compared to 5 years ago.
Compared to 1 year ago, DPZ has an improved debt to assets ratio.
2.2 Solvency
DPZ has an Altman-Z score of 2.95. This is not the best score and indicates that DPZ is in the grey zone with still only limited risk for bankruptcy at the moment.
DPZ has a Altman-Z score of 2.95. This is in the better half of the industry: DPZ outperforms 76.12% of its industry peers.
DPZ has a debt to FCF ratio of 9.98. This is a negative value and a sign of low solvency as DPZ would need 9.98 years to pay back of all of its debts.
DPZ's Debt to FCF ratio of 9.98 is fine compared to the rest of the industry. DPZ outperforms 64.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 2.95 |
ROIC/WACC7.06
WACC7.66%
2.3 Liquidity
DPZ has a Current Ratio of 1.71. 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 (1.71) is better than 79.85% of its industry peers.
A Quick Ratio of 1.57 indicates that DPZ should not have too much problems paying its short term obligations.
DPZ has a better Quick ratio (1.57) than 78.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
DPZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.97%, 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 4.41% in the last year.
Measured over the past years, DPZ shows a small growth in Revenue. The Revenue has been growing by 5.47% on average per year.
EPS 1Y (TTM)14.97%
EPS 3Y5.76%
EPS 5Y11.77%
EPS Q2Q%0.24%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y2.85%
Revenue growth 5Y5.47%
Sales Q2Q%5.14%
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 10.38% yearly.
Based on estimates for the next years, DPZ will show a small growth in Revenue. The Revenue will grow by 6.43% on average per year.
EPS Next Y15.07%
EPS Next 2Y10.2%
EPS Next 3Y10.35%
EPS Next 5Y10.38%
Revenue Next Year5.55%
Revenue Next 2Y5.82%
Revenue Next 3Y6.2%
Revenue Next 5Y6.43%
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.
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 27.85, which means the current valuation is very expensive for DPZ.
DPZ's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.20, DPZ is valued at the same level.
The Price/Forward Earnings ratio is 25.45, which means the current valuation is very expensive for DPZ.
DPZ's Price/Forward Earnings ratio is in line with the industry average.
DPZ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.85 | ||
| Fwd PE | 25.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DPZ is valued a bit more expensive than the industry average as 69.40% of the companies are valued more cheaply.
62.69% of the companies in the same industry are more expensive than DPZ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.39 | ||
| EV/EBITDA | 21.16 |
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.
DPZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)2.37
EPS Next 2Y10.2%
EPS Next 3Y10.35%
5. Dividend
5.1 Amount
DPZ has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
DPZ's Dividend Yield is a higher than the industry average which is at 2.83.
Compared to the average S&P500 Dividend Yield of 2.23, DPZ is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
The dividend of DPZ is nicely growing with an annual growth rate of 35.91%!
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)35.91%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
DPZ pays out 33.25% of its income as dividend. This is a sustainable payout ratio.
The dividend of DPZ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.25%
EPS Next 2Y10.2%
EPS Next 3Y10.35%
DOMINO'S PIZZA INC
NYSE:DPZ (11/22/2024, 8:04:00 PM)
After market: 453.35 0 (0%)453.35
+7.5 (+1.68%)
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 Cap15.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.85 | ||
| Fwd PE | 25.45 | ||
| 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)1.85
PEG (5Y)2.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.23% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.49% | ||
| PM (TTM) | 12.26% | ||
| GM | 39.05% | ||
| 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 Turnover2.63
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 | 1.71 | ||
| Quick Ratio | 1.57 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)14.97%
EPS 3Y5.76%
EPS 5Y
EPS Q2Q%
EPS Next Y15.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.41%
Revenue growth 3Y2.85%
Revenue growth 5Y
Sales 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
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y