DOMINO'S PIZZA INC (DPZ) Fundamental Analysis & Valuation

NASDAQ:DPZ • US25754A2015

Current stock price

369.73 USD
-5.57 (-1.48%)
Last:

This DPZ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. DPZ Profitability Analysis

1.1 Basic Checks

  • DPZ had positive earnings in the past year.
  • 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.
DPZ Yearly Net Income VS EBIT VS OCF VS FCFDPZ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

1.2 Ratios

  • The Return On Assets of DPZ (35.05%) is better than 99.21% of its industry peers.
  • The Return On Invested Capital of DPZ (64.28%) is better than 99.21% of its industry peers.
  • DPZ had an Average Return On Invested Capital over the past 3 years of 227.74%. This is significantly above the industry average of 10.60%.
  • The 3 year average ROIC (227.74%) for DPZ is well above the current ROIC(64.28%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 35.05%
ROE N/A
ROIC 64.28%
ROA(3y)33.23%
ROA(5y)31.69%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)227.74%
ROIC(5y)159.58%
DPZ Yearly ROA, ROE, ROICDPZ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 200 300 400 500

1.3 Margins

  • The Profit Margin of DPZ (12.18%) is better than 80.95% of its industry peers.
  • DPZ's Profit Margin has been stable in the last couple of years.
  • The Operating Margin of DPZ (19.23%) is better than 79.37% of its industry peers.
  • In the last couple of years the Operating Margin of DPZ has grown nicely.
  • The Gross Margin of DPZ (39.95%) is worse than 65.08% 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 RankSector Rank
OM 19.23%
PM (TTM) 12.18%
GM 39.95%
OM growth 3Y4.35%
OM growth 5Y1.76%
PM growth 3Y6.91%
PM growth 5Y0.41%
GM growth 3Y3.21%
GM growth 5Y0.62%
DPZ Yearly Profit, Operating, Gross MarginsDPZ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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6

2. DPZ Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DPZ is creating value.
  • DPZ has less shares outstanding than it did 1 year ago.
  • DPZ has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for DPZ has been reduced compared to a year ago.
DPZ Yearly Shares OutstandingDPZ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
DPZ Yearly Total Debt VS Total AssetsDPZ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • DPZ has an Altman-Z score of 3.12. This indicates that DPZ is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.12, DPZ is doing good in the industry, outperforming 79.37% of the companies in the same industry.
  • The Debt to FCF ratio of DPZ is 7.17, which is on the high side as it means it would take DPZ, 7.17 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 7.17, DPZ is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.17
Altman-Z 3.12
ROIC/WACC8.87
WACC7.25%
DPZ Yearly LT Debt VS Equity VS FCFDPZ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B

2.3 Liquidity

  • A Current Ratio of 1.65 indicates that DPZ should not have too much problems paying its short term obligations.
  • With a decent Current ratio value of 1.65, DPZ is doing good in the industry, outperforming 76.19% of the companies in the same industry.
  • A Quick Ratio of 1.50 indicates that DPZ should not have too much problems paying its short term obligations.
  • The Quick ratio of DPZ (1.50) is better than 73.02% of its industry peers.
Industry RankSector Rank
Current Ratio 1.65
Quick Ratio 1.5
DPZ Yearly Current Assets VS Current LiabilitesDPZ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. DPZ Growth Analysis

3.1 Past

  • DPZ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.27%.
  • The Earnings Per Share has been growing slightly by 7.22% on average over the past years.
  • Looking at the last year, DPZ shows a small growth in Revenue. The Revenue has grown by 4.96% in the last year.
  • The Revenue has been growing slightly by 3.71% on average over the past years.
EPS 1Y (TTM)5.27%
EPS 3Y13.3%
EPS 5Y7.22%
EPS Q2Q%9.41%
Revenue 1Y (TTM)4.96%
Revenue growth 3Y2.88%
Revenue growth 5Y3.71%
Sales Q2Q%6.36%

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 10.73% on average per year.
  • The Revenue is expected to grow by 5.20% on average over the next years.
EPS Next Y14.22%
EPS Next 2Y11.38%
EPS Next 3Y10.55%
EPS Next 5Y10.73%
Revenue Next Year7.44%
Revenue Next 2Y5.71%
Revenue Next 3Y5.38%
Revenue Next 5Y5.2%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
DPZ Yearly Revenue VS EstimatesDPZ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B
DPZ Yearly EPS VS EstimatesDPZ Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30 40

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4

4. DPZ Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 21.04, the valuation of DPZ can be described as rather expensive.
  • 63.49% of the companies in the same industry are more expensive than DPZ, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of DPZ to the average of the S&P500 Index (25.73), we can say DPZ is valued inline with the index average.
  • The Price/Forward Earnings ratio is 18.42, which indicates a rather expensive current valuation of DPZ.
  • DPZ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DPZ is cheaper than 61.11% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.72. DPZ is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 21.04
Fwd PE 18.42
DPZ Price Earnings VS Forward Price EarningsDPZ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • DPZ's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DPZ is more expensive than 65.87% of the companies in the same industry.
  • 73.02% of the companies in the same industry are more expensive than DPZ, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 18.52
EV/EBITDA 16.58
DPZ Per share dataDPZ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50 100 -100

4.3 Compensation for Growth

  • DPZ's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • DPZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.48
PEG (5Y)2.92
EPS Next 2Y11.38%
EPS Next 3Y10.55%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. DPZ Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.01%, DPZ has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.12, DPZ pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.91, DPZ has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.01%

5.2 History

  • On average, the dividend of DPZ grows each year by 25.99%, which is quite nice.
  • 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)25.99%
Div Incr Years11
Div Non Decr Years11
DPZ Yearly Dividends per shareDPZ Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • DPZ pays out 39.37% of its income as dividend. This is a sustainable payout ratio.
  • DPZ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.37%
EPS Next 2Y11.38%
EPS Next 3Y10.55%
DPZ Yearly Income VS Free CF VS DividendDPZ Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
DPZ Dividend Payout.DPZ Dividend Payout, showing the Payout Ratio.DPZ Dividend Payout.PayoutRetained Earnings

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DPZ Fundamentals: All Metrics, Ratios and Statistics

DOMINO'S PIZZA INC

NASDAQ:DPZ (3/20/2026, 10:38:51 AM)

369.73

-5.57 (-1.48%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-23
Earnings (Next)04-27
Inst Owners91.82%
Inst Owner Change0.91%
Ins Owners0.5%
Ins Owner Change7.5%
Market Cap12.43B
Revenue(TTM)4.94B
Net Income(TTM)601.70M
Analysts74.87
Price Target492.03 (33.08%)
Short Float %6.57%
Short Ratio2.21
Dividend
Industry RankSector Rank
Dividend Yield 2.01%
Yearly Dividend6.98
Dividend Growth(5Y)25.99%
DP39.37%
Div Incr Years11
Div Non Decr Years11
Ex-Date03-13
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.14%
Min EPS beat(2)-1.44%
Max EPS beat(2)1.73%
EPS beat(4)2
Avg EPS beat(4)0.23%
Min EPS beat(4)-4.59%
Max EPS beat(4)5.22%
EPS beat(8)5
Avg EPS beat(8)3.28%
EPS beat(12)8
Avg EPS beat(12)4.92%
EPS beat(16)8
Avg EPS beat(16)1.8%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-0.08%
Max Revenue beat(2)0.05%
Revenue beat(4)1
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.05%
Revenue beat(8)1
Avg Revenue beat(8)-1.39%
Revenue beat(12)1
Avg Revenue beat(12)-2.01%
Revenue beat(16)2
Avg Revenue beat(16)-1.93%
PT rev (1m)-1.39%
PT rev (3m)-3.83%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)1.67%
EPS NY rev (3m)1.62%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)0.89%
Valuation
Industry RankSector Rank
PE 21.04
Fwd PE 18.42
P/S 2.52
P/FCF 18.52
P/OCF 15.7
P/B N/A
P/tB N/A
EV/EBITDA 16.58
EPS(TTM)17.57
EY4.75%
EPS(NY)20.07
Fwd EY5.43%
FCF(TTM)19.97
FCFY5.4%
OCF(TTM)23.55
OCFY6.37%
SpS146.89
BVpS-116
TBVpS-121.06
PEG (NY)1.48
PEG (5Y)2.92
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 35.05%
ROE N/A
ROCE 80.86%
ROIC 64.28%
ROICexc 78.91%
ROICexgc 95.96%
OM 19.23%
PM (TTM) 12.18%
GM 39.95%
FCFM 13.59%
ROA(3y)33.23%
ROA(5y)31.69%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)227.74%
ROIC(5y)159.58%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)286.47%
ROCE(5y)200.73%
ROICexgc growth 3Y5.24%
ROICexgc growth 5Y3.54%
ROICexc growth 3Y3.66%
ROICexc growth 5Y2.11%
OM growth 3Y4.35%
OM growth 5Y1.76%
PM growth 3Y6.91%
PM growth 5Y0.41%
GM growth 3Y3.21%
GM growth 5Y0.62%
F-Score8
Asset Turnover2.88
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.17
Debt/EBITDA 4.63
Cap/Depr 135.72%
Cap/Sales 2.44%
Interest Coverage 5.13
Cash Conversion 76.25%
Profit Quality 111.6%
Current Ratio 1.65
Quick Ratio 1.5
Altman-Z 3.12
F-Score8
WACC7.25%
ROIC/WACC8.87
Cap/Depr(3y)131.7%
Cap/Depr(5y)126.59%
Cap/Sales(3y)2.4%
Cap/Sales(5y)2.26%
Profit Quality(3y)97.59%
Profit Quality(5y)97.66%
High Growth Momentum
Growth
EPS 1Y (TTM)5.27%
EPS 3Y13.3%
EPS 5Y7.22%
EPS Q2Q%9.41%
EPS Next Y14.22%
EPS Next 2Y11.38%
EPS Next 3Y10.55%
EPS Next 5Y10.73%
Revenue 1Y (TTM)4.96%
Revenue growth 3Y2.88%
Revenue growth 5Y3.71%
Sales Q2Q%6.36%
Revenue Next Year7.44%
Revenue Next 2Y5.71%
Revenue Next 3Y5.38%
Revenue Next 5Y5.2%
EBIT growth 1Y8.05%
EBIT growth 3Y7.35%
EBIT growth 5Y5.53%
EBIT Next Year19.23%
EBIT Next 3Y9.81%
EBIT Next 5Y8.2%
FCF growth 1Y31.15%
FCF growth 3Y20.05%
FCF growth 5Y5.91%
OCF growth 1Y26.75%
OCF growth 3Y18.56%
OCF growth 5Y5.97%

DOMINO'S PIZZA INC / DPZ Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for DOMINO'S PIZZA INC?

ChartMill assigns a fundamental rating of 6 / 10 to DPZ.


What is the valuation status for DPZ stock?

ChartMill assigns a valuation rating of 4 / 10 to DOMINO'S PIZZA INC (DPZ). This can be considered as Fairly Valued.


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 14.22% 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 39.37%.