DOMINO'S PIZZA INC (DPZ) Stock Fundamental Analysis
USA - NASDAQ:DPZ - US25754A2015 - Common Stock
410.18 USD
+8.72 (+2.17%)
410.05 USD
-0.13 (-0.03%)
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
In the past year DPZ was profitable.
DPZ had a positive operating cash flow in the past year.
DPZ had positive earnings in each of the past 5 years.
In the past 5 years DPZ always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DPZ (35.51%) is better than 99.24% of its industry peers.
DPZ's Return On Invested Capital of 66.41% is amongst the best of 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 10.78%.
The 3 year average ROIC (227.47%) for DPZ is well above the current ROIC(66.41%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of DPZ (12.16%) is better than 80.30% of its industry peers.
DPZ's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 19.14%, DPZ is doing good in the industry, outperforming 78.03% 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.
DPZ has a Gross Margin of 39.81%. This is in the lower half of the industry: DPZ underperforms 62.12% of its industry peers.
DPZ's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DPZ is creating value.
The number of shares outstanding for DPZ has been reduced compared to 1 year ago.
DPZ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DPZ has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.11 indicates that DPZ is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.11, DPZ is in the better half of the industry, outperforming 76.52% of the companies in the same industry.
The Debt to FCF ratio of DPZ is 7.63, which is on the high side as it means it would take DPZ, 7.63 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DPZ (7.63) is better than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.63 | ||
| Altman-Z | 3.11 |
ROIC/WACC9.04
WACC7.35%
2.3 Liquidity
A Current Ratio of 1.61 indicates that DPZ should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.61, DPZ is doing good in the industry, outperforming 73.48% of the companies in the same industry.
A Quick Ratio of 1.48 indicates that DPZ should not have too much problems paying 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 76.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
DPZ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.10%.
DPZ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.77% yearly.
Looking at the last year, DPZ shows a small growth in Revenue. The Revenue has grown by 3.92% in the last 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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.79% yearly.
DPZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.20% yearly.
EPS Next Y6.56%
EPS Next 2Y8.85%
EPS Next 3Y8.97%
EPS Next 5Y7.79%
Revenue Next Year3.9%
Revenue Next 2Y5.21%
Revenue Next 3Y4.93%
Revenue Next 5Y5.2%
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.
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
With a Price/Earnings ratio of 23.97, DPZ is valued on the expensive side.
DPZ's Price/Earnings is on the same level as the industry average.
DPZ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
With a Price/Forward Earnings ratio of 20.74, DPZ is valued on the expensive side.
DPZ's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 32.68. DPZ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.97 | ||
| Fwd PE | 20.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DPZ is valued a bit more expensive than 65.91% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DPZ indicates a somewhat cheap valuation: DPZ is cheaper than 68.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.95 | ||
| EV/EBITDA | 17.85 |
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)3.66
PEG (5Y)2.04
EPS Next 2Y8.85%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
DPZ has a Yearly Dividend Yield of 1.73%.
DPZ's Dividend Yield is a higher than the industry average which is at 4.35.
Compared to the average S&P500 Dividend Yield of 2.37, DPZ is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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 2Y8.85%
EPS Next 3Y8.97%
410.18
+8.72 (+2.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners94.09%
Inst Owner Change-0.62%
Ins Owners0.42%
Ins Owner Change-0.05%
Market Cap13.86B
Revenue(TTM)4.85B
Net Income(TTM)589.50M
Analysts75.5
Price Target513.52 (25.19%)
Short Float %6.99%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend6.09
Dividend Growth(5Y)32.15%
DP37.9%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.43%
Min EPS beat(2)-4.59%
Max EPS beat(2)1.73%
EPS beat(4)2
Avg EPS beat(4)0.28%
Min EPS beat(4)-4.59%
Max EPS beat(4)5.22%
EPS beat(8)6
Avg EPS beat(8)3.61%
EPS beat(12)8
Avg EPS beat(12)5.01%
EPS beat(16)8
Avg EPS beat(16)1.79%
Revenue beat(2)0
Avg Revenue beat(2)-0.55%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-0.08%
Revenue beat(4)0
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)-0.08%
Revenue beat(8)0
Avg Revenue beat(8)-1.69%
Revenue beat(12)0
Avg Revenue beat(12)-2.36%
Revenue beat(16)1
Avg Revenue beat(16)-2.18%
PT rev (1m)-1.82%
PT rev (3m)-1.35%
EPS NQ rev (1m)-2.6%
EPS NQ rev (3m)-2.66%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.64%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.97 | ||
| Fwd PE | 20.74 | ||
| P/S | 2.86 | ||
| P/FCF | 21.95 | ||
| P/OCF | 18.98 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.85 |
EPS(TTM)17.11
EY4.17%
EPS(NY)19.77
Fwd EY4.82%
FCF(TTM)18.69
FCFY4.56%
OCF(TTM)21.61
OCFY5.27%
SpS143.48
BVpS-117.25
TBVpS-122.28
PEG (NY)3.66
PEG (5Y)2.04
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 35.51% | ||
| ROE | N/A | ||
| ROCE | 82.78% | ||
| ROIC | 66.41% | ||
| ROICexc | 85.4% | ||
| ROICexgc | 106.09% | ||
| OM | 19.14% | ||
| PM (TTM) | 12.16% | ||
| GM | 39.81% | ||
| FCFM | 13.03% |
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%
ROICexgc growth 3YN/A
ROICexgc 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 Turnover2.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.63 | ||
| Debt/EBITDA | 4.73 | ||
| Cap/Depr | 112.36% | ||
| Cap/Sales | 2.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.88% | ||
| Profit Quality | 107.13% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 3.11 |
F-Score7
WACC7.35%
ROIC/WACC9.04
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)5.1%
EPS 3Y7.04%
EPS 5Y11.77%
EPS Q2Q%-2.63%
EPS Next Y6.56%
EPS Next 2Y8.85%
EPS Next 3Y8.97%
EPS Next 5Y7.79%
Revenue 1Y (TTM)3.92%
Revenue growth 3Y2.6%
Revenue growth 5Y5.4%
Sales Q2Q%6.2%
Revenue Next Year3.9%
Revenue Next 2Y5.21%
Revenue Next 3Y4.93%
Revenue Next 5Y5.2%
EBIT growth 1Y7.58%
EBIT growth 3Y4.05%
EBIT growth 5Y6.91%
EBIT Next Year18.17%
EBIT Next 3Y10.27%
EBIT Next 5Y7.82%
FCF growth 1Y34%
FCF growth 3Y-2.94%
FCF growth 5Y4.47%
OCF growth 1Y28.73%
OCF growth 3Y-1.52%
OCF growth 5Y4.69%
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.
Can you provide the valuation status for DOMINO'S PIZZA INC?
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.
What is the financial health of DOMINO'S PIZZA INC (DPZ) stock?
The financial health rating of DOMINO'S PIZZA INC (DPZ) is 6 / 10.
What is the earnings growth outlook for DOMINO'S PIZZA INC?
The Earnings per Share (EPS) of DOMINO'S PIZZA INC (DPZ) is expected to grow by 6.56% in the next year.