DOMINO'S PIZZA INC (DPZ) Stock Fundamental Analysis
NASDAQ:DPZ - Nasdaq - US25754A2015 - Common Stock - Currency: USD
DPZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 134 industry peers in the Hotels, Restaurants & Leisure industry. DPZ has an excellent profitability rating, but there are some minor concerns on its financial health. DPZ is valied quite expensively at the moment, while 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.
In the past 5 years DPZ has always been profitable.
In the past 5 years DPZ always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DPZ (32.23%) is better than 99.24% of its industry peers.
With an excellent Return On Invested Capital value of 54.07%, DPZ belongs to the best of the industry, outperforming 99.24% 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 10.59%.
| 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
Looking at the Profit Margin, with a value of 12.26%, DPZ is in the better half of the industry, outperforming 77.86% of the companies in the same industry.
DPZ's Profit Margin has improved in the last couple of years.
DPZ has a better Operating Margin (18.49%) than 74.81% of its industry peers.
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: 65.65% 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
DPZ has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
DPZ has a better debt/assets ratio than last year.
2.2 Solvency
DPZ has an Altman-Z score of 3.04. This indicates that DPZ is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.04, DPZ is doing good in the industry, outperforming 75.57% of the companies in the same industry.
The Debt to FCF ratio of DPZ is 9.98, which is on the high side as it means it would take DPZ, 9.98 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.98, DPZ is in the better half of the industry, outperforming 61.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 3.04 |
ROIC/WACC6.87
WACC7.87%
2.3 Liquidity
A Current Ratio of 1.71 indicates that DPZ should not have too much problems paying its short term obligations.
DPZ has a better Current ratio (1.71) than 79.39% of its industry peers.
DPZ has a Quick Ratio of 1.57. This is a normal value and indicates that DPZ is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.57, DPZ is doing good in the industry, outperforming 77.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.97% over the past year.
The Earnings Per Share has been growing by 11.77% on average over the past years. This is quite good.
DPZ shows a small growth in Revenue. In the last year, the Revenue has grown by 4.41%.
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 9.28% yearly.
Based on estimates for the next years, DPZ will show a small growth in Revenue. The Revenue will grow by 6.05% on average per year.
EPS Next Y14.68%
EPS Next 2Y9.84%
EPS Next 3Y10.11%
EPS Next 5Y9.28%
Revenue Next Year5.52%
Revenue Next 2Y5.8%
Revenue Next 3Y6.12%
Revenue Next 5Y6.05%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 28.67, the valuation of DPZ can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as DPZ.
Compared to an average S&P500 Price/Earnings ratio of 28.12, DPZ is valued at the same level.
DPZ is valuated quite expensively with a Price/Forward Earnings ratio of 26.37.
DPZ's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 94.77, DPZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.67 | ||
| Fwd PE | 26.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DPZ is valued a bit more expensive than 67.18% of the companies in the same industry.
DPZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DPZ is cheaper than 62.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.32 | ||
| EV/EBITDA | 22.06 |
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)1.95
PEG (5Y)2.44
EPS Next 2Y9.84%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, DPZ has a reasonable but not impressive dividend return.
DPZ's Dividend Yield is a higher than the industry average which is at 3.10.
Compared to an average S&P500 Dividend Yield of 2.29, DPZ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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 Years11
Div Non Decr Years11
5.3 Sustainability
DPZ pays out 33.25% 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.
DP33.25%
EPS Next 2Y9.84%
EPS Next 3Y10.11%
DOMINO'S PIZZA INC
NASDAQ:DPZ (2/7/2025, 7:27:00 PM)
After market: 466.74 0 (0%)466.74
-3.82 (-0.81%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners100.9%
Inst Owner Change-1.67%
Ins Owners0.41%
Ins Owner Change-3.49%
Market Cap16.12B
Analysts78.97
Price Target495.03 (6.06%)
Short Float %6.71%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend4.4
Dividend Growth(5Y)35.91%
DP33.25%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.06%
Min EPS beat(2)8.36%
Max EPS beat(2)13.76%
EPS beat(4)4
Avg EPS beat(4)6.95%
Min EPS beat(4)1.22%
Max EPS beat(4)13.76%
EPS beat(8)6
Avg EPS beat(8)7.38%
EPS beat(12)6
Avg EPS beat(12)2.29%
EPS beat(16)9
Avg EPS beat(16)2.32%
Revenue beat(2)0
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-2.69%
Max Revenue beat(2)-1.46%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-2.69%
Max Revenue beat(4)-0.49%
Revenue beat(8)0
Avg Revenue beat(8)-2.72%
Revenue beat(12)1
Avg Revenue beat(12)-2.36%
Revenue beat(16)2
Avg Revenue beat(16)-2.01%
PT rev (1m)0.47%
PT rev (3m)1.83%
EPS NQ rev (1m)-0.96%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.67 | ||
| Fwd PE | 26.37 | ||
| P/S | 3.45 | ||
| P/FCF | 32.32 | ||
| P/OCF | 26.18 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.06 |
EPS(TTM)16.28
EY3.49%
EPS(NY)17.7
Fwd EY3.79%
FCF(TTM)14.44
FCFY3.09%
OCF(TTM)17.83
OCFY3.82%
SpS135.11
BVpS-115.16
TBVpS-119.9
PEG (NY)1.95
PEG (5Y)2.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.23% | ||
| ROE | N/A | ||
| ROCE | 68.22% | ||
| ROIC | 54.07% | ||
| ROICexc | 69.38% | ||
| ROICexgc | 83.19% | ||
| OM | 18.49% | ||
| PM (TTM) | 12.26% | ||
| GM | 39.05% | ||
| FCFM | 10.69% |
ROA(3y)29.92%
ROA(5y)30.02%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)57.32%
ROIC(5y)55.63%
ROICexc(3y)73.69%
ROICexc(5y)71.91%
ROICexgc(3y)86.35%
ROICexgc(5y)83.26%
ROCE(3y)72.32%
ROCE(5y)70.19%
ROICexcg growth 3Y1.2%
ROICexcg growth 5Y-4.87%
ROICexc growth 3Y-0.31%
ROICexc growth 5Y-4.89%
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%
F-Score8
Asset Turnover2.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.98 | ||
| Debt/EBITDA | 5.24 | ||
| Cap/Depr | 135% | ||
| Cap/Sales | 2.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.85% | ||
| Profit Quality | 87.18% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 3.04 |
F-Score8
WACC7.87%
ROIC/WACC6.87
Cap/Depr(3y)122.85%
Cap/Depr(5y)129.56%
Cap/Sales(3y)2.15%
Cap/Sales(5y)2.19%
Profit Quality(3y)96.35%
Profit Quality(5y)98.86%
High Growth Momentum
Growth
EPS 1Y (TTM)14.97%
EPS 3Y5.76%
EPS 5Y11.77%
EPS Q2Q%0.24%
EPS Next Y14.68%
EPS Next 2Y9.84%
EPS Next 3Y10.11%
EPS Next 5Y9.28%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y2.85%
Revenue growth 5Y5.47%
Sales Q2Q%5.14%
Revenue Next Year5.52%
Revenue Next 2Y5.8%
Revenue Next 3Y6.12%
Revenue Next 5Y6.05%
EBIT growth 1Y6.34%
EBIT growth 3Y4.15%
EBIT growth 5Y7.47%
EBIT Next Year18.17%
EBIT Next 3Y10.71%
EBIT Next 5Y8.69%
FCF growth 1Y22.91%
FCF growth 3Y-1.24%
FCF growth 5Y12.1%
OCF growth 1Y23.18%
OCF growth 3Y-0.11%
OCF growth 5Y8.43%