DOMINO'S PIZZA INC (DPZ) Stock Fundamental Analysis
USA - NASDAQ:DPZ - US25754A2015 - Common Stock
438.21 USD
-4.21 (-0.95%)
438.2 USD
-0.01 (0%)
Overall DPZ gets a fundamental rating of 5 out of 10. We evaluated DPZ against 133 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
DPZ has a better Return On Assets (32.97%) than 99.25% of its industry peers.
DPZ's Return On Invested Capital of 588.92% is amongst the best of the industry. DPZ outperforms 100.00% of its industry peers.
DPZ had an Average Return On Invested Capital over the past 3 years of 227.47%. This is significantly above the industry average of 15.68%.
The last Return On Invested Capital (588.92%) for DPZ is above the 3 year average (227.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.97% | ||
| ROE | N/A | ||
| ROIC | 588.92% |
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
DPZ has a better Profit Margin (12.49%) than 81.20% of its industry peers.
DPZ's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 18.90%, DPZ is doing good in the industry, outperforming 77.44% 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 worse Gross Margin (39.61%) than 63.16% of its industry peers.
DPZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.9% | ||
| PM (TTM) | 12.49% | ||
| GM | 39.61% |
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
DPZ has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
DPZ has an Altman-Z score of 2.31. 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.
The Altman-Z score of DPZ (2.31) is better than 60.15% of its industry peers.
DPZ has a debt to FCF ratio of 8.11. This is a slightly negative value and a sign of low solvency as DPZ would need 8.11 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 8.11, DPZ is doing good in the industry, outperforming 66.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.11 | ||
| Altman-Z | 2.31 |
ROIC/WACC70.44
WACC8.36%
2.3 Liquidity
A Current Ratio of 0.60 indicates that DPZ may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.60, DPZ is doing worse than 69.92% of the companies in the same industry.
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.
With a Quick ratio value of 0.56, DPZ is not doing good in the industry: 66.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
DPZ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.84%.
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 3.65%.
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)5.84%
EPS 3Y7.04%
EPS 5Y11.77%
EPS Q2Q%-5.46%
Revenue 1Y (TTM)3.65%
Revenue growth 3Y2.6%
Revenue growth 5Y5.4%
Sales Q2Q%4.32%
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 8.32% yearly.
DPZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.08% yearly.
EPS Next Y6.61%
EPS Next 2Y8.61%
EPS Next 3Y8.86%
EPS Next 5Y8.32%
Revenue Next Year4.05%
Revenue Next 2Y5.25%
Revenue Next 3Y4.97%
Revenue Next 5Y5.08%
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
With a Price/Earnings ratio of 25.45, DPZ can be considered very expensive at the moment.
60.15% of the companies in the same industry are more expensive than DPZ, based on the Price/Earnings ratio.
DPZ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
DPZ is valuated rather expensively with a Price/Forward Earnings ratio of 22.26.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DPZ is on the same level as its industry peers.
DPZ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.45 | ||
| Fwd PE | 22.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DPZ is valued a bit more expensive than 66.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DPZ is valued a bit cheaper than the industry average as 70.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.26 | ||
| EV/EBITDA | 19.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DPZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.85
PEG (5Y)2.16
EPS Next 2Y8.61%
EPS Next 3Y8.86%
5. Dividend
5.1 Amount
DPZ has a Yearly Dividend Yield of 1.52%.
Compared to an average industry Dividend Yield of 3.93, DPZ pays a bit more dividend than its industry peers.
DPZ's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
The dividend of DPZ is nicely growing with an annual growth rate of 32.15%!
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
DPZ pays out 36.36% 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.
DP36.36%
EPS Next 2Y8.61%
EPS Next 3Y8.86%
438.21
-4.21 (-0.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners94.15%
Inst Owner Change-1.32%
Ins Owners0.42%
Ins Owner Change0.54%
Market Cap14.88B
Analysts75.38
Price Target523.02 (19.35%)
Short Float %8.4%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend6.09
Dividend Growth(5Y)32.15%
DP36.36%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.31%
Min EPS beat(2)-4.59%
Max EPS beat(2)5.22%
EPS beat(4)2
Avg EPS beat(4)3.28%
Min EPS beat(4)-4.59%
Max EPS beat(4)13.76%
EPS beat(8)6
Avg EPS beat(8)6.58%
EPS beat(12)7
Avg EPS beat(12)4.29%
EPS beat(16)8
Avg EPS beat(16)1.87%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-1.02%
Revenue beat(4)0
Avg Revenue beat(4)-2.29%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)-1.02%
Revenue beat(8)0
Avg Revenue beat(8)-2.08%
Revenue beat(12)0
Avg Revenue beat(12)-2.4%
Revenue beat(16)1
Avg Revenue beat(16)-2.47%
PT rev (1m)0.03%
PT rev (3m)-0.24%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)1.14%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)-0.79%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.45 | ||
| Fwd PE | 22.26 | ||
| P/S | 3.11 | ||
| P/FCF | 24.26 | ||
| P/OCF | 20.73 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.64 |
EPS(TTM)17.22
EY3.93%
EPS(NY)19.69
Fwd EY4.49%
FCF(TTM)18.06
FCFY4.12%
OCF(TTM)21.14
OCFY4.82%
SpS140.83
BVpS-117.07
TBVpS-122.05
PEG (NY)3.85
PEG (5Y)2.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 32.97% | ||
| ROE | N/A | ||
| ROCE | 734.08% | ||
| ROIC | 588.92% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 18.9% | ||
| PM (TTM) | 12.49% | ||
| GM | 39.61% | ||
| FCFM | 12.82% |
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-Score8
Asset Turnover2.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.11 | ||
| Debt/EBITDA | 3.86 | ||
| Cap/Depr | 118.37% | ||
| Cap/Sales | 2.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.34% | ||
| Profit Quality | 102.69% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.31 |
F-Score8
WACC8.36%
ROIC/WACC70.44
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)5.84%
EPS 3Y7.04%
EPS 5Y11.77%
EPS Q2Q%-5.46%
EPS Next Y6.61%
EPS Next 2Y8.61%
EPS Next 3Y8.86%
EPS Next 5Y8.32%
Revenue 1Y (TTM)3.65%
Revenue growth 3Y2.6%
Revenue growth 5Y5.4%
Sales Q2Q%4.32%
Revenue Next Year4.05%
Revenue Next 2Y5.25%
Revenue Next 3Y4.97%
Revenue Next 5Y5.08%
EBIT growth 1Y5.91%
EBIT growth 3Y4.05%
EBIT growth 5Y6.91%
EBIT Next Year18.17%
EBIT Next 3Y10.49%
EBIT Next 5Y8.16%
FCF growth 1Y30.01%
FCF growth 3Y-2.94%
FCF growth 5Y4.47%
OCF growth 1Y27.19%
OCF growth 3Y-1.52%
OCF growth 5Y4.69%