DOMINO'S PIZZA INC (DPZ)
US25754A2015 - Common Stock
Taking everything into account, DPZ scores 5 out of 10 in our fundamental rating. DPZ was compared to 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. While showing a medium growth rate, DPZ is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DPZ was profitable.
DPZ had a positive operating cash flow in the past year.
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
The Return On Assets of DPZ (32.23%) is better than 99.23% of its industry peers.
The Return On Invested Capital of DPZ (54.07%) is better than 99.23% of its industry peers.
DPZ had an Average Return On Invested Capital over the past 3 years of 57.32%. This is significantly above the industry average of 10.64%.
| 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 77.69% of its industry peers.
In the last couple of years the Profit Margin of DPZ has grown nicely.
The Operating Margin of DPZ (18.49%) is better than 74.62% of its industry peers.
DPZ's Operating Margin has improved in the last couple of years.
DPZ's Gross Margin of 39.05% is on the low side compared to the rest of the industry. DPZ is outperformed by 66.15% of its industry peers.
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.
The number of shares outstanding for DPZ has been reduced compared to 1 year ago.
Compared to 5 years ago, DPZ has less shares outstanding
The debt/assets ratio for DPZ has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.87 indicates that DPZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
DPZ has a Altman-Z score of 2.87. This is in the better half of the industry: DPZ outperforms 73.85% 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 has a better Debt to FCF ratio (9.98) than 60.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 2.87 |
ROIC/WACC7.08
WACC7.64%
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 78.46% 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.
DPZ's Quick ratio of 1.57 is fine compared to the rest of the industry. DPZ outperforms 76.92% of its industry peers.
| 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.
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.
DPZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.47% yearly.
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
Based on estimates for the next years, DPZ will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.32% on average per year.
DPZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.07% yearly.
EPS Next Y14.99%
EPS Next 2Y10.19%
EPS Next 3Y10.32%
EPS Next 5Y9.32%
Revenue Next Year5.55%
Revenue Next 2Y5.81%
Revenue Next 3Y6.15%
Revenue Next 5Y6.07%
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
The Price/Earnings ratio is 26.07, which means the current valuation is very expensive for DPZ.
DPZ's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.40. DPZ is around the same levels.
With a Price/Forward Earnings ratio of 23.83, DPZ is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DPZ is on the same level as its industry peers.
DPZ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.07 | ||
| Fwd PE | 23.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DPZ is valued a bit more expensive than 68.46% of the companies in the same industry.
63.85% 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 | 29.39 | ||
| EV/EBITDA | 20.39 |
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)1.74
PEG (5Y)2.22
EPS Next 2Y10.19%
EPS Next 3Y10.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.39%, DPZ has a reasonable but not impressive dividend return.
DPZ's Dividend Yield is a higher than the industry average which is at 2.93.
Compared to an average S&P500 Dividend Yield of 2.33, DPZ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
On average, the dividend of DPZ grows each year by 35.91%, 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)35.91%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
33.25% of the earnings are spent on dividend by DPZ. This is a low number and 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 2Y10.19%
EPS Next 3Y10.32%
DOMINO'S PIZZA INC
NASDAQ:DPZ (1/6/2025, 8:00:01 PM)
Premarket: 425.6 +1.1 (+0.26%)424.5
-13.58 (-3.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners100.9%
Inst Owner Change0%
Ins Owners0.41%
Ins Owner Change-4.44%
Market Cap14.66B
Analysts78.97
Price Target492.73 (16.07%)
Short Float %6.93%
Short Ratio4.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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)1.35%
PT rev (3m)-1.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.23%
EPS NY rev (1m)0.02%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.07 | ||
| Fwd PE | 23.83 | ||
| P/S | 3.14 | ||
| P/FCF | 29.39 | ||
| P/OCF | 23.81 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.39 |
EPS(TTM)16.28
EY3.84%
EPS(NY)17.81
Fwd EY4.2%
FCF(TTM)14.44
FCFY3.4%
OCF(TTM)17.83
OCFY4.2%
SpS135.11
BVpS-115.16
TBVpS-119.9
PEG (NY)1.74
PEG (5Y)2.22
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 | 2.87 |
F-Score8
WACC7.64%
ROIC/WACC7.08
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 Y14.99%
EPS Next 2Y10.19%
EPS Next 3Y10.32%
EPS Next 5Y9.32%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y2.85%
Revenue growth 5Y5.47%
Sales Q2Q%5.14%
Revenue Next Year5.55%
Revenue Next 2Y5.81%
Revenue Next 3Y6.15%
Revenue Next 5Y6.07%
EBIT growth 1Y6.34%
EBIT growth 3Y4.15%
EBIT growth 5Y7.47%
EBIT Next Year18.2%
EBIT Next 3Y10.78%
EBIT Next 5Y8.75%
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%