PIZZA PIZZA ROYALTY CORP (PZA.CA) Stock Fundamental Analysis
TSX:PZA - Toronto Stock Exchange - CA72585V1031 - Common Stock - Currency: CAD
PZA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 19 industry peers in the Hotels, Restaurants & Leisure industry. While PZA has a great profitability rating, there are some minor concerns on its financial health. PZA has a correct valuation and a medium growth rate. PZA also has an excellent dividend rating. These ratings would make PZA suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year PZA was profitable.
In the past year PZA had a positive cash flow from operations.
In the past 5 years PZA has always been profitable.
PZA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PZA has a Return On Assets of 8.29%. This is amongst the best in the industry. PZA outperforms 89.47% of its industry peers.
Looking at the Return On Equity, with a value of 10.38%, PZA is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
The Return On Invested Capital of PZA (9.75%) is better than 84.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PZA is in line with the industry average of 7.90%.
The last Return On Invested Capital (9.75%) for PZA is above the 3 year average (8.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.29% | ||
| ROE | 10.38% | ||
| ROIC | 9.75% |
ROA(3y)8.05%
ROA(5y)7.5%
ROE(3y)10.12%
ROE(5y)9.41%
ROIC(3y)8.8%
ROIC(5y)8.08%
1.3 Margins
PZA has a better Profit Margin (77.80%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of PZA has remained more or less at the same level.
With an excellent Operating Margin value of 98.20%, PZA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PZA's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 98.2% | ||
| PM (TTM) | 77.8% | ||
| GM | N/A |
OM growth 3Y-0.02%
OM growth 5Y-0.08%
PM growth 3Y1.25%
PM growth 5Y0.48%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, PZA has more shares outstanding
PZA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PZA has been reduced compared to a year ago.
2.2 Solvency
PZA has an Altman-Z score of 2.93. This is not the best score and indicates that PZA is in the grey zone with still only limited risk for bankruptcy at the moment.
PZA's Altman-Z score of 2.93 is amongst the best of the industry. PZA outperforms 89.47% of its industry peers.
PZA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 2.93 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.19 indicates that PZA may have some problems paying its short term obligations.
PZA's Current ratio of 0.19 is on the low side compared to the rest of the industry. PZA is outperformed by 73.68% of its industry peers.
A Quick Ratio of 0.19 indicates that PZA may have some problems paying its short term obligations.
The Quick ratio of PZA (0.19) is worse than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
The earnings per share for PZA have decreased by -2.86% in the last year.
PZA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.06% yearly.
Looking at the last year, PZA shows a decrease in Revenue. The Revenue has decreased by -1.02% in the last year.
Measured over the past years, PZA shows a small growth in Revenue. The Revenue has been growing by 2.06% on average per year.
EPS 1Y (TTM)-2.86%
EPS 3Y7.33%
EPS 5Y2.06%
EPS Q2Q%-3.92%
Revenue 1Y (TTM)-1.02%
Revenue growth 3Y7.64%
Revenue growth 5Y2.06%
Sales Q2Q%-1.94%
3.2 Future
Based on estimates for the next years, PZA will show a small growth in Earnings Per Share. The EPS will grow by 3.51% on average per year.
The Revenue is expected to grow by 3.25% on average over the next years.
EPS Next Y3.97%
EPS Next 2Y3.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.74%
Revenue Next 2Y3.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
PZA is valuated correctly with a Price/Earnings ratio of 14.97.
Based on the Price/Earnings ratio, PZA is valued a bit cheaper than 68.42% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.79, PZA is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.37, which indicates a correct valuation of PZA.
PZA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PZA is cheaper than 73.68% of the companies in the same industry.
PZA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 14.37 |
4.2 Price Multiples
73.68% of the companies in the same industry are more expensive than PZA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.37 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PZA does not grow enough to justify the current Price/Earnings ratio.
PZA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.77
PEG (5Y)7.28
EPS Next 2Y3.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PZA has a Yearly Dividend Yield of 6.62%, which is a nice return.
PZA's Dividend Yield is rather good when compared to the industry average which is at 4.81. PZA pays more dividend than 89.47% of the companies in the same industry.
PZA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
5.2 History
The dividend of PZA has a limited annual growth rate of 2.57%.
PZA has been paying a dividend for at least 10 years, so it has a reliable track record.
PZA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.57%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
PZA pays out 108.23% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PZA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP108.23%
EPS Next 2Y3.51%
EPS Next 3YN/A
TSX:PZA (4/25/2025, 7:00:00 PM)
14.22
+0.17 (+1.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners16.99%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap350.10M
Analysts45.71
Price Target14.28 (0.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
Yearly Dividend1.03
Dividend Growth(5Y)2.57%
DP108.23%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.16%
Min EPS beat(2)-5.35%
Max EPS beat(2)-2.97%
EPS beat(4)0
Avg EPS beat(4)-2.78%
Min EPS beat(4)-5.35%
Max EPS beat(4)-0.99%
EPS beat(8)4
Avg EPS beat(8)0.29%
EPS beat(12)6
Avg EPS beat(12)1.45%
EPS beat(16)8
Avg EPS beat(16)0.94%
Revenue beat(2)0
Avg Revenue beat(2)-50.54%
Min Revenue beat(2)-93.92%
Max Revenue beat(2)-7.15%
Revenue beat(4)0
Avg Revenue beat(4)-26.24%
Min Revenue beat(4)-93.92%
Max Revenue beat(4)-0.93%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)7.69%
PT rev (3m)7.69%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.03%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 14.37 | ||
| P/S | 8.79 | ||
| P/FCF | 11.37 | ||
| P/OCF | 11.37 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.95
EY6.68%
EPS(NY)0.99
Fwd EY6.96%
FCF(TTM)1.25
FCFY8.8%
OCF(TTM)1.25
OCFY8.8%
SpS1.62
BVpS12.11
TBVpS-2.67
PEG (NY)3.77
PEG (5Y)7.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.29% | ||
| ROE | 10.38% | ||
| ROCE | 12.09% | ||
| ROIC | 9.75% | ||
| ROICexc | 9.93% | ||
| ROICexgc | N/A | ||
| OM | 98.2% | ||
| PM (TTM) | 77.8% | ||
| GM | N/A | ||
| FCFM | 77.36% |
ROA(3y)8.05%
ROA(5y)7.5%
ROE(3y)10.12%
ROE(5y)9.41%
ROIC(3y)8.8%
ROIC(5y)8.08%
ROICexc(3y)8.99%
ROICexc(5y)8.24%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)10.92%
ROCE(5y)10.03%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y11.61%
ROICexc growth 5Y4.14%
OM growth 3Y-0.02%
OM growth 5Y-0.08%
PM growth 3Y1.25%
PM growth 5Y0.48%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.53 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 38.25 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 99.44% | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | 2.93 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)101.95%
Profit Quality(5y)102.46%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.86%
EPS 3Y7.33%
EPS 5Y2.06%
EPS Q2Q%-3.92%
EPS Next Y3.97%
EPS Next 2Y3.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.02%
Revenue growth 3Y7.64%
Revenue growth 5Y2.06%
Sales Q2Q%-1.94%
Revenue Next Year2.74%
Revenue Next 2Y3.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-1.23%
EBIT growth 3Y7.62%
EBIT growth 5Y1.97%
EBIT Next Year2.66%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1.77%
FCF growth 3Y7.55%
FCF growth 5Y1.7%
OCF growth 1Y-1.77%
OCF growth 3Y7.55%
OCF growth 5Y1.7%