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 20 industry peers in the Hotels, Restaurants & Leisure industry. While PZA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PZA has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year PZA was profitable.
PZA had a positive operating cash flow in the past year.
PZA had positive earnings in each of the past 5 years.
In the past 5 years PZA always reported a positive cash flow from operatings.
1.2 Ratios
PZA has a Return On Assets of 8.32%. This is amongst the best in the industry. PZA outperforms 88.89% of its industry peers.
PZA has a better Return On Equity (10.42%) than 66.67% of its industry peers.
PZA's Return On Invested Capital of 9.70% is amongst the best of the industry. PZA outperforms 88.89% 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 7.56%.
The 3 year average ROIC (7.82%) for PZA is below the current ROIC(9.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 10.42% | ||
| ROIC | 9.7% |
ROA(3y)7.48%
ROA(5y)7.37%
ROE(3y)9.4%
ROE(5y)9.24%
ROIC(3y)7.82%
ROIC(5y)7.67%
1.3 Margins
PZA has a better Profit Margin (77.80%) than 100.00% of its industry peers.
PZA's Profit Margin has been stable in the last couple of years.
The Operating Margin of PZA (98.19%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of PZA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 98.19% | ||
| PM (TTM) | 77.8% | ||
| GM | N/A |
OM growth 3Y0.14%
OM growth 5Y0%
PM growth 3Y0.02%
PM growth 5Y0.28%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, PZA has more shares outstanding
Compared to 5 years ago, PZA has more shares outstanding
The debt/assets ratio for PZA has been reduced compared to a year ago.
2.2 Solvency
PZA has an Altman-Z score of 2.77. 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.
The Altman-Z score of PZA (2.77) is better than 77.78% of its industry peers.
There is no outstanding debt for PZA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 2.77 |
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 83.33% of its industry peers.
A Quick Ratio of 0.19 indicates that PZA may have some problems paying its short term obligations.
PZA's Quick ratio of 0.19 is on the low side compared to the rest of the industry. PZA is outperformed by 83.33% 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 -0.10% in the last year.
Measured over the past 5 years, PZA shows a small growth in Earnings Per Share. The EPS has been growing by 2.72% on average per year.
PZA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.24%.
PZA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.58% yearly.
EPS 1Y (TTM)-0.1%
EPS 3Y8.37%
EPS 5Y2.72%
EPS Q2Q%-6.27%
Revenue 1Y (TTM)1.24%
Revenue growth 3Y8.16%
Revenue growth 5Y2.58%
Sales Q2Q%1393.37%
3.2 Future
PZA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.01% yearly.
PZA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.77% yearly.
EPS Next Y-1.06%
EPS Next 2Y-0.02%
EPS Next 3Y1.01%
EPS Next 5YN/A
Revenue Next Year-1.11%
Revenue Next 2Y0.79%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.78 indicates a correct valuation of PZA.
PZA's Price/Earnings ratio is a bit cheaper when compared to the industry. PZA is cheaper than 72.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.51. PZA is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 13.50, which indicates a correct valuation of PZA.
Based on the Price/Forward Earnings ratio, PZA is valued a bit cheaper than 77.78% of the companies in the same industry.
PZA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 93.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 13.5 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PZA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.36 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of PZA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.07
EPS Next 2Y-0.02%
EPS Next 3Y1.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.15%, PZA is a good candidate for dividend investing.
PZA's Dividend Yield is rather good when compared to the industry average which is at 4.46. PZA pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, PZA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.15% |
5.2 History
The dividend of PZA has a limited annual growth rate of 0.95%.
PZA has paid a dividend for at least 10 years, which is a reliable track record.
PZA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.95%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
106.60% of the earnings are spent on dividend by PZA. This is not a sustainable payout ratio.
PZA's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP106.6%
EPS Next 2Y-0.02%
EPS Next 3Y1.01%
PIZZA PIZZA ROYALTY CORP
TSX:PZA (1/30/2025, 7:00:00 PM)
13.225
+0.04 (+0.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners16.41%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap325.60M
Analysts45.71
Price Target13.26 (0.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.15% |
Yearly Dividend0.95
Dividend Growth(5Y)0.95%
DP106.6%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.58%
Min EPS beat(2)-5.35%
Max EPS beat(2)-1.82%
EPS beat(4)1
Avg EPS beat(4)-1.79%
Min EPS beat(4)-5.35%
Max EPS beat(4)0.99%
EPS beat(8)5
Avg EPS beat(8)0.97%
EPS beat(12)7
Avg EPS beat(12)2.2%
EPS beat(16)8
Avg EPS beat(16)0.48%
Revenue beat(2)0
Avg Revenue beat(2)-5.06%
Min Revenue beat(2)-7.15%
Max Revenue beat(2)-2.96%
Revenue beat(4)0
Avg Revenue beat(4)-26.17%
Min Revenue beat(4)-93.64%
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 13.5 | ||
| P/S | 8.14 | ||
| P/FCF | 10.36 | ||
| P/OCF | 10.36 | ||
| P/B | 1.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.96
EY7.26%
EPS(NY)0.98
Fwd EY7.41%
FCF(TTM)1.28
FCFY9.65%
OCF(TTM)1.28
OCFY9.65%
SpS1.63
BVpS12.14
TBVpS-2.64
PEG (NY)N/A
PEG (5Y)5.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 10.42% | ||
| ROCE | 12.13% | ||
| ROIC | 9.7% | ||
| ROICexc | 9.89% | ||
| ROICexgc | N/A | ||
| OM | 98.19% | ||
| PM (TTM) | 77.8% | ||
| GM | N/A | ||
| FCFM | 78.54% |
ROA(3y)7.48%
ROA(5y)7.37%
ROE(3y)9.4%
ROE(5y)9.24%
ROIC(3y)7.82%
ROIC(5y)7.67%
ROICexc(3y)7.99%
ROICexc(5y)7.81%
ROICexgc(3y)3415.44%
ROICexgc(5y)4417.02%
ROCE(3y)9.79%
ROCE(5y)9.6%
ROICexcg growth 3Y-34.84%
ROICexcg growth 5Y-16.25%
ROICexc growth 3Y7.98%
ROICexc growth 5Y2.09%
OM growth 3Y0.14%
OM growth 5Y0%
PM growth 3Y0.02%
PM growth 5Y0.28%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.5 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 38.44 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 100.95% | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | 2.77 |
F-Score7
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)103.3%
Profit Quality(5y)103.29%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.1%
EPS 3Y8.37%
EPS 5Y2.72%
EPS Q2Q%-6.27%
EPS Next Y-1.06%
EPS Next 2Y-0.02%
EPS Next 3Y1.01%
EPS Next 5YN/A
Revenue 1Y (TTM)1.24%
Revenue growth 3Y8.16%
Revenue growth 5Y2.58%
Sales Q2Q%1393.37%
Revenue Next Year-1.11%
Revenue Next 2Y0.79%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
EBIT growth 1Y1.06%
EBIT growth 3Y8.31%
EBIT growth 5Y2.58%
EBIT Next Year-0.2%
EBIT Next 3Y2.01%
EBIT Next 5YN/A
FCF growth 1Y12.44%
FCF growth 3Y7.56%
FCF growth 5Y2.54%
OCF growth 1Y12.44%
OCF growth 3Y7.56%
OCF growth 5Y2.54%