company background image
DMP

Domino's Pizza EnterprisesASX:DMP Stock Report

Market Cap

AU$11.5b

7D

-3.6%

1Y

51.5%

Updated

23 Oct, 2021

Data

Company Financials +
DMP fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance5/6
Financial Health2/6
Dividends4/6

DMP Overview

Domino's Pizza Enterprises Limited operates retail food outlets.

Price History & Performance

Summary of all time highs, changes and price drops for Domino's Pizza Enterprises
Historical stock prices
Current Share PriceAU$132.90
52 Week HighAU$72.70
52 Week LowAU$167.15
Beta0.30
1 Month Change-18.13%
3 Month Change11.68%
1 Year Change51.54%
3 Year Change154.94%
5 Year Change106.37%
Change since IPO5,728.95%

Recent News & Updates

Sep 15
Domino's Pizza Enterprises' (ASX:DMP) Returns Have Hit A Wall

Domino's Pizza Enterprises' (ASX:DMP) Returns Have Hit A Wall

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Sep 02
Domino's Pizza Enterprises (ASX:DMP) Has A Rock Solid Balance Sheet

Domino's Pizza Enterprises (ASX:DMP) Has A Rock Solid Balance Sheet

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

DMPAU HospitalityAU Market
7D-3.6%-0.8%0.6%
1Y51.5%38.7%21.3%

Return vs Industry: DMP exceeded the Australian Hospitality industry which returned 38.7% over the past year.

Return vs Market: DMP exceeded the Australian Market which returned 21.3% over the past year.

Price Volatility

Is DMP's price volatile compared to industry and market?
DMP volatility
DMP Beta0.30
Industry Beta1.23
Market Beta1

Stable Share Price: DMP is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DMP's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198388,000Don Meijhttps://www.dominos.com.au

Domino's Pizza Enterprises Limited operates retail food outlets. The company holds franchise rights for the Domino's brand in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, Denmark, and Taiwan. It operates a network of approximately 2,949 stores.

Domino's Pizza Enterprises Fundamentals Summary

How do Domino's Pizza Enterprises's earnings and revenue compare to its market cap?
DMP fundamental statistics
Market CapAU$11.50b
Earnings (TTM)AU$184.01m
Revenue (TTM)AU$2.20b

62.5x

P/E Ratio

5.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DMP income statement (TTM)
RevenueAU$2.20b
Cost of RevenueAU$1.46b
Gross ProfitAU$738.37m
ExpensesAU$554.36m
EarningsAU$184.01m

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.13
Gross Margin33.58%
Net Profit Margin8.37%
Debt/Equity Ratio127.3%

How did DMP perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

82%

Payout Ratio

Valuation

Is Domino's Pizza Enterprises undervalued compared to its fair value and its price relative to the market?

62.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DMP (A$132.9) is trading above our estimate of fair value (A$92.25)

Significantly Below Fair Value: DMP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DMP is poor value based on its PE Ratio (62.5x) compared to the Australian Hospitality industry average (37.2x).

PE vs Market: DMP is poor value based on its PE Ratio (62.5x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: DMP is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: DMP is overvalued based on its PB Ratio (28.8x) compared to the AU Hospitality industry average (3.8x).


Future Growth

How is Domino's Pizza Enterprises forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DMP's forecast earnings growth (14.9% per year) is above the savings rate (1.9%).

Earnings vs Market: DMP's earnings (14.9% per year) are forecast to grow faster than the Australian market (11.6% per year).

High Growth Earnings: DMP's earnings are forecast to grow, but not significantly.

Revenue vs Market: DMP's revenue (10.6% per year) is forecast to grow faster than the Australian market (5.5% per year).

High Growth Revenue: DMP's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DMP's Return on Equity is forecast to be very high in 3 years time (57%).


Past Performance

How has Domino's Pizza Enterprises performed over the past 5 years?

13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DMP has high quality earnings.

Growing Profit Margin: DMP's current net profit margins (8.4%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: DMP's earnings have grown by 13.8% per year over the past 5 years.

Accelerating Growth: DMP's earnings growth over the past year (32.9%) exceeds its 5-year average (13.8% per year).

Earnings vs Industry: DMP earnings growth over the past year (32.9%) exceeded the Hospitality industry 4.2%.


Return on Equity

High ROE: Whilst DMP's Return on Equity (48.39%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Domino's Pizza Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: DMP's short term assets (A$454.8M) do not cover its short term liabilities (A$538.8M).

Long Term Liabilities: DMP's short term assets (A$454.8M) do not cover its long term liabilities (A$1.4B).


Debt to Equity History and Analysis

Debt Level: DMP's debt to equity ratio (127.3%) is considered high.

Reducing Debt: DMP's debt to equity ratio has increased from 79.8% to 127.3% over the past 5 years.

Debt Coverage: DMP's debt is well covered by operating cash flow (73.7%).

Interest Coverage: DMP's interest payments on its debt are well covered by EBIT (19.6x coverage).


Balance Sheet


Dividend

What is Domino's Pizza Enterprises's current dividend yield, its reliability and sustainability?

1.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DMP's dividend (1.31%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: DMP's dividend (1.31%) is low compared to the top 25% of dividend payers in the Australian market (5.3%).


Stability and Growth of Payments

Stable Dividend: DMP's dividends per share have been stable in the past 10 years.

Growing Dividend: DMP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81.5%), DMP's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DMP's dividends in 3 years are forecast to be covered by earnings (79.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average management tenure


CEO

Don Meij (52 yo)

20.17yrs

Tenure

AU$3,167,709

Compensation

Mr. Donald Jeffrey Meij, also known as Don, has been the Group Chief Executive Officer and Managing Director of Domino's Pizza Enterprises Limited (alternate name Domino’s Pizza Australia New Zealand Ltd.)...


CEO Compensation Analysis

Compensation vs Market: Don's total compensation ($USD2.37M) is about average for companies of similar size in the Australian market ($USD2.36M).

Compensation vs Earnings: Don's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: DMP's management team is seasoned and experienced (6.6 years average tenure).


Board Members

Experienced Board: DMP's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DMP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Domino's Pizza Enterprises Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Domino's Pizza Enterprises Limited
  • Ticker: DMP
  • Exchange: ASX
  • Founded: 1983
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: AU$11.501b
  • Shares outstanding: 86.54m
  • Website: https://www.dominos.com.au

Number of Employees


Location

  • Domino's Pizza Enterprises Limited
  • KSD1
  • Level 1
  • Brisbane
  • Queensland
  • 4007
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 07:03
End of Day Share Price2021/10/22 00:00
Earnings2021/06/27
Annual Earnings2021/06/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.