ASX:DMP

Stock Analysis Report

Domino's Pizza Enterprises

Executive Summary

Domino's Pizza Enterprises Limited operates retail food outlets.

Snowflake

Fundamentals

Reasonable growth potential average dividend payer.

Share Price & News

How has Domino's Pizza Enterprises's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.3%

DMP

0.7%

AU Hospitality

0.1%

AU Market


1 Year Return

-9.9%

DMP

0.8%

AU Hospitality

11.9%

AU Market

Return vs Industry: DMP underperformed the Australian Hospitality industry which returned 0.8% over the past year.

Return vs Market: DMP underperformed the Australian Market which returned 11.9% over the past year.


Shareholder returns

DMPIndustryMarket
7 Day-2.3%0.7%0.1%
30 Day3.9%1.7%-1.1%
90 Day29.2%4.2%-1.4%
1 Year-7.5%-9.9%4.5%0.8%18.5%11.9%
3 Year-19.0%-24.4%37.5%22.9%36.4%18.1%
5 Year104.4%86.3%94.1%56.0%50.9%16.7%

Price Volatility Vs. Market

How volatile is Domino's Pizza Enterprises's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

36.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DMP (A$49.42) is trading above our estimate of fair value (A$27.26)

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 (36.5x) compared to the Hospitality industry average (24.6x).

PE vs Market: DMP is poor value based on its PE Ratio (36.5x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: DMP is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: DMP is overvalued based on its PB Ratio (12.2x) compared to the AU Hospitality industry average (2.4x).


Next Steps

Future Growth

How is Domino's Pizza Enterprises forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DMP's forecast earnings growth (14.5% per year) is above the savings rate (2.3%).

Earnings vs Market: DMP's earnings (14.5% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: DMP's revenue (8.7% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: DMP's revenue (8.7% 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 (41.6%).


Next Steps

Past Performance

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

18.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DMP's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: DMP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DMP had negative earnings growth (-4.5%) over the past year, making it difficult to compare to the Hospitality industry average (16.5%).


Return on Equity

High ROE: Whilst DMP's Return on Equity (33.06%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: DMP has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: DMP has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: DMP's short term assets (A$265.3M) exceeds its short term liabilities (A$246.5M)

Long Term Liabilities: DMP's short term assets (265.3M) do not cover its long term liabilities (845.9M)


Debt to Equity History and Analysis

Debt Level: DMP's debt to equity ratio (184.1%) is considered high

Reducing Debt: DMP's debt to equity ratio has increased from 45.1% to 184.1% over the past 5 years.

Debt Coverage: DMP's debt is well covered by operating cash flow (27.7%).

Interest Coverage: DMP's interest payments on its debt are well covered by EBIT (14.4x coverage).


Balance Sheet

Inventory Level: DMP has a low level of unsold assets or inventory.

Debt Coverage by Assets: DMP's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

2.34%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.4%markettop25%5.6%industryaverage3.1%forecastin3Years2.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DMP's dividend (2.34%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: DMP's dividend (2.34%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

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 (85.2%), 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 (70.8% payout ratio).


Next Steps

Management

What is the CEO of Domino's Pizza Enterprises's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Don Meij (50yo)

18.2yrs

Tenure

AU$777,213

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 ($USD533.58K) is about average for companies of similar size in the Australian market ($USD2.18M).

Compensation vs Earnings: Don's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.0yrs

Average Tenure

51yo

Average Age

Experienced Management: DMP's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

64yo

Average Age

Experienced Board: DMP's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

Insider Buying: DMP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellAU$2,071,32720 Sep 19
Donald Meij
EntityIndividual
Role
Chief Executive Officer
MD, Group CEO & Director
Shares43,343
Max PriceAU$47.79
SellAU$10,300,56405 Sep 19
UBS Asset Management
EntityCompany
Shares240,116
Max PriceAU$42.90
BuyAU$12,330,61505 Sep 19
UBS Asset Management
EntityCompany
Shares287,199
Max PriceAU$43.07
BuyAU$17,772,00808 Aug 19
Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
EntityCompany
Shares464,890
Max PriceAU$38.23
BuyAU$11,474,26522 Jul 19
Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
EntityCompany
Shares296,239
Max PriceAU$38.73
SellAU$6,448,61118 Jul 19
UBS Asset Management
EntityCompany
Shares165,472
Max PriceAU$38.97
BuyAU$2,345,16318 Jul 19
UBS Asset Management
EntityCompany
Shares60,131
Max PriceAU$39.00
BuyAU$160,356,31418 Jul 19
Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
EntityCompany
Shares3,963,792
Max PriceAU$40.46
SellAU$259,109,33117 Jul 19
UBS Asset Management
EntityCompany
Shares6,734,544
Max PriceAU$38.48
BuyAU$192,294,38917 Jul 19
UBS Asset Management
EntityCompany
Shares4,908,186
Max PriceAU$43.41
BuyAU$86,29027 May 19
Realindex Investments Pty Limited
EntityCompany
Shares2,119
Max PriceAU$40.72
BuyAU$4,461,19727 May 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares111,145
Max PriceAU$40.14
BuyAU$5,76506 May 19
Realindex Investments Pty Limited
EntityCompany
Shares137
Max PriceAU$42.08
SellAU$31,619,56403 May 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares731,336
Max PriceAU$46.76
BuyAU$116,99103 May 19
ASB Group Investments Ltd.
EntityCompany
Shares2,495
Max PriceAU$46.89
SellAU$283,35803 May 19
Realindex Investments Pty Limited
EntityCompany
Shares6,262
Max PriceAU$45.25
BuyAU$4,738,39103 May 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares110,932
Max PriceAU$43.00
SellAU$139,24803 May 19
ASB Group Investments Ltd.
EntityCompany
Shares3,144
Max PriceAU$44.29
BuyAU$1,414,62203 May 19
Realindex Investments Pty Limited
EntityCompany
Shares34,624
Max PriceAU$40.86
SellAU$009 Apr 19
FIL Limited
EntityCompany
Shares871,415
Max PriceAU$77.99
SellAU$1,937,27521 Mar 19
UBS Asset Management
EntityCompany
Shares46,609
Max PriceAU$41.56
BuyAU$2,189,09021 Mar 19
UBS Asset Management
EntityCompany
Shares52,556
Max PriceAU$41.65
BuyAU$80,538,12420 Mar 19
UBS Asset Management
EntityCompany
Shares1,931,105
Max PriceAU$42.13
SellAU$26,805,02920 Mar 19
UBS Asset Management
EntityCompany
Shares637,464
Max PriceAU$42.06
BuyAU$4,598,05504 Mar 19
UBS Asset Management
EntityCompany
Shares111,665
Max PriceAU$41.27
SellAU$3,552,03404 Mar 19
UBS Asset Management
EntityCompany
Shares86,274
Max PriceAU$41.25
BuyAU$11,669,85901 Mar 19
UBS Asset Management
EntityCompany
Shares281,178
Max PriceAU$41.87
SellAU$6,210,28501 Mar 19
UBS Asset Management
EntityCompany
Shares149,862
Max PriceAU$41.44
SellAU$5,175,65727 Feb 19
UBS Asset Management
EntityCompany
Shares119,400
Max PriceAU$43.35
BuyAU$7,745,76927 Feb 19
UBS Asset Management
EntityCompany
Shares178,003
Max PriceAU$43.51
SellAU$296,005,43425 Feb 19
UBS Asset Management
EntityCompany
Shares6,451,263
Max PriceAU$48.63
BuyAU$280,958,59425 Feb 19
UBS Asset Management
EntityCompany
Shares6,051,905
Max PriceAU$51.19
BuyAU$4,582,38618 Jan 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares95,395
Max PriceAU$52.21
BuyAU$2,547,55118 Jan 19
Realindex Investments Pty Limited
EntityCompany
Shares60,850
Max PriceAU$41.87
SellAU$45,026,05118 Jan 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,011,610
Max PriceAU$50.90
SellAU$1,984,13718 Jan 19
Realindex Investments Pty Limited
EntityCompany
Shares35,928
Max PriceAU$55.23
SellAU$57,181,31730 Nov 18
Bennelong Australian Equity Partners Pty Ltd
EntityCompany
Shares1,225,489
Max PriceAU$46.66
SellAU$86,789,88127 Nov 18
Bennelong Australian Equity Partners Pty Ltd
EntityCompany
Shares1,536,376
Max PriceAU$56.49
SellAU$87,01622 Nov 18
Ross Adler
EntityIndividual
Role
Vice Chairman
Non-Executive Deputy Chairman
Shares1,796
Max PriceAU$48.45
SellAU$4,900,00014 Nov 18
Grant Bourke
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares100,000
Max PriceAU$49.00
SellAU$2,450,50014 Nov 18
Grant Bourke
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares50,000
Max PriceAU$49.01
BuyAU$4,262,58302 Nov 18
Realindex Investments Pty Limited
EntityCompany
Shares82,107
Max PriceAU$51.91
SellAU$121,842,13102 Nov 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares2,302,987
Max PriceAU$54.62
SellAU$1,510,74402 Nov 18
Realindex Investments Pty Limited
EntityCompany
Shares28,419
Max PriceAU$53.16
BuyAU$72,729,82602 Nov 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,396,129
Max PriceAU$54.18

Ownership Breakdown


Management Team

  • Don Meij (50yo)

    MD, Group CEO & Director

    • Tenure: 18.2yrs
    • Compensation: AU$777.21k
  • Richard Coney (54yo)

    Group Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: AU$543.00k
  • Andrew Rennie (51yo)

    Chief Executive Officer of Europe

    • Tenure: 5.8yrs
    • Compensation: AU$2.55m
  • Craig Ryan

    General Counsel & Company Secretary

    • Tenure: 13.2yrs
    • Compensation: AU$573.84k
  • Allan Collins

    Group Chief Marketing Officer

    • Tenure: 12.8yrs
    • Compensation: AU$506.76k
  • Nick Knight

    Chief Executive Officer of Australia & New Zealand

    • Tenure: 4.3yrs
    • Compensation: AU$409.39k
  • Michael Gillespie

    Group Chief Digital & Technology Officer

    • Tenure: 2.1yrs
    • Compensation: AU$299.27k
  • Josh Kilimnik

    President & CEO of Japan

    • Tenure: 1.8yrs
    • Compensation: AU$674.26k
  • Terry Powell

    Group Chief Information Officer

    • Tenure: 1.3yrs
  • Nathan Scholz

    Head of Government & Investor Relations

    • Tenure: 0yrs

Board Members

  • Ross Adler (74yo)

    Non-Executive Deputy Chairman

    • Tenure: 5.6yrs
    • Compensation: AU$199.87k
  • Jack Cowin (77yo)

    Non-Executive Chairman

    • Tenure: 5.6yrs
    • Compensation: AU$294.72k
  • Don Meij (50yo)

    MD, Group CEO & Director

    • Tenure: 18.2yrs
    • Compensation: AU$777.21k
  • Grant Bourke (54yo)

    Non Executive Director

    • Tenure: 18.2yrs
    • Compensation: AU$147.31k
  • Uschi Schreiber

    Non-Executive Director

    • Tenure: 0.9yrs
  • Lynda Kathryn O’Grady

    Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: AU$134.17k

Company Information

Domino's Pizza Enterprises Limited's company bio, 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$4.297b
  • Shares outstanding: 85.79m
  • Website: https://www.dominos.com.au

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DMPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2005
DPZU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2005
HQXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2005
DMPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2005
DMZP.YOTCPK (Pink Sheets LLC)UNSPON ADRUSUSDDec 2015

Biography

Domino's Pizza Enterprises Limited operates retail food outlets. The company holds franchise rights for the Domino's brand and network in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Ge ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:32
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.