TSX:PZA

Stock Analysis Report

Executive Summary

Pizza Pizza Royalty Corp., through its subsidiary, Pizza Pizza Royalty Limited Partnership, owns and franchises quick service restaurants under the Pizza Pizza and Pizza 73 brands in Canada.

Snowflake

Fundamentals

Excellent balance sheet and good value.

Risks

  • Pizza Pizza Royalty is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.7%

PZA

-1.9%

CA Hospitality

0.9%

CA Market


1 Year Return

3.7%

PZA

-18.9%

CA Hospitality

-0.2%

CA Market

PZA outperformed the Hospitality industry which returned -18.9% over the past year.

PZA outperformed the Market in Canada which returned -0.1% over the past year.


Share holder returns

PZAIndustryMarket
7 Day1.7%-1.9%0.9%
30 Day4.5%6.8%5.7%
90 Day2.9%-2.6%1.8%
1 Year13.4%3.7%-18.3%-18.9%3.3%-0.2%
3 Year-17.6%-32.6%20.9%17.7%19.2%8.5%
5 Year5.6%-22.9%-0.8%-3.7%23.3%5.8%

Price Volatility Vs. Market

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


Simply Wall St News

2 weeks ago | Simply Wall St

What Kind Of Shareholder Owns Most Pizza Pizza Royalty Corp. (TSE:PZA) Stock?

Valuation

Is Pizza Pizza Royalty undervalued based on future cash flows and its price relative to the stock market?

24%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Pizza Pizza Royalty's share price is below the future cash flow value, and at a moderate discount (> 20%).

Pizza Pizza Royalty's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Pizza Pizza Royalty is good value based on earnings compared to the CA Hospitality industry average.

Pizza Pizza Royalty is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Pizza Pizza Royalty, we can't assess if its growth is good value.


Price Based on Value of Assets

Pizza Pizza Royalty is good value based on assets compared to the CA Hospitality industry average.


Next Steps

Future Growth

How is Pizza Pizza Royalty expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Pizza Pizza Royalty's revenue is expected to grow significantly at over 20% yearly.

Pizza Pizza Royalty's earnings are expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).

Pizza Pizza Royalty's revenue growth is expected to exceed the Canada market average.

Pizza Pizza Royalty's earnings growth is positive but not above the Canada market average.

Pizza Pizza Royalty's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Pizza Pizza Royalty will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Pizza Pizza Royalty performed over the past 5 years?

2.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Pizza Pizza Royalty's year on year earnings growth rate has been positive over the past 5 years.

Pizza Pizza Royalty's 1-year earnings growth is less than its 5-year average (0.1% vs 2.2%)

Pizza Pizza Royalty's earnings growth has exceeded the CA Hospitality industry average in the past year (0.1% vs -12.2%).


Return on Equity

Pizza Pizza Royalty has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Pizza Pizza Royalty used its assets more efficiently than the CA Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Pizza Pizza Royalty's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Pizza Pizza Royalty's financial position?


Financial Position Analysis

Pizza Pizza Royalty is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Pizza Pizza Royalty's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Pizza Pizza Royalty's level of debt (16.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (17.7% vs 16.3% today).

Debt is well covered by operating cash flow (58.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 26x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

8.29%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Pizza Pizza Royalty before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Pizza Pizza Royalty's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.95%).

Pizza Pizza Royalty's dividend is above the markets top 25% of dividend payers in Canada (5.78%).

Dividends per share have been stable in the past 10 years.

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

3.6yrs

Average board tenure


CEO

Pizza Pizza Royalty has no CEO, or we have no data on them.


Board Age and Tenure

3.6yrs

Average Tenure

70yo

Average Age

The tenure for the Pizza Pizza Royalty board of directors is about average.


Insider Trading

More shares have been bought than sold by Pizza Pizza Royalty individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyCA$20,18413 Sep 19
Neil Lester
EntityIndividual
Shares2,000
Max PriceCA$10.09
BuyCA$12,29606 Mar 19
Edward Peter Nash
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,200
Max PriceCA$10.25

Ownership Breakdown


Management Team

  • Philip Goudreau

    Senior Vice President of Operations & Development - Pizza 73

    • Tenure: 0yrs

Board Members

  • Dick McCoy (76yo)

    Corporate Director

    • Tenure: 14.3yrs
    • Compensation: CA$38.00k
  • Ted Nash

    Director

    • Tenure: 3.3yrs
    • Compensation: CA$38.00k
  • Jay Swartz (70yo)

    Chair of the Board of Directors

    • Tenure: 0yrs
    • Compensation: CA$45.29k
  • Kathy Welsh

    Corporate Director

    • Tenure: 3.3yrs
    • Compensation: CA$45.50k
  • Michelle Savoy (59yo)

    Corporate Director

    • Tenure: 3.8yrs
    • Compensation: CA$37.00k

Company Information

Pizza Pizza Royalty Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pizza Pizza Royalty Corp.
  • Ticker: PZA
  • Exchange: TSX
  • Founded: 1967
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: CA$329.907m
  • Shares outstanding: 31.97m
  • Website: https://www.pizzapizza.ca

Location

  • Pizza Pizza Royalty Corp.
  • 500 Kipling Avenue
  • Toronto
  • Ontario
  • M8Z 5E5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PZATSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 2005
PZRI.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2005

Biography

Pizza Pizza Royalty Corp., through its subsidiary, Pizza Pizza Royalty Limited Partnership, owns and franchises quick service restaurants under the Pizza Pizza and Pizza 73 brands in Canada. As of January  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 00:30
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.