Pizza Pizza Royalty
Market Cap
CA$262.2m
Last Updated
2020/07/04 23:58 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet and good value.
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
Stable Share Price: PZA has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.3%
PZA
-0.1%
CA Hospitality
2.4%
CA Market
1 Year Return
-18.2%
PZA
-47.8%
CA Hospitality
-12.4%
CA Market
Return vs Industry: PZA exceeded the Canadian Hospitality industry which returned -48% over the past year.
Return vs Market: PZA underperformed the Canadian Market which returned -12.4% over the past year.
Shareholder returns
| PZA | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.3% | -0.1% | 2.4% |
| 30 Day | -11.6% | -11.7% | -0.9% |
| 90 Day | 16.1% | 18.1% | 17.3% |
| 1 Year | -10.8%-18.2% | -47.0%-47.8% | -9.4%-12.4% |
| 3 Year | -39.8%-52.2% | -26.5%-30.0% | 4.2%-5.7% |
| 5 Year | -14.2%-39.1% | -22.4%-28.3% | 22.1%3.8% |
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
1 week ago | Simply Wall St
Does It Make Sense To Buy Pizza Pizza Royalty Corp. (TSE:PZA) For Its Yield?1 month ago | Simply Wall St
Imagine Owning Pizza Pizza Royalty (TSE:PZA) While The Price Tanked 50%1 month ago | Simply Wall St
Should You Be Concerned About Pizza Pizza Royalty Corp.'s (TSE:PZA) Earnings Growth?Valuation
Is Pizza Pizza Royalty undervalued compared to its fair value and its price relative to the market?
40.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PZA (CA$8.15) is trading below our estimate of fair value (CA$13.65)
Significantly Below Fair Value: PZA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PZA is poor value based on its PE Ratio (9.7x) compared to the Hospitality industry average (9.4x).
PE vs Market: PZA is good value based on its PE Ratio (9.7x) compared to the Canadian market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate PZA's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: PZA is good value based on its PB Ratio (0.9x) compared to the CA Hospitality industry average (0.9x).
Next Steps
Future Growth
How is Pizza Pizza Royalty forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
40.0%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if PZA's forecast earnings growth is above the savings rate (1.7%).
Earnings vs Market: Insufficient data to determine if PZA's earnings are forecast to grow faster than the Canadian market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PZA's revenue (40% per year) is forecast to grow faster than the Canadian market (5.5% per year).
High Growth Revenue: PZA's revenue (40% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if PZA's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Pizza Pizza Royalty performed over the past 5 years?
1.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PZA has high quality earnings.
Growing Profit Margin: PZA's current net profit margins (75.9%) are higher than last year (75.7%).
Past Earnings Growth Analysis
Earnings Trend: PZA's earnings have grown by 1.6% per year over the past 5 years.
Accelerating Growth: PZA's earnings growth over the past year (0.4%) is below its 5-year average (1.6% per year).
Earnings vs Industry: PZA earnings growth over the past year (0.4%) underperformed the Hospitality industry 4.8%.
Return on Equity
High ROE: PZA's Return on Equity (9.4%) is considered low.
Next Steps
Financial Health
How is Pizza Pizza Royalty's financial position?
Financial Position Analysis
Short Term Liabilities: PZA's short term assets (CA$5.5M) exceed its short term liabilities (CA$2.9M).
Long Term Liabilities: PZA's short term assets (CA$5.5M) do not cover its long term liabilities (CA$70.1M).
Debt to Equity History and Analysis
Debt Level: PZA's debt to equity ratio (16.4%) is considered satisfactory.
Reducing Debt: PZA's debt to equity ratio has reduced from 17.7% to 16.4% over the past 5 years.
Debt Coverage: PZA's debt is well covered by operating cash flow (61%).
Interest Coverage: PZA's interest payments on its debt are well covered by EBIT (26.9x coverage).
Balance Sheet
Next Steps
Dividend
What is Pizza Pizza Royalty current dividend yield, its reliability and sustainability?
7.36%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PZA's dividend (7.36%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).
High Dividend: PZA's dividend (7.36%) is in the top 25% of dividend payers in the Canadian market (6.02%)
Stability and Growth of Payments
Stable Dividend: PZA's dividends per share have been stable in the past 10 years.
Growing Dividend: PZA's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (102%), PZA's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.2yrs
Average board tenure
CEO
Pizza Pizza Royalty has no CEO, or we have no data on them.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 4.17yrs | CA$38.00k | 0.0080% CA$21.1k | |
| Independent Chair of the Board of Directors | no data | CA$45.29k | 0.036% CA$93.7k | |
| Independent Corporate Director | 4.17yrs | CA$45.50k | 0.017% CA$44.8k | |
| Independent Corporate Director | 4.67yrs | CA$37.00k | 0.0031% CA$8.2k | |
| Corporate Director | 0.92yr | no data | 0.0062% CA$16.3k |
4.2yrs
Average Tenure
Experienced Board: PZA's board of directors are considered experienced (4.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PZA 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
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$262.245m
- Shares outstanding: 32.18m
- Website: https://www.pizzapizza.ca
Location
- Pizza Pizza Royalty Corp.
- 500 Kipling Avenue
- Toronto
- Ontario
- M8Z 5E5
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PZA | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Jul 2005 |
| PZRI.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Jul 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 1, 2020, the company had 749 restaurants in the royalty pool. Pizza Pizza Royalty Corp. was founded in 1967 and is headquartered in Toronto, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/04 23:58 |
| End of Day Share Price | 2020/07/03 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.