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PZA

Pizza Pizza RoyaltyTSX:PZA Stock Report

Market Cap

CA$376.2m

7D

-3.0%

1Y

27.8%

Updated

02 Dec, 2021

Data

Company Financials +
PZA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance1/6
Financial Health5/6
Dividends3/6

PZA Stock Overview

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.

Pizza Pizza Royalty Competitors

Yum! Brands

NYSE:YUM

US$36.1b

Restaurant Brands International

NYSE:QSR

US$25.0b

Papa John's International

NasdaqGS:PZZA

US$4.4b

DP Eurasia

LSE:DPEU

UK£125.5m

Price History & Performance

Summary of all time highs, changes and price drops for Pizza Pizza Royalty
Historical stock prices
Current Share PriceCA$11.69
52 Week HighCA$12.22
52 Week LowCA$9.05
Beta1.15
1 Month Change-0.26%
3 Month Change3.64%
1 Year Change27.76%
3 Year Change26.93%
5 Year Change-28.98%
Change since IPO10.08%

Recent News & Updates

Nov 21
Pizza Pizza Royalty's (TSE:PZA) Dividend Will Be Increased To CA$0.06

Pizza Pizza Royalty's (TSE:PZA) Dividend Will Be Increased To CA$0.06

Pizza Pizza Royalty Corp. ( TSE:PZA ) will increase its dividend on the 15th of December to CA$0.06. This takes the...

Sep 24
Pizza Pizza Royalty (TSE:PZA) Is Increasing Its Dividend To CA$0.06

Pizza Pizza Royalty (TSE:PZA) Is Increasing Its Dividend To CA$0.06

Pizza Pizza Royalty Corp.'s ( TSE:PZA ) dividend will be increasing to CA$0.06 on 15th of October. This takes the...

Shareholder Returns

PZACA HospitalityCA Market
7D-3.0%-0.9%-3.6%
1Y27.8%2.1%20.3%

Return vs Industry: PZA exceeded the Canadian Hospitality industry which returned 2.1% over the past year.

Return vs Market: PZA exceeded the Canadian Market which returned 20.3% over the past year.

Price Volatility

Is PZA's price volatile compared to industry and market?
PZA volatility
PZA Average Weekly Movement2.0%
Hospitality Industry Average Movement7.2%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.0%
10% least volatile stocks in CA Market3.6%

Stable Share Price: PZA is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: PZA's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1967n/an/ahttps://www.pizzapizza.ca

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. It also sells food and beverages. As of December 31, 2020, the company had 749 restaurants in the royalty pool.

Pizza Pizza Royalty Fundamentals Summary

How do Pizza Pizza Royalty's earnings and revenue compare to its market cap?
PZA fundamental statistics
Market CapCA$376.15m
Earnings (TTM)CA$23.25m
Revenue (TTM)CA$31.05m

16.2x

P/E Ratio

12.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PZA income statement (TTM)
RevenueCA$31.05m
Cost of RevenueCA$0
Gross ProfitCA$31.05m
ExpensesCA$7.80m
EarningsCA$23.25m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.72
Gross Margin100.00%
Net Profit Margin74.88%
Debt/Equity Ratio16.2%

How did PZA perform over the long term?

See historical performance and comparison

Dividends

5.8%

Current Dividend Yield

92%

Payout Ratio

Valuation

Is Pizza Pizza Royalty undervalued compared to its fair value and its price relative to the market?

7.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PZA (CA$11.69) is trading below our estimate of fair value (CA$12.59)

Significantly Below Fair Value: PZA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PZA is good value based on its PE Ratio (16.2x) compared to the Canadian Hospitality industry average (17.6x).

PE vs Market: PZA is poor value based on its PE Ratio (16.2x) compared to the Canadian market (12x).


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 (1.3x) compared to the CA Hospitality industry average (1.9x).


Future Growth

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

40.2%

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 (1.6%).

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 (40.2% per year) is forecast to grow faster than the Canadian market (5.4% per year).

High Growth Revenue: PZA's revenue (40.2% 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


Past Performance

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

-2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PZA has high quality earnings.

Growing Profit Margin: PZA's current net profit margins (74.9%) are lower than last year (77.1%).


Past Earnings Growth Analysis

Earnings Trend: PZA's earnings have declined by 2.5% per year over the past 5 years.

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

Earnings vs Industry: PZA had negative earnings growth (-9.5%) over the past year, making it difficult to compare to the Hospitality industry average (3.8%).


Return on Equity

High ROE: PZA's Return on Equity (8%) is considered low.


Financial Health

How is Pizza Pizza Royalty's financial position?


Financial Position Analysis

Short Term Liabilities: PZA's short term assets (CA$8.4M) exceed its short term liabilities (CA$2.5M).

Long Term Liabilities: PZA's short term assets (CA$8.4M) do not cover its long term liabilities (CA$70.3M).


Debt to Equity History and Analysis

Debt Level: PZA's net debt to equity ratio (14.3%) is considered satisfactory.

Reducing Debt: PZA's debt to equity ratio has reduced from 17.7% to 16.2% over the past 5 years.

Debt Coverage: PZA's debt is well covered by operating cash flow (51.3%).

Interest Coverage: PZA's interest payments on its debt are well covered by EBIT (23x coverage).


Balance Sheet


Dividend

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

5.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PZA's dividend (5.82%) is higher than the bottom 25% of dividend payers in the Canadian market (1.61%).

High Dividend: PZA's dividend (5.82%) is in the top 25% of dividend payers in the Canadian market (4.72%)


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 (92%), 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?

5.6yrs

Average board tenure


CEO

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


Board Members

Experienced Board: PZA's board of directors are considered experienced (5.6 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 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$376.152m
  • Shares outstanding: 32.18m
  • Website: https://www.pizzapizza.ca

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 23:40
End of Day Share Price2021/12/02 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.