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PZA

Pizza Pizza Royalty TSX:PZA Stock Report

Last Price

CA$12.55

Market Cap

CA$403.8m

7D

1.5%

1Y

18.3%

Updated

23 May, 2022

Data

Company Financials +
PZA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance2/6
Financial Health5/6
Dividends4/6

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

Price History & Performance

Summary of all time highs, changes and price drops for Pizza Pizza Royalty
Historical stock prices
Current Share PriceCA$12.55
52 Week HighCA$14.33
52 Week LowCA$10.55
Beta1.16
1 Month Change-8.99%
3 Month Change1.95%
1 Year Change18.29%
3 Year Change24.75%
5 Year Change-28.20%
Change since IPO18.17%

Recent News & Updates

Shareholder Returns

PZACA HospitalityCA Market
7D1.5%-1.4%0.2%
1Y18.3%-22.4%4.8%

Return vs Industry: PZA exceeded the Canadian Hospitality industry which returned -22.4% over the past year.

Return vs Market: PZA exceeded the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is PZA's price volatile compared to industry and market?
PZA volatility
PZA Average Weekly Movement3.5%
Hospitality Industry Average Movement6.1%
Market Average Movement9.8%
10% most volatile stocks in CA Market17.0%
10% least volatile stocks in CA Market4.3%

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

Volatility Over Time: PZA's weekly volatility (3%) 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 distributes food. As of December 31, 2021, the company had 727 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$403.82m
Earnings (TTM)CA$24.61m
Revenue (TTM)CA$32.81m

16.4x

P/E Ratio

12.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PZA income statement (TTM)
RevenueCA$32.81m
Cost of RevenueCA$0
Gross ProfitCA$32.81m
Other ExpensesCA$8.19m
EarningsCA$24.61m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.76
Gross Margin100.00%
Net Profit Margin75.02%
Debt/Equity Ratio16.1%

How did PZA perform over the long term?

See historical performance and comparison

Dividends

6.2%

Current Dividend Yield

93%

Payout Ratio

Does PZA pay a reliable dividends?

See PZA dividend history and benchmarks
When do you need to buy PZA by to receive an upcoming dividend?
Pizza Pizza Royalty dividend dates
Ex Dividend DateMay 30 2022
Dividend Pay DateJun 15 2022
Days until Ex dividend5 days
Days until Dividend pay date21 days

Does PZA pay a reliable dividends?

See PZA dividend history and benchmarks

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


16.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PZA (CA$12.55) is trading below our estimate of fair value (CA$14.96)

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 poor value based on its PE Ratio (16.4x) compared to the Canadian Hospitality industry average (14.9x).

PE vs Market: PZA is poor value based on its PE Ratio (16.4x) compared to the Canadian market (11.4x).


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 (1.4x) compared to the CA Hospitality industry average (1.7x).


Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


40.1%

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 (40.1% per year) is forecast to grow faster than the Canadian market (6.4% per year).

High Growth Revenue: PZA's revenue (40.1% 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?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-3.0%

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%) are lower than last year (76.5%).


Past Earnings Growth Analysis

Earnings Trend: PZA's earnings have declined by 3% per year over the past 5 years.

Accelerating Growth: PZA's earnings growth over the past year (4.9%) exceeds its 5-year average (-3% per year).

Earnings vs Industry: PZA earnings growth over the past year (4.9%) underperformed the Hospitality industry 52.7%.


Return on Equity

High ROE: PZA's Return on Equity (8.5%) is considered low.


Financial Health

How is Pizza Pizza Royalty's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PZA's short term assets (CA$8.9M) exceed its short term liabilities (CA$2.7M).

Long Term Liabilities: PZA's short term assets (CA$8.9M) do not cover its long term liabilities (CA$70.4M).


Debt to Equity History and Analysis

Debt Level: PZA's net debt to equity ratio (14.1%) is considered satisfactory.

Reducing Debt: PZA's debt to equity ratio has reduced from 17.1% to 16.1% over the past 5 years.

Debt Coverage: PZA's debt is well covered by operating cash flow (54.1%).

Interest Coverage: PZA's interest payments on its debt are well covered by EBIT (23.1x coverage).


Balance Sheet


Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


6.22%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 24 2022Ex Dividend DateMay 30 2022Dividend Pay DateJun 15 202216 days from Ex DividendBuy in the next 5 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PZA's dividend (6.22%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: PZA's dividend (6.22%) is in the top 25% of dividend payers in the Canadian market (4.91%)


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 increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (92.8%), PZA's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (98.8%), PZA's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

6.0yrs

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 (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
  • Implied Market Cap: CA$403.825m
  • 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 Analysis2022/05/23 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.