DB:DKOB

Stock Analysis Report

Executive Summary

Domino's Pizza Group plc owns, operates, and franchises Domino’s Pizza stores in the United Kingdom, the Republic of Ireland, Switzerland, Germany, Iceland, Norway, and Sweden.


Snowflake Analysis

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: DKOB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.1%

DKOB

-4.8%

DE Hospitality

-0.9%

DE Market


1 Year Return

38.9%

DKOB

3.3%

DE Hospitality

12.8%

DE Market

Return vs Industry: DKOB exceeded the German Hospitality industry which returned 3.3% over the past year.

Return vs Market: DKOB exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

DKOBIndustryMarket
7 Day4.1%-4.8%-0.9%
30 Day10.7%1.6%-0.4%
90 Day12.9%-15.2%2.3%
1 Year44.7%38.9%7.8%3.3%16.3%12.8%
3 Year-5.8%-14.7%-9.6%-22.0%15.8%5.7%
5 Year32.0%14.4%-12.3%-30.9%19.7%3.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

38.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DKOB (€3.85) is trading above our estimate of fair value (€3.6)

Significantly Below Fair Value: DKOB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DKOB is poor value based on its PE Ratio (38.8x) compared to the Hospitality industry average (25.5x).

PE vs Market: DKOB is poor value based on its PE Ratio (38.8x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: DKOB is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: DKOB has negative assets, so we can't compare its PB Ratio to the DE Hospitality industry average.


Next Steps

Future Growth

How is Domino's Pizza Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

19.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DKOB's forecast earnings growth (19.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: DKOB's earnings (19.2% per year) are forecast to grow faster than the German market (13% per year).

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

Revenue vs Market: DKOB's revenue (4.8% per year) is forecast to grow slower than the German market (5.2% per year).

High Growth Revenue: DKOB's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DKOB's Return on Equity is forecast to be very high in 3 years time (149.7%).


Next Steps

Past Performance

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

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DKOB has a large one-off loss of £27.3M impacting its June 30 2019 financial results.

Growing Profit Margin: DKOB's current net profit margins (7.1%) are lower than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: DKOB's earnings have grown by 3.2% per year over the past 5 years.

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

Earnings vs Industry: DKOB had negative earnings growth (-40%) over the past year, making it difficult to compare to the Hospitality industry average (-36.8%).


Return on Equity

High ROE: DKOB's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: DKOB has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: DKOB has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: DKOB has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: DKOB's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: DKOB's debt is well covered by operating cash flow (29.7%).

Interest Coverage: DKOB's interest payments on its debt are well covered by EBIT (15.7x coverage).


Balance Sheet

Inventory Level: DKOB has a high level of physical assets or inventory.

Debt Coverage by Assets: DKOB has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

2.94%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.3%markettop25%3.6%industryaverage5.4%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: DKOB's dividend (2.94%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: DKOB's dividend (2.94%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: DKOB's dividends per share have been stable in the past 10 years.

Growing Dividend: DKOB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (116.1%), DKOB's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DKOB's dividends in 3 years are forecast to be covered by earnings (62.2% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

David Wild (64yo)

5.8yrs

Tenure

UK£699,000

Compensation

Mr. David James Wild has been Chief Executive Officer and Executive Director at Domino's Pizza Group plc since April 30, 2014 and November 14, 2013 respectively. Mr. Wild served as President of Wal-Mart Ge ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD906.32K) is below average for companies of similar size in the German market ($USD1.52M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Wild
CEO & Executive Director5.8yrsUK£699.00k0.14% £2.4m
Scott Bush
Operations Director1.3yrsno datano data
Barry Wiech
Chief Information Officer2.8yrsno datano data
Bethany Barnes
Head of Investor Relations0yrsno datano data
Nina Arnott
Head of Communications0yrsno datano data
Nadine Wyncoll
People Director3.7yrsno datano data
Simon Wallis
International Managing Director1.3yrsno datano data
Brian Trier
Group Managing Director of Germany6.5yrsno datano data
Simon D'Cruz
Head of Financial Planning & Analysis0yrsno datano data
Adrian Bushnell
Company Secretary3.6yrsno datano data

3.6yrs

Average Tenure

Experienced Management: DKOB's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Wild
CEO & Executive Director5.8yrsUK£699.00k0.14% £2.4m
Colin Halpern
Non-Executive Vice Chairman12.2yrsUK£171.00kno data
Helen Keays
Independent Non-Executive Director8.4yrsUK£60.00kno data
Ian Bull
Interim Chairman & Senior Independent Director0.2yrsno data0.0065% £115.5k
Kevin Higgins
Non-Executive Director5.4yrsUK£60.00kno data
Usman Nabi
Non-Executive Director0.3yrsno datano data
Elias Sese
Independent Non-Executive Director0.3yrsno data0.15% £2.7m

5.4yrs

Average Tenure

57yo

Average Age

Experienced Board: DKOB's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DKOB 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

Domino's Pizza Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Domino's Pizza Group plc
  • Ticker: DKOB
  • Exchange: DB
  • Founded: 1960
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: UK£1.484b
  • Listing Market Cap: UK£1.772b
  • Shares outstanding: 460.10m
  • Website: https://corporate.dominos.co.uk

Number of Employees


Location

  • Domino's Pizza Group plc
  • 1 Thornbury
  • West Ashland
  • Milton Keynes
  • Buckinghamshire
  • MK6 4BB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DMPZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1999
DOMLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 1999
DKOBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1999
DOMLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 1999
DPUK.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDAug 2011

Biography

Domino's Pizza Group plc owns, operates, and franchises Domino’s Pizza stores in the United Kingdom, the Republic of Ireland, Switzerland, Germany, Iceland, Norway, and Sweden. It also leases properties; and leases store equipment to franchisees. The company operates 1,261 stores in the six European markets. The company was formerly known as Domino's Pizza UK & IRL plc and changed its name to Domino's Pizza Group plc in May 2012. Domino's Pizza Group plc was founded in 1960 and is headquartered in Milton Keynes, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 22:00
End of Day Share Price2020/02/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/30


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.