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Market Cap

UK£1.8b

Last Updated

2021/05/07 01:26 UTC

Data Sources

Company Financials +

Executive Summary

Domino's Pizza Group plc owns, operates, and franchises Domino’s Pizza stores. More Details


Snowflake Analysis

Solid track record average dividend payer.


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: DOM is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DOM's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.1%

DOM

-0.7%

GB Hospitality

1.2%

GB Market


1 Year Return

12.6%

DOM

45.8%

GB Hospitality

25.5%

GB Market

Return vs Industry: DOM underperformed the UK Hospitality industry which returned 45.8% over the past year.

Return vs Market: DOM underperformed the UK Market which returned 25.5% over the past year.


Shareholder returns

DOMIndustryMarket
7 Day2.1%-0.7%1.2%
30 Day11.0%-0.5%3.3%
90 Day16.4%9.6%8.6%
1 Year17.5%12.6%49.4%45.8%31.0%25.5%
3 Year18.4%7.4%12.7%2.4%11.9%-1.0%
5 Year36.3%17.1%39.1%17.6%50.5%22.0%

Long-Term 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

Valuation

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

21.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DOM (£3.91) is trading above our estimate of fair value (£2.71)

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


Price To Earnings Ratio

PE vs Industry: DOM is good value based on its PE Ratio (21.6x) compared to the GB Hospitality industry average (104.7x).

PE vs Market: DOM is good value based on its PE Ratio (21.6x) compared to the UK market (25.9x).


Price to Earnings Growth Ratio

PEG Ratio: DOM is poor value based on its PEG Ratio (7.4x)


Price to Book Ratio

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


Future Growth

How is Domino's Pizza Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

2.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DOM's forecast earnings growth (2.9% per year) is above the savings rate (0.9%).

Earnings vs Market: DOM's earnings (2.9% per year) are forecast to grow slower than the UK market (17.7% per year).

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

Revenue vs Market: DOM's revenue (3.6% per year) is forecast to grow slower than the UK market (5.3% per year).

High Growth Revenue: DOM's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DOM's Return on Equity is forecast to be very high in 3 years time (214.9%).


Past Performance

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

4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DOM has high quality earnings.

Growing Profit Margin: DOM's current net profit margins (16.6%) are higher than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: DOM's earnings have grown by 4.8% per year over the past 5 years.

Accelerating Growth: DOM's earnings growth over the past year (20.1%) exceeds its 5-year average (4.8% per year).

Earnings vs Industry: DOM earnings growth over the past year (20.1%) exceeded the Hospitality industry -80.6%.


Return on Equity

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


Financial Health

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


Financial Position Analysis

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

Long Term Liabilities: DOM 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: DOM has negative shareholder equity, which is a more serious situation than a high debt level.

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

Debt Coverage: DOM's debt is well covered by operating cash flow (46.1%).

Interest Coverage: DOM's interest payments on its debt are well covered by EBIT (13.1x coverage).


Balance Sheet


Dividend

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

2.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DOM's dividend (2.33%) is higher than the bottom 25% of dividend payers in the UK market (1.35%).

High Dividend: DOM's dividend (2.33%) is low compared to the top 25% of dividend payers in the UK market (4.06%).


Stability and Growth of Payments

Stable Dividend: DOM's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81%), DOM's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DOM's dividends in 3 years are forecast to be well covered by earnings (48.2% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Dominic Paul

1

Tenure

UK£1,257,987

Compensation

Mr. Dominic Paul serves as Chief Executive Officer and Executive Director at Domino's Pizza Group plc since May 1, 2020. He served as the Managing Director of Costa Limited from June 6, 2016 to November 30...


CEO Compensation Analysis

Compensation vs Market: Dominic's total compensation ($USD1.75M) is about average for companies of similar size in the UK market ($USD1.67M).

Compensation vs Earnings: Insufficient data to compare Dominic's compensation with company performance.


Leadership Team

Experienced Management: DOM's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: DOM's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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: DOM
  • Exchange: LSE
  • Founded: 1960
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: UK£1.811b
  • Shares outstanding: 463.50m
  • 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


Biography

Domino's Pizza Group plc owns, operates, and franchises Domino’s Pizza stores. It operates 1,147 stores in the United Kingdom and 54 stores in the Republic of Ireland. The company was formerly known as Dom...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 01:26
End of Day Share Price2021/05/06 00:00
Earnings2020/12/27
Annual Earnings2020/12/27


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.