LSE:DOM

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Questionable track record with limited growth.


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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 less volatile than 75% 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

1.0%

DOM

-2.8%

GB Hospitality

-0.7%

GB Market


1 Year Return

12.5%

DOM

-27.2%

GB Hospitality

-10.2%

GB Market

Return vs Industry: DOM exceeded the UK Hospitality industry which returned -26.9% over the past year.

Return vs Market: DOM exceeded the UK Market which returned -9.1% over the past year.


Shareholder returns

DOMIndustryMarket
7 Day1.0%-2.8%-0.7%
30 Day4.3%16.0%8.1%
90 Day0.5%21.4%5.9%
1 Year14.3%12.5%-25.2%-27.2%-6.6%-10.2%
3 Year12.4%3.0%-7.5%-15.7%0.5%-11.8%
5 Year8.6%-5.3%13.6%-5.7%25.3%-3.1%

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?

20.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DOM (£3.33) is trading above our estimate of fair value (£2.01)

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 (20.4x) compared to the GB Hospitality industry average (21.4x).

PE vs Market: DOM is poor value based on its PE Ratio (20.4x) compared to the UK market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: DOM is poor value based on its PEG Ratio (3.3x)


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.


Next Steps

Future Growth

How is Domino's Pizza Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DOM's forecast earnings growth (6.2% per year) is above the savings rate (1.2%).

Earnings vs Market: DOM's earnings (6.2% per year) are forecast to grow slower than the UK market (26.7% per year).

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

Revenue vs Market: DOM's revenue (1.9% per year) is forecast to grow slower than the UK market (6.4% per year).

High Growth Revenue: DOM's revenue (1.9% 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 (1247.5%).


Next Steps

Past Performance

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

4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DOM has high quality earnings.

Growing Profit Margin: DOM's current net profit margins (14.8%) are lower than last year (16.7%).


Past Earnings Growth Analysis

Earnings Trend: DOM's earnings have grown by 4.3% per year over the past 5 years.

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

Earnings vs Industry: DOM had negative earnings growth (-1.7%) over the past year, making it difficult to compare to the Hospitality industry average (-10.2%).


Return on Equity

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


Next Steps

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 (32.5%).

Interest Coverage: DOM's interest payments on its debt are well covered by EBIT (14.1x coverage).


Balance Sheet


Next Steps

Dividend

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

3.39%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DOM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DOM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DOM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DOM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: DOM is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DOM's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Dominic Paul

0.50

Tenure

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...


Leadership Team

NamePositionTenureCompensationOwnership
Dominic Paul
CEO & Director0.50yrno data0.014%
£ 212.3k
Neil Smith
CFO & Director0.17yrno datano data
Scott Bush
Operations Director2.08yrsno datano data
Bethany Barnes
Head of Investor Relationsno datano datano data
Nina Arnott
Head of Communicationsno datano datano data
Nadine Wyncoll
People Director4.42yrsno datano data
Simon Wallis
International Managing Director2.08yrsno datano data
Brian Trier
Group Managing Director of Germany7.25yrsno datano data
Simon D'Cruz
Head of Financial Planning & Analysisno datano datano data
Adrian Bushnell
Company Secretary4.33yrsno datano data
Robin Caley
Property & Business Development Director4.25yrsno datano data
Peter Jakobsen
Country Manager of Swedenno datano datano data

3.2yrs

Average Tenure

Experienced Management: DOM's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dominic Paul
CEO & Director0.50yrno data0.014%
£ 212.3k
Neil Smith
CFO & Director0.17yrno datano data
Colin Halpern
Non-Executive Vice Chairman12.92yrsUK£171.00kno data
Matthew Shattock
Chairman of the Board0.67yrno data0.11%
£ 1.7m
Ian Bull
Senior Independent Director1.17yrsUK£59.00k0.013%
£ 199.1k
Lynn Fordham
Independent Non-Executive Director0.17yrno data0.013%
£ 199.1k
Kevin Higgins
Independent Non-Executive Director6.17yrsUK£60.00kno data
Usman Nabi
Non-Executive Director1yrno datano data
Elias Sese
Independent Non-Executive Director1.08yrsUK£9.00k0.15%
£ 2.3m
Natalia Barsegiyan
Independent Non-Executive Director0.17yrno datano data

0.8yrs

Average Tenure

57yo

Average Age

Experienced Board: DOM's board of directors are not considered experienced ( 0.8 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: DOM 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£1.551b
  • Shares outstanding: 467.35m
  • 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. The company operates 1,184 stores in the United Kingdom and the Republic of Ireland; and 56 stores in Switzerland, Germany, Ic...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 21:43
End of Day Share Price2020/11/23 00:00
Earnings2020/06/28
Annual Earnings2019/12/29


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.