| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 2/6 |
| Dividends | 1/6 |
PZZA Stock Overview
Papa John's International, Inc. operates and franchises pizza delivery and carryout restaurants under the Papa John's trademark in the United States and internationally.
Papa John's International Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$114.38 |
| 52 Week High | US$140.68 |
| 52 Week Low | US$78.41 |
| Beta | 0.96 |
| 1 Month Change | -12.77% |
| 3 Month Change | -5.69% |
| 1 Year Change | 15.75% |
| 3 Year Change | 171.17% |
| 5 Year Change | 35.68% |
| Change since IPO | 5,782.40% |
Recent News & Updates
Papa John's: Digging Into The Valuation After The Drop
Papa John's released its Q3 results in November, reporting strong same-restaurant sales growth, despite lapping difficult year-over-year comps. Notably, the company continues to rapidly grow its unit count and recently announced a major new long-term development agreement in China. Given the inflationary pressures we're seeing industry-wide, Papa John's looks better positioned than peers and was one of the few names to report margin expansion vs. 2019 levels. However, at 31x FY2022 earnings estimates, I still don't see enough of a margin of safety here above $116.00.
Investors Could Be Concerned With Papa John's International's (NASDAQ:PZZA) Returns On Capital
What are the early trends we should look for to identify a stock that could multiply in value over the long term...
Is Papa John's International, Inc. (NASDAQ:PZZA) Potentially Undervalued?
While Papa John's International, Inc. ( NASDAQ:PZZA ) might not be the most widely known stock at the moment, it...
Papa John's: Growth At An Unreasonable Price
Papa John's released its Q3 results last week, reporting 8% growth in revenue year-over-year, lapping tough comps of 17% growth in the year-ago period. The solid quarter was driven by impressive comp sales growth of 6.9% domestically, combined with steady unit growth, with 169 net new restaurants opened year-to-date. However, while Papa John's continues to be a solid growth story in the restaurant sector, the stock continues to look expensive relative to historical levels. So, with the stock trading at more than 36x FY2022 earnings estimates, I don't see any way to justify paying up for the stock here, and I continue to see much better value elsewhere in the market.
Shareholder Returns
| PZZA | US Hospitality | US Market | |
|---|---|---|---|
| 7D | -3.2% | -5.6% | -6.1% |
| 1Y | 15.7% | -7.2% | 4.2% |
Return vs Industry: PZZA exceeded the US Hospitality industry which returned -6.1% over the past year.
Return vs Market: PZZA exceeded the US Market which returned 6.6% over the past year.
Price Volatility
| PZZA volatility | |
|---|---|
| PZZA Average Weekly Movement | 6.0% |
| Hospitality Industry Average Movement | 8.0% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.6% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: PZZA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: PZZA's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1984 | 16,700 | Rob Lynch | https://www.papajohns.com |
Papa John's International, Inc. operates and franchises pizza delivery and carryout restaurants under the Papa John's trademark in the United States and internationally. It operates through four segments: Domestic Company-Owned Restaurants, North America Commissaries, North America Franchising, and International Operations. The company also operates dine-in and delivery restaurants under the Papa John’s trademark internationally.
Papa John's International Fundamentals Summary
| PZZA fundamental statistics | |
|---|---|
| Market Cap | US$4.16b |
| Earnings (TTM) | -US$11.10m |
| Revenue (TTM) | US$2.01b |
2.1x
P/S Ratio-374.9x
P/E RatioIs PZZA overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PZZA income statement (TTM) | |
|---|---|
| Revenue | US$2.01b |
| Cost of Revenue | US$1.38b |
| Gross Profit | US$632.39m |
| Expenses | US$643.49m |
| Earnings | -US$11.10m |
Last Reported Earnings
Sep 26, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.31 |
| Gross Margin | 31.47% |
| Net Profit Margin | -0.55% |
| Debt/Equity Ratio | -320.4% |
How did PZZA perform over the long term?
See historical performance and comparisonDividends
1.2%
Current Dividend Yield-315%
Payout RatioValuation
Is Papa John's International undervalued compared to its fair value and its price relative to the market?
5.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PZZA ($114.38) is trading below our estimate of fair value ($120.47)
Significantly Below Fair Value: PZZA is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: PZZA is unprofitable, so we can't compare its PE Ratio to the US Hospitality industry average.
PE vs Market: PZZA is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate PZZA's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: PZZA has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.
Future Growth
How is Papa John's International forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
118.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PZZA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: PZZA is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: PZZA's is expected to become profitable in the next 3 years.
Revenue vs Market: PZZA's revenue (6.2% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: PZZA's revenue (6.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if PZZA's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Papa John's International performed over the past 5 years?
-47.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PZZA is currently unprofitable.
Growing Profit Margin: PZZA is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: PZZA is unprofitable, and losses have increased over the past 5 years at a rate of 47.1% per year.
Accelerating Growth: Unable to compare PZZA's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: PZZA is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (79.7%).
Return on Equity
High ROE: PZZA's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Financial Health
How is Papa John's International's financial position?
Financial Position Analysis
Short Term Liabilities: PZZA has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: PZZA 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: PZZA has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: PZZA's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: PZZA's debt is well covered by operating cash flow (51%).
Interest Coverage: PZZA's interest payments on its debt are well covered by EBIT (11.1x coverage).
Balance Sheet
Dividend
What is Papa John's International current dividend yield, its reliability and sustainability?
1.22%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PZZA's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.36%).
High Dividend: PZZA's dividend (1.22%) is low compared to the top 25% of dividend payers in the US market (3.55%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, PZZA has been paying a dividend for less than 10 years.
Growing Dividend: PZZA's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: PZZA is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: PZZA's dividends in 3 years are forecast to be well covered by earnings (37.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.4yrs
Average management tenure
CEO
Rob Lynch (44 yo)
2.42yrs
Tenure
US$6,378,193
Compensation
Mr. Robert M. Lynch, also known as Rob, has been President and Chief Executive Officer of Papa John's International, Inc. since August 27, 2019 and also its Director since 2019. Mr. Lynch joined Papa John...
CEO Compensation Analysis
Compensation vs Market: Rob's total compensation ($USD6.38M) is about average for companies of similar size in the US market ($USD5.23M).
Compensation vs Earnings: Insufficient data to compare Rob's compensation with company performance.
Leadership Team
Experienced Management: PZZA's management team is considered experienced (2.4 years average tenure).
Board Members
Experienced Board: PZZA's board of directors are considered experienced (3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PZZA insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.4%.
Top Shareholders
Company Information
Papa John's International, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Papa John's International, Inc.
- Ticker: PZZA
- Exchange: NasdaqGS
- Founded: 1984
- Industry: Restaurants
- Sector: Consumer Services
- Implied Market Cap: US$4.159b
- Shares outstanding: 36.36m
- Website: https://www.papajohns.com
Number of Employees
Location
- Papa John's International, Inc.
- 2002 Papa John’s Boulevard
- Louisville
- Kentucky
- 40299-2367
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 23:37 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/26 |
| Annual Earnings | 2020/12/27 |
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.