| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 1/6 |
| Dividends | 2/6 |
DPZ Overview
Domino's Pizza, Inc., through its subsidiaries, operates as a pizza company in the United States and internationally.
Domino's Pizza Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$492.81 |
| 52 Week High | US$319.71 |
| 52 Week Low | US$548.72 |
| Beta | 0.48 |
| 1 Month Change | -1.75% |
| 3 Month Change | 7.61% |
| 1 Year Change | 19.24% |
| 3 Year Change | 67.94% |
| 5 Year Change | 224.75% |
| Change since IPO | 3,550.44% |
Recent News & Updates
Domino's Pizza: Limited Margin Of Safety At Current Levels
Domino's released its Q2 2021 results in late July, reporting revenue of ~$1.03 billion, translating to 12% growth in revenue year-over-year. This solid performance was driven by strong same-store sales both domestically and internationally, helping the company to report quarterly earnings per share of $3.06, a 5% beat vs. estimates. However, while Domino's has one of the industry's best compound annual EPS growth rates, the stock is not cheap, trading at more than 32x FY2022 earnings estimates. So, while I think the stock is an excellent buy-the-dip candidate, I would not be surprised by a deeper pullback, suggesting that investors should be patient before adding to positions.
Is Domino's Pizza Stock Overvalued Or Undervalued? What To Consider
There are various pillars that enable DPZ to generate industry-leading ROAs. There are signs that DPZ’s US business may be finding it challenging to live up to lofty expectations, whilst ongoing labor challenges don’t help. The DPZ stock’s portfolio-hedging qualities are underappreciated. The stock looks overbought, current forward valuations are hard to justify, insider selling has ramped up, and institutional investors are going slow.
Shareholder Returns
| DPZ | US Hospitality | US Market | |
|---|---|---|---|
| 7D | -3.6% | 3.2% | -0.5% |
| 1Y | 19.2% | 41.0% | 37.5% |
Return vs Industry: DPZ underperformed the US Hospitality industry which returned 37.4% over the past year.
Return vs Market: DPZ underperformed the US Market which returned 36.2% over the past year.
Price Volatility
| DPZ volatility | |
|---|---|
| DPZ Beta | 0.48 |
| Industry Beta | 1.72 |
| Market Beta | 1 |
Stable Share Price: DPZ is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: DPZ's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1960 | 10,650 | Ritch Allison | https://www.dominos.com/index.intl.html |
Domino's Pizza, Inc., through its subsidiaries, operates as a pizza company in the United States and internationally. It operates through three segments: U.S. Stores, International Franchise, and Supply Chain.
Domino's Pizza Fundamentals Summary
| DPZ fundamental statistics | |
|---|---|
| Market Cap | US$18.26b |
| Earnings (TTM) | US$485.41m |
| Revenue (TTM) | US$4.34b |
37.4x
P/E Ratio4.2x
P/S RatioIs DPZ overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| DPZ income statement (TTM) | |
|---|---|
| Revenue | US$4.34b |
| Cost of Revenue | US$3.14b |
| Gross Profit | US$1.21b |
| Expenses | US$720.02m |
| Earnings | US$485.41m |
Last Reported Earnings
Jun 20, 2021
Next Earnings Date
Oct 14, 2021
| Earnings per share (EPS) | 12.57 |
| Gross Margin | 27.77% |
| Net Profit Margin | 11.18% |
| Debt/Equity Ratio | -121.2% |
How did DPZ perform over the long term?
See historical performance and comparisonDividends
0.8%
Current Dividend Yield27%
Payout RatioValuation
Is Domino's Pizza undervalued compared to its fair value and its price relative to the market?
37.42x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: DPZ ($492.81) is trading above our estimate of fair value ($323.07)
Significantly Below Fair Value: DPZ is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: DPZ is poor value based on its PE Ratio (37.4x) compared to the US Hospitality industry average (24.7x).
PE vs Market: DPZ is poor value based on its PE Ratio (37.4x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: DPZ is poor value based on its PEG Ratio (3.8x)
Price to Book Ratio
PB vs Industry: DPZ has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.
Future Growth
How is Domino's Pizza forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
9.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DPZ's forecast earnings growth (9.8% per year) is above the savings rate (2%).
Earnings vs Market: DPZ's earnings (9.8% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: DPZ's earnings are forecast to grow, but not significantly.
Revenue vs Market: DPZ's revenue (6.9% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: DPZ's revenue (6.9% 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 DPZ's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Domino's Pizza performed over the past 5 years?
18.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DPZ has high quality earnings.
Growing Profit Margin: DPZ's current net profit margins (11.2%) are lower than last year (12.1%).
Past Earnings Growth Analysis
Earnings Trend: DPZ's earnings have grown by 18.4% per year over the past 5 years.
Accelerating Growth: DPZ's earnings growth over the past year (6.2%) is below its 5-year average (18.4% per year).
Earnings vs Industry: DPZ earnings growth over the past year (6.2%) underperformed the Hospitality industry 80.8%.
Return on Equity
High ROE: DPZ's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Financial Health
How is Domino's Pizza's financial position?
Financial Position Analysis
Short Term Liabilities: DPZ has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: DPZ 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: DPZ has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: DPZ's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: DPZ's debt is not well covered by operating cash flow (13.5%).
Interest Coverage: DPZ's interest payments on its debt are well covered by EBIT (4.4x coverage).
Balance Sheet
Dividend
What is Domino's Pizza current dividend yield, its reliability and sustainability?
0.76%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DPZ's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: DPZ's dividend (0.76%) is low compared to the top 25% of dividend payers in the US market (3.63%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, DPZ has been paying a dividend for less than 10 years.
Growing Dividend: DPZ's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (27.4%), DPZ's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DPZ's dividends in 3 years are forecast to be well covered by earnings (27.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
Ritch Allison (54 yo)
3.17yrs
Tenure
US$6,295,230
Compensation
Mr. Richard E. Allison, Jr., also known as Ritch, serves as Independent Director of Starbucks Corporation since September 11, 2019. Mr. Allison has been Chief Executive Officer and President at Domino's Pi...
CEO Compensation Analysis
Compensation vs Market: Ritch's total compensation ($USD6.30M) is below average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Ritch's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: DPZ's management team is considered experienced (3.9 years average tenure).
Board Members
Experienced Board: DPZ's board of directors are seasoned and experienced ( 10.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DPZ insiders have only sold shares 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, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Domino's Pizza, Inc.
- Ticker: DPZ
- Exchange: NYSE
- Founded: 1960
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: US$18.262b
- Shares outstanding: 36.85m
- Website: https://www.dominos.com/index.intl.html
Number of Employees
Location
- Domino's Pizza, Inc.
- 30 Frank Lloyd Wright Drive
- Ann Arbor
- Michigan
- 48105
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/23 23:01 |
| End of Day Share Price | 2021/09/23 00:00 |
| Earnings | 2021/06/20 |
| Annual Earnings | 2021/01/03 |
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.