company background image
DPZ

Domino's PizzaNYSE:DPZ Stock Report

Market Cap

US$18.3b

7D

-3.6%

1Y

19.2%

Updated

23 Sep, 2021

Data

Company Financials +
DPZ fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance2/6
Financial Health1/6
Dividends2/6

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

Summary of all time highs, changes and price drops for Domino's Pizza
Historical stock prices
Current Share PriceUS$492.81
52 Week HighUS$319.71
52 Week LowUS$548.72
Beta0.48
1 Month Change-1.75%
3 Month Change7.61%
1 Year Change19.24%
3 Year Change67.94%
5 Year Change224.75%
Change since IPO3,550.44%

Recent News & Updates

Sep 19

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.

Aug 19

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

DPZUS HospitalityUS Market
7D-3.6%3.2%-0.5%
1Y19.2%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

Is DPZ's price volatile compared to industry and market?
DPZ volatility
DPZ Beta0.48
Industry Beta1.72
Market Beta1

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

FoundedEmployeesCEOWebsite
196010,650Ritch Allisonhttps://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

How do Domino's Pizza's earnings and revenue compare to its market cap?
DPZ fundamental statistics
Market CapUS$18.26b
Earnings (TTM)US$485.41m
Revenue (TTM)US$4.34b

37.4x

P/E Ratio

4.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DPZ income statement (TTM)
RevenueUS$4.34b
Cost of RevenueUS$3.14b
Gross ProfitUS$1.21b
ExpensesUS$720.02m
EarningsUS$485.41m

Last Reported Earnings

Jun 20, 2021

Next Earnings Date

Oct 14, 2021

Earnings per share (EPS)12.57
Gross Margin27.77%
Net Profit Margin11.18%
Debt/Equity Ratio-121.2%

How did DPZ perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

27%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 23:01
End of Day Share Price2021/09/23 00:00
Earnings2021/06/20
Annual Earnings2021/01/03


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.