NYSE:DPZ

Stock Analysis Report

Executive Summary

Domino's Pizza, Inc., through its subsidiaries, operates as a pizza delivery company in the United States and internationally.

Snowflake

Fundamentals

Moderate growth potential with acceptable track record.


Similar Companies

Share Price & News

How has Domino's Pizza's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.7%

DPZ

1.6%

US Hospitality

1.8%

US Market


1 Year Return

-3.7%

DPZ

3.9%

US Hospitality

7.3%

US Market

Return vs Industry: DPZ underperformed the US Hospitality industry which returned 3.9% over the past year.

Return vs Market: DPZ underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

DPZIndustryMarket
7 Day0.7%1.6%1.8%
30 Day5.3%-4.8%-0.7%
90 Day-0.6%-4.0%0.06%
1 Year-2.8%-3.7%6.4%3.9%9.7%7.3%
3 Year59.5%55.0%41.7%32.4%46.3%36.9%
5 Year209.1%193.8%41.3%25.7%64.5%46.5%

Price Volatility Vs. Market

How volatile is Domino's Pizza's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

27.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: DPZ ($256.45) is trading above our estimate of fair value ($203.02)

Significantly Undervalued: 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 (27.4x) compared to the Hospitality industry average (22.3x).

PE vs Market: DPZ is poor value based on its PE Ratio (27.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: DPZ is poor value based on its PEG Ratio (2.7x)


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.


Next Steps

Future Growth

How is Domino's Pizza forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DPZ's forecast earnings growth (10.2% per year) is above the savings rate (2.7%).

Earnings vs Market: DPZ's earnings (10.2% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: DPZ's revenue (7.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: DPZ's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DPZ's Return on Equity is forecast to be high in 3 years time (29%)


Next Steps

Past Performance

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

19.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DPZ's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: DPZ's earnings growth over the past year (11.6%) is below its 5-year average (19.6% per year).

Earnings vs Industry: DPZ earnings growth over the past year (11.6%) exceeded the Hospitality industry -13.9%.


Return on Equity

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


Return on Assets

ROA vs Industry: DPZ has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: DPZ's Return on Capital Employed has declined over the past 3 years.


Next Steps

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 (13.3%).

Interest Coverage: DPZ's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet

Inventory Level: DPZ has a high level of physical assets or inventory.

Debt Coverage by Assets: DPZ has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

1.01%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Domino's Pizza before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.0%marketbottom25%1.5%markettop25%3.7%industryaverage2.9%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DPZ's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: DPZ's dividend (1.01%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.7%), 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 (28.1% payout ratio).


Next Steps

Management

What is the CEO of Domino's Pizza's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Ritch Allison (52yo)

1.3yrs

Tenure

US$9,102,416

Compensation

Mr. Richard E. Allison, Jr., also known as Ritch, serves as Director of Starbucks Corporation since September 11, 2019. Mr. Allison has been Chief Executive Officer and President at Domino's Pizza, Inc. si ...


CEO Compensation Analysis

Compensation vs. Market: Ritch has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Ritch's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.8yrs

Average Tenure

52yo

Average Age

Experienced Management: DPZ's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

8.7yrs

Average Tenure

57yo

Average Age

Experienced Board: DPZ's board of directors are considered experienced (8.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$294,21918 Mar 19
James Goldman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,190
Max PriceUS$247.24

Ownership Breakdown


Management Team

  • J. Vasconi (58yo)

    Executive VP & Chief Information Officer

    • Tenure: 7.6yrs
    • Compensation: US$1.74m
  • Tim McIntyre (56yo)

    Executive Vice President of Communications

    • Tenure: 3.4yrs
  • Scott Hinshaw (56yo)

    Executive Vice President of Franchise Operations & Development

    • Tenure: 11.8yrs
    • Compensation: US$1.53m
  • Russell Weiner (51yo)

    COO & President of the Americas

    • Tenure: 1.3yrs
    • Compensation: US$6.36m
  • Ritch Allison (52yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$9.10m
  • Joe Jordan (45yo)

    Executive Vice President of International

    • Tenure: 4.4yrs
    • Compensation: US$1.97m
  • Dennis Maloney (52yo)

    Chief Digital Officer & VP

    • Tenure: 4.4yrs
  • Jeff Lawrence (45yo)

    Executive VP & CFO

    • Tenure: 4.2yrs
    • Compensation: US$1.68m
  • Kevin Morris (58yo)

    Executive VP

    • Tenure: 2.8yrs
    • Compensation: US$1.54m
  • Lisa Price

    Executive VP & Chief Human Resources Officer

    • Tenure: 0.2yrs

Board Members

  • Andrew Balson (52yo)

    Independent Director

    • Tenure: 20.6yrs
    • Compensation: US$220.59k
  • Rick Federico (64yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$223.64k
  • Dave Brandon (67yo)

    Non-Executive Chairman

    • Tenure: 9.6yrs
    • Compensation: US$404.20k
  • Jim Goldman (60yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$229.01k
  • Andy Ballard (47yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$220.02k
  • Diana Cantor (61yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: US$235.57k
  • Ritch Allison (52yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$9.10m
  • Corie Barry (44yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$56.25k
  • Patricia Lopez (57yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$56.57k

Company Information

Domino's Pizza, Inc.'s company bio, 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$10.489b
  • Shares outstanding: 40.90m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DPZNYSE (New York Stock Exchange)YesVoting Common StockUSUSDJul 2004
EZVDB (Deutsche Boerse AG)YesVoting Common StockDEEURJul 2004
DPZWBAG (Wiener Boerse AG)YesVoting Common StockATEURJul 2004
DPZ *BMV (Bolsa Mexicana de Valores)YesVoting Common StockMXMXNJul 2004

Biography

Domino's Pizza, Inc., through its subsidiaries, operates as a pizza delivery company in the United States and internationally. It operates in three segments: U.S. Stores, International Franchise, and Suppl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:54
End of Day Share Price2019/10/17 00:00
Earnings2019/09/08
Annual Earnings2018/12/30


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.