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

Proven track record with limited growth.


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

0.8%

DPZ

-1.6%

US Hospitality

-0.2%

US Market


1 Year Return

-13.7%

DPZ

-2.6%

US Hospitality

1.1%

US Market

DPZ underperformed the Hospitality industry which returned -2.3% over the past year.

DPZ underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

DPZIndustryMarket
7 Day0.8%-1.6%-0.2%
30 Day6.7%2.9%2.5%
90 Day-11.9%1.5%1.6%
1 Year-12.9%-13.7%-0.3%-2.6%3.4%1.1%
3 Year64.7%60.1%44.0%34.5%45.2%35.8%
5 Year236.4%219.7%41.3%25.8%62.6%44.8%

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

3 weeks ago | Simply Wall St

What Does Domino's Pizza, Inc.'s (NYSE:DPZ) P/E Ratio Tell You?

Valuation

Is Domino's Pizza undervalued based on future cash flows and its price relative to the stock market?

26.67x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Domino's Pizza's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Domino's Pizza's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Domino's Pizza is overvalued based on earnings compared to the US Hospitality industry average.

Domino's Pizza is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Domino's Pizza is poor value based on expected growth next year.


Price Based on Value of Assets

Domino's Pizza has negative assets, we can't compare the value of its assets to the US Hospitality industry average.


Next Steps

Future Growth

How is Domino's Pizza expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Domino's Pizza's revenue is expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).

Domino's Pizza's earnings are expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).

Domino's Pizza's revenue growth is expected to exceed the United States of America market average.

Domino's Pizza's earnings growth is positive but not above the United States of America market average.

Domino's Pizza's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Domino's Pizza will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

19.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Domino's Pizza's year on year earnings growth rate has been positive over the past 5 years.

Domino's Pizza's 1-year earnings growth exceeds its 5-year average (20.6% vs 19.4%)

Domino's Pizza's earnings growth has exceeded the US Hospitality industry average in the past year (20.6% vs -9.8%).


Return on Equity

It is difficult to establish if Domino's Pizza has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

Domino's Pizza used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Domino's Pizza's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Domino's Pizza's financial position?


Financial Position Analysis

Domino's Pizza is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Domino's Pizza's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Domino's Pizza has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Domino's Pizza's debt level has increased considering it has negative shareholder equity.

Debt is not well covered by operating cash flow (12.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Domino's Pizza 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?

1.19%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Domino's Pizza's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Domino's Pizza's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, Domino's Pizza has been paying a dividend for less than 10 years.

Dividend payments have increased, but Domino's Pizza only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).


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?

3.7yrs

Average management tenure


CEO

Ritch Allison (52yo)

1.2yrs

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

Ritch's remuneration is about average for companies of similar size in United States of America.

Ritch's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.7yrs

Average Tenure

52yo

Average Age

The tenure for the Domino's Pizza management team is about average.


Board Age and Tenure

8.6yrs

Average Tenure

57yo

Average Age

The tenure for the Domino's Pizza board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 7.5yrs
    • Compensation: US$1.74m
  • Tim McIntyre (56yo)

    Executive Vice President of Communications

    • Tenure: 3.3yrs
  • Scott Hinshaw (56yo)

    Executive Vice President of Franchise Operations & Development

    • Tenure: 11.7yrs
    • Compensation: US$1.53m
  • Russell Weiner (51yo)

    COO & President of the Americas

    • Tenure: 1.2yrs
    • Compensation: US$6.36m
  • Ritch Allison (52yo)

    President

    • Tenure: 1.2yrs
    • Compensation: US$9.10m
  • Joe Jordan (45yo)

    Executive Vice President of International

    • Tenure: 4.3yrs
    • Compensation: US$1.97m
  • Dennis Maloney (52yo)

    Chief Digital Officer & VP

    • Tenure: 4.3yrs
  • Jeff Lawrence (45yo)

    Executive VP & CFO

    • Tenure: 4.1yrs
    • Compensation: US$1.68m
  • Kevin Morris (58yo)

    Executive VP

    • Tenure: 2.7yrs
    • Compensation: US$1.54m
  • Lisa Price

    Executive VP & Chief Human Resources Officer

    • Tenure: 0.08yrs

Board Members

  • Andrew Balson (52yo)

    Independent Director

    • Tenure: 20.5yrs
    • Compensation: US$220.59k
  • Rick Federico (64yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$223.64k
  • Dave Brandon (67yo)

    Non-Executive Chairman

    • Tenure: 9.5yrs
    • Compensation: US$404.20k
  • Jim Goldman (60yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$229.01k
  • Andy Ballard (47yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$220.02k
  • Diana Cantor (61yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$235.57k
  • Ritch Allison (52yo)

    President

    • Tenure: 1.2yrs
    • Compensation: US$9.10m
  • Corie Barry (44yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$56.25k
  • Patricia Lopez (57yo)

    Director

    • Tenure: 1.2yrs
    • 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$10.185b
  • Shares outstanding: 41.23m
  • 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 Analysis2019/09/20 00:29
End of Day Share Price2019/09/19 00:00
Earnings2019/06/16
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.