OTCPK:DPZU.F

Stock Analysis Report

Executive Summary

Domino's Pizza Enterprises Limited operates retail food outlets.

Snowflake

Fundamentals

Established dividend payer with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.0%

OTCPK:DPZU.F

-2.1%

US Hospitality

-1.0%

US Market


1 Year Return

-23.3%

OTCPK:DPZU.F

-6.5%

US Hospitality

-0.4%

US Market

DPZU.F underperformed the Hospitality industry which returned -7.8% over the past year.

DPZU.F underperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

DPZU.FIndustryMarket
7 Day-1.0%-2.1%-1.0%
30 Day-1.0%-5.7%-3.3%
90 Dayn/a-3.7%0.4%
1 Year-23.3%-23.3%-4.3%-6.5%1.8%-0.4%
3 Year-52.3%-52.3%40.2%31.2%39.4%30.4%
5 Year10.0%10.0%30.9%16.6%54.2%37.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

36%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Domino's Pizza Enterprises's share price is below the future cash flow value, and at a moderate discount (> 20%).

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


Price Based on Earnings

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

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


Price Based on Expected Growth

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


Price Based on Value of Assets

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


Next Steps

Future Growth

How is Domino's Pizza Enterprises expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Domino's Pizza Enterprises's revenue is expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).

Domino's Pizza Enterprises's earnings are expected to grow by 17.9% yearly, however this is not considered high growth (20% yearly).

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

Domino's Pizza Enterprises is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

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

22.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Domino's Pizza Enterprises has delivered over 20% year on year earnings growth in the past 5 years.

Domino's Pizza Enterprises's 1-year earnings growth is less than its 5-year average (4.2% vs 22.5%)

Domino's Pizza Enterprises's earnings growth has exceeded the US Hospitality industry average in the past year (4.2% vs -8.7%).


Return on Equity

Whilst Domino's Pizza Enterprises has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

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


Next Steps

Financial Health

How is Domino's Pizza Enterprises's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Domino's Pizza Enterprises's level of debt (182.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (54.1% vs 182.7% today).

Debt is well covered by operating cash flow (30.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 21.8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

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

3.77%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Domino's Pizza Enterprises's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.5%).

Domino's Pizza Enterprises's dividend is below the markets top 25% of dividend payers in United States of America (3.9%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Don Meij (50yo)

18.0yrs

Tenure

AU$777,213

Compensation

Mr. Donald Jeffrey Meij, also known as Don, has been the Group Chief Executive Officer and Managing Director of Domino's Pizza Enterprises Limited (alternate name Domino’s Pizza Australia New Zealand Ltd.) ...


CEO Compensation Analysis

Don's remuneration is lower than average for companies of similar size in United States of America.

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


Management Age and Tenure

4.8yrs

Average Tenure

51yo

Average Age

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


Board Age and Tenure

5.4yrs

Average Tenure

64yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Richard Coney (54yo)

    Group Chief Financial Officer

    • Compensation: A$543.00k
  • Andrew Rennie (51yo)

    Chief Executive Officer of Europe

    • Tenure: 5.6yrs
    • Compensation: A$2.55m
  • Tracy Llewelyn

    Head of Communications

  • Don Meij (50yo)

    MD, Group CEO & Director

    • Tenure: 18.0yrs
    • Compensation: A$777.21k
  • Terry Powell

    Group Chief Information Officer

    • Tenure: 1.2yrs
  • Michael Gillespie

    Group Chief Digital & Technology Officer

    • Tenure: 1.9yrs
    • Compensation: A$299.27k
  • Craig Ryan

    General Counsel & Company Secretary

    • Tenure: 13.0yrs
    • Compensation: A$573.84k
  • Allan Collins

    Group Chief Marketing Officer

    • Tenure: 12.6yrs
    • Compensation: A$506.76k
  • Nick Knight

    Chief Executive Officer of Australia & New Zealand

    • Tenure: 4.1yrs
    • Compensation: A$409.39k
  • Josh Kilimnik

    President & CEO of Japan

    • Tenure: 1.6yrs
    • Compensation: A$674.26k

Board Members

  • Ross Adler (74yo)

    Non-Executive Deputy Chairman

    • Tenure: 5.4yrs
    • Compensation: A$199.87k
  • Jack Cowin (77yo)

    Non-Executive Chairman

    • Tenure: 5.4yrs
    • Compensation: A$294.72k
  • Don Meij (50yo)

    MD, Group CEO & Director

    • Tenure: 18.0yrs
    • Compensation: A$777.21k
  • Grant Bourke (54yo)

    Non Executive Director

    • Tenure: 18.0yrs
    • Compensation: A$147.31k
  • Uschi Schreiber

    Non-Executive Director

    • Tenure: 0.8yrs
  • Lynda Kathryn O’Grady

    Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: A$134.17k

Company Information

Domino's Pizza Enterprises Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Domino's Pizza Enterprises Limited
  • Ticker: DPZU.F
  • Exchange: OTCPK
  • Founded: 1983
  • Industry: restaurants
  • Sector: consumer services
  • Market Cap: AU$3.437b
  • Listing Market Cap: AU$2.331b
  • Shares outstanding: 85.63m
  • Website: Click here

Location

  • Domino's Pizza Enterprises Limited
  • KSD1
  • Level 1
  • Brisbane
  • Queensland
  • 4007
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DMPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2005
DPZU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2005
HQXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2005
DMPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2005
DMZP.YOTCPK (Pink Sheets LLC)UNSPON ADRUSUSDDec 2015

Biography

Domino's Pizza Enterprises Limited operates retail food outlets. The company holds franchise rights for the Domino's brand and network in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Lu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 00:08
End of Day Share Price2019/08/16 00:00
Earnings2018/12/30
Annual Earnings2018/07/01


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.