OTCPK:DPZU.F

Stock Analysis Report

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Executive Summary

Domino's Pizza Enterprises Limited operates retail food outlets.


Snowflake Analysis

Average dividend payer with acceptable track record.

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

Stable Share Price: DPZU.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

DPZU.F

7.0%

US Hospitality

0.7%

US Market


1 Year Return

n/a

DPZU.F

-17.6%

US Hospitality

20.1%

US Market

Return vs Industry: Insufficient data to determine how DPZU.F performed against the US Hospitality industry.

Return vs Market: Insufficient data to determine how DPZU.F performed against the US Market.


Shareholder returns

DPZU.FIndustryMarket
7 Day0%7.0%0.7%
30 Day10.5%10.4%6.4%
90 Day43.1%25.2%20.1%
1 Yearn/a-15.9%-17.6%22.6%20.1%
3 Year59.4%59.4%-11.9%-17.8%45.1%35.7%
5 Year67.9%67.9%5.3%-6.0%79.7%60.3%

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 compared to its fair value and its price relative to the market?

50.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DPZU.F ($51.79) is trading above our estimate of fair value ($32.86)

Significantly Below Fair Value: DPZU.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DPZU.F is poor value based on its PE Ratio (50.4x) compared to the US Hospitality industry average (31.3x).

PE vs Market: DPZU.F is poor value based on its PE Ratio (50.4x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: DPZU.F is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: DPZU.F is overvalued based on its PB Ratio (16.6x) compared to the US Hospitality industry average (2.1x).


Next Steps

Future Growth

How is Domino's Pizza Enterprises forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

15.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DPZU.F's forecast earnings growth (15.9% per year) is above the savings rate (2.2%).

Earnings vs Market: DPZU.F's earnings (15.9% per year) are forecast to grow slower than the US market (24.1% per year).

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

Revenue vs Market: DPZU.F's revenue (8.7% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: DPZU.F's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DPZU.F's Return on Equity is forecast to be high in 3 years time (38.7%)


Next Steps

Past Performance

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

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DPZU.F has high quality earnings.

Growing Profit Margin: DPZU.F's current net profit margins (8%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: DPZU.F's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: DPZU.F's earnings growth over the past year (13.5%) is below its 5-year average (15% per year).

Earnings vs Industry: DPZU.F earnings growth over the past year (13.5%) exceeded the Hospitality industry -48.3%.


Return on Equity

High ROE: Whilst DPZU.F's Return on Equity (33.01%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: DPZU.F's short term assets (A$396.2M) do not cover its short term liabilities (A$406.4M).

Long Term Liabilities: DPZU.F's short term assets (A$396.2M) do not cover its long term liabilities (A$1.4B).


Debt to Equity History and Analysis

Debt Level: DPZU.F's debt to equity ratio (154.8%) is considered high.

Reducing Debt: DPZU.F's debt to equity ratio has increased from 43% to 154.8% over the past 5 years.

Debt Coverage: DPZU.F's debt is well covered by operating cash flow (36.5%).

Interest Coverage: DPZU.F's interest payments on its debt are well covered by EBIT (13.9x coverage).


Balance Sheet


Next Steps

Dividend

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

1.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DPZU.F's dividend (1.49%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: DPZU.F's dividend (1.49%) is low compared to the top 25% of dividend payers in the US market (4.3%).


Stability and Growth of Payments

Stable Dividend: DPZU.F's dividends per share have been stable in the past 10 years.

Growing Dividend: DPZU.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.7%), DPZU.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DPZU.F's dividends in 3 years are forecast to be covered by earnings (62.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Don Meij (51 yo)

19yrs

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

Compensation vs Market: Don's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD5.75M).

Compensation vs Earnings: Don's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Donald Meij
MD, Group CEO & Director19yrsAU$777.21k2.09%
A$ 100.0m
Richard Coney
Group Chief Financial Officerno dataAU$543.00k0.030%
A$ 1.4m
Michael Gillespie
Group Chief Digital & Technology Officer2.92yrsAU$299.27kno data
Allan Collins
ANZ Chief Marketing Officerno dataAU$506.76k0.00022%
A$ 10.5k
Nick Knight
Chief Executive Officer of Australia & New Zealand5.08yrsAU$409.39k0.00045%
A$ 21.6k
Josh Kilimnik
President & CEO of Japan2.58yrsAU$674.26k0.0030%
A$ 144.2k
Nathan Scholz
Head of Government & Investor Relationsno datano datano data
Craig Ryan
General Counsel & Company Secretary14yrsAU$573.84kno data
Tracy Llewelyn
Head of Communicationsno datano datano data
Rian Bell
Chief Development Officerno datano datano data
David Klages
Group Human Resources Manager6.33yrsno datano data
Andrew Megson
Head of Franchise Operations - Australia & New Zealand6.25yrsAU$16.35kno data

6.3yrs

Average Tenure

55yo

Average Age

Experienced Management: DPZU.F's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Donald Meij
MD, Group CEO & Director19yrsAU$777.21k2.09%
A$ 100.0m
Ross Adler
Non-Executive Deputy Chairman6.42yrsAU$199.87k0.23%
A$ 11.1m
Jack Cowin
Non-Executive Chairman6.42yrsAU$294.72kno data
Grant Bourke
Non Executive Director19yrsAU$147.31k1.89%
A$ 90.4m
Doreen Huber
Non-Executive Director0.50yrno datano data
Ursula Schreiber
Independent Non-Executive Director1.75yrsno data0.0012%
A$ 55.6k
Lynda Kathryn O'Grady
Non-Executive Director5.33yrsAU$134.17k0.0023%
A$ 111.1k

6.4yrs

Average Tenure

65yo

Average Age

Experienced Board: DPZU.F's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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$6.680b
  • Listing Market Cap: AU$4.790b
  • Shares outstanding: 86.24m
  • Website: https://www.dominos.com.au

Number of Employees


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, Ge ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/13 00:05
End of Day Share Price2020/07/28 00:00
Earnings2019/12/29
Annual Earnings2019/06/30


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.