Dunkin' Brands Group Inc

Find Ratings Reports
DNKN : NASDAQ : Services
$57.0 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1263100.0
03/23/17 - 4:00 PM ET

Financial Analysis


DUNKIN' BRANDS GROUP INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. DUNKIN' BRANDS GROUP INC has average liquidity. Currently, the Quick Ratio is 1.22 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 26.11% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)215.71203.8
EBITDA ($mil)118.92107.48
EBIT ($mil)108.4796.05
Net Income ($mil)56.12-8.94


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)431.17332.35
Total Assets ($mil)3227.383197.12
Total Debt ($mil)2435.142453.64
Equity ($mil)-163.26-220.95


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin84.2480.3
EBITDA Margin55.1352.73
Operating Margin50.2947.13
Sales Turnover0.260.25
Return on Assets6.053.29
Return on Equity0.00.0
Debt Q4 FY16 Q4 FY15
Current Ratio1.431.33
Debt/Capital1.071.1
Interest Expense26.424.72
Interest Coverage4.113.89


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)91.4492.64
Div / share0.30.27
EPS0.61-0.1
Book value / share-1.79-2.39
Institutional Own % n/a n/a
Avg Daily Volume1315433.01311371.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 37.76 for the Hotels, Restaurants & Leisure industry and a value on par with the S&P 500 average of 26.73. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, DUNKIN' BRANDS GROUP INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DNKN 26.25 Peers 37.76   DNKN 18.42 Peers 16.77

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

DNKN is trading at a significant discount to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

DNKN is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DNKN 20.84 Peers 23.54   DNKN 2.13 Peers 3.36

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

DNKN is trading at a valuation on par with its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

DNKN trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DNKN NM Peers 9.39   DNKN 98.13 Peers 75.07

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DNKN's P/B is negative making this valuation measure meaningless.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

DNKN is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DNKN 6.14 Peers 3.22   DNKN 2.21 Peers 3.06

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

DNKN is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

DNKN significantly trails its peers on the basis of sales growth

 

 

Latest Stock Upgrades/Downgrades