Dunkin' Brands Group Inc

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DNKN : NASDAQ : Services
$52.99 -0.51 | -0.95%
Today's Range: 52.67 - 53.14
Avg. Daily Volume: 1225200.0
07/28/17 - 9:48 AM ET

Financial Analysis


DUNKIN' BRANDS GROUP INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. DUNKIN' BRANDS GROUP INC has average liquidity. Currently, the Quick Ratio is 1.31 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.

At the same time, stockholders' equity ("net worth") has greatly increased by 49.27% 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.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)190.67189.78
EBITDA ($mil)98.3891.66
EBIT ($mil)87.9780.76
Net Income ($mil)47.4737.15


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)397.51291.19
Total Assets ($mil)3196.053093.93
Total Debt ($mil)2430.352449.21
Equity ($mil)-119.0-234.59


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin83.7180.54
EBITDA Margin51.5948.29
Operating Margin46.1342.56
Sales Turnover0.260.26
Return on Assets6.443.77
Return on Equity0.00.0
Debt Q1 FY17 Q1 FY16
Current Ratio1.611.34
Debt/Capital1.051.11
Interest Expense24.8724.88
Interest Coverage3.543.25


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)92.0991.55
Div / share0.320.3
EPS0.510.4
Book value / share-1.29-2.56
Institutional Own % n/a n/a
Avg Daily Volume1207255.01319243.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 36.66 for the Hotels, Restaurants & Leisure industry and a value on par with the S&P 500 average of 24.66. 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 23.93 Peers 36.66   DNKN 20.34 Peers 19.65

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 20.14 Peers 24.85   DNKN 1.58 Peers 3.10

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

DNKN is trading at a discount to 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 10.48   DNKN 82.78 Peers 117.69

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.

 

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

However, DNKN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DNKN 5.92 Peers 3.35   DNKN 1.83 Peers 4.04

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

 

 

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