Dunkin' Brands Group Inc

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DNKN : NASDAQ : Services
$50.64 up 0.53 | 1.06%
Today's Range: 49.87 - 50.70
Avg. Daily Volume: 1,434,400
09/26/16 - 4:00 PM ET

Financial Analysis


DUNKIN' BRANDS GROUP INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. DUNKIN' BRANDS GROUP INC has average liquidity. Currently, the Quick Ratio is 1.16 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 131.42% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)216.31211.42
EBITDA ($mil)110.68102.8
EBIT ($mil)99.9491.63
Net Income ($mil)49.5942.32


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)320.36399.79
Total Assets ($mil)3130.43358.72
Total Debt ($mil)2444.42502.87
Equity ($mil)-203.69-88.02


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin80.779.02
EBITDA Margin51.1648.62
Operating Margin46.243.34
Sales Turnover0.260.23
Return on Assets3.965.21
Return on Equity0.00.0
Debt Q2 FY16 Q2 FY15
Current Ratio1.421.78
Debt/Capital1.091.04
Interest Expense24.9725.1
Interest Coverage4.03.65


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)91.7295.02
Div / share0.30.27
EPS0.540.44
Book value / share-2.22-0.93
Institutional Own % n/a n/a
Avg Daily Volume1514000.01336970.0

Valuation


HOLD. This stock's P/E ratio indicates a premium compared to an average of 30.66 for the Hotels, Restaurants & Leisure industry and a significant premium compared to the S&P 500 average of 24.84. 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 seems to be trading at a premium 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 36.64 Peers 30.66   DNKN 20.37 Peers 14.15

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

DNKN is trading at a premium to its peers.

 

Premium. 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 significant premium 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 19.91 Peers 25.77   DNKN 0.35 Peers 2.92

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 39.76   DNKN -22.81 Peers 30.28

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 5.41 Peers 3.04   DNKN 4.66 Peers 6.43

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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