Domino's Pizza Inc

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DPZ : NYSE : Services
$191.66 -5.6 | -2.8%
Today's Range: 190.8 - 197.265
Avg. Daily Volume: 1055900.0
09/25/17 - 12:21 PM ET

Financial Analysis


DOMINO'S PIZZA INC's gross profit margin for the second 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. DOMINO'S PIZZA INC has average liquidity. Currently, the Quick Ratio is 1.04 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.

During the same period, stockholders' equity ("net worth") has increased by 5.83% 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 FY17 Q2 FY16
Net Sales ($mil)628.61547.34
EBITDA ($mil)123.14112.24
EBIT ($mil)112.87103.7
Net Income ($mil)65.7449.26


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)213.93129.74
Total Assets ($mil)781.8652.28
Total Debt ($mil)2180.822214.05
Equity ($mil)-1803.07-1914.75


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin32.3132.95
EBITDA Margin19.5820.5
Operating Margin17.9518.95
Sales Turnover3.383.55
Return on Assets31.7429.94
Return on Equity0.00.0
Debt Q2 FY17 Q2 FY16
Current Ratio1.61.26
Debt/Capital5.777.4
Interest Expense24.6125.21
Interest Coverage4.594.11


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)48.2548.34
Div / share0.460.38
EPS1.320.98
Book value / share-37.37-39.61
Institutional Own % n/a n/a
Avg Daily Volume1048765.0790630.0

Valuation


BUY. DOMINO'S PIZZA INC's P/E ratio indicates a discount compared to an average of 45.02 for the Hotels, Restaurants & Leisure industry and a significant premium compared to the S&P 500 average of 24.93. 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 current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, DOMINO'S PIZZA 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
DPZ 39.45 Peers 45.02   DPZ 28.61 Peers 18.78

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

DPZ is trading at a discount 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.

DPZ 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
DPZ 29.43 Peers 25.56   DPZ 1.21 Peers 2.73

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

DPZ is trading at a significant premium 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.

DPZ 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
DPZ NM Peers 10.09   DPZ 34.94 Peers 52.24

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.

DPZ'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, DPZ 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
DPZ 3.62 Peers 3.37   DPZ 14.12 Peers 7.91

Average. 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.

DPZ is trading at a valuation on par with its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

DPZ has a sales growth rate that significantly exceeds its peers.

 

 

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