Domino's Pizza Inc

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DPZ : NYSE : Services
$185.08 up 0.73 | 0.4%
Today's Range: 184.04 - 185.91
Avg. Daily Volume: 704500.0
03/24/17 - 10:30 AM ET

Financial Analysis


DOMINO'S PIZZA 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. 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 weak liquidity. Currently, the Quick Ratio is 0.79 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.60% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)819.44741.18
EBITDA ($mil)163.4148.15
EBIT ($mil)150.72138.41
Net Income ($mil)72.7362.76


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)169.31314.39
Total Assets ($mil)716.3799.85
Total Debt ($mil)2187.882240.79
Equity ($mil)-1883.14-1800.25


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin32.6332.54
EBITDA Margin19.9419.98
Operating Margin18.3918.67
Sales Turnover3.452.77
Return on Assets29.9724.1
Return on Equity0.00.0
Debt Q4 FY16 Q4 FY15
Current Ratio1.231.6
Debt/Capital7.185.09
Interest Expense33.5433.53
Interest Coverage4.494.13


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)48.149.84
Div / share0.380.31
EPS1.481.18
Book value / share-39.15-36.12
Institutional Own % n/a n/a
Avg Daily Volume668942.0670043.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 37.76 for the Hotels, Restaurants & Leisure industry and a significant premium compared to 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 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 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
DPZ 43.07 Peers 37.76   DPZ 31.08 Peers 16.77

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

DPZ 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.

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 29.94 Peers 23.54   DPZ 2.06 Peers 3.36

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 9.39   DPZ 24.20 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.

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 3.61 Peers 3.22   DPZ 11.55 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.

DPZ is trading at a premium to 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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