Domino's Pizza Inc

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DPZ : NYSE : Services
$205.97 up 6.7 | 3.4%
Today's Range: 199.48 - 206.02
Avg. Daily Volume: 830900.0
05/24/17 - 3:59 PM ET

Financial Analysis


DOMINO'S PIZZA 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. DOMINO'S PIZZA INC has weak liquidity. Currently, the Quick Ratio is 1.00 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 decreased by 7.13% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)624.22539.18
EBITDA ($mil)125.53106.93
EBIT ($mil)116.0398.71
Net Income ($mil)62.4745.45


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)217.76332.38
Total Assets ($mil)742.46820.76
Total Debt ($mil)2179.562215.0
Equity ($mil)-1853.69-1730.28


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin32.5732.54
EBITDA Margin20.1119.83
Operating Margin18.5918.31
Sales Turnover3.442.75
Return on Assets31.223.38
Return on Equity0.00.0
Debt Q1 FY17 Q1 FY16
Current Ratio1.431.88
Debt/Capital6.694.57
Interest Expense25.6326.15
Interest Coverage4.533.78


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)48.0950.11
Div / share0.460.38
EPS1.260.89
Book value / share-38.55-34.53
Institutional Own % n/a n/a
Avg Daily Volume837318.0565778.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 35.64 for the Hotels, Restaurants & Leisure industry and a significant premium compared to the S&P 500 average of 25.02. 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 41.60 Peers 35.64   DPZ 26.27 Peers 20.48

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 30.86 Peers 25.23   DPZ 1.63 Peers 1.60

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DPZ NM Peers 11.22   DPZ 31.83 Peers 121.72

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 3.66 Peers 3.30   DPZ 13.48 Peers 4.21

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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