Domino's Pizza Inc

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DPZ : NYSE : Services
$166.36 | %
Today's Range: 164.78 - 166.52
Avg. Daily Volume: 580,800
10/21/16 - 4:02 PM ET

Financial Analysis

DOMINO'S PIZZA INC's gross profit margin for the third 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 0.71 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 54.15% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)566.68484.7
EBITDA ($mil)109.6288.21
EBIT ($mil)100.9180.54
Net Income ($mil)47.2337.83

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)153.55123.53
Total Assets ($mil)676.61603.2
Total Debt ($mil)2230.761527.92
Equity ($mil)-1936.15-1255.95

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin32.2230.87
EBITDA Margin19.3418.19
Operating Margin17.8116.62
Sales Turnover3.543.51
Return on Assets30.2529.51
Return on Equity0.00.0
Debt Q3 FY16 Q3 FY15
Current Ratio1.151.45
Interest Expense25.1819.98
Interest Coverage4.014.03

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)48.0854.65
Div / share0.380.31
Book value / share-40.27-22.98
Institutional Own % n/a n/a
Avg Daily Volume590449.0926946.0


BUY. DOMINO'S PIZZA INC's P/E ratio indicates a significant premium compared to an average of 29.56 for the Hotels, Restaurants & Leisure industry and a significant premium compared to the S&P 500 average of 24.64. 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, DOMINO'S PIZZA INC seems to be trading at a premium to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DPZ 41.25 Peers 29.56   DPZ 26.78 Peers 13.61

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

DPZ is trading at a significant 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
DPZ 32.30 Peers 25.37   DPZ 1.88 Peers 2.63

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DPZ NM Peers 35.93   DPZ 27.70 Peers 33.71

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 trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DPZ 3.32 Peers 2.80   DPZ 13.03 Peers 6.81

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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