Papa John's International Inc

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PZZA : NASDAQ : Services
$74.97 -0.39 | -0.52%
Today's Range: 74.81 - 75.48
Avg. Daily Volume: 278,900
08/30/16 - 11:00 AM ET

Financial Analysis


PAPA JOHNS INTERNATIONAL 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. PAPA JOHNS INTERNATIONAL INC has weak liquidity. Currently, the Quick Ratio is 0.66 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 147.35% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)422.96398.99
EBITDA ($mil)46.8641.13
EBIT ($mil)36.8331.0
Net Income ($mil)22.5410.78


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)15.2722.45
Total Assets ($mil)487.22503.04
Total Debt ($mil)316.48234.0
Equity ($mil)-30.4264.24


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin21.1621.1
EBITDA Margin11.0710.3
Operating Margin8.717.77
Sales Turnover3.43.27
Return on Assets18.7513.96
Return on Equity0.0109.38
Debt Q2 FY16 Q2 FY15
Current Ratio1.161.3
Debt/Capital1.110.78
Interest Expense1.631.19
Interest Coverage22.5826.11


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)36.8939.39
Div / share0.180.14
EPS0.610.27
Book value / share-0.821.63
Institutional Own % n/a n/a
Avg Daily Volume279334.0420086.0

Valuation


HOLD. PAPA JOHNS INTERNATIONAL INC's P/E ratio indicates a premium compared to an average of 30.74 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 25.13. 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 below the S&P 500 average and is well below the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PZZA 31.79 Peers 30.74   PZZA 17.81 Peers 14.32

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

PZZA is trading at a valuation on par with 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.

PZZA is trading at a 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
PZZA 27.40 Peers 25.41   PZZA 1.07 Peers 2.97

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

PZZA is trading at a 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.

PZZA 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
PZZA NM Peers 39.47   PZZA 36.99 Peers 32.39

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.

PZZA's P/B is negative making this valuation measure meaningless.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

PZZA is expected to have an earnings growth rate that exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PZZA 1.68 Peers 2.88   PZZA 0.63 Peers 6.90

Discount. 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.

PZZA is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

PZZA significantly trails its peers on the basis of sales growth

 

 

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