Papa John's International Inc

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PZZA : NASDAQ : Services
$79.51 up 0.05 | 0.063%
Today's Range: 79.0947 - 79.79
Avg. Daily Volume: 551300.0
03/30/17 - 12:05 PM ET

Financial Analysis


PAPA JOHNS INTERNATIONAL 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. PAPA JOHNS INTERNATIONAL INC has weak liquidity. Currently, the Quick Ratio is 0.63 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 113.40% 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 ($mil)439.62416.82
EBITDA ($mil)51.7949.9
EBIT ($mil)41.1940.23
Net Income ($mil)32.6324.7


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)15.5621.01
Total Assets ($mil)512.57494.91
Total Debt ($mil)299.82256.0
Equity ($mil)-3.9129.18


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin20.9721.37
EBITDA Margin11.7711.97
Operating Margin9.379.65
Sales Turnover3.343.31
Return on Assets20.0515.29
Return on Equity0.0259.35
Debt Q4 FY16 Q4 FY15
Current Ratio1.141.15
Debt/Capital1.010.9
Interest Expense1.741.31
Interest Coverage23.7330.8


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)36.6838.42
Div / share0.20.18
EPS0.880.62
Book value / share-0.110.76
Institutional Own % n/a n/a
Avg Daily Volume510619.0543799.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 38.13 for the Hotels, Restaurants & Leisure industry and a value on par with the S&P 500 average of 26.33. 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. After reviewing these and other key valuation criteria, PAPA JOHNS INTERNATIONAL 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
PZZA 27.01 Peers 38.13   PZZA 18.92 Peers 16.34

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

PZZA is trading at a significant 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.

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 23.58 Peers 23.78   PZZA 12.39 Peers 2.82

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PZZA NM Peers 9.42   PZZA 45.50 Peers 79.35

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.

 

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

However, PZZA 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
PZZA 1.59 Peers 3.24   PZZA 4.65 Peers 2.81

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.

 

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

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

 

 

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