Papa John's International Inc

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PZZA : NASDAQ : Services
$73.25 | %
Today's Range: 72.81 - 74.14
Avg. Daily Volume: 330,700
07/22/16 - 4:00 PM ET

Financial Analysis


PAPA JOHNS INTERNATIONAL INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. PAPA JOHNS INTERNATIONAL INC has weak liquidity. Currently, the Quick Ratio is 0.77 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 123.33% 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 FY16 Q1 FY15
Net Sales ($mil)428.6432.28
EBITDA ($mil)52.6447.69
EBIT ($mil)42.937.65
Net Income ($mil)26.1822.24


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)17.2723.52
Total Assets ($mil)490.98501.98
Total Debt ($mil)316.72231.0
Equity ($mil)-18.8680.83


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin21.6721.15
EBITDA Margin12.2811.03
Operating Margin10.018.71
Sales Turnover3.333.25
Return on Assets16.2115.18
Return on Equity0.094.31
Debt Q1 FY16 Q1 FY15
Current Ratio1.341.49
Debt/Capital1.060.74
Interest Expense1.491.21
Interest Coverage28.8131.14


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)37.3439.64
Div / share0.180.14
EPS0.690.55
Book value / share-0.512.04
Institutional Own % n/a n/a
Avg Daily Volume332573.0535808.0

Valuation


HOLD. This stock's P/E ratio indicates a premium compared to an average of 28.27 for the Hotels, Restaurants & Leisure industry and a significant premium compared to the S&P 500 average of 25.05. 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 36.13 Peers 28.27   PZZA 18.52 Peers 13.95

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

PZZA 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.

PZZA 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
PZZA 27.31 Peers 24.99   PZZA 1.37 Peers 2.68

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 11.48   PZZA 9.13 Peers 18.32

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 1.68 Peers 2.92   PZZA 0.28 Peers 8.46

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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