Papa John's International Inc

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PZZA : NASDAQ : Services
$73.29 -0.46 | -0.62%
Today's Range: 72.6 - 74.01
Avg. Daily Volume: 565300.0
07/27/17 - 3:59 PM ET

Financial Analysis


PAPA JOHNS INTERNATIONAL INC's gross profit margin for the first quarter of its fiscal year 2017 has decreased 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 0.72 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 greatly increased by 146.91% 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 ($mil)449.27428.6
EBITDA ($mil)54.1452.64
EBIT ($mil)43.6842.9
Net Income ($mil)28.4326.18


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)22.7217.27
Total Assets ($mil)516.45490.98
Total Debt ($mil)294.33316.72
Equity ($mil)8.85-18.86


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin20.5121.67
EBITDA Margin12.0512.28
Operating Margin9.7210.01
Sales Turnover3.363.33
Return on Assets20.3416.21
Return on Equity1187.180.0
Debt Q1 FY17 Q1 FY16
Current Ratio1.211.34
Debt/Capital0.971.06
Interest Expense1.811.49
Interest Coverage24.1328.81


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)36.6537.34
Div / share0.20.18
EPS0.770.69
Book value / share0.24-0.51
Institutional Own % n/a n/a
Avg Daily Volume554686.0595917.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 36.66 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 24.66. For additional comparison, its price-to-book ratio of 316.74 indicates a significant premium versus the S&P 500 average of 3.07 and a significant premium versus the industry average of 10.48. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. The valuation analysis reveals that, PAPA JOHNS INTERNATIONAL INC seems to be trading 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 27.02 Peers 36.66   PZZA 17.32 Peers 19.65

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.

 

Discount. 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 discount 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 23.53 Peers 24.85   PZZA 5.70 Peers 3.10

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

PZZA is trading at a valuation on par with 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 316.74 Peers 10.48   PZZA 39.40 Peers 117.69

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

PZZA is trading at a significant premium to its peers.

 

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 1.62 Peers 3.35   PZZA 6.15 Peers 4.04

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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