Domino's Pizza, Inc. Fundamental Analysis
Domino's Pizza, Inc. (DPZ) shows weak financial fundamentals with a PE ratio of 18.26, profit margin of 11.89%, and ROE of -15.04%. The company generates $4.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DPZ's fundamental strength across five key dimensions:
Efficiency Score
ExcellentDPZ demonstrates superior asset utilization.
Valuation Score
ExcellentDPZ trades at attractive valuation levels.
Growth Score
ModerateDPZ shows steady but slowing expansion.
Financial Health Score
ExcellentDPZ maintains a strong and stable balance sheet.
Profitability Score
WeakDPZ struggles to sustain strong margins.
Key Financial Metrics
Is DPZ Expensive or Cheap?
P/E Ratio
DPZ trades at 18.26 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DPZ's PEG of -35.63 indicates potential undervaluation.
Price to Book
The market values Domino's Pizza, Inc. at -2.77 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.83 times EBITDA. This is generally considered low.
How Well Does DPZ Make Money?
Net Profit Margin
For every $100 in sales, Domino's Pizza, Inc. keeps $11.89 as profit after all expenses.
Operating Margin
Core operations generate 19.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-15.04 in profit for every $100 of shareholder equity.
ROA
Domino's Pizza, Inc. generates $32.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Domino's Pizza, Inc. produces operating cash flow of $762.27M, showing steady but balanced cash generation.
Free Cash Flow
Domino's Pizza, Inc. generates strong free cash flow of $643.39M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $19.34 in free cash annually.
FCF Yield
DPZ converts 6.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-35.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
-2.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.15
vs 25 benchmark
ROA
Return on assets percentage
0.32
vs 25 benchmark
ROCE
Return on capital employed
0.78
vs 25 benchmark
How DPZ Stacks Against Its Sector Peers
| Metric | DPZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.26 | 24.16 | Better (Cheaper) |
| ROE | -15.04% | 1194.00% | Weak |
| Net Margin | 11.89% | 2564.00% | Weak |
| Debt/Equity | -1.31 | 0.70 | Strong (Low Leverage) |
| Current Ratio | 1.60 | 2.83 | Neutral |
| ROA | 32.09% | -8257.00% (disorted) | Strong |
DPZ outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Domino's Pizza, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary