Papa John's International, Inc. Fundamental Analysis (NASDAQ: PZZA)
Papa John's International, Inc. Fundamental Analysis (NASDAQ: PZZA)
Papa John's International, Inc. (NASDAQ: PZZA) shows weak financial fundamentals with a PE ratio of 22.64, profit margin of 1.40%, and ROE of -6.17%. The company generates $2.0B in annual revenue with weak year-over-year growth of -0.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PZZA's fundamental strength across five key dimensions:
Efficiency Score
WeakPZZA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPZZA trades at attractive valuation levels.
Growth Score
WeakPZZA faces weak or negative growth trends.
Financial Health Score
ModeratePZZA shows balanced financial health with some risks.
Profitability Score
WeakPZZA struggles to sustain strong margins.
Key Financial Metrics
Is PZZA Expensive or Cheap?
P/E Ratio
PZZA trades at 22.64 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PZZA's PEG of -0.35 indicates potential undervaluation.
Price to Book
The market values Papa John's International, Inc. at -1.34 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.27 times EBITDA. This is generally considered low.
How Well Does PZZA Make Money?
Net Profit Margin
For every $100 in sales, Papa John's International, Inc. keeps $1.40 as profit after all expenses.
Operating Margin
Core operations generate 4.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-6.17 in profit for every $100 of shareholder equity.
ROA
Papa John's International, Inc. generates $3.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Papa John's International, Inc. generates limited operating cash flow of $94.69M, signaling weaker underlying cash strength.
Free Cash Flow
Papa John's International, Inc. generates weak or negative free cash flow of $34.13M, restricting financial flexibility.
FCF Per Share
Each share generates $1.04 in free cash annually.
FCF Yield
PZZA converts 5.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
-1.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How PZZA Stacks Against Its Sector Peers
| Metric | PZZA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.64 | 24.62 | Neutral |
| ROE | -6.17% | 963.00% | Weak |
| Net Margin | 1.40% | -2411.00% (disorted) | Weak |
| Debt/Equity | -2.06 | 0.61 | Strong (Low Leverage) |
| Current Ratio | 0.83 | 2.33 | Weak Liquidity |
| ROA | 3.42% | 374.00% | Weak |
PZZA outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Papa John's International, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
11.79%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-47.99%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-33.30%
Industry Style: Cyclical, Growth, Discretionary
Declining