Domino's Pizza Inc

FRA : EZV
USA·Consumer Cyclical·Restaurants·Ordinary Shares
€274.00
−1.40 (−0.40%)Oct 16 close
Market Cap
€9.21B
Enterprise Value
€13.44B
P/E (TTM)
18.00
P/B
—
Net Cash / (Debt)
−€4.20B
52-Week Range
€250 — €368
5-Year Range
€250 — €496
Avg Volume (3M)
36

Domino's Pizza (DPZ)

Domino's is a pizza delivery and carry-out chain with ~21,300 locations across 90+ countries, roughly a third of which are in the US. Almost all stores are franchised.

The company makes money in two main ways: (1) selling food and supplies to US and Canadian franchisees through its own network of 25 dough-production and distribution facilities — this is its largest revenue stream at ~60% of sales — and (2) collecting royalties and marketing fees from franchisees worldwide. A small number of company-owned stores contribute the remainder.

In short, Domino's functions more like a food manufacturer and franchisor than a restaurant operator — franchisees run the stores, while Domino's profits from supplying them and licensing the brand.

Employees10,700IPOJul 13, 2004SIC5141HQ30 Frank Lloyd Wright Drive, Ann Arbor, MI, USA, 48105
to

Financials (EUR)

Profitability

Metric
Current
Margins
Gross Margin
40.0%
Operating Margin
19.2%
EBITDA Margin
21.4%
Net Margin
12.2%
OCF Margin
16.0%
FCF Margin
13.6%
Returns on Capital
ROE
—
ROA
34.2%
ROIC
40.8%
ROCE
177.3%
ROC (Greenblatt)
125.3%
3Y ROIIC
885.7%
Consistency
Years Profitable / 10Y
10

Valuation

Metric
Current
Earnings Multiples
P/E (TTM)
18.00
Forward P/E
16.27
P/E ex-NRI
18.10
Shiller P/E (CAPE)
23.94
Cash Flow Multiples
P/FCF
16.13
P/OCF
13.66
P/Owner Earnings
15.80
FCF Yield
6.31%
Enterprise Value Multiples
EV / EBIT
16.19
EV / Forward EBIT
15.18
EV / EBITDA
14.82
EV / Forward EBITDA
14.01
EV / Revenue
3.17
EV / Forward Revenue
2.97
Asset / Sales
P/S
2.19
P/B
—
P/Tangible Book
—
Growth-Adjusted
PEG
2.13

Capital Returns

Metric
Current
Dividends
Dividend Yield (TTM)
2.22%
Forward Dividend Yield
2.47%
3Y Dividend Growth
16.5%
Payout Ratio
0.40
5Y Yield on Cost
3.81%
Buybacks & Dilution
3Y Buyback Ratio
1.70%
5Y Share Change
−15.0%
Combined
Shareholder Yield
6.19%

Balance Sheet

Metric
Current
Leverage
Debt / Equity
−1.29
Gross Debt / EBITDA
4.78
Cash / Debt
0.03
Equity / Assets
−2.27
Coverage
Interest Coverage
4.85
Short-Term Liquidity
Current Ratio
1.65
Quick Ratio
1.50
Cash Ratio
0.23
Composite Scores
Piotroski F-Score
7
Altman Z-Score
3.25

5-Step DuPont Analysis

ROE %
-14.78%
Net Margin %
12.20%
Operating Margin %
19.23%
Operating Income
€829M
÷
Revenue
€4.31B
×
Tax Burden
0.7816
Net Income
€526M
÷
Pretax Income
€673M
×
Interest Burden
0.8118
Pretax Income
€673M
÷
Operating Income
€829M
×
Asset Turnover
2.76
Revenue
€4.31B
÷
Average Total Assets
€1.56B
Begin Total Assets
€1.66B
End Total Assets
€1.47B
×
Equity Multiplier
-0.44
Avg Total Assets
€1.56B
÷
Avg Stockholders Equity
−€3.56B
Begin Equity
−€3.78B
End Equity
−€3.33B