Dominos Pizza Inc
Exchange: NASDAQSector: Consumer CyclicalIndustry: Restaurants
Dominos Pizza, Inc., through its subsidiaries, operates as a pizza delivery company in the United States and internationally. The company operates in three segments: Domestic Stores, Domestic Supply Chain, and International. It offers pizzas under the Dominos Pizza brand name through company-owned and franchised Dominos Pizza stores. As of November 18, 2014, the company operated approximately 11,250 stores in approximately 75 international markets. Dominos Pizza, Inc. was founded in 1960 and is based in Ann Arbor, Michigan.
Current Price
$323.48
-2.72%GoodMoat Value
$410.29
26.8% undervaluedProfile
Valuation (TTM)
Market Cap$10.88B
P/E18.38
EV$17.10B
P/B—
Shares Out33.63M
P/Sales2.19
Revenue$4.98B
EV/EBITDA14.94
Dominos Pizza Inc (DPZ) Stock Analysis
GoodMoat Analysis
Domino's Pizza is a global restaurant franchisor with a strong brand and franchise model, but its current valuation appears marginal. The business demonstrates a moderate moat and adequate quality, but its low revenue growth and marginal margin of safety warrant a cautious approach for value investors.
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Domino's Pizza Inc operates a global network of franchised and company-owned pizza delivery and carryout restaurants. Applying the GoodMoat framework, the business shows a moderate competitive moat, likely scoring in the 5-6 range based on its strong brand recognition, franchise system switching costs, and scale advantages in delivery logistics. Its quality indicators are adequate, with a solid 19.3% operating margin, a 12.2% profit margin, and a healthy 5.5% free cash flow yield, though its 3.1% YoY revenue growth is low. The valuation assessment is key. The stock trades at a P/E of 20.4x, which is reasonable for a stable business. However, the GoodMoat Target price of $410.29 implies a margin of safety of only about 13% from the current $363.1 price. According to the Decision Framework, this falls into the 'Marginal' band (10-20%), which suggests the price does not offer a significant discount to intrinsic value. For a value investor, this analysis indicates the company passes the initial Moat & Quality gate but enters the Valuation & Risk gate 'with caution.' The combination of low growth, a marginal margin of safety, and a neutral target signal suggests it is not deeply undervalued, requiring a high-conviction view on future execution to justify investment at this level. Further investigation would need to focus on drivers for re-accelerating growth and franchisee health. Analysis based on data as of 2024-05-15.
Market Cap$10.88B
Current Price$323.48
P/E Ratio18.38
Forward P/E—
PEG Ratio-3.82
EPS$17.57
Book Value$-116.01
P/B Ratio—
DPZ Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 8.5% FCF growth (CAGR)
Cash vs Debt
Net Debt: 4.7B
Revenue
3.6B
FY19
4.1B
FY21
4.4B
FY22
4.5B
FY23
4.5B
FY23
4.7B
FY24
4.9B
FY25
Net Income
401M
FY19
491M
FY21
510M
FY22
452M
FY23
519M
FY23
584M
FY24
602M
FY25
DPZ 52-Week Range
$323.48
$489.32
50-Day MA: $369.12200-Day MA: $407.20
Did you know?
Earnings per share grew at a 7.0% CAGR.
Dominos Pizza Inc (DPZ) Financial Summary
Dominos Pizza Inc (DPZ) is a Consumer Cyclical company in the Restaurants industry, listed on NASDAQ. The stock currently trades at $323.48 with a market capitalization of $10.88B.
Key valuation metrics include a P/E ratio of 18.38, and EPS of $17.57. The company reports a profit margin of 11.9%.
DPZ Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $10.88B |
| P/E Ratio | 18.38 |
| EPS | $17.57 |
| P/S Ratio | 2.19 |
| EV/EBITDA | 14.94 |
| Dividend Yield | 2.18% |
| Profit Margin | 11.9% |
DPZ Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $3.62B | $400.71M |
| FY21 | $4.12B | $491.30M |
| FY22 | $4.36B | $510.47M |
| FY23 | $4.54B | $452.26M |
| FY23 | $4.48B | $452.26M |
| FY24 | $4.71B | $584.17M |
| FY25 | $4.94B | $601.70M |
Dominos Pizza Inc (DPZ) Valuation
Based on GoodMoat's DCF model, Dominos Pizza Inc has a fair value estimate of $410.29. At the current price of $323.48, the stock appears 21.2% undervalued relative to our intrinsic value estimate.
DPZ Quality Indicators
Dominos Pizza Inc maintains a profit margin of 11.9% and an operating margin of 19.3%. The current ratio is 1.65.
About Dominos Pizza Inc
Dominos Pizza, Inc., through its subsidiaries, operates as a pizza delivery company in the United States and internationally. The company operates in three segments: Domestic Stores, Domestic Supply Chain, and International. It offers pizzas under the Dominos Pizza brand name through company-owned and franchised Dominos Pizza stores. As of November 18, 2014, the company operated approximately 11,250 stores in approximately 75 international markets. Dominos Pizza, Inc. was founded in 1960 and is based in Ann Arbor, Michigan.
DPZ Free Cash Flow
Dominos Pizza Inc generated $671.50M in trailing twelve-month free cash flow, representing an FCF yield of 6.17%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
DPZ Shares Outstanding
Dominos Pizza Inc has 0.03 billion shares outstanding at a share price of $323.48, giving it a market capitalization of $10.88B.
DPZ Recent Insider Trades
Recent insider transactions at Dominos Pizza Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| GARCIA KELLY E (EVP, Chief Tech & Data Ofcr) | SELL | 488 | $162167.28 |
| Sandeep Reddy (EVP, Chief Financial Officer) | SELL | 608 | $242956.80 |
| PARRISH JESSICA L | SELL | 110 | $43956.00 |