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Domino's Pizza Enterprises Limited (DPZUF)
:DPZUF
RESEARCH TOOLSreports
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Positive Factors
Cost Management
The announcement of an incremental cost out of A$14.9mn in store optimization and cost base simplification is expected to offset moderate trading conditions.
Valuation
The DCF valuation has increased, indicating a potentially higher future value for the company.
Negative Factors
International Performance
There are concerns about Domino's performance in France, with a need for improved franchise partner engagement and consumer perception.
Market Uncertainty
Uncertainty around the magnitude of cost savings and loss minimization is leading to an extended margin recovery profile.
Store Closures
The closure of an additional 205 loss-making stores indicates ongoing challenges in maintaining profitability.
Domino's Pizza Enterprises Limited (DPZUF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.31B
Dividend Yield5.04%
Average Volume (3M)318.00
Price to Earnings (P/E)120.9
Beta (1Y)0.79
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees88,000
SectorConsumer Cyclical
Sector Strength62
IndustryRestaurants
Share Statistics
EPS (TTM)-0.16
Shares Outstanding94,448,290
10 Day Avg. Volume60
30 Day Avg. Volume318
Financial Highlights & Ratios
PEG Ratio-1.43
Price to Book (P/B)3.12
Price to Sales (P/S)0.00
P/FCF Ratio11.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.63Price Target Upside34.51% Upside
Rating ConsensusHold
Number of Analyst Covering3
Domino's Pizza Enterprises Limited Business Overview & Revenue Model
Company DescriptionDomino's Pizza Enterprises Limited operates retail food outlets. The company holds franchise rights for the Domino's brand in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, Denmark, and Taiwan. It operates a network of 3,396 stores. Domino's Pizza Enterprises Limited was founded in 1983 and is based in Brisbane, Australia.
How the Company Makes Money
Domino's Pizza Enterprises Limited Financial Statement Overview
Summary
Domino's Pizza Enterprises Limited shows strong financial performance with consistent revenue growth and profitability, and excellent cash flow management. However, high leverage as indicated by the Debt-to-Equity Ratio poses potential risks that require monitoring.Income Statement
Domino's Pizza Enterprises Limited has shown a consistent revenue growth trajectory, with a Revenue Growth Rate of 1.08% from 2023 to 2024. The Gross Profit Margin is robust at 56.01%, and the Net Profit Margin has improved to 4.05%, indicating better cost management. The EBIT Margin stands at 10.79%, and the EBITDA Margin is at 13.69%, reflecting strong operational efficiency. However, the slight dip in revenue growth rate may indicate a saturation point in the market, which needs to be monitored.78
Positive
Balance Sheet
The Debt-to-Equity Ratio is 2.37, which is relatively high, indicating potential leverage risks. The Return on Equity (ROE) is 15.74%, showing a good return on shareholders' investment. The Equity Ratio is 23.51%, suggesting a moderate level of equity financing compared to total assets. While profitability is strong, the high leverage could pose financial risks if not managed properly.65
Positive
Cash Flow
The company has demonstrated a solid Free Cash Flow Growth Rate of 42.33% from 2023 to 2024, indicating improved cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 2.47, and the Free Cash Flow to Net Income Ratio is 1.53, both of which highlight efficient cash flow management. However, the negative investing cash flow suggests substantial investment activities, which could impact future liquidity.72
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.27B | 2.37B | 2.34B | 2.27B | 2.19B | 1.90B | Gross Profit |
| 721.45M | 731.50M | 587.23M | 634.83M | 626.62M | 539.30M | EBIT |
| 427.19M | 255.68M | 179.84M | 238.40M | 265.69M | 205.45M | EBITDA |
| 224.07M | 324.55M | 279.38M | 383.75M | 421.79M | 348.21M | Net Income Common Stockholders |
| 15.76M | 95.96M | 40.57M | 158.72M | 184.01M | 138.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 177.34M | 87.65M | 159.89M | 76.88M | 174.69M | 245.68M | Total Assets |
| 2.43B | 2.59B | 2.88B | 2.43B | 2.35B | 2.47B | Total Debt |
| 1.34B | 1.44B | 1.74B | 1.41B | 1.27B | 1.48B | Net Debt |
| 1.16B | 1.36B | 1.58B | 1.34B | 1.09B | 1.23B | Total Liabilities |
| 2.03B | 1.98B | 2.36B | 2.01B | 1.96B | 2.08B | Stockholders Equity |
| 407.15M | 609.55M | 520.52M | 421.96M | 395.14M | 393.37M |
| Cash Flow | Free Cash Flow | ||||
| 167.73M | 146.78M | 103.13M | -1.95M | 230.51M | 186.13M | Operating Cash Flow |
| 189.57M | 236.97M | 260.79M | 190.12M | 373.25M | 311.41M | Investing Cash Flow |
| -52.48M | -66.01M | -487.94M | -233.28M | -97.46M | -98.88M | Financing Cash Flow |
| -136.02M | -239.09M | 314.12M | -49.95M | -329.90M | -70.14M |
Domino's Pizza Enterprises Limited Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| $1.31B | 120.86 | 2.09% | 5.04% | ― | ― | ||
62 Neutral | $6.88B | 11.32 | 2.90% | 3.87% | 2.70% | -24.57% | |
| $585.79M | 17.48 | 12.25% | 3.54% | ― | ― | ||
| $74.18M | 16.90 | 4.31% | ― | ― | ― | ||
| €1.85M | ― | ― | ― | ― | |||
79 Outperform | AU$183.78M | 10.81 | 8.49% | 6.02% | 3.76% | -26.42% | |
61 Neutral | AU$3.03B | ― | -1.13% | ― | 26.77% | 51.19% |
* Consumer Cyclical Sector Average
Performance Comparison
DPZUF
Domino's Pizza Enterprises Limited
13.85
-11.21
-44.73%
CLLFF
Collins Foods
4.96
-1.19
-19.35%
RFGPF
Retail Food Group Limited
1.60
0.00
0.00%
DE:36S
Oliver's Real Food Ltd.
―
―
―
AU:MTO
Motorcycle Holdings Ltd.
2.49
1.36
120.35%
AU:GYG
Guzman y Gomez Ltd.
29.47
0.47
1.62%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.