馃崟 DOMINOS PIZZA: ANALYSIS 馃崟
Domino's Pizza Inc [DPZ] operates as a pizza company in the United States and internationally. The company operates through three segments: U.S. Stores, International Franchise, and Supply Chain. It offers pizzas under the Domino's brand name through company-owned and franchised stores. It also provides oven-baked sandwiches, pasta, boneless chicken and chicken wings, bread and dips side items, desserts, and soft drink products. DPZ was founded in 1960 and is based in Ann Arbor, Michigan
Based on a sample of the last year, its average margins have been:
- Gross margin: ± 26%
- Operating margin: ± 17%
- Net margin: ± 10%
- EBITDA margin: ± 19%
The pros: Strong top-line growth (an increase of 13.9% year-over-year, was driven by strong comparable sales growth of 11.3%, as well as by the company's continued expansion into new markets), improved profitability (diluted earnings per share of $3.09 for Q1 2022, an increase of 23.5% year-over-year), positive outlook and strong cash flow (this provides the company with the financial flexibility to invest in its growth initiatives, as well as to return capital to shareholders).
The cons: Increased competition, labor costs (this could continue to put pressure on the company's margins in the future), currency headwinds (the strength of foreign currencies can impact its financial results. In Q1 2022, the company experienced favorable foreign currency exchange rates, but this could reverse in the future), food safety concerns (has been criticized in the past for food safety issues. In 2017, the company was fined $2.8 million for violating food safety regulations. This could damage the company's reputation and impact its sales in the future) and excessive net debt.
The last normalized EPS was ± $13.47 USD and its last ROIC [TTM] was ± 48.6%. If an average PER 22 is set as a benchmark, the potential spread target could be:
- Optimistic: ± $440 USD
- Neutral: ± $296 USD
- Negative: ± $152 USD
In other hand, if an average EV/EBITDA 21 is set, an EBITDA increases of 8%, a Net Debt increases of 1.35% and Shares Outstanding increases of -1%, the potencial fair price target could be ± $418 USD.
The best analysis is yours!
J. Joel Padilla
https://www.linkedin.com/in/joelpadilla/recent-activity/
https://jjoelpadilla.wixsite.com/jjpl-index
https://jjplindex.blogspot.com/
Copyright: Joel Padilla 2023
Based on a sample of the last year, its average margins have been:
- Gross margin: ± 26%
- Operating margin: ± 17%
- Net margin: ± 10%
- EBITDA margin: ± 19%
The pros: Strong top-line growth (an increase of 13.9% year-over-year, was driven by strong comparable sales growth of 11.3%, as well as by the company's continued expansion into new markets), improved profitability (diluted earnings per share of $3.09 for Q1 2022, an increase of 23.5% year-over-year), positive outlook and strong cash flow (this provides the company with the financial flexibility to invest in its growth initiatives, as well as to return capital to shareholders).
The cons: Increased competition, labor costs (this could continue to put pressure on the company's margins in the future), currency headwinds (the strength of foreign currencies can impact its financial results. In Q1 2022, the company experienced favorable foreign currency exchange rates, but this could reverse in the future), food safety concerns (has been criticized in the past for food safety issues. In 2017, the company was fined $2.8 million for violating food safety regulations. This could damage the company's reputation and impact its sales in the future) and excessive net debt.
The last normalized EPS was ± $13.47 USD and its last ROIC [TTM] was ± 48.6%. If an average PER 22 is set as a benchmark, the potential spread target could be:
- Optimistic: ± $440 USD
- Neutral: ± $296 USD
- Negative: ± $152 USD
In other hand, if an average EV/EBITDA 21 is set, an EBITDA increases of 8%, a Net Debt increases of 1.35% and Shares Outstanding increases of -1%, the potencial fair price target could be ± $418 USD.
The best analysis is yours!
J. Joel Padilla
https://www.linkedin.com/in/joelpadilla/recent-activity/
https://jjoelpadilla.wixsite.com/jjpl-index
https://jjplindex.blogspot.com/
Copyright: Joel Padilla 2023
Comentarios
Publicar un comentario