Domino’s Pizza Stock Intrinsic Value – Investors Take Advantage of Domino’s 40% Price Drop – Time to Buy!
June 1, 2023
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Domino’s Pizza ($NYSE:DPZ) is a global leader in the pizza delivery industry, making it one of the most recognizable and widely-used brands in the world. Despite this, investors are now looking to capitalize on the situation by purchasing Domino’s stock at the lower price point. For those looking to invest in Domino’s Pizza, now is an excellent time to take advantage of the offer. Not only has Domino’s Pizza seen an impressive 40% price drop, they also recently unveiled their new store concept, which includes upgrades to their pizza-making process. This new store concept indicates that the company is serious about continuing to provide quality products and services despite the pandemic.
Domino’s Pizza is also looking to capitalize on the current state of the market by offering deals to delivery drivers and customers. This means that those looking to invest in Domino’s can rest assured that the company is committed to their success in the long-term. All in all, Domino’s Pizza is an attractive purchase for investors looking to capitalize on the recent 40% price drop. With an impressive new store concept and customer-centric offers, those looking to invest can rest assured that they will be making a wise decision.
Analysis – Domino’s Pizza Stock Intrinsic Value
GoodWhale recently conducted an analysis of Domino’s Pizza‘s wellbeing. After closely evaluating the company’s financials, we used our proprietary Valuation Line to assess the fair value of its stock. Through our analysis, we determined that the fair value of a Domino’s Pizza share is around $461.3. However, the current trading value of Domino’s Pizza stock is just $289.8, a stark 37.2% below its fair value. This indicates that the stock is currently undervalued, giving investors an opportunity to purchase the stock at a discount. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Domino’s Pizza. More…
| Total Revenues | Net Income | Net Margin |
| 4.55k | 466.07 | 10.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Domino’s Pizza. More…
| Operations | Investing | Financing |
| 511.21 | -52.65 | -499.13 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Domino’s Pizza. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.64k | 5.79k | -117.22 |
Key Ratios Snapshot
Some of the financial key ratios for Domino’s Pizza are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.6% | 6.8% | 17.3% |
| FCF Margin | ROE | ROA |
| 9.2% | -11.8% | 29.9% |
Peers
This paper will examine the competition between these four companies and the strategies they use to gain market share.
– Chipotle Mexican Grill Inc ($NYSE:CMG)
Chipotle Mexican Grill, Inc., together with its subsidiaries, operates Chipotle Mexican Grill restaurants. As of December 31, 2020, the company had 2,727 restaurants, including 2,658 Chipotle restaurants in the United States; 37 Chipotle restaurants in Canada; 24 Chipotle restaurants in the United Kingdom; and 8 Chipotle restaurants in France. It also operated 9 Pizzeria Locale restaurants. The company was founded in 1993 and is headquartered in Newport Beach, California.
– Yum Brands Inc ($NYSE:YUM)
Yum Brands Inc is a fast food company that owns Taco Bell, KFC, and Pizza Hut. Its market cap as of 2022 is 31.2 billion dollars and its ROE is -15.87%. The company has been struggling lately with same store sales declines and has been trying to turn things around by investing in digital ordering and delivery.
– Papa John’s International Inc ($NASDAQ:PZZA)
Papa John’s International Inc is a pizza chain with over 3,500 locations in over 45 US states and 35 countries. The company was founded in 1984 and is headquartered in Louisville, Kentucky. The company went public in 1993 and trades on the NASDAQ under the ticker symbol PZZA. Papa John’s has a market cap of $2.48 billion and a return on equity of -34.83%. The company has been struggling in recent years, with sales and profits declining. In 2020, the company announced it would be selling a minority stake to a private equity firm.
Summary
Investors should take a closer look at Domino’s Pizza (DPZ) following its 40% decline. Despite the steep drop, the company has long-term potential, as evidenced by its consistent same-store sales growth, successful digital initiatives, and international expansion. Analysts have also noted DPZ’s well-managed balance sheet and its focus on high-margin products.
Additionally, Domino’s Pizza is supported by a large and loyal customer base and a strong brand presence. All of these factors make the stock an attractive investment opportunity, despite the short-term pullback.
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