NYSE:DPZ
$11.01
(2/9 12:56PM)
+3.4%
| Open | $10.75 |
Mkt Cap | $622.3 Million |
| High | $11.04 |
52Wk High | $11.70 |
| Low | $10.74 |
52Wk Low | $5.61 |
| Volume | 307,994 |
Avg Vol 10D | 740,100 |
Ockham's Rating/Recommendation Summary
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DPZ Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at DPZ through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 7 years are 0.95x and 0.44x respectively.
Utilizing this range we can see that DPZ’s current Price to Sales per share ratio of 0.45x is significantly below its average levels historically. In fact, with a current price of $10.62, DPZ is a full 35% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for DPZ.
DPZ Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. DPZ is significantly below its historical average multiple of Cash Earnings. Looking at the last 7 years we can get a good understanding of what investors have grown to expect from DPZ. For example, DPZ's Cash Earnings ratio per share has fluctuated between 5.25 and 12.07 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where DPZ is with respect to prior business periods.
So with DPZ's current price (latest close of $10.62) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, DPZ is 31% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with DPZ.
DPZ Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.
RazorWire has Detected News About DPZ on Mad Money
As always, the latest news on DPZ is available to Ockham clients through RazorWire, and it was mentioned recently on Mad Money.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, DPZ has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on DPZ. The crowd at The Motley Fool does not like DPZ and believes that it will Underperform. Our valuation of DPZ has become less favorable recently, and we have seen it necessary to downgrade the stock.
“… caller: i've got a quick question on DOMINO'S PIZZA. > > dpz, what's shaking there? > > caller: I was reading a report on the u. S. …”
Does Domino's Pizza,Inc. Have a Debt Issue? See the Report from Countdown to the Closing Bell
Leverage is not necessarily a bad thing for DPZ or any other company, but staying informed on their debt is important. A recent story from Countdown to the Closing Bell discusses DPZ's debt.
The crowd at The Motley Fool does not like DPZ and believes that it will Underperform. We considered DPZ as Undervalued as of our latest report at $9.37. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. That being said, the recent price appriciation does make it slightly less attractive to value investors as they may have missed the boat. Check the news on this stock because there is a catalyst that has allowed this stock to advance 10.35% today. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, DPZ has been less covered in the news compared to the rest of our universe of stocks.
“… DOMINO'S PIZZA, stocks hit a 52 week high. It is revamping its pizza. It can handle its debt load. Same-store sales should be up. …”
Delevoping Economies and Where DPZ Fits In on Mad Money
There is no doubt that the emerging markets are where the growth is right now. The latest news mention of DPZ on Mad Money was in relation to emerging markets.
The latest news on DPZ has created quite a stir as the stock is trading $0.67 higher in today's session. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; DPZ has received less coverage from the financial media in business television and blogs. Based on our methodology, Domino's Pizza,Inc. should hold some appeal to value investors as we view it as Undervalued.
“… As the very many public heard today, domino's new york media, DOMINO'S PIZZA is beginning to deliver with a new recipe, great ad campaign, fabulous international business that ... …”
The Chief Executive of DPZ Was Discussed on Countdown to the Closing Bell
Keeping up with a CEO is one way that we try to better understand the direction of a company, and there was talk about DPZ management on Countdown to the Closing Bell.
Based on our methodology, Domino's Pizza,Inc. should hold some appeal to value investors as we view it as Undervalued. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; DPZ has received less coverage from the financial media in business television and blogs.
“… You just had on the ceo of DOMINO'S PIZZA I thought maybe you want some food for thought. One group doing quite well today are these casual diners these food stocks. …”
See Why Domino's Pizza,Inc. News Was Discussed on Countdown to the Closing Bell
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Domino's Pizza,Inc..
At present, Ockham has a valuation stance of Undervalued on DPZ, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Domino's Pizza,Inc. has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Domino's Pizza,Inc. underperforming.
“… High unemployment but as it relates to DOMINO'S PIZZA. Hiring people, doing well. Meeting and exceeding our objectives and we're proud to be a michigan based company. > > …”
A View of DPZ's Growth on Fast Money
Trends in sales growth can show the direction of a company, and we have the latest news on DPZ's sales growth via Fast Money.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Domino's Pizza,Inc. has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Domino's Pizza,Inc. underperforming. At present, Ockham has a valuation stance of Undervalued on DPZ, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… Citi upgrading DOMINO'S PIZZA to buy. Citing increased sales trends. Could domino's finally be a buy after admitting the worst kept secret in the food business? …”
Countdown to the Closing Bell: Discussion of DPZ's Earnings
The name of the game in business is profit, and we always pay attention for DPZ news as it relates to earnings.
Based on our methodology, Domino's Pizza,Inc. should hold some appeal to value investors as we view it as Undervalued. Ranking all stocks in terms of news coverage offers some interesting data. In the case of DPZ, it is getting significantly more attention in recent news coverage than we are used to seeing. The latest news on DPZ has created quite a stir as the stock is trading $0.74 higher in today's session. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… It is like DOMINO'S PIZZA still holding the gain of 5%. Seven. 5% with goldman sachs on the downside. The names that were downgraded, looking at names like alcoa and these ... …”
Imus In The Morning: Get Plugged into DPZ News Regarding The CEO
Ockham is always interested to know what the Chief Executive is doing for their company, and we noticed a mention of DPZ's CEO on Imus In The Morning.
The latest news on DPZ has created quite a stir as the stock is trading $0.56 higher in today's session. Based on our methodology, Domino's Pizza,Inc. should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; DPZ has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… 4 billion dollars and nestle saying it has no intention of bidding for from chocolate to pizza, DOMINO'S PIZZA ceo stepping down and david brandon leaving the company to become ... …”
Analyst Opinion on DPZ the Topic for Squawk On The Street
Wall Street analysts can have a huge affect on stocks, and today Squawk On The Street talked about an analysts' opinion in relation to DPZ.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, DPZ has been less covered in the news compared to the rest of our universe of stocks. We consider DPZ as Undervalued at the current price of $8.34. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The crowd at The Motley Fool does not like DPZ and believes that it will Underperform.
“… buy. So lay securities, the tomorrow's price target on xom is $79. And DOMINO'S PIZZA initiated strong buy at buckingham. …”
It's Been a Month or More Since Power Lunch Discussed Domino's Pizza,Inc.
There has not been much to report from DPZ in the last few weeks at least, but Power Lunch talked about the stock recently.
While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; DPZ has received less coverage from the financial media in business television and blogs. Based on our methodology, Domino's Pizza,Inc. should hold some appeal to value investors as we view it as Undervalued.
“… But DOMINO'S PIZZA has been holding steady. To keep their customers coming, they've expanded their menus and introduced new promotional items I guess our guest is not quite ready... …”