Domino's Pizza (DPZ)
Consumer · NASDAQ · US
Fundamentals
Valuation and ratings
Domino's Pizza trades at $310.87, which is 53% above the $147.65 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 33 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 17.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Domino's Pizza
Domino's Pizza, Inc. operates as a pizza company worldwide. 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. The company also provides bread products, wings, boneless chicken, pastas, oven-baked sandwiches, soft drink products and desserts. In addition, it offers parmesan stuffed crust pizza; spicy chicken bacon ranch specialty pizza; and garlic, and cinnamon bread bites, as well as croissant, chocolate volcano, and chicken burst pizzas. Domino's Pizza, Inc. was founded in 1960 and is based in Ann Arbor, Michigan.
DPZ passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
14 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$298.69M · 0.1% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$189.17M · 0.1% of book
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$126.01M · 0.2% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$98.64M · 0.0% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$40.39M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Domino's Pizza (DPZ) undervalued?
Against our discounted cash flow estimate of $147.65, DPZ at $310.87 is 53% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own DPZ?
14 of the institutions we track reported a position in DPZ in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is DPZ's P/E ratio?
DPZ trades at 17.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.