Domino’s Pizza, Inc. ($DPZ) Cautious Buy or Hold to $206 Confident Investor Rating: Fair

Company name Domino’s Pizza, Inc.
Stock ticker DPZ
Live stock price [stckqut]DPZ[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Fair
EPS growth Good
P/E growth Fair
EBIT growth Fair

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $222.05
Target stock price (averages with growth) $240.49
Target stock price (averages with no growth) $125.78
Target stock price (manual assumptions) $240.54

The following company description is from Google Finance: http://www.google.com/finance?q=dpz

Domino’s Pizza, Inc. is a pizza restaurant chain company. As of January 1, 2017, the Company operated in over 13,800 locations in over 85 markets around the world. The Company operates through three segments: domestic stores, international franchise and supply chain. Its basic menu features pizza products in various sizes and crust types. As of January 1, 2017, its Domestic Stores segment consisted primarily of its franchise operations, which consisted of 4,979 franchised stores located in the contiguous United States. As of January 1, 2017, its International Franchise segment consisted of a network of franchised stores in over 85 international markets. As of January 1, 2017, its supply chain segment operated 18 regional dough manufacturing and food supply chain centers in the United States, one thin crust manufacturing center, one vegetable processing center and one center providing equipment and supplies to certain of its domestic and international stores.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Domino’s Pizza, Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Domino’s Pizza, Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $198.55
  • Growth: 0.14
  • Current EPS (TTM): $5.03
  • P/E: 40
  • Future EPS Calc: $9.68
  • Future Stock Price Calc: $387.39
  • Target stock price: $240.54

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I hope that this makes you a Confident Investor.

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