Domino's Pizza Inc (DPZ, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth prospects. With its shares currently trading at $431.38 and experiencing a daily gain of 2.54%, despite a three-month decline of -19.21%, the company's robust financial health is evident. A detailed analysis, supported by the GF Score, indicates that Domino's Pizza Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects from 2006 to 2021. This system has proven to correlate closely with long-term stock performance. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. For Domino's Pizza Inc, the GF Score is an impressive 94 out of 100, suggesting strong future performance.
- Financial strength rank: 4/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 7/10
- Momentum rank: 7/10
Understanding Domino's Pizza Inc Business
Domino's Pizza Inc operates and franchises approximately 20,600 stores worldwide, making it the largest player in the global pizza market with a market cap of $15.09 billion and sales of $4.61 billion. The company's operating margin stands at 18.5%, reflecting efficient operations. Domino's generates revenue through direct sales and franchise operations, supplemented by its extensive supply chain facilities in the U.S. and Canada. With $18.3 billion in system sales in 2023, Domino's leads the market, surpassing competitors like Pizza Hut and Papa John's.
Profitability and Financial Health
Domino's Pizza Inc's Operating Margin has shown a positive trend over the past five years, peaking at 18.30% in 2023. This growth in profitability is further underscored by its top-notch Profitability Rank of 10/10. Additionally, the company's financial health is solid, as indicated by the Piotroski F-Score, and its consistent operational performance is reflected in a Predictability Rank of 4.0 stars out of five.
Growth Trajectory
Domino's Pizza Inc is not just resting on its laurels but is actively expanding. The company's 3-Year Revenue Growth Rate of 6.8% is robust, complemented by a significant increase in EBITDA over the past few years. These figures highlight Domino's commitment to growth and its ability to scale effectively.
Conclusion
Considering Domino's Pizza Inc's strong financial strength, exceptional profitability, and aggressive growth metrics, the GF Score highlights the company's unmatched position for potential market outperformance. For investors looking for high-performing stocks, Domino's presents a compelling case. Explore more such opportunities with our exclusive GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
