![]() Therefore, I believe that the company seems overvalued based on that metric. This is a P/E that is higher than the P/E of leading tech companies such as Microsoft ( MSFT), Apple ( AAPL), and Google ( GOOG, GOOGL). This is a high P/E ratio despite the fact that the company has been trading for a higher P/E over the last twelve months. The current P/E (price to earnings) ratio when taking into account the 2022 earnings forecast sits slightly above 31. At the current valuation, the buybacks are less effective. Buybacks support EPS growth and are generally a positive move by the management as it accelerates EPS and later dividend growth. Over the last decade, the company has bought back more than a third of its shares outstanding. In addition to the growing dividend, the company is also aggressively buying its own shares. Investors should expect Domino's to keep raising the dividend at a double-digits rate as the dividend payout ratio is below 30%, making it relatively safe. This is not an impressive figure in the restaurant business, but the dividend increases are very impressive. The current dividend is $4.4 a share, and that equates to a dividend yield of 1%. Therefore, it started paying a dividend 8 years ago. Going forward, the consensus of analysts, as seen on Seeking Alpha, expects Domino's Pizza to keep growing EPS at an annual rate of ~8% in the medium term.Īs sales and EPS grew significantly, the company has found itself with a lot of excess cash. All three together have led to the EPS growing almost 700% in the last 10 years. EPS growth was fueled by top-line growth, together with significant buybacks as well as margin improvement as the company improved its digital offering. ![]() The EPS (earnings per share) has grown at a much faster pace compared to the revenues. Going forward, the consensus of analysts, as seen on Seeking Alpha, expects Domino's Pizza to keep growing sales at an annual rate of ~6% in the medium term. Sales are up 167% in the past 10 years as the company opened new stores and improved same-store sales. Over the last decade, Domino's Pizza has shown significant growth when it comes to sales. ![]() It also provides oven-baked sandwiches, pasta, boneless chicken and chicken wings, bread and dips side items, desserts, and soft drink products. The company offers pizzas under the Domino's brand name through company-owned and franchised stores. Stores, International Franchise, and Supply Chain. I will then try to determine if it's a good investment.Īccording to Seeking Alpha's company overview, Domino's Pizza operates as a pizza company in the United States and internationally. I will look into the company's fundamentals, valuation, growth opportunities, and risks. I am using the same method to make it easier for me to compare analyzed stocks. I will analyze the company using my methodology for analyzing dividend growth stocks. In this article, I will look into another player in this sector: Domino's Pizza, Inc. The discretionary spending will be the first to suffer, thus some major names such as Lowe's ( LOW) have suffered. Investors are concerned that the economy will slow down, resulting in less spending. The consumer discretionary sector is an interesting sector at the moment. The current volatility in the market, and the S&P 500 in a bear market, leave room for some more opportunities. Sometimes I add to my existing positions in my dividend growth portfolio, while other times, I am adding new positions to my portfolio. Jetcityimage/iStock Editorial via Getty Images IntroductionĪs a dividend growth investor, I am constantly looking for opportunities to increase my income stream.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |