Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Domino's Pizza, Inc. (DPZ)

Company Dividend Discount ModelIndustry: RestaurantsSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$494.98 - $1,855.76$831.68
Multi-Stage$316.61 - $345.88$330.98
Blended Fair Value$581.33
Current Price$466.11
Upside24.72%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS14.71%14.79%6.094.934.574.043.543.072.672.452.142.33
YoY Growth--23.66%7.77%13.01%14.33%15.33%14.70%9.33%14.03%-7.97%52.01%
Dividend Yield--1.31%1.06%1.42%1.01%0.95%0.95%1.10%1.06%1.17%1.80%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)589.51
(-) Cash Dividends Paid (M)223.43
(=) Cash Retained (M)366.07
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)117.9073.6944.21
Cash Retained (M)366.07366.07366.07
(-) Cash Required (M)-117.90-73.69-44.21
(=) Excess Retained (M)248.17292.38321.86
(/) Shares Outstanding (M)34.4634.4634.46
(=) Excess Retained per Share7.208.489.34
LTM Dividend per Share6.486.486.48
(+) Excess Retained per Share7.208.489.34
(=) Adjusted Dividend13.6814.9715.82
WACC / Discount Rate8.42%8.42%8.42%
Growth Rate5.50%6.50%7.50%
Fair Value$494.98$831.68$1,855.76
Upside / Downside6.19%78.43%298.14%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)589.51627.82668.63712.09758.38807.67831.90
Payout Ratio37.90%48.32%58.74%69.16%79.58%90.00%92.50%
Projected Dividends (M)223.43303.37392.76492.49603.52726.91769.51

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.42%8.42%8.42%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)277.19279.82282.45
Year 2 PV (M)327.90334.15340.45
Year 3 PV (M)375.68386.46397.45
Year 4 PV (M)420.65436.83453.47
Year 5 PV (M)462.93485.29508.50
PV of Terminal Value (M)9,047.559,484.559,938.28
Equity Value (M)10,911.9111,407.1011,920.60
Shares Outstanding (M)34.4634.4634.46
Fair Value$316.61$330.98$345.88
Upside / Downside-32.07%-28.99%-25.79%

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