Fact based stock research
Domino's Pizza Group (LSE:DOM)

GB00BYN59130

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Domino's Pizza Group stock research in summary

corporate.dominos.co.uk

ANALYSIS: With an Obermatt Combined Rank of 27 (worse than 73% compared with investment alternatives), Domino's Pizza Group (Restaurants, United Kingdom) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Domino's Pizza Group are a good value (attractively priced) with a consolidated Value Rank of 79 (better than 79% of alternatives) but show below-average growth (Growth Rank of 35), and are riskily financed (Safety Rank of 12), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 27, is a hold recommendation based on Domino's Pizza Group's financial characteristics. As the company Domino's Pizza Group's key financial metrics exhibit good value (Obermatt Value Rank of 79) but low growth (Obermatt Growth Rank of 35) and risky financing practices (Obermatt Safety Rank of 12), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 79% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	79
Growth Rank	35
Safety Rank	12
Combined Rank	27

Country	United Kingdom
Industry	Restaurants
Index	FTSE All Shares, FTSE 250, FTSE 350
Size class	Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Domino's Pizza Group

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	67	72	72	79
GROWTH
GROWTH	57	13	29	35
SAFETY
SAFETY	59	50	32	12
SENTIMENT
SENTIMENT	n/a	21	70	^new
360° VIEW
360° VIEW	n/a	18	45	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Domino's Pizza Group is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	67	72	72	79
GROWTH
GROWTH	57	13	29	35
SAFETY
SAFETY	59	50	32	12
COMBINED
COMBINED	79	32	23	27

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Domino's Pizza Group the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 79 (better than 79% compared with alternatives) for 2024, Domino's Pizza Group shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Domino's Pizza Group. Expected dividend yields are higher than for 82% of comparable companies (a Dividend Yield rank of 82), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 100, which means that the stock price is lower compared with invested capital than for 100% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 20 which means that the stock price compared with what market professionals expect for future profits is higher than for 80% of comparable companies, indicating a low value concerning Domino's Pizza Group's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Domino's Pizza Group with a rank of 48. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 52% of comparable companies, indicating a low value concerning Domino's Pizza Group's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 79, is a buy recommendation based on Domino's Pizza Group's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Domino's Pizza Group may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	9	16	18	20
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	37	55	34	48
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	100	100	100	100
DIVIDEND YIELD
DIVIDEND YIELD	67	80	75	82
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	67	72	72	79

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Domino's Pizza Group; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 35 (better than 35% compared with alternatives), Domino's Pizza Group shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Domino's Pizza Group. Sales Growth has a value of 56 which means that currently professionals expect the company to grow more than 56% of its competitors. Profit Growth with a value of 53 and Capital Growth with a rank of 57 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 19, which means that stock returns have recently been below 81% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 35, is a hold recommendation for growth and momentum investors. Domino's Pizza Group has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Domino's Pizza Group, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	43	9	42	56
PROFIT GROWTH
PROFIT GROWTH	88	17	25	53
CAPITAL GROWTH
CAPITAL GROWTH	n/a	37	38	57
STOCK RETURNS
STOCK RETURNS	81	81	73	19
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	57	13	29	35

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Domino's Pizza Group.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 12 (better than 12% compared with alternatives), the company Domino's Pizza Group has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Domino's Pizza Group is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Domino's Pizza Group. Liquidity is at 58, meaning the company generates more profit to service its debt than 58% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 35, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 65% of its competitors. Leverage is also high at a rank of 1, which means that the company has an above-average debt-to-equity ratio. It has more debt than 99% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 12 (worse than 88% compared with alternatives), Domino's Pizza Group has a financing structure that is significantly riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	57	5	3	1
REFINANCING
REFINANCING	53	51	45	35
LIQUIDITY
LIQUIDITY	57	82	62	58
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	59	50	32	12

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Domino's Pizza Group and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	8	28	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	34	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	49	94	^new
MARKET PULSE
MARKET PULSE	n/a	54	73	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	21	70	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Domino's Pizza Group.
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