Dominos Pizza Price To Sales vs. Gross Profit

DPZ Stock  USD 454.16  3.58  0.78%   
Based on the key profitability measurements obtained from Dominos Pizza's financial statements, Dominos Pizza may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Dominos Pizza's ability to earn profits and add value for shareholders.

Dominos Pizza Price To Sales Ratio

3.39

At this time, Dominos Pizza's Price To Sales Ratio is fairly stable compared to the past year. Price Sales Ratio is likely to rise to 3.39 in 2024, whereas Days Sales Outstanding is likely to drop 16.20 in 2024. At this time, Dominos Pizza's Operating Income is fairly stable compared to the past year. Income Before Tax is likely to rise to about 685.1 M in 2024, despite the fact that Accumulated Other Comprehensive Income is likely to grow to (3.7 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.240.3856
Way Down
Slightly volatile
Net Profit Margin0.120.1159
Sufficiently Up
Slightly volatile
Operating Profit Margin0.120.183
Way Down
Pretty Stable
Pretax Profit Margin0.080.1457
Way Down
Pretty Stable
Return On Assets0.180.3099
Way Down
Very volatile
For Dominos Pizza profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dominos Pizza to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dominos Pizza utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dominos Pizza's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dominos Pizza over time as well as its relative position and ranking within its peers.
  

Dominos Pizza's Revenue Breakdown by Earning Segment

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Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dominos Pizza. If investors know Dominos will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dominos Pizza listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.301
Dividend Share
5.74
Earnings Share
16.26
Revenue Per Share
134.054
Quarterly Revenue Growth
0.031
The market value of Dominos Pizza is measured differently than its book value, which is the value of Dominos that is recorded on the company's balance sheet. Investors also form their own opinion of Dominos Pizza's value that differs from its market value or its book value, called intrinsic value, which is Dominos Pizza's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dominos Pizza's market value can be influenced by many factors that don't directly affect Dominos Pizza's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dominos Pizza's value and its price as these two are different measures arrived at by different means. Investors typically determine if Dominos Pizza is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dominos Pizza's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Dominos Pizza Gross Profit vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Dominos Pizza's current stock value. Our valuation model uses many indicators to compare Dominos Pizza value to that of its competitors to determine the firm's financial worth.
Dominos Pizza is rated below average in price to sales category among its peers. It is rated below average in gross profit category among its peers fabricating about  343,351,830  of Gross Profit per Price To Sales. At this time, Dominos Pizza's Price To Sales Ratio is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Dominos Pizza's earnings, one of the primary drivers of an investment's value.

Dominos Pizza's Earnings Breakdown by Geography

Dominos Gross Profit vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Dominos Pizza

P/S

 = 

MV Per Share

Revenue Per Share

 = 
3.39 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Dominos Pizza

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
1.16 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Dominos Gross Profit Comparison

Dominos Pizza is currently under evaluation in gross profit category among its peers.

Dominos Pizza Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Dominos Pizza, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dominos Pizza will eventually generate negative long term returns. The profitability progress is the general direction of Dominos Pizza's change in net profit over the period of time. It can combine multiple indicators of Dominos Pizza, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-3.9 M-3.7 M
Operating Income819.5 M860.5 M
Income Before Tax652.4 M685.1 M
Total Other Income Expense Net-167.1 M-175.4 M
Net Income519.1 M545.1 M
Income Tax Expense133.3 M76.3 M
Net Income Applicable To Common Shares520.1 M546.1 M
Net Income From Continuing Ops520.1 M333.9 M
Non Operating Income Net Other3.6 M3.8 M
Interest Income9.7 M11 M
Net Interest Income-187.7 M-197.1 M
Change To Netincome11.8 M12.4 M
Net Income Per Share 14.80  15.54 
Income Quality 1.14  1.57 
Net Income Per E B T 0.80  0.54 

Dominos Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Dominos Pizza. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Dominos Pizza position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Dominos Pizza's important profitability drivers and their relationship over time.

Use Dominos Pizza in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dominos Pizza position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dominos Pizza will appreciate offsetting losses from the drop in the long position's value.

Dominos Pizza Pair Trading

Dominos Pizza Pair Trading Analysis

The ability to find closely correlated positions to Dominos Pizza could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dominos Pizza when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dominos Pizza - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dominos Pizza to buy it.
The correlation of Dominos Pizza is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dominos Pizza moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dominos Pizza moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dominos Pizza can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Dominos Pizza position

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Macroaxis Picks Theme
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Additional Tools for Dominos Stock Analysis

When running Dominos Pizza's price analysis, check to measure Dominos Pizza's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dominos Pizza is operating at the current time. Most of Dominos Pizza's value examination focuses on studying past and present price action to predict the probability of Dominos Pizza's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dominos Pizza's price. Additionally, you may evaluate how the addition of Dominos Pizza to your portfolios can decrease your overall portfolio volatility.