Other stocks here
DPZ, sales up strongly
Current, target price 525, 760 (+45%)
July 25th, 2021
1 minute read
Sales, up strongly
Costs, stable margins
1 minute read
Sales, up strongly
- Sales increased by 5% in the second quarter to 1,033 million dollars which is above our forecast 1,023 million dollars.
- This brings the average quarterly growth to 6%.
- We predict average growth of 6% in this next 12 months to bring sales to 1,218 million dollars in the second quarter 2022.
Costs, stable margins
- The cash cost ratio of net profit add depreciation minus sales as a percent of sales was -86% in the second quarter & profit was 116 million dollars.
- Average quarterly costs are now at -86%.
- We use the same -86% costs to predict a 142 million dollars net profit in the second quarter of 2022.
Cashflow, average rising
Balance sheet, higher leverage
Value, at 12.2X assets
- Cashflow was at 126 million dollars with investment spending of -16 million dollars in the second quarter.
- Average quarterly Cashflow has now improved to 147 million dollars.
- We use the same -16 million dollars investment spending which with higher sales gives a 153 million dollars cashflow in the second quarter 2022.
Balance sheet, higher leverage
- With positive cashflow, cash increased from 268 to 292 million dollars in the second quarter.
- Liabilities also increased from 4,899 to 5,862 million dollars so net cash improved from -4,631 to -5,570 million dollars.
- With our forecast higher cashflow & assuming there’s a -285 million dollars equity payout, net cash will improve to -5,241 million dollars in 12 months time.
Value, at 12.2X assets
- DPZ capital from the last six years increased to 1,747 million dollars in the second quarter.
- At the current market value of 20,400 million dollars, based on our forecasts, it’s at 4.2X sales & 12.2X assets with a 1% yield.
- Our free cashflow forecast is 615 million dollars. At 48X (2.1% yield), this gives a 45% higher target price of 760 dollars .
