Domino's Pizza Enterprises Limited (DMP) AI Stock Analysis

• Market Cap: $1.79B
• Dividend Yield: 6.95%
• Average Volume (3M): 643.46K
• Price to Earnings (P/E): 108.3
• Beta (1Y): 0.98
• Revenue Growth: -8.04%
• EPS Growth: -54.44%
• Country: AU
• Employees: 88,000
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Restaurants
• EPS (TTM): -0.24
• Shares Outstanding: 94,448,290
• 10 Day Avg. Volume: 550,186
• 30 Day Avg. Volume: 643,457
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.26
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 5.61
• Enterprise Value/Ebitda: 18.05
• 1Y Price Target: $22.61
• Price Target Upside: 17.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 56 Neutral
• Price Target: AU$17.50 ▼(-9.42% Downside)

The overall score reflects strong financial performance and substantial dividend yield. However, bearish technical indicators and high leverage risk weigh negatively on the stock's attractiveness. The high P/E ratio further exacerbates valuation concerns.

Positive Factors

Competitive Advantage

The company aims to maintain a competitive advantage by being the largest and strongest pizza company in the market, with advertising power, store network, and execution.

Management Success

The appointment of Phil Reed to senior management in Europe is seen as positive given the recent success of Pizza Hut in Australia.

Negative Factors

Earnings Expectations

Earnings expectations for store rollout have been lowered, contributing to a reduced target price driven by increased strategic uncertainty.

Strategic Uncertainty

A period of strategic uncertainty is expected until a new CEO replacement is found.

Domino's Pizza Enterprises Limited Business Overview & Revenue Model

Company Description

Domino's Pizza Enterprises Limited operates retail food outlets. The company holds franchise rights for the Domino's brand in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, Denmark, and Taiwan. It operates a network of 3,396 stores. Domino's Pizza Enterprises Limited was founded in 1983 and is based in Brisbane, Australia.

How the Company Makes Money

Domino's Pizza Enterprises Limited makes money through a combination of company-owned and franchised stores. The primary revenue streams include the sale of pizzas and other menu items at these outlets, franchise fees, and royalties from franchised stores. Franchisees pay an initial franchise fee and ongoing royalties based on a percentage of sales, which contributes significantly to the company's earnings. Additionally, Domino's benefits from supply chain operations, providing dough and other food products to franchisees, which adds another layer of revenue. The company's focus on technology, such as its online ordering platform and innovative delivery methods, enhances customer engagement and drives sales growth. Strategic partnerships with delivery platforms and marketing collaborations further bolster Domino's market presence and revenue potential.

Domino's Pizza Enterprises Limited Financial Statement Overview

Summary

Domino's Pizza Enterprises Limited exhibits strong financial performance with consistent revenue growth and profitability. The robust Gross Profit Margin and improved Net Profit Margin highlight operational efficiency. However, high leverage and a slight dip in revenue growth rate are potential risks.

Income Statement

Domino's Pizza Enterprises Limited has shown a consistent revenue growth trajectory, with a Revenue Growth Rate of 1.08% from 2023 to 2024. The Gross Profit Margin is robust at 56.01%, and the Net Profit Margin has improved to 4.05%, indicating better cost management. The EBIT Margin stands at 10.79%, and the EBITDA Margin is at 13.69%, reflecting strong operational efficiency. However, the slight dip in revenue growth rate may indicate a saturation point in the market, which needs to be monitored.

Balance Sheet

The Debt-to-Equity Ratio is 2.37, which is relatively high, indicating potential leverage risks. The Return on Equity (ROE) is 15.74%, showing a good return on shareholders' investment. The Equity Ratio is 23.51%, suggesting a moderate level of equity financing compared to total assets. While profitability is strong, the high leverage could pose financial risks if not managed properly.

Cash Flow

The company has demonstrated a solid Free Cash Flow Growth Rate of 42.33% from 2023 to 2024, indicating improved cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 2.47, and the Free Cash Flow to Net Income Ratio is 1.53, both of which highlight efficient cash flow management. However, the negative investing cash flow suggests substantial investment activities, which could impact future liquidity.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.37B	2.34B	2.27B	2.19B	1.90B
Gross Profit	731.50M	587.23M	634.83M	626.62M	539.30M
EBITDA	324.55M	279.38M	383.75M	421.79M	348.21M
Net Income	95.96M	40.57M	158.72M	184.01M	138.48M
Balance Sheet
Total Assets	2.59B	2.88B	2.43B	2.35B	2.47B
Cash, Cash Equivalents and Short-Term Investments	87.65M	159.89M	76.88M	174.69M	245.68M
Total Debt	1.44B	1.74B	1.41B	1.27B	1.48B
Total Liabilities	1.98B	2.36B	2.01B	1.96B	2.08B
Stockholders Equity	609.55M	520.52M	421.96M	395.14M	393.37M
Cash Flow
Free Cash Flow	146.78M	103.13M	-1.95M	230.51M	186.13M
Operating Cash Flow	236.97M	260.79M	190.12M	373.25M	311.41M
Investing Cash Flow	-66.01M	-487.94M	-233.28M	-97.46M	-98.88M
Financing Cash Flow	-239.09M	314.12M	-49.95M	-329.90M	-70.14M

Domino's Pizza Enterprises Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.32
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DMP, the sentiment is Neutral. The current price of 19.32 is above the 20-day moving average (MA) of 18.83, above the 50-day MA of 18.77, and below the 200-day MA of 25.49, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 55.43 is Neutral, neither overbought nor oversold. The STOCH value of 78.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:DMP.

Domino's Pizza Enterprises Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	AU$3.12B	29.00	24.23%	4.44%	1.54%	-28.82%
DMP	56 Neutral	$1.79B	108.34	2.09%	6.95%	-8.04%	-54.44%
CLLFF	―	$697.51M	95.18	2.40%	2.78%	―	―
RFGPF	―	$83.78M	16.90	-6.95%	―	―	―
36S	―	$1.52M	―		―	―	―
MTO	75 Outperform	AU$264.23M	15.54	8.49%	4.19%	3.76%	-26.42%
GYG	55 Neutral	AU$2.90B	―	-1.13%	―	26.77%	51.19%

Domino's Pizza Enterprises Limited Corporate Events

Domino’s Addresses ASX Compliance Query on Director’s Interest Notice

Domino’s Pizza Enterprises Limited addressed a compliance query from the Australian Securities Exchange regarding a late filing of a director’s interest notice. The delay was due to an administrative oversight, which the company promptly rectified upon discovery. Domino’s assured that it has adequate procedures in place to meet disclosure obligations and prevent future occurrences, emphasizing its commitment to compliance and transparency.

The most recent analyst rating on (AU:DMP) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Domino’s Pizza Enterprises Announces Director’s Share Acquisition

Domino’s Pizza Enterprises Limited announced a change in the director’s interest, specifically concerning Tony Peake. The change involved the acquisition of 848 ordinary shares by the Peake Self-managed Superannuation Fund, increasing its total to 3,547 shares. This transaction, conducted through an on-market trade at $28.37 per share, reflects ongoing adjustments in the company’s executive shareholdings, which may influence stakeholder perceptions and the company’s governance dynamics.

The most recent analyst rating on (AU:DMP) stock is a Buy with a A$44.00 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Domino’s Pizza Enterprises: Change in Substantial Holder Interests

Domino’s Pizza Enterprises Limited has announced a change in the interests of a substantial holder, with State Street Bank and Trust Company and its subsidiaries being involved in securities lending agreements. This change affects the voting power and relevant interests in the company’s shares, indicating a shift in the control dynamics of the company’s securities. Such changes may have implications for the company’s governance and stakeholder influence.

The most recent analyst rating on (AU:DMP) stock is a Buy with a A$46.00 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Domino’s Addresses ASX Query on Unusual Trading Activity

Domino’s Pizza Enterprises Limited has responded to an ASX query regarding unusual trading activity in its securities, which saw a notable price drop and increased trading volume. The company stated it is unaware of any undisclosed information that could explain the trading activity, aside from a recent announcement about leadership changes. Domino’s confirmed its compliance with ASX listing rules and emphasized that its financial results for the year ended June 30, 2025, remain subject to standard year-end processes and audit.

The most recent analyst rating on (AU:DMP) stock is a Buy with a A$46.00 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Domino’s Announces Leadership Transition and Strategic Focus

Domino’s Pizza Enterprises Limited announced a leadership transition with CEO Mark van Dyck stepping down by the end of 2025. Chairman Jack Cowin will temporarily assume the role of Executive Chair to ensure a smooth transition while the company searches for a new CEO. Under van Dyck’s leadership, Domino’s underwent significant operational changes, including closing underperforming stores and restructuring leadership, which laid the groundwork for future growth. The company remains committed to its strategic direction, focusing on franchisee profitability, cost efficiency, and leadership enhancement across key markets.

The most recent analyst rating on (AU:DMP) stock is a Buy with a A$46.00 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Hyperion Asset Management Ceases Substantial Holding in Domino’s Pizza Enterprises

Hyperion Asset Management Limited has ceased to be a substantial holder of Domino’s Pizza Enterprises Limited as of June 26, 2025. This change in shareholding could impact the company’s stock market dynamics and influence its strategic decisions, as changes in substantial holdings often reflect shifts in investor confidence or strategic re-alignments.

The most recent analyst rating on (AU:DMP) stock is a Buy with a A$46.00 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Pinnacle Reduces Stake in Domino’s Pizza Enterprises

Pinnacle Investment Management Group Limited has reduced its stake in Domino’s Pizza Enterprises Limited, decreasing its voting power from 9.76% to 8.58%. This change in substantial holding reflects a shift in Pinnacle’s investment strategy and could influence market perceptions and stakeholder confidence in Domino’s Pizza.

The most recent analyst rating on (AU:DMP) stock is a Buy with a A$46.00 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.