Domino’s Pizza Current Valuation vs. Profit Margin
| DOM Stock | 290.40 0.40 0.14% |
For Domino’s Pizza profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Domino’s Pizza to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dominos Pizza Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Domino’s Pizza's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dominos Pizza Group over time as well as its relative position and ranking within its peers.
Domino’s |
Dominos Pizza Group Profit Margin vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Domino’s Pizza's current stock value. Our valuation model uses many indicators to compare Domino’s Pizza value to that of its competitors to determine the firm's financial worth. Dominos Pizza Group is rated as one of the top companies in current valuation category among its peers. It also is one of the top stocks in profit margin category among its peers . The ratio of Current Valuation to Profit Margin for Dominos Pizza Group is about 12,017,616,912 . 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 Domino’s Pizza's earnings, one of the primary drivers of an investment's value.Domino’s Current Valuation vs. Competition
Dominos Pizza Group is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Discretionary industry is currently estimated at about 18.22 Billion. Domino’s Pizza holds roughly 1.63 Billion in current valuation claiming about 9% of stocks in Consumer Discretionary industry.
Domino’s Profit Margin vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Domino’s Pizza |
| = | 1.63 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Domino’s Pizza |
| = | 0.14 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Domino’s Profit Margin Comparison
Dominos Pizza is currently under evaluation in profit margin category among its peers.
Domino’s Pizza Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Domino’s Pizza, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Domino’s Pizza will eventually generate negative long term returns. The profitability progress is the general direction of Domino’s Pizza's change in net profit over the period of time. It can combine multiple indicators of Domino’s 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1.9 M | -2 M | |
| Operating Income | 117.9 M | 123.8 M | |
| Income Before Tax | 124.9 M | 131.1 M | |
| Total Other Income Expense Net | 27.4 M | 28.7 M | |
| Net Income | 90.2 M | 45.7 M | |
| Income Tax Expense | 31.4 M | 33 M | |
| Net Income Applicable To Common Shares | 15.1 M | 27.7 M | |
| Interest Income | 14 M | 7.9 M | |
| Net Interest Income | -17.5 M | -16.6 M | |
| Net Income From Continuing Ops | 90.2 M | 84.9 M | |
| Change To Netincome | 56.7 M | 59.5 M |
Domino’s Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Domino’s 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 Domino’s 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 Domino’s Pizza's important profitability drivers and their relationship over time.
Use Domino’s 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 Domino’s 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 Domino’s Pizza will appreciate offsetting losses from the drop in the long position's value.Domino’s Pizza Pair Trading
Dominos Pizza Group Pair Trading Analysis
The ability to find closely correlated positions to Domino’s 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 Domino’s 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 Domino’s 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 Group to buy it.
The correlation of Domino’s 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 Domino’s Pizza moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dominos Pizza Group 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 Domino’s 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.Use Investing Themes to Complement your Domino’s Pizza position
In addition to having Domino’s Pizza in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Precious Metals Thematic Idea Now
Precious Metals
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Precious Metals theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Precious Metals Theme or any other thematic opportunities.
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Other Information on Investing in Domino’s Stock
To fully project Domino’s Pizza's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Dominos Pizza Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Domino’s Pizza's income statement, its balance sheet, and the statement of cash flows.