Checking your sign-in status…

Private workspace

Finance

Research, portfolio tools, and market analysis in one place.

Finance home
Back to US Equities

US Equities · Finance research note

DPZ — Domino's

Research and analysis only
View analysis Browse US Equities

Evidence and analysis

Research evidence pack

Source-backed valuation visuals

Loading verified snapshot
Loading verified market, valuation, and statement data.

2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 19.34%
Profit Margins 11.89%
Return on Assets 32.49%
Free Float 0.03B
Dividend Yield 2.67%
Short Int % Utilisation 12.07%

2.2 Growth

Metric Value
Revenue Growth 3.5%
Free Cash Flow 0.52B
EBITDA 15.05 (Ratio)
Enterprise Value 15.37B
EV/Revenue 3.09
EV/EBITDA 15.05

Revenue growth of 3.5% suggests mature or challenged top-line momentum.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* -18.54%
Risk / Std Dev (Ann.)* 29.19%
1-Year Price Return* -21.79%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $346.27
52-Week Range $282.00 – $469.00
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $4.94B $4.71B
Net income Reported net income $601.70M $584.17M
Total assets Year-end reported balance $1.72B $1.74B
Shareholders’ equity Year-end reported balance $-3.90B $-3.96B
Net margin Net income ÷ revenue 12.18% 12.41%
Asset turnover Revenue ÷ total assets 2.8780x 2.7095x
Equity multiplier Total assets ÷ shareholders’ equity -0.4400x -0.4384x
ROE Net margin × asset turnover × equity multiplier -15.42% -14.74%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $4.94B
Prior annual revenue $4.71B
EBIT $966.31M
Tax rate 21.90%
NOPAT = EBIT × (1 − tax rate) $754.69M
Forecast start-growth basis 4.96%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $754.69M
Add: depreciation & amortisation $88.83M
Less: capital expenditure -$120.56M
Less/(add): working-capital cash-flow movement $52.75M
Current unlevered FCFF $775.71M

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 4.96% $792.14M $93.24M -$126.54M $55.37M $814.21M $784.24M
2 4.35% $826.58M $97.29M -$123.35M $57.78M $858.29M $766.96M
3 3.73% $857.42M $100.92M -$118.94M $59.93M $899.33M $745.56M
4 3.12% $884.14M $104.06M -$113.36M $61.80M $936.64M $720.38M
5 2.50% $906.24M $106.66M -$106.66M $63.34M $969.59M $691.82M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 0.95
Cost of equity 9.94%
Pre-tax cost of debt 3.83%
WACC 7.79%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $18.79B
Implied terminal EV / EBITDA 14.83x
Terminal value as % of enterprise value 77.69%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $3.71B
Present value of terminal value $12.91B
Indicated enterprise value $16.62B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $16.62B
Less: gross interest-bearing debt $5.05B
Add: cash and equivalents $125.67M
Add: affiliate investments $0.00
Less: minority interests $0.00
Indicated common equity value $11.70B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 34,237,646.00
Share-count basis reported diluted weighted-average shares
Current market price $340.29
DCF indicative value per share $341.72
Indicative value vs. market price 0.42%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% within review band

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 3/4 evidenced checks
Lynch-inspired balance-and-growth checks 3/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:30:37.346563 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -38.18% -24.71%
Adjusted R² 0.03 0.13
Annualised residual volatility 27.03% 25.40%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 0.02 (0.12) 0.45 (2.63)
Size (SMB) 0.61 (2.82) 0.54 (2.48)
Value (HML) -0.14 (-0.77) -0.68 (-3.15)
Profitability (RMW) NM 0.64 (3.53)
Investment (CMA) NM 0.97 (3.08)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

us-equitystockequitydpzconsumer-discretionaryrestaurantsnasdaq