📊 DPZ Key Takeaways
Is Dominos Pizza Inc. (DPZ) a Good Investment?
Domino's demonstrates strong operational fundamentals with 20% operating margins and robust free cash flow generation of $146.9M, but faces critical balance sheet risk with negative stockholders' equity of -$3.9B and extreme leverage (debt 21x cash). While the asset-light franchise model generates consistent profitability, the aggressive capital structure leaves limited financial flexibility and poses refinancing risk if operational performance deteriorates.
Domino's Pizza shows high-quality fundamentals driven by strong margins, resilient cash generation, and steady top- and bottom-line growth. Revenue, EPS, and free cash flow are all expanding, which supports the view that growth is translating into real earnings and cash rather than accounting noise. The main constraint is financial structure: negative equity and liabilities far above assets increase balance-sheet risk and reduce flexibility if operating conditions weaken.
Why Buy Dominos Pizza Inc. Stock? DPZ Key Strengths
- Strong operational profitability with 20% operating margin and 12.2% net margin
- Exceptional free cash flow generation of $146.9M with 12.8% FCF margin, demonstrating cash conversion quality
- Asset-light franchise business model with minimal CapEx requirements ($15M), capital efficient
- Solid revenue growth of 5% YoY and EPS growth of 5.3% YoY showing earnings expansion
- Adequate short-term liquidity with 1.60x current ratio and 1.49x quick ratio
- Strong profitability with 40.0% gross margin, 19.3% operating margin, and 12.2% net margin
- Solid cash generation with $792.06M operating cash flow and $671.50M free cash flow, supporting reinvestment and capital returns
- Growth quality appears healthy, with revenue up 5.0%, net income up 3.0%, and diluted EPS up 5.3% year over year
DPZ Stock Risks: Dominos Pizza Inc. Investment Risks
- CRITICAL: Negative stockholders' equity of -$3.9B indicates balance sheet insolvency and extreme financial distress
- Extreme leverage with $4.9B long-term debt against only $232.9M cash (21x ratio) and negative equity
- Earnings growth decelerating relative to revenue (3% vs 5% YoY) indicates margin compression or rising interest burden
- Interest coverage of 5.0x provides limited cushion; leverage materially restricts financial flexibility and refinancing options
- High debt service obligations consume substantial cash flow, limiting dividend sustainability and leaving minimal buffer for operational stress
- Negative stockholders equity and liabilities exceeding assets indicate an aggressive capital structure and weaker balance-sheet resilience
- Interest coverage of 4.9x is adequate but not especially strong, leaving less cushion if earnings soften or financing costs rise
- Growth is steady rather than high, so any slowdown in sales could pressure earnings momentum and reduce operating leverage
Key Metrics to Watch
- Operating cash flow trends and sustainability of $162M level amid rising interest rates
- Net margin progression to confirm if compression continues or stabilizes
- Debt-to-EBITDA ratio and refinancing schedule for $4.9B debt maturity profile
- Form 4 insider trading patterns to assess insider confidence in financial position
- Free cash flow allocation: capital return vs. debt reduction priorities
- Interest coverage and total liabilities relative to operating income/free cash flow
- Same-store sales and revenue growth versus net income and free cash flow growth
Dominos Pizza Inc. (DPZ) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Dominos Pizza Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
DPZ Profit Margin, ROE & Profitability Analysis
DPZ vs Market Sector: How Dominos Pizza Inc. Compares
How Dominos Pizza Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Dominos Pizza Inc. Stock Overvalued? DPZ Valuation Analysis 2026
Based on fundamental analysis, Dominos Pizza Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Dominos Pizza Inc. Balance Sheet: DPZ Debt, Cash & Liquidity
DPZ Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Dominos Pizza Inc.'s revenue has grown significantly by 20% over the 5-year period, indicating strong business expansion. The most recent EPS of $14.66 reflects profitable operations.
DPZ Revenue Growth, EPS Growth & YoY Performance
DPZ Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.1B | $139.8M | $4.13 |
| Q3 2025 | $1.1B | $139.3M | $4.08 |
| Q2 2025 | $1.1B | $131.1M | $3.81 |
| Q1 2025 | $1.1B | $125.8M | $3.58 |
| Q3 2024 | $1.0B | $146.9M | $4.18 |
| Q2 2024 | $1.0B | $109.4M | $3.08 |
| Q1 2024 | $1.0B | $104.8M | $2.93 |
| Q3 2023 | $1.0B | $100.5M | $2.79 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Dominos Pizza Inc. Dividends, Buybacks & Capital Allocation
DPZ SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Dominos Pizza Inc. (CIK: 0001286681)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DPZ
What is the AI rating for DPZ?
Dominos Pizza Inc. (DPZ) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DPZ's key strengths?
Claude: Strong operational profitability with 20% operating margin and 12.2% net margin. Exceptional free cash flow generation of $146.9M with 12.8% FCF margin, demonstrating cash conversion quality. ChatGPT: Strong profitability with 40.0% gross margin, 19.3% operating margin, and 12.2% net margin. Solid cash generation with $792.06M operating cash flow and $671.50M free cash flow, supporting reinvestment and capital returns.
What are the risks of investing in DPZ?
Claude: CRITICAL: Negative stockholders' equity of -$3.9B indicates balance sheet insolvency and extreme financial distress. Extreme leverage with $4.9B long-term debt against only $232.9M cash (21x ratio) and negative equity. ChatGPT: Negative stockholders equity and liabilities exceeding assets indicate an aggressive capital structure and weaker balance-sheet resilience. Interest coverage of 4.9x is adequate but not especially strong, leaving less cushion if earnings soften or financing costs rise.
What is DPZ's revenue and growth?
Dominos Pizza Inc. reported revenue of $1.2B.
Does DPZ pay dividends?
Dominos Pizza Inc. pays dividends, with $1.5M distributed to shareholders in the trailing twelve months.
Where can I find DPZ SEC filings?
Official SEC filings for Dominos Pizza Inc. (CIK: 0001286681) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DPZ's EPS?
Dominos Pizza Inc. has a diluted EPS of $4.13.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DPZ a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Dominos Pizza Inc. has a BUY rating with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is DPZ stock overvalued or undervalued?
Valuation metrics for DPZ: ROE of N/A (sector avg: 15%), net margin of 12.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy DPZ stock in 2026?
Our dual AI analysis gives Dominos Pizza Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is DPZ's free cash flow?
Dominos Pizza Inc.'s operating cash flow is $162.0M, with capital expenditures of $15.0M. FCF margin is 12.8%.
How does DPZ compare to other Market stocks?
Vs Default sector averages: Net margin 12.2% (avg: 12%), ROE N/A (avg: 15%), current ratio 1.60 (avg: 1.8).