📊 DPZ Key Takeaways
Is Dominos Pizza Inc. (DPZ) a Good Investment?
Domino's demonstrates solid operational fundamentals with strong profitability metrics (19.3% operating margin, 12.2% net margin) and robust free cash flow generation ($671.5M). However, the company's severely negative stockholders' equity of -$3.9B against $5.6B in liabilities presents significant financial distress concerns that overshadow operational strengths, suggesting aggressive leverage or legacy capital structure issues requiring resolution.
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 operating cash flow of $792.1M with 13.6% FCF margin indicates efficient core business operations
- Solid profitability with 40% gross margin and 19.3% operating margin showing pricing power and operational efficiency
- Moderate revenue growth of 5.0% YoY with positive net income growth of 3.0% YoY demonstrates stable business performance
- Adequate liquidity metrics (1.65x current ratio, 1.50x quick ratio) and reasonable interest coverage of 4.9x
- 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
- Negative stockholders' equity of -$3.9B indicates balance sheet insolvency and high financial risk despite operational profitability
- Total liabilities of $5.6B significantly exceed total assets of $1.7B, creating structural financial distress
- Muted growth trajectory (5.0% revenue, 3.0% net income) suggests limited expansion despite profitable core operations
- Extreme leverage situation creates vulnerability to economic downturns or operational disruptions that could trigger covenant violations
- 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
- Debt reduction trajectory and balance sheet restructuring progress
- Operating cash flow sustainability and free cash flow generation trends
- Revenue growth acceleration and operating margin expansion
- Equity rebuilding rate and long-term debt refinancing activities
- 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $1.0B | $102.5M | $2.82 |
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 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DPZ's key strengths?
Claude: Strong operating cash flow of $792.1M with 13.6% FCF margin indicates efficient core business operations. Solid profitability with 40% gross margin and 19.3% operating margin showing pricing power and operational efficiency. 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: Negative stockholders' equity of -$3.9B indicates balance sheet insolvency and high financial risk despite operational profitability. Total liabilities of $5.6B significantly exceed total assets of $1.7B, creating structural financial distress. 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 $4.9B.
Does DPZ pay dividends?
Dominos Pizza Inc. pays dividends, with $236.9M 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 $17.57.
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 April 2026, Dominos Pizza Inc. has a BUY rating with 70% 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 $792.1M, with capital expenditures of $120.6M. FCF margin is 13.6%.
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 1.65 (avg: 1.8).