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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2139
Positioning
Market Dominance
Wholesale Trade
Wholesale
$15.7B
Russell J. Weiner
Domino's Pizza, Inc. operates as a pizza company in the United States and internationally. The company operates through three segments: U.S. Stores, International Franchise, and Supply Chain. As of January 2, 2022, the company operated approximately 18,800 stores in 90 markets.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = DPZ ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$ITRN Ituran Location & Control Ltd. | 74 | 95 | 97 | 62 | - | - | 30.4% | 17.5% | 47.8% | 21.2% | 16.8% | 5.1% | 5.1% | 0.0x | $612M | VS | |
$COR Cencora, Inc. | 70 | 84 | 77 | 70 | 21.1x | 11.8x | 123.8% | 2.2% | 3.6% | 0.8% | 0.5% | 9.3% | 0.7% | 508.0x | $60.5B | VS | |
$CENT CENTRAL GARDEN & PET CO | 70 | 84 | 95 | 48 | 5.9x | 3.5x | 10.4% | 4.6% | 31.9% | 8.0% | 5.2% | -2.2% | 0.0% | 75.0x | $2.1B | VS | |
$SNX TD SYNNEX CORP | 67 | 80 | 93 | 57 | 13.5x | 6.2x | 10.0% | 2.6% | 7.0% | 2.3% | 1.3% | 6.9% | 1.2% | 55.0x | $12.4B | VS | |
$HLF HERBALIFE LTD. | 65 | 60 | 75 | 96 | 5.0x | 1.4x | -32.4% | 6.3% | 77.7% | 9.9% | 3.4% | 2.7% | 0.0% | - | $870M | VS | |
$GIC GLOBAL INDUSTRIAL Co | 65 | 82 | 60 | 62 | 18.7x | 12.5x | 24.0% | 12.5% | 35.6% | 7.4% | 5.3% | 3.3% | 2.8% | 0.0x | $1.4B | VS | |
$JXG JX Luxventure Group Inc. | 63 | 84 | 75 | 88 | - | - | 20.4% | 11.9% | 16.8% | 7.8% | 6.2% | 56.5% | 0.0% | 22.0x | $6M | VS | |
$FERG Ferguson Enterprises Inc. /DE/ | 63 | 74 | 48 | 67 | 21.4x | 14.3x | 39.4% | 12.6% | 30.7% | 9.4% | 7.0% | 5.1% | 1.3% | 68.0x | $48.9B | VS | |
$SYY SYSCO CORP | 60 | 68 | 49 | 65 | 22.7x | 9.2x | 89.9% | 5.9% | 18.3% | 3.3% | 1.9% | 3.0% | 2.9% | 595.0x | $35.3B | VS | |
$DXPE DXP ENTERPRISES INC | 60 | 58 | 55 | 79 | 21.6x | 8.5x | 25.1% | 6.2% | 31.4% | 8.5% | 4.2% | 8.6% | 0.0% | 128.0x | $1.9B | VS | |
$DPZ DOMINOS PIZZA INC | 49 | 68 | 39 | 28 | 22.9x | 13.8x | -17.6% | 34.2% | 39.9% | 19.1% | 12.7% | 4.5% | 1.4% | - | $15.7B | ||
| SECTOR BENCH | - | - | - | - | - | 19.1x | 8.2x | 8.6% | 2.7% | 22.5% | 3.3% | 1.4% | 3.3% | 0.3% | 0.5x | - | REF |
DOMINOS PIZZA INC (DPZ) receives a "Reduce" rating with a composite score of 49.2/100. It ranks #2139 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Direct cash return
Russell J. Weiner
Chief Executive Officer
Labor Force
11,000
68
26
89
Audit Verdict: Average governance indicators based on financial metrics.
No recent insider transactions available for DPZ
Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
High profitability & efficiency — strong quality floor supports entry
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Wholesale Trade sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for DPZ.
View All RatingsConservative accounting — High cash conversion efficiency
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 68 | 78 | -10DRAG |
| MOMENTUM | 28 | 19 | +9ALPHA |
| VALUATION | 39 | 31 | +8ALPHA |
| INVESTMENT | 26 | 16 | +10ALPHA |
| STABILITY | 89 | 98 | -9DRAG |
| SHORT INT | 46 | 42 | +4NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 3.7% vs WACC 7.3% (spread -3.6%)
GM 40% vs sector 22%, OM 19% vs sector 3%
Capital turnover 0.25x
Rev growth 4%, 10yr history
Interest coverage 5.0x, Net debt/EBITDA 19.2x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
DOMINOS PIZZA INC receives a Reduce rating from our analysis, with a composite score of 49.2/100 and 2 out of 5 stars, ranking #2139 out of 7,333 stocks. DPZ's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
DPZ earns a quality score of 68/100, indicating above-average business quality. The company reports a return on equity of -17.6% (sector avg: 8.6%), gross margins of 39.9% (sector avg: 22.5%), net margins of 12.7% (sector avg: 1.4%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
With a value score of 39/100, DPZ appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 22.92x, an EV/EBITDA of 13.84x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
DOMINOS PIZZA INC's investment score of 26/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 4.5% vs. a sector average of 3.3% and a return on assets of 34.2% (sector: 2.7%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
DOMINOS PIZZA INC is experiencing notably weak momentum with a score of just 28/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at 4.5% year-over-year, while a beta of 0.49 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
DOMINOS PIZZA INC earns an excellent stability score of 89/100, reflecting low price volatility and a conservatively managed balance sheet. Key stability metrics include a beta of 0.49. Stocks with this level of stability tend to act as portfolio anchors, providing downside protection during market corrections while still participating in broad market advances.
The short interest score of 46/100 for DPZ suggests somewhat elevated bearish positioning by institutional traders. With a $15.7B market cap (large-cap), DOMINOS PIZZA INC may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
DPZ offers a modest dividend yield of 1.4%. This compares to a sector average dividend yield of 0.3%. While the income contribution is relatively small, even a small dividend signals management's commitment to shareholder returns and can serve as a signal of financial discipline.
DOMINOS PIZZA INC is a large-cap company in the Wholesale Trade sector, ranked #47 of 50 in its sector (6th percentile) and #2139 of 7,333 overall (71st percentile). Key comparisons include ROE of -17.6% trailing the 8.6% sector median and operating margins of 19.1% above the 3.3% sector average. This bottom-quartile standing highlights significant competitive headwinds within the Wholesale Trade space.
While DPZ currently exhibits a REDUCE profile, superior opportunities exist within the WHOLESALE TRADE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Investment (26) would have the largest impact on the composite score.
RANK #47 OF 50 IN CONSUMER STAPLES
EV/EBITDA 69% ABOVE SECTOR MEDIAN
ROE 305% BELOW SECTOR MEDIAN
Gross Margin 77% ABOVE SECTOR MEDIAN (FAVORABLE)
AUDIT DATA AS OF SEP 7, 2025 (Q2 FY2025)
We rate DOMINOS PIZZA INC (DPZ) as a Reduce with a composite score of 49.2/100 at a current price of $414.20. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in stability (89th percentile) and quality (68th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (26th percentile) and momentum (28th percentile) tempers our overall conviction. We assign a Narrow Moat rating (44/100), Low uncertainty, and Poor capital allocation.
Key items to watch: momentum to confirm whether the current price trend has legs. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
DOMINOS PIZZA INC holds a lower-quartile position (#47 of 50) within the Wholesale Trade sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 49.2/100 places it at rank #2139 in our full 7,333-stock universe. With a $15.7B market capitalization, DOMINOS PIZZA INC operates at meaningful scale within the Wholesale Trade sector, providing competitive advantages in distribution, procurement, and customer reach.
Revenue is growing at 4%, though momentum at the 28th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.
The margin cascade tells an important story: gross margins of 40% (+17.4pp vs sector) narrow to operating margins of 19% (+15.8pp vs sector) and net margins of 12.7%, yielding a gross-to-net conversion rate of 32%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.
At a current price of $414.20, DOMINOS PIZZA INC is trading at a premium to fundamental value. Our value factor score of 39/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.
The stock currently trades at a P/E of 22.9x (a 20% premium to the sector median of 19.1x), EV/EBITDA of 13.8x (at a premium), P/S of 2.9x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis partially supports given strong quality metrics.
Return on assets of 34.2% indicates efficient deployment of the full asset base, not just equity capital.
The Reduce rating (composite 49.2/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Weak momentum (28th percentile) suggests institutional selling pressure and unfavorable technical dynamics that may persist.
We assign a Low uncertainty rating to DOMINOS PIZZA INC. The company exhibits strong financial stability with a beta of 0.49, and a stability factor in the 89th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.
Specific risk factors that inform our assessment include: low beta of 0.49 — while defensive, this may indicate limited upside participation in bull markets. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 89th percentile and quality factor at the 68th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: above-average stability (89th percentile) suggests predictable business dynamics. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate DOMINOS PIZZA INC's capital allocation as Poor. Key concerns include low returns on equity (-17.6%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — DOMINOS PIZZA INC significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, DOMINOS PIZZA INC receives a Reduce rating with a composite score of 49.2/100 (rank #2139 of 7,333). Our quantitative framework assigns a Narrow Moat (44/100, trend: stable), Low uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 50/100.
Our analysis does not support a constructive view on DOMINOS PIZZA INC at this time. The combination of the current quantitative profile, low uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign DOMINOS PIZZA INC a Narrow Moat rating with a composite moat score of 44/100. The ROIC-WACC spread of -3.6% is the primary signal of economic value creation. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that DOMINOS PIZZA INC can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being margin superiority at 17.6/20.
The strongest moat sources are margin superiority (17.6/20) and growth durability (10.9/20). GM 40% vs sector 22%, OM 19% vs sector 3%. Rev growth 4%, 10yr history. These pillars form the core of DOMINOS PIZZA INC's competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and economic value creation (6.8/20). Capital turnover 0.25x. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect DOMINOS PIZZA INC's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 40% providing a solid profitability foundation, operating margins of 19% reflecting effective cost management. The margin cascade from 40% gross to 19% operating to 12.7% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that the profit engine is high-quality and likely sustainable, with the quality factor at the 68th percentile.
The margin profile shows gross margins of 40%, operating margins of 19%, net margins of 12.7%. Return metrics include ROE of -17.6% and ROA of 34.2%. Relative to the Wholesale Trade sector, gross margins are 17.4 percentage points above the sector median of 22%, and ROE of -17.6% compares to a sector median of 8.6%.
The balance sheet reflects a dividend yield of 1.41%, revenue growth of 4%. Overall balance sheet health is adequate for the current business environment.
Above 50MA
37.18%
Net New Highs
+51081
About DOMINOS PIZZA INC Domino's Pizza, Inc., through its subsidiaries, operates as a pizza company in the United States and internationally. It operates through three segments: U.S. Stores, International Franchise, and Supply Chain. The company offers pizzas under the Domino's brand name through company-owned and franchised stores. It also provides oven-baked sandwiches, pasta, boneless chicken and chicken wings, bread and dips side items, desserts, and soft drink products. As of January 2, 2
As Warren Buffett stepped down as CEO of Berkshire Hathaway at the end of 2025, he significantly reduced the company's Bank of America stake by selling approximately 465 million shares (45% of the position) while simultaneously building an 8.8% stake in Domino's Pizza over five consecutive quarters. The Bank of America sell-off was driven by profit-taking, valuation concerns, and anticipated interest rate cuts, while the Domino's purchases reflect Buffett's confidence in the company's brand loyalty, strategic growth initiatives, and international expansion.
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McDonald's is highlighted as an attractive dividend stock for passive income investors, with a $40,000 investment potentially generating $1,000 annually. The company is on track to become a Dividend King in 2026 with 49 consecutive years of dividend increases. Despite recent underperformance compared to the S&P 500, McDonald's franchise-heavy business model, international diversification, and expansion plans to 50,000 stores by 2027 make it a stable choice for risk-averse investors seeking quality dividend income.
Domino's Pizza (NasdaqGS:DPZ) board director James A. Goldman is retiring after more than 15 years of service. His departure marks a governance transition for the company as it reshapes its board composition. The change comes at a time when board oversight of strategy, risk and capital allocation remains a key focus for investors. Domino's Pizza, known for its global pizza delivery and carryout business, operates in a sector where digital ordering, delivery logistics and franchise health...