This module uses fundamental data of Dominos Pizza to approximate the value of its Beneish M Score. Dominos Pizza M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Dominos Pizza Piotroski F Score and Dominos Pizza Altman Z Score analysis.
At this time, Dominos Pizza's Short and Long Term Debt Total is fairly stable compared to the past year. Net Debt is likely to rise to about 5.3 B in 2024, whereas Long Term Debt is likely to drop slightly above 2.5 B in 2024. At this time, Dominos Pizza's Graham Number is fairly stable compared to the past year.
At this time, it appears that Dominos Pizza is a possible manipulator. The earnings manipulation may begin if Dominos Pizza's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Dominos Pizza executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Dominos Pizza's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Dominos Pizza's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Dominos Pizza's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Dominos Pizza in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Dominos Pizza's degree of accounting gimmicks and manipulations.
M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.
Other Operating Expenses
2.09 Billion
At this time, Dominos Pizza's Other Operating Expenses is fairly stable compared to the past year.
Dominos Pizza Earnings Manipulation Drivers
Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Dominos Pizza. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Dominos Pizza's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Dominos Pizza's managers, analysts, and investors.
Environment Score
Governance Score
Social Score
About Dominos Pizza Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Dominos Pizza's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Dominos Pizza using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Dominos Pizza based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
The influence of Dominos Pizza's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Dominos. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Dominos Pizza's public news can be used to forecast risks associated with an investment in Dominos. The trend in average sentiment can be used to explain how an investor holding Dominos can time the market purely based on public headlines and social activities around Dominos Pizza. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Dominos Pizza's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Dominos Pizza's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Dominos Pizza's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Dominos Pizza.
Dominos Pizza Implied Volatility
35.82
Dominos Pizza's implied volatility exposes the market's sentiment of Dominos Pizza stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Dominos Pizza's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Dominos Pizza stock will not fluctuate a lot when Dominos Pizza's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Dominos Pizza in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Dominos Pizza's short interest history, or implied volatility extrapolated from Dominos Pizza options trading.
Pair Trading with Dominos Pizza
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 Dominos 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 Dominos Pizza will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Dominos 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 Dominos 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 Dominos 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 to buy it.
The correlation of Dominos 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 Dominos Pizza moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dominos Pizza 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 Dominos 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.
When determining whether Dominos Pizza offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Dominos Pizza's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Dominos Pizza Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Dominos Pizza Stock:
For more information on how to buy Dominos Stock please use our How to Invest in Dominos Pizza guide.You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Complementary Tools for Dominos Stock analysis
When running Dominos Pizza's price analysis, check to measure Dominos Pizza's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dominos Pizza is operating at the current time. Most of Dominos Pizza's value examination focuses on studying past and present price action to predict the probability of Dominos Pizza's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dominos Pizza's price. Additionally, you may evaluate how the addition of Dominos Pizza to your portfolios can decrease your overall portfolio volatility.
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Is Dominos Pizza's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dominos Pizza. If investors know Dominos will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dominos Pizza listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.301
Dividend Share
4.84
Earnings Share
14.68
Revenue Per Share
127.683
Quarterly Revenue Growth
0.031
The market value of Dominos Pizza is measured differently than its book value, which is the value of Dominos that is recorded on the company's balance sheet. Investors also form their own opinion of Dominos Pizza's value that differs from its market value or its book value, called intrinsic value, which is Dominos Pizza's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dominos Pizza's market value can be influenced by many factors that don't directly affect Dominos Pizza's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dominos Pizza's value and its price as these two are different measures arrived at by different means. Investors typically determine if Dominos Pizza is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dominos Pizza's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.