Domino's Pizza, Inc. (DPZ) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Domino's Pizza, Inc.

Updated on October 14, 2026 · accounts published on October 13, 2026

Reading of October 13, 2026: A highly profitable business with record margins, carried on a heavy load of debt

Domino's Pizza trades at a P/E of 16.8 over the last 12 months, 49 % below its ten-year median of 32.9 and the lowest level of the decade.

• Is Domino's Pizza expensive or cheap? Its P/E of 16.8 is 49 % below the ten-year median of 32.9 and the lowest of the past decade.
• How is the business doing? Revenue grew 5 % over the last 12 months, and fiscal 2025 had the highest operating margin in 12 years.
• How strong is the balance sheet? Net debt was $146.86 per share in fiscal 2025, half the share price, yet the dividend has risen nine years in a row.
• What to expect from the next earnings? Results are due February 22, 2027, with expected EPS of $6.41; the 2026 EPS consensus stands at $19.01.
• Can the balance sheet withstand a recession? It passes 5 of 8 consumer cyclical tests; net debt at 4.5× EBITDA in fiscal 2025 is above the healthy 3.0× ceiling.

Is Domino's Pizza expensive or cheap?

Over the last 12 months Domino's Pizza trades at a P/E of 16.8. That is 49 % below its ten-year median of 32.9 and the lowest level of the decade, which ranged from 16.6 to 51.6 on weekly data. Next to its sector the discount almost disappears: the consumer cyclical median P/E is 17.4, so the stock is only 3 % below it. A free cash flow yield of 6.8 % and EV/EBITDA of 10.7× fit that picture. The share price is down 26 % over 12 months and sits 32 % below its 52-week high of $438.42. The market now prices it like an average company in its sector.

How is the business doing?

Over the last 12 months revenue rose 5 % and EPS rose 5 %: steady growth, though not fast. Returns are where the business stands out. ROIC over the last 12 months is 62 % against a sector median of 9 %, which puts it 53 points ahead, and it has stayed above 10 % in every fiscal year from 2016 to 2025. Margins are at their peak. The fiscal 2025 operating margin of 19 % was the best of the 12 years since 2014, whose average was 18 %, and the trailing figure is 20 %. A Piotroski score of 8 out of 9 points to improving fundamentals. Growth is the modest part of the story.

How strong is the balance sheet?

Domino's Pizza runs with a lot of debt. Net debt in fiscal 2025 was $146.86 per share ($159.62 of debt less $12.76 of cash). That equals 50 % of the current price and 4.5× EBITDA. A current ratio of 0.49 over the last 12 months means short-term liabilities are about twice short-term assets. Even so, its Altman Z of 3.2 is in the safe zone, and shareholders keep getting paid. The dividend yield over the last 12 months is 2.6 %, the dividend per share has risen for nine straight fiscal years through 2025, and the payout is 39 % of earnings.

What to expect from the next earnings?

On October 13, 2026 Domino's Pizza reported EPS of $4.60, 5.5 % above the $4.36 analysts expected. Beats are not routine here, though: it has topped EPS estimates in only 3 of the last 8 quarters. The 2026 EPS consensus barely moved over the last 29 days, going from $18.97 to $19.01 across 20 analysts, and the revenue consensus also held flat. Of the 52 analysts covering the company, 26 rate it a buy, 25 a hold and 1 a sell. The next report, on February 22, 2027, carries an expected EPS of $6.41, well above the $4.60 just reported.

Can the balance sheet withstand a recession?

Consumer cyclicals depend on household spending, so the sector judges what survives a downturn: margins and returns averaged over a cycle, inventory turnover and debt. Domino's Pizza clears the first group easily. Its 2021-2025 average operating margin of 18 % compares with a healthy threshold of 8 %, fiscal 2025 inventory turnover of 37.5× compares with 4×, and average ROIC of 54 % compares with 12 %. The pressure comes from net debt of 4.5× EBITDA, above the 3.0× ceiling, and a current ratio of 0.49 against 1.5. Peter Lynch's P/E trap also applies. A P/E of 16.8 against a five-year average of 28.9 can signal peak earnings, while EV/sales of 3.9× is close to its ten-year average of 4.3×.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.