Why is Pizza Pizza Royalty Corp. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 27.64
2
Flat results in Jun 25
- INTEREST COVERAGE RATIO(Q) Lowest at 2,567.6
- OPERATING PROFIT MARGIN(Q) Lowest at 97.27 %
3
With ROE of 10.30%, it has a very attractive valuation with a 1.27 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 17.58%, its profits have fallen by -1%
How much should you hold?
- Overall Portfolio exposure to Pizza Pizza Royalty Corp. should be less than 10%
- Overall Portfolio exposure to Leisure Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Pizza Pizza Royalty Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Pizza Pizza Royalty Corp.
-100.0%
1.10
14.35%
S&P/TSX 60
19.1%
1.54
14.62%
Quality key factors
Factor
Value
Sales Growth (5y)
3.42%
EBIT Growth (5y)
3.32%
EBIT to Interest (avg)
27.64
Debt to EBITDA (avg)
1.16
Net Debt to Equity (avg)
0.14
Sales to Capital Employed (avg)
0.12
Tax Ratio
19.04%
Dividend Payout Ratio
98.82%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.59%
ROE (avg)
9.41%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.28
EV to EBIT
10.89
EV to EBITDA
10.89
EV to Capital Employed
1.25
EV to Sales
10.67
PEG Ratio
NA
Dividend Yield
0.44%
ROCE (Latest)
11.46%
ROE (Latest)
10.30%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 32.29 MM
RAW MATERIAL COST(Y)
Fallen by 0% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 10.67%
NET SALES(Q)
Highest at CAD 10.35 MM
-3What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 2,567.6
OPERATING PROFIT MARGIN(Q)
Lowest at 97.27 %
Here's what is working for Pizza Pizza Royalty Corp.
Operating Cash Flow
Highest at CAD 32.29 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Net Sales
Highest at CAD 10.35 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Debtors Turnover Ratio
Highest at 10.67%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by 0% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Pizza Pizza Royalty Corp.
Interest Coverage Ratio
Lowest at 2,567.6
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit Margin
Lowest at 97.27 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales






