Pizza Pizza Royalty Corp. (PZA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Aegis Brands, Inc.

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Pizza Pizza Royalty Corp.

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Spot Coffee (Canada) Ltd.

Pangea Natural Food, Inc.

Just Kitchen Holdings Corp.

Why is Pizza Pizza Royalty Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 27.64

With a fall in Net Sales of -3.45%, the company declared Very Negative results in Mar 26

INTEREST(HY) At CAD 0.88 MM has Grown at 36.92%
OPERATING CASH FLOW(Y) Lowest at CAD 31.34 MM
ROCE(HY) Lowest at 10.15%

With ROE of 10.10%, it has a very attractive valuation with a 1.05 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 -19.29%, its profits have fallen by -0.1%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.29% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

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.

-19.28%

-0.20

20.59%

S&P/TSX 60

29.63%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.70%

EBIT Growth (5y)

5.71%

EBIT to Interest (avg)

27.36

Debt to EBITDA (avg)

1.11

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

0.12

Tax Ratio

18.65%

Dividend Payout Ratio

98.99%

Pledged Shares

Institutional Holding

ROCE (avg)

11.03%

ROE (avg)

9.41%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.05

EV to EBIT

9.21

EV to EBITDA

9.21

EV to Capital Employed

1.04

EV to Sales

9.03

PEG Ratio

Dividend Yield

ROCE (Latest)

11.29%

ROE (Latest)

10.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 11.06 times

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 30.65 MM

INTEREST(HY)

At CAD 0.87 MM has Grown at 23.27%

ROCE(HY)

Lowest at 10.07%

CASH AND EQV(HY)

Lowest at CAD 4.52 MM

DEBT-EQUITY RATIO (HY)

Highest at 14.58 %

Here's what is working for Pizza Pizza Royalty Corp.

Debtors Turnover Ratio

Highest at 11.06 times

in the last five Semi-Annual periods

MOJO 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

At CAD 0.87 MM has Grown at 23.27%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Cash Flow

Lowest at CAD 30.65 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Cash and Eqv

Lowest at CAD 4.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 14.58 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio