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

Pizza Pizza Royalty Corp.

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Aegis Brands, Inc.

Restaurant Brands International LP

Restaurant Brands International, Inc.

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

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 2,567.6
OPERATING PROFIT MARGIN(Q) Lowest at 97.27 %

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%

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.

16.65%

1.10

14.35%

S&P/TSX 60

22.62%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.02%

EBIT Growth (5y)

3.96%

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

Institutional Holding

ROCE (avg)

10.59%

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

1.77

EV to EBIT

14.55

EV to EBITDA

14.55

EV to Capital Employed

1.68

EV to Sales

14.25

PEG Ratio

17.14

Dividend Yield

0.09%

ROCE (Latest)

11.52%

ROE (Latest)

10.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bullish

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

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 100.74%

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 12.03 times

-10What is not working for the Company

INTEREST(HY)

At CAD 0.84 MM has Grown at 30.42%

DEBT-EQUITY RATIO (HY)

Highest at 14.14 %

INTEREST COVERAGE RATIO(Q)

Lowest at 2,247.3

EPS(Q)

Lowest at CAD 0.23

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

Dividend Payout Ratio

Highest at 100.74% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Debtors Turnover Ratio

Highest at 12.03 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 0.84 MM has Grown at 30.42%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 2,247.3

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 14.14 % and Grown

In each half year 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

EPS

Lowest at CAD 0.23

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)