Pizza Pizza Royalty Corp.

  • Market Cap: Small Cap
  • Industry: Leisure Services
  • ISIN: CA72585V1031
CAD
12.83
-0.05 (-0.39%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
MTY Food Group, Inc.
Restaurant Brands International LP
Pizza Pizza Royalty Corp.
Aegis Brands, Inc.
Restaurant Brands International, Inc.
Spot Coffee (Canada) Ltd.
Pangea Natural Food, Inc.
Just Kitchen Holdings Corp.

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
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%
3
With ROE of 10.10%, it has a very attractive valuation with a 1.44 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 -13.79%, its profits have fallen by -0.1%
4
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -13.79% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Pizza Pizza Royalty Corp. should be less than 10%
  2. 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.
-13.83%
-0.15
20.20%
S&P/TSX 60
29.8%
2.35
12.81%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
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)
27.64
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
98.99%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.59%
ROE (avg)
9.41%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
1.44
EV to EBIT
12.24
EV to EBITDA
12.24
EV to Capital Employed
1.38
EV to Sales
11.99
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
11.29%
ROE (Latest)
10.10%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

3What is working for the Company
DIVIDEND PAYOUT RATIO(Y)

Highest at 105.83%

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 98.59 %

-20What is not working for the Company
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%

DEBT-EQUITY RATIO (HY)

Highest at 14.47 %

INTEREST COVERAGE RATIO(Q)

Lowest at 2,128.97

CASH AND EQV(HY)

Lowest at CAD 5.97 MM

NET SALES(Q)

Lowest at CAD 9.39 MM

OPERATING PROFIT(Q)

Lowest at CAD 9.26 MM

PRE-TAX PROFIT(Q)

Lowest at CAD 8.85 MM

NET PROFIT(Q)

Lowest at CAD 7.43 MM

EPS(Q)

Lowest at CAD 0.22

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

Operating Profit Margin
Highest at 98.59 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Dividend Payout Ratio
Highest at 105.83%
in the last five years
MOJO Watch
Company is distributing higher proportion of profits generated as dividend

DPR (%)

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 0.88 MM has Grown at 36.92%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio
Lowest at 2,128.97
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 14.47 % 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

Operating Cash Flow
Lowest at CAD 31.34 MM
in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Net Sales
Lowest at CAD 9.39 MM
in the last five periods
MOJO Watch
Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit
Lowest at CAD 9.26 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Pre-Tax Profit
Lowest at CAD 8.85 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit
Lowest at CAD 7.43 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS
Lowest at CAD 0.22
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Cash and Eqv
Lowest at CAD 5.97 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents