Domino's Pizza (FRA:EZV) Beneish M-Score : -2.50 (As of Dec. 13, 2024)

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What is Domino's Pizza Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.5 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Domino's Pizza's Beneish M-Score or its related term are showing as below:

FRA:EZV' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02 Med: -2.71 Max: -2.29
Current: -2.5

During the past 13 years, the highest Beneish M-Score of Domino's Pizza was -2.29. The lowest was -3.02. And the median was -2.71.

Domino's Pizza Beneish M-Score Historical Data

The historical data trend for Domino's Pizza's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Domino's Pizza Beneish M-Score Chart

Domino's Pizza Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.68

-2.50

-2.79

-2.48

-2.60

Domino's Pizza Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.60	-2.60	-2.52	-2.53	-2.50

Competitive Comparison of Domino's Pizza's Beneish M-Score

For the Restaurants subindustry, Domino's Pizza's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Domino's Pizza's Beneish M-Score Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Domino's Pizza's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Domino's Pizza's Beneish M-Score falls into.

Domino's Pizza Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Domino's Pizza for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0475

0.528 * 0.9742

0.404 * 1.1122

0.892 * 1.0234

0.115 * 0.9239

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0093

4.679 * -0.037865

0.327 * 0.9108

-2.54

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €251 Mil.
Revenue was 973.187 + 1019.797 + 997.875 + 1286.525 = €4,277 Mil.
Gross Profit was 381.796 + 406.002 + 388.12 + 494.304 = €1,670 Mil.
Total Current Assets was €786 Mil.
Total Assets was €1,599 Mil.
Property, Plant and Equipment(Net PPE) was €458 Mil.
Depreciation, Depletion and Amortization(DDA) was €79 Mil.
Selling, General, & Admin. Expense(SGA) was €879 Mil.
Total Current Liabilities was €460 Mil.
Long-Term Debt & Capital Lease Obligation was €4,647 Mil.
Net Income was 132.379 + 131.898 + 115.758 + 144.237 = €524 Mil.
Non Operating Income was 23.581 + 10.566 + -17.325 + 4.077 = €21 Mil.
Cash Flow from Operations was 155.629 + 139.987 + 113.587 + 154.729 = €564 Mil.

Total Receivables was €234 Mil.
Revenue was 962.637 + 945.731 + 956.788 + 1314.266 = €4,179 Mil.
Gross Profit was 373.084 + 373.497 + 360.101 + 483.202 = €1,590 Mil.
Total Current Assets was €746 Mil.
Total Assets was €1,517 Mil.
Property, Plant and Equipment(Net PPE) was €469 Mil.
Depreciation, Depletion and Amortization(DDA) was €74 Mil.
Selling, General, & Admin. Expense(SGA) was €851 Mil.
Total Current Liabilities was €527 Mil.
Long-Term Debt & Capital Lease Obligation was €4,793 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(251.115 / 4277.384)	/	(234.245 / 4179.422)
	=	0.058708	/	0.056047
	=	1.0475

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(1589.884 / 4179.422)	/	(1670.222 / 4277.384)
	=	0.380408	/	0.390477
	=	0.9742

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (785.904 + 458.111) / 1599.334)	/	(1 - (745.507 + 468.805) / 1517.438)
	=	0.222167	/	0.199762
	=	1.1122

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	4277.384	/	4179.422
	=	1.0234

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(74.088 / (74.088 + 468.805))	/	(79.397 / (79.397 + 458.111))
	=	0.136469	/	0.147713
	=	0.9239

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(879.317 / 4277.384)	/	(851.227 / 4179.422)
	=	0.205574	/	0.203671
	=	1.0093

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((4647.059 + 459.968) / 1599.334)	/	((4792.713 + 527.476) / 1517.438)
	=	3.193221	/	3.506034
	=	0.9108

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(524.272 - 20.899	-	563.932)	/	1599.334
	=	-0.037865

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Domino's Pizza has a M-score of -2.54 suggests that the company is unlikely to be a manipulator.

Domino's Pizza Beneish M-Score Related Terms

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Domino's Pizza Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Domino's Pizza Inc (FRA:EZV) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

DPZ:USA DPZ:Mexico 0A7E:UK EZV:Germany D2PZ34:Brazil DPZ:Austria

Address

30 Frank Lloyd Wright Drive, Ann Arbor, MI, USA, 48105

Website

https://www.dominos.com

Domino's is a restaurant operator and franchiser with nearly 20,600 global stores across more than 90 international markets at the end of 2023. The firm generates revenue through the sales of pizza, wings, salads, sandwiches, and desserts at company-owned stores, royalty and marketing contributions from franchise-operated stores, and its network of 25 domestic (and five Canadian) dough manufacturing and supply chain facilities, which centralize purchasing, preparation, and last-mile delivery for the firm's US and Canadian restaurants. With roughly $18.3 billion in 2023 system sales, Domino's is the largest player in the global pizza market, ahead of Pizza Hut, Little Caesars, and narrow-moat Papa John's.

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