Last Updated: 16 Sep 2024
Executive Summary
Papa John's International Inc. (PZZA) is a leading pizza delivery and take-out restaurant chain with a market capitalization of $1.62 billion. Despite recent challenges, the company remains fundamentally strong with a solid EBITDA of $230.9 million and a reasonable PERatio of 23.62. The latest stock price of $49.6 is below the analyst target price of $57.08, indicating potential upside.
Company Overview
Papa John's operates over 5,500 restaurants in the US and internationally. The company has faced some negative publicity in recent years, but it has taken steps to address these issues and improve its brand image. Papa John's is focused on delivering high-quality pizza and providing excellent customer service.
Fundamental Analysis
Papa John's has a strong balance sheet with no debt and a book value of -$14.15. The company's profit margin is 3.25% and its operating margin is 7.55%. Return on assets is 11.8% and return on equity is 0%. Revenue for the trailing twelve months is $2.12 billion and diluted EPS is $2.1.
Technical Analysis
The stock price of PZZA has been trending down in recent months. The 50-day moving average is $44.9 and the 200-day moving average is $59.44. The stock is currently trading below both moving averages, indicating a bearish trend.
Short Term Outlook
In the short term, PZZA is likely to continue to trade sideways or down. The stock is facing resistance at the $50 level and there is no clear catalyst to drive it higher. However, if the company can report strong earnings or announce positive news, the stock could rebound.
Long Term Outlook
In the long term, PZZA has the potential to be a good investment. The company has a strong brand, a loyal customer base, and a solid financial foundation. If Papa John's can continue to execute on its growth strategy, the stock could appreciate significantly over time.
Analyst Recommendations
Analysts are generally bullish on PZZA. Out of 18 analysts, 4 have a Strong Buy rating, 5 have a Buy rating, 9 have a Hold rating, and 0 have a Sell or Strong Sell rating. The average analyst target price is $57.08, which implies a potential upside of 15.1% from the current price.
