Shares of Papa John’s International, Inc. (NASDAQ:PZZA) recorded 8.89% gain during trading session on October 9th, 2018. The script traded as low as $53.46 and last traded at $54.90. 3.61 million shares changed exchanged hands during trading, a drop of -79.56% from the 30-day average session volume of 2.01M shares. The firm had previously closed at $50.42. The company has $31.71M outstanding shares, a price-to-earnings ratio of 26.48, price-to-earnings-growth ratio of 1.00 and a beta of 0.39. The company has a RSI of 79.25, ATR of 1.57 and a volatility of 2.65% this week. PZZA has a 52 week low price of $38.05 and a 52 week high price of $72.14.
Investors have identified the tech company Papa John’s International, Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 1.74B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Papa John’s International, Inc. (PZZA) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For PZZA, the company has in raw cash 25.72 million on their books with 20 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 558.17 million total, with 801.21 million as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
PZZA were able to record 20.92 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -6.22 million. In cash movements, the company had a total of 33.17 million as operating cash flow.
Potential earnings growth for Papa John’s International, Inc. (PZZA)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Papa John’s International, Inc. recorded a total of 407.96 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -0.06 coming in sequential stages and their sales for the third quarter reducing by -0.05.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 341.76 million trying to sell their products during the last quarter, with the result yielding a gross income of 66.2 million. This allows shareholders to hold on to 32.18 million with the revenue now reading 0.36 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.28 cents a share).
Is the stock of PZZA attractive?
Having a look at the company’s valuation, the company is expected to record 1.68 total earnings per share during the next fiscal year. Taking a look at the median price to earnings ratio, this means their stock price will be in the region of 31.44 per share. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on PZZA sounds very interesting.
In related news, SVP, General Counsel Oyler Caroline Miller sold 1,766 shares of the company’s stock in a transaction that recorded on March 9th, 2018. The sale was performed at an average price of 61.00, for a total value of 107,726. As the sale deal closes, the SVP, Chief Development Officer Oyler Caroline Miller now sold 10,963 shares of the company’s stock, valued at 677,623. Also, Director SHAPIRO MARK S sold 8,232 shares of the company’s stock in a deal that was recorded on March 2nd, 2018. The shares were sold at an average price of 60.78 per share, with a total market value of 25,070. Following this completion of acquisition, the SVP, CFO and CAO now holds 12,182 shares of the company’s stock, valued at 730,920. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.10%.
3 out of 6 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Papa John’s International, Inc. stock. 0 analysts has assigned a Sell rating on the PZZA stock. The 12-month mean consensus price target for the company’s shares has been set at $51.17.