Value Composition in Focus For Pizza Pizza Royalty Corp. (TSX:PZA)

Checking in on some valuation rankings, Pizza Pizza Royalty Corp. (TSX:PZA) has a Value Composite score of 54. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 44. 

In taking a look at some other notable technicals, Pizza Pizza Royalty Corp. (TSX:PZA)’s ROIC is 11.598396. The ROIC 5 year average is 3.362591 and the ROIC Quality ratio is . ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

We also note that Pizza Pizza Royalty Corp. (TSX:PZA) has a Shareholder Yield of 0.042169 and a Shareholder Yield (Mebane Faber) of 0.04387. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

Pizza Pizza Royalty Corp. (TSX:PZA) has a current MF Rank of 1903. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

We can now take a quick look at some historical stock price index data. Pizza Pizza Royalty Corp. (TSX:PZA) presently has a 10 month price index of 1.24144. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.35801, the 24 month is 1.37617, and the 36 month is 1.48034. Narrowing in a bit closer, the 5 month price index is 1.08442, the 3 month is 1.01151, and the 1 month is currently 1.02309.

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