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Dominos Pizza earnings quality score

How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show

Score74 / 100 · grade B · rank 195 of 1027

Dominos Pizza (DPZ) scores 74 of 100 for earnings quality, grade B: rank 195 of 1027 companies and 30 of 287 in industrials. It loses the most points on discretionary accruals of -19.0% of assets (modified Jones), larger than most, Montier C-score 2 of 6 checks failed, Dechow F-score 1.30 (above normal). It earns full or near-full marks for adjusted earnings 2% below GAAP, Beneish M-score -2.79: clean (below −2.22).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -11.0% of assets, lower than 86% of companies (profit backed by cash)1720
Beneish M-scoreBeneish M-score -2.79: clean (below −2.22)1515
Dechow F-scoreDechow F-score 1.30 (above normal)1215
Montier C-scoreMontier C-score 2 of 6 checks failed1015
Discretionary accrualsdiscretionary accruals of -19.0% of assets (modified Jones), larger than most010
Piotroski F-scorePiotroski F-score 7 of 9810
Non-GAAP gapadjusted earnings 2% below GAAP910
Earnings smoothnessprofit steadier than cash flow (smoothness 0.50)35
DPZ: share of the available points, by componentDPZ: share of the available points, by componentAccruals86%Discretionary accruals3%Beneish M-score100%Dechow F-score79%Montier C-score67%Piotroski F-score78%Non-GAAP gap94%Earnings smoothness60%

How the score is built

Eight published measures, each scored against the whole universe or on its own scale and weighted: accruals 20, discretionary accruals 10, Beneish M 15, Dechow F 15, Montier C 15, Piotroski F 10, the non-GAAP gap 10, smoothness 5. A measure that cannot be computed (Beneish for a bank, say) drops out and the rest is rescaled, so every company is scored on what applies to it.

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Computed from the companies’ own XBRL filings (latest fiscal year) by published formulas; a statistical screen, not an audit or an accusation. A low score means the reported profit shows more of the markers of managed or low-quality earnings than its peers. Not investment advice.