Papa John's International, Inc. (PZZA) is a Restaurants company in the Consumer Cyclical sector, currently trading at $34.99. It has a SharesGrow Score of 44/100, indicating a mixed investment profile with 1 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of PZZA = $76.01 (+117.2% from the current price, the stock appears undervalued). Analyst consensus target is PZZA = $42 (+20% upside).
Valuation: PZZA trades at a trailing Price-to-Earnings (P/E) of 37.9 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 2.04.
Financials: revenue is $2.1B, -0.7%/yr average growth. Net income is $31M, growing at -13.5%/yr. Net profit margin is 1.5% (thin). Gross margin is 28.9% (+10.3 pp trend).
Balance sheet: total debt is $1.1B with negative equity of -$445M — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 0.82 (tight liquidity). Debt-to-assets is 117.9%. Total assets: $927M.
Analyst outlook: 18 / 32 analysts rate PZZA as buy (56%) — moderate consensus.
SharesGrow 7-Criteria breakdown: Value 49/100 (Partial), Growth 15/100 (Fail), Past 100/100 (Pass), Health 0/100 (Fail), Moat 53/100 (Partial), Future 58/100 (Partial), Income 30/100 (Fail).
