The broker UBS believes Domino's profitability can materially recover in FY25 after its inflation and post-COVID difficulties.
UBS has forecast Domino's can generate $244 million of EBIT in FY25 (a rise of $30 million compared to the estimate for FY24). At the current Domino's share price, it's valued at 13.5x FY25's estimated EBIT.
Clearly, Domino's is a lot cheaper than Guzman Y Gomez based on FY25's predicted profitability. The Domino's share price is down close to 40% this year, so it could be a contrarian opportunity at the current value.
Of course, GYG's EBIT is still at a low base. Adding $10 million, for example, of EBIT in FY26 wouldn't be much in dollar terms, but it would represent a 50% increase in percentage terms and help normalise the Guzman Y Gomez EBIT multiple.
The broker UBS believes Domino's profitability can materially...
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Last
$35.89 |
Change
-0.860(2.34%) |
Mkt cap ! $3.263B | |||
| Open | High | Low | Value | Volume |
| $36.87 | $36.98 | $35.89 | $39.82M | 1.104M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 7 | 3393 | $35.88 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $35.91 | 600 | 1 |
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| Last trade - 16.10pm 28/06/2024 (20 minute delay) ? |
| DMP (ASX) Chart |