F

Domino's Pizza Inc — Earnings Quality Grade F

DPZ · Consumer Cyclical

Major red flags

Revenue
$4.9B
2025
Net Income
$602M
2025
Gross Margin
40.0%
Free Cash Flow
$672M
01

Screening Summary

15
Passed
1
Watch
1
Failed
-3.03
M-Score
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 23 days, change -1 days YoY

A2AR vs Revenue Growth

AR growth 2.2% vs revenue growth 5.0%

A3Revenue vs CFFO

Revenue 5.0%, CFFO 26.8%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 11.7% vs COGS 3.8%. Normal

B2CapEx vs Revenue

CapEx growth 6.8% vs revenue 5.0%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 51.9%. Normal

B4Gross Margin

Gross margin 40.0%, change +0.7pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.32. Profits backed by cash

C2Free Cash Flow

FCF $0.7B, FCF/NI = 1.12

C3Accruals Ratio

Accruals ratio = -11.1%. Low accruals

C4Cash vs Debt

Cash $0.1B covers only 2% of debt $5.0B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.2B = -5% of equity. Manageable

!
D2Leverage

Debt/EBITDA = 4.8x (>4x). Financial stress

D3Soft Asset Growth

Other assets 4.2% vs revenue 5.0%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 3% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -3.03 (< -2.22). Unlikely manipulator

04

Beneish M-Score

Manipulation Probability-3.03
-4.0 Clean-2.22 Grey-1.78 Danger0
0.974
DSRI
AR growing faster than revenue?
0.983
GMI
Gross margin declining?
0.881
AQI
Asset quality deteriorating?
1.05
SGI
Revenue growth rate
1.042
DEPI
Depreciation slowing?
1.006
SGAI
SG&A ratio changing?
-0.1109
TATA
Accruals level
0.996
LVGI
Leverage increasing?
05

Altman Z-Score

-3
Distress Zone
0 Distress1.102.605.0+ Safe
0.2054
Liquidity
-2.2713
Cumulative profit
0.563
Operating efficiency
-0.6944
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10

Domino's Pizza Inc (DPZ) Earnings Quality Grade F — EarningsGrade