Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pizza delivery company Domino's Pizza
With that in mind, let's take a closer look at Domino's and see what CAPS investors are saying about the stock right now.
Domino's facts
| Headquarters (Founded) | Ann Arbor, Mich. (1960) |
| Market Cap | $1.8 billion |
| Industry | Restaurants |
| Trailing-12-Month Revenue | $1.6 billion |
| Management | CEO Patrick Doyle (since 2010) CFO Michael Lawton (since 2010) |
| Return on Capital (Average, Past 3 Years) | 54.8% |
| Cash/Debt | $32.1 billion / $1.5 billion |
| Competitors |
Little Caesar Enterprises Papa John's International Yum! Brands |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 20% of the 389 members who have rated Domino's believe the stock will underperform the S&P 500 going forward.
Earlier this month, one of those Fools, Naxias, seriously questioned Domino's valuation:
Today this stock is at a P/E [around 21]. Its share price in 2011 rose considerably while the SP500 stayed flat. It begs the question as to why. Yes, it has a strong brand. Yes, it has a lot of stores. But have you seen the balance sheet? Have you tasted their "improved" (i.e. sweetened) product? There is a lot of competition out there, and I can think of many other companies that use their money more wisely and deliver a better product in the restaurant sector.
What do you think about Domino's, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.
