# Pizza Pizza Royalty Corp. (PZA.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Consumer Cyclical / Hotels, Restaurants & Leisure. Price C$11.87, market value C$396 million.

## Valuation
- **P/E (trailing): 13.0×** (5-yr avg 13.3×, 3-yr avg 13.9×). Pizza Pizza Royalty Corp. trades at 13.0× trailing earnings, close to its own five-year average of 13.3×. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 12.5×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 9.9×**. Each dollar of revenue is priced at 9.9×.
- **Price / book: 1.3×**. The shares trade at 1.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 11.1×**. Enterprise value is 11.1× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 11.3%** (5-yr avg 7.7%). Free cash flow equals 11.3% of the market value, above its five-year average of 7.7%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 7.7%**. The inverse of the P/E: 7.7% of the price is earned each year.

## Profitability
- **Operating margin: 98.2%**. 98.2% of revenue is left after running the business, an exceptional level.
- **Net margin: 76.8%**. 76.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 10.4%**. 10.4% on shareholders' equity is solid.
- **Return on invested capital: 9.3%**. Return on all capital, debt included, is 9.3%.
- **Return on assets: 8.1%**. Each dollar of assets produces 8.1% of profit.

## Growth
- **Revenue growth (1 yr): 2.5%** (3-yr 3.8%/yr, 5-yr 5.1%/yr). Revenue grew 2.5% over the last year, against 5.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 0.0%** (3-yr 3.0%/yr, 5-yr 4.3%/yr). Earnings per share rose 0.0%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 3.0%/yr**. Free cash flow has compounded at 3.0% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.16**. Debt is 0.16 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 1.1×**. It would take 1.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 22.3×**. Operating profit covers interest 22.3× over, a safe margin.
- **Current ratio: 2.06** (quick 2.06). Current assets cover the next year's liabilities 2.06 times.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 6.82%** (C$0.91 per share, trailing). Pizza Pizza Royalty Corp. yields 6.82%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 108%** (95% of free cash flow). The dividend exceeds earnings (108% payout), though free cash flow still covers it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 6.8%/yr** (1-yr 0.0%). The dividend has grown 6.8% a year over five years.

## Price and momentum
- **Total return (1 yr): -21.7%** (YTD -21.6%, 3-mo -5.9%). The shares are down 21.7% over twelve months including dividends.
- **From 52-week high: -29.0%** (2.4% above the low). Trading 29% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 34**. An RSI of 34 is neutral.
- **Beta (1 yr): 0.48** (volatility 21%). Beta of 0.48 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PZA.TO · Page: https://foliofundamentals.com/stocks/pza.to

Not investment advice.