A Cheap Stock From Lse

last updated on

A Cheap Stock From Lse

Cheap Stock From Lse

Are you looking for a cheap stock that offers strong growth prospects and has a strong brand? Enter Domino's Pizza Group (DOM), which is listed on the London Stock Exchange.

It's worth mentioning that we are talking about the Domino's Pizza Group, which is a local business in the UK. It shouldn't be confused with the NY-based group, which acts as the master franchisor.

Domino'S Pizza Group Offers Attractive P/E

The business model of Domino's is very simple, which is also its key strength. It takes advantage of the economies of scale and has a presence all over the country.

They operate in Poland and Ireland as well, which allows them to diversify their footprint. But, the best thing about Domino's is that it still has a lot of growth potential in its respective market.

quick look at the share price of Domino's shows it is down 17% over the last year. That's also why Citi shared its nervousness about Domino's business.

However, the fall in the share price has also lowered its P/E ratio to just 11. When we look at other similar stocks, a P/E ratio like this starts to look very attractive. The best part? Domino's is already profitable and has a loyal customer base all over the country.

But, the one key risk for Domino's is 226 million worth of net debt. But, it is manageable given that they are making money and already have plans to reach more customers.

Also, the delivery business of Domino's has been back in growth since last year. So, if they can keep the momentum going in 2025, it would allow them to expand their revenue.

Based on all these metrics, it becomes clear that the share price of Domino's is very undervalued right now. So, anyone looking for stocks in the quick service restaurant sector, the answer is Domino's Pizza Group.

Trending Stories