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MAPLE LEAF FOODS INC (MFI.CA) Stock Fundamental Analysis

TSX:MFI - Toronto Stock Exchange - CA5649051078 - Common Stock - Currency: CAD

21.44  +0.27 (+1.28%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to MFI. MFI was compared to 17 industry peers in the Food Products industry. MFI scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MFI has a correct valuation and a medium growth rate. Finally MFI also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

In the past year MFI was profitable.
In the past year MFI had a positive cash flow from operations.
In multiple years MFI reported negative net income over the last 5 years.
MFI had a positive operating cash flow in each of the past 5 years.
MFI.CA Yearly Net Income VS EBIT VS OCF VS FCFMFI.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M

1.2 Ratios

With a Return On Assets value of 0.76%, MFI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
MFI has a Return On Equity (2.23%) which is comparable to the rest of the industry.
MFI has a Return On Invested Capital of 4.24%. This is in the lower half of the industry: MFI underperforms 75.00% of its industry peers.
Industry RankSector Rank
ROA 0.76%
ROE 2.23%
ROIC 4.24%
ROA(3y)-2.46%
ROA(5y)-0.47%
ROE(3y)-7.32%
ROE(5y)-2.45%
ROIC(3y)N/A
ROIC(5y)N/A
MFI.CA Yearly ROA, ROE, ROICMFI.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 -10 -15

1.3 Margins

MFI's Profit Margin of 0.70% is in line compared to the rest of the industry. MFI outperforms 50.00% of its industry peers.
MFI has a Operating Margin of 4.27%. This is in the lower half of the industry: MFI underperforms 68.75% of its industry peers.
MFI's Operating Margin has declined in the last couple of years.
MFI has a worse Gross Margin (13.40%) than 87.50% of its industry peers.
In the last couple of years the Gross Margin of MFI has declined.
Industry RankSector Rank
OM 4.27%
PM (TTM) 0.7%
GM 13.4%
OM growth 3Y-37.61%
OM growth 5Y-29.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16%
GM growth 5Y-9.33%
MFI.CA Yearly Profit, Operating, Gross MarginsMFI.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10 15

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MFI is destroying value.
Compared to 1 year ago, MFI has about the same amount of shares outstanding.
MFI has less shares outstanding than it did 5 years ago.
MFI has a worse debt/assets ratio than last year.
MFI.CA Yearly Shares OutstandingMFI.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
MFI.CA Yearly Total Debt VS Total AssetsMFI.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

An Altman-Z score of 2.03 indicates that MFI is not a great score, but indicates only limited risk for bankruptcy at the moment.
MFI has a Altman-Z score (2.03) which is comparable to the rest of the industry.
The Debt to FCF ratio of MFI is 6.92, which is on the high side as it means it would take MFI, 6.92 years of fcf income to pay off all of its debts.
MFI has a better Debt to FCF ratio (6.92) than 81.25% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that MFI has dependencies on debt financing.
The Debt to Equity ratio of MFI (1.08) is better than 62.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.08
Debt/FCF 6.92
Altman-Z 2.03
ROIC/WACC0.63
WACC6.76%
MFI.CA Yearly LT Debt VS Equity VS FCFMFI.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 1.26 indicates that MFI should not have too much problems paying its short term obligations.
MFI has a Current ratio of 1.26. This is in the lower half of the industry: MFI underperforms 68.75% of its industry peers.
A Quick Ratio of 0.53 indicates that MFI may have some problems paying its short term obligations.
The Quick ratio of MFI (0.53) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.26
Quick Ratio 0.53
MFI.CA Yearly Current Assets VS Current LiabilitesMFI.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

4

3. Growth

3.1 Past

MFI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 277.78%, which is quite impressive.
MFI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -40.53% yearly.
The Revenue has decreased by -0.46% in the past year.
The Revenue has been growing slightly by 6.85% on average over the past years.
EPS 1Y (TTM)277.78%
EPS 3Y-55.63%
EPS 5Y-40.53%
EPS Q2Q%38.46%
Revenue 1Y (TTM)-0.46%
Revenue growth 3Y4.19%
Revenue growth 5Y6.85%
Sales Q2Q%1.21%

3.2 Future

Based on estimates for the next years, MFI will show a very strong growth in Earnings Per Share. The EPS will grow by 171.84% on average per year.
MFI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.43% yearly.
EPS Next Y620.47%
EPS Next 2Y291.53%
EPS Next 3Y171.84%
EPS Next 5YN/A
Revenue Next Year-0.26%
Revenue Next 2Y1.69%
Revenue Next 3Y2.43%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
MFI.CA Yearly Revenue VS EstimatesMFI.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B 5B
MFI.CA Yearly EPS VS EstimatesMFI.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 -0.5 1 1.5

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 44.67, which means the current valuation is very expensive for MFI.
The rest of the industry has a similar Price/Earnings ratio as MFI.
MFI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 30.19.
The Price/Forward Earnings ratio is 15.54, which indicates a correct valuation of MFI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MFI indicates a somewhat cheap valuation: MFI is cheaper than 68.75% of the companies listed in the same industry.
MFI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.58.
Industry RankSector Rank
PE 44.67
Fwd PE 15.54
MFI.CA Price Earnings VS Forward Price EarningsMFI.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

MFI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MFI is cheaper than 68.75% of the companies in the same industry.
MFI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MFI is cheaper than 81.25% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.35
EV/EBITDA 9.35
MFI.CA Per share dataMFI.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

MFI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MFI's earnings are expected to grow with 171.84% in the coming years.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y291.53%
EPS Next 3Y171.84%

8

5. Dividend

5.1 Amount

MFI has a Yearly Dividend Yield of 4.53%, which is a nice return.
Compared to an average industry Dividend Yield of 4.55, MFI pays a better dividend. On top of this MFI pays more dividend than 87.50% of the companies listed in the same industry.
MFI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 4.53%

5.2 History

On average, the dividend of MFI grows each year by 7.69%, which is quite nice.
MFI has paid a dividend for at least 10 years, which is a reliable track record.
MFI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.69%
Div Incr Years10
Div Non Decr Years28
MFI.CA Yearly Dividends per shareMFI.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

253.40% of the earnings are spent on dividend by MFI. This is not a sustainable payout ratio.
MFI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP253.4%
EPS Next 2Y291.53%
EPS Next 3Y171.84%
MFI.CA Yearly Income VS Free CF VS DividendMFI.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M -200M -300M
MFI.CA Dividend Payout.MFI.CA Dividend Payout, showing the Payout Ratio.MFI.CA Dividend Payout.PayoutRetained Earnings

MAPLE LEAF FOODS INC

TSX:MFI (2/14/2025, 7:00:00 PM)

21.44

+0.27 (+1.28%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)11-13 2024-11-13/bmo
Earnings (Next)02-25 2025-02-25/amc
Inst Owners26.52%
Inst Owner ChangeN/A
Ins Owners40.15%
Ins Owner ChangeN/A
Market Cap2.66B
Analysts80
Price Target30.8 (43.66%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.53%
Yearly Dividend0.75
Dividend Growth(5Y)7.69%
DP253.4%
Div Incr Years10
Div Non Decr Years28
Ex-Date03-07 2025-03-07 (0.24)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.11%
Min EPS beat(2)-20.79%
Max EPS beat(2)-7.42%
EPS beat(4)0
Avg EPS beat(4)-38.01%
Min EPS beat(4)-68.32%
Max EPS beat(4)-7.42%
EPS beat(8)0
Avg EPS beat(8)-74.94%
EPS beat(12)0
Avg EPS beat(12)-79.96%
EPS beat(16)4
Avg EPS beat(16)-54.71%
Revenue beat(2)1
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-3.01%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-4.69%
Max Revenue beat(4)0.17%
Revenue beat(8)3
Avg Revenue beat(8)-2.24%
Revenue beat(12)3
Avg Revenue beat(12)-2.42%
Revenue beat(16)5
Avg Revenue beat(16)-1.41%
PT rev (1m)1.34%
PT rev (3m)-0.66%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)-15.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.41%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-2.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
Industry RankSector Rank
PE 44.67
Fwd PE 15.54
P/S 0.55
P/FCF 9.35
P/OCF 6.77
P/B 1.76
P/tB 3.82
EV/EBITDA 9.35
EPS(TTM)0.48
EY2.24%
EPS(NY)1.38
Fwd EY6.43%
FCF(TTM)2.29
FCFY10.69%
OCF(TTM)3.17
OCFY14.76%
SpS39.18
BVpS12.19
TBVpS5.61
PEG (NY)0.07
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.76%
ROE 2.23%
ROCE 5.89%
ROIC 4.24%
ROICexc 4.47%
ROICexgc 5.92%
OM 4.27%
PM (TTM) 0.7%
GM 13.4%
FCFM 5.85%
ROA(3y)-2.46%
ROA(5y)-0.47%
ROE(3y)-7.32%
ROE(5y)-2.45%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-39.04%
ROICexcg growth 5Y-32.07%
ROICexc growth 3Y-36.82%
ROICexc growth 5Y-28.28%
OM growth 3Y-37.61%
OM growth 5Y-29.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16%
GM growth 5Y-9.33%
F-Score8
Asset Turnover1.09
Health
Industry RankSector Rank
Debt/Equity 1.08
Debt/FCF 6.92
Debt/EBITDA 3.43
Cap/Depr 40.37%
Cap/Sales 2.23%
Interest Coverage 1.33
Cash Conversion 82.57%
Profit Quality 841.51%
Current Ratio 1.26
Quick Ratio 0.53
Altman-Z 2.03
F-Score8
WACC6.76%
ROIC/WACC0.63
Cap/Depr(3y)171.34%
Cap/Depr(5y)177.49%
Cap/Sales(3y)8.14%
Cap/Sales(5y)8.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)277.78%
EPS 3Y-55.63%
EPS 5Y-40.53%
EPS Q2Q%38.46%
EPS Next Y620.47%
EPS Next 2Y291.53%
EPS Next 3Y171.84%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.46%
Revenue growth 3Y4.19%
Revenue growth 5Y6.85%
Sales Q2Q%1.21%
Revenue Next Year-0.26%
Revenue Next 2Y1.69%
Revenue Next 3Y2.43%
Revenue Next 5YN/A
EBIT growth 1Y23239.7%
EBIT growth 3Y-35%
EBIT growth 5Y-24.31%
EBIT Next Year221.41%
EBIT Next 3Y61.41%
EBIT Next 5YN/A
FCF growth 1Y239.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y123.65%
OCF growth 3Y-18.05%
OCF growth 5Y-10.01%