MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
Canada - TSX:MTY - CA55378N1078 - Common Stock
38.25 CAD
+0.15 (+0.39%)
MTY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 18 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of MTY while its profitability can be described as average. MTY is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MTY was profitable.
In the past year MTY had a positive cash flow from operations.
Of the past 5 years MTY 4 years were profitable.
Each year in the past 5 years MTY had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.54%, MTY is in line with its industry, outperforming 55.56% of the companies in the same industry.
The Return On Equity of MTY (4.86%) is comparable to the rest of the industry.
MTY has a Return On Invested Capital of 5.78%. This is in the better half of the industry: MTY outperforms 72.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MTY is in line with the industry average of 6.35%.
The 3 year average ROIC (5.51%) for MTY is below the current ROIC(5.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 4.86% | ||
| ROIC | 5.78% |
ROA(3y)2.68%
ROA(5y)2.14%
ROE(3y)8.73%
ROE(5y)6.61%
ROIC(3y)5.51%
ROIC(5y)5.14%
1.3 Margins
MTY has a Profit Margin of 3.31%. This is in the better half of the industry: MTY outperforms 61.11% of its industry peers.
In the last couple of years the Profit Margin of MTY has declined.
MTY has a Operating Margin of 14.33%. This is in the better half of the industry: MTY outperforms 61.11% of its industry peers.
MTY's Operating Margin has declined in the last couple of years.
MTY has a better Gross Margin (61.76%) than 77.78% of its industry peers.
In the last couple of years the Gross Margin of MTY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.33% | ||
| PM (TTM) | 3.31% | ||
| GM | 61.76% |
OM growth 3Y-11.85%
OM growth 5Y-6.56%
PM growth 3Y-48.79%
PM growth 5Y-31.78%
GM growth 3Y4.71%
GM growth 5Y2.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MTY is destroying value.
The number of shares outstanding for MTY has been reduced compared to 1 year ago.
The number of shares outstanding for MTY has been reduced compared to 5 years ago.
MTY has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.17, we must say that MTY is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.17, MTY perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
MTY has a debt to FCF ratio of 6.28. This is a slightly negative value and a sign of low solvency as MTY would need 6.28 years to pay back of all of its debts.
The Debt to FCF ratio of MTY (6.28) is better than 72.22% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that MTY has dependencies on debt financing.
The Debt to Equity ratio of MTY (1.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 6.28 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.82
WACC7.03%
2.3 Liquidity
MTY has a Current Ratio of 0.60. This is a bad value and indicates that MTY is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of MTY (0.60) is worse than 66.67% of its industry peers.
A Quick Ratio of 0.56 indicates that MTY may have some problems paying its short term obligations.
MTY has a worse Quick ratio (0.56) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for MTY have decreased by -5.63% in the last year.
MTY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.68% yearly.
Looking at the last year, MTY shows a small growth in Revenue. The Revenue has grown by 0.55% in the last year.
The Revenue has been growing by 16.05% on average over the past years. This is quite good.
EPS 1Y (TTM)-5.63%
EPS 3Y2.8%
EPS 5Y5.68%
EPS Q2Q%-7.87%
Revenue 1Y (TTM)0.55%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%0.37%
3.2 Future
MTY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.02% yearly.
MTY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.80% yearly.
EPS Next Y8.69%
EPS Next 2Y4.71%
EPS Next 3Y4.02%
EPS Next 5YN/A
Revenue Next Year1.21%
Revenue Next 2Y0.56%
Revenue Next 3Y0.8%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.51, the valuation of MTY can be described as reasonable.
MTY's Price/Earnings ratio is rather cheap when compared to the industry. MTY is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. MTY is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.68, the valuation of MTY can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MTY is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MTY to the average of the S&P500 Index (22.86), we can say MTY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 8.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MTY indicates a rather cheap valuation: MTY is cheaper than 83.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MTY is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.68 | ||
| EV/EBITDA | 7.69 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MTY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.1
PEG (5Y)1.68
EPS Next 2Y4.71%
EPS Next 3Y4.02%
5. Dividend
5.1 Amount
MTY has a Yearly Dividend Yield of 3.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.19, MTY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, MTY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
The dividend of MTY is nicely growing with an annual growth rate of 11.08%!
MTY has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MTY decreased recently.
Dividend Growth(5Y)11.08%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
73.76% of the earnings are spent on dividend by MTY. This is not a sustainable payout ratio.
The dividend of MTY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP73.76%
EPS Next 2Y4.71%
EPS Next 3Y4.02%
TSX:MTY (9/19/2025, 7:00:00 PM)
38.25
+0.15 (+0.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners18.79%
Inst Owner ChangeN/A
Ins Owners17.16%
Ins Owner ChangeN/A
Market Cap873.63M
Analysts72
Price Target48.62 (27.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend1.12
Dividend Growth(5Y)11.08%
DP73.76%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)-0.98%
Revenue beat(4)1
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)4.51%
Revenue beat(8)4
Avg Revenue beat(8)0.39%
Revenue beat(12)8
Avg Revenue beat(12)3.84%
Revenue beat(16)11
Avg Revenue beat(16)3.81%
PT rev (1m)0%
PT rev (3m)-6.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.33%
EPS NY rev (1m)0%
EPS NY rev (3m)5.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 8.68 | ||
| P/S | 0.75 | ||
| P/FCF | 4.68 | ||
| P/OCF | 4.18 | ||
| P/B | 1.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.69 |
EPS(TTM)4.02
EY10.51%
EPS(NY)4.41
Fwd EY11.52%
FCF(TTM)8.16
FCFY21.34%
OCF(TTM)9.15
OCFY23.93%
SpS51.09
BVpS34.77
TBVpS-41.6
PEG (NY)1.1
PEG (5Y)1.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 4.86% | ||
| ROCE | 8.03% | ||
| ROIC | 5.78% | ||
| ROICexc | 5.91% | ||
| ROICexgc | 41.23% | ||
| OM | 14.33% | ||
| PM (TTM) | 3.31% | ||
| GM | 61.76% | ||
| FCFM | 15.98% |
ROA(3y)2.68%
ROA(5y)2.14%
ROE(3y)8.73%
ROE(5y)6.61%
ROIC(3y)5.51%
ROIC(5y)5.14%
ROICexc(3y)5.67%
ROICexc(5y)5.3%
ROICexgc(3y)36.63%
ROICexgc(5y)33.23%
ROCE(3y)7.66%
ROCE(5y)7.14%
ROICexcg growth 3Y1.96%
ROICexcg growth 5YN/A
ROICexc growth 3Y0.54%
ROICexc growth 5Y-0.8%
OM growth 3Y-11.85%
OM growth 5Y-6.56%
PM growth 3Y-48.79%
PM growth 5Y-31.78%
GM growth 3Y4.71%
GM growth 5Y2.34%
F-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 6.28 | ||
| Debt/EBITDA | 4.08 | ||
| Cap/Depr | 24.39% | ||
| Cap/Sales | 1.93% | ||
| Interest Coverage | 3.94 | ||
| Cash Conversion | 80.48% | ||
| Profit Quality | 482.86% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.17 |
F-Score6
WACC7.03%
ROIC/WACC0.82
Cap/Depr(3y)30.32%
Cap/Depr(5y)23.56%
Cap/Sales(3y)2.3%
Cap/Sales(5y)1.85%
Profit Quality(3y)353.54%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.63%
EPS 3Y2.8%
EPS 5Y5.68%
EPS Q2Q%-7.87%
EPS Next Y8.69%
EPS Next 2Y4.71%
EPS Next 3Y4.02%
EPS Next 5YN/A
Revenue 1Y (TTM)0.55%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%0.37%
Revenue Next Year1.21%
Revenue Next 2Y0.56%
Revenue Next 3Y0.8%
Revenue Next 5YN/A
EBIT growth 1Y-5.76%
EBIT growth 3Y12.9%
EBIT growth 5Y8.44%
EBIT Next Year23.01%
EBIT Next 3Y7.84%
EBIT Next 5Y5.53%
FCF growth 1Y32.28%
FCF growth 3Y10.18%
FCF growth 5Y10.87%
OCF growth 1Y26.37%
OCF growth 3Y13.75%
OCF growth 5Y12.63%