MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MTY - CA55378N1078 - Common Stock
42.7 CAD
-0.21 (-0.49%)
Overall MTY gets a fundamental rating of 4 out of 10. We evaluated MTY against 19 industry peers in the Hotels, Restaurants & Leisure industry. MTY has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
- MTY had a positive operating cash flow in the past year.
- MTY had positive earnings in 4 of the past 5 years.
- MTY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MTY has a Return On Assets (1.27%) which is in line with its industry peers.
- Looking at the Return On Equity, with a value of 3.89%, MTY is in line with its industry, outperforming 47.37% of the companies in the same industry.
- MTY has a better Return On Invested Capital (5.90%) than 68.42% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MTY is below the industry average of 8.63%.
- The last Return On Invested Capital (5.90%) for MTY is above the 3 year average (5.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 3.89% | ||
| ROIC | 5.9% |
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 (2.70%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of MTY has declined.
- MTY has a Operating Margin (14.39%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of MTY has declined.
- With a decent Gross Margin value of 61.08%, MTY is doing good in the industry, outperforming 73.68% of the companies in the same industry.
- MTY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.39% | ||
| PM (TTM) | 2.7% | ||
| GM | 61.08% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MTY is destroying value.
- Compared to 1 year ago, MTY has less shares outstanding
- Compared to 5 years ago, MTY has less shares outstanding
- Compared to 1 year ago, MTY has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.24, we must say that MTY is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of MTY (1.24) is better than 63.16% of its industry peers.
- MTY has a debt to FCF ratio of 6.89. This is a slightly negative value and a sign of low solvency as MTY would need 6.89 years to pay back of all of its debts.
- MTY's Debt to FCF ratio of 6.89 is fine compared to the rest of the industry. MTY outperforms 73.68% of its industry peers.
- MTY has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of MTY (1.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 6.89 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.96
WACC6.14%
2.3 Liquidity
- A Current Ratio of 0.60 indicates that MTY may have some problems paying its short term obligations.
- The Current ratio of MTY (0.60) is comparable to the rest of the industry.
- MTY has a Quick 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.
- MTY has a Quick ratio (0.56) which is in line with 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.
- The Earnings Per Share has been growing slightly by 5.68% on average over the past years.
- The Revenue has been growing slightly by 1.38% in the past year.
- MTY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.05% yearly.
EPS 1Y (TTM)-5.63%
EPS 3Y2.8%
EPS 5Y5.68%
EPS Q2Q%-26.09%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%1.45%
3.2 Future
- Based on estimates for the next years, MTY will show a small growth in Earnings Per Share. The EPS will grow by 4.48% on average per year.
- MTY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.02% yearly.
EPS Next Y6.11%
EPS Next 2Y3.54%
EPS Next 3Y4.48%
EPS Next 5YN/A
Revenue Next Year1.64%
Revenue Next 2Y0.6%
Revenue Next 3Y1.02%
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 decreasing.
- 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
- With a Price/Earnings ratio of 10.62, the valuation of MTY can be described as very reasonable.
- Based on the Price/Earnings ratio, MTY is valued cheaper than 89.47% of the companies in the same industry.
- When comparing the Price/Earnings ratio of MTY to the average of the S&P500 Index (28.82), we can say MTY is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.91 indicates a reasonable valuation of MTY.
- 89.47% of the companies in the same industry are more expensive than MTY, based on the Price/Forward Earnings ratio.
- MTY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 9.91 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MTY is valued a bit cheaper than 78.95% of the companies in the same industry.
- 89.47% of the companies in the same industry are more expensive than MTY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.96 | ||
| EV/EBITDA | 7.91 |
4.3 Compensation for Growth
- MTY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.74
PEG (5Y)1.87
EPS Next 2Y3.54%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.14%, MTY has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.40, MTY pays a bit more dividend than its industry peers.
- MTY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
5.2 History
- On average, the dividend of MTY grows each year by 11.08%, which is quite nice.
- 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
- 92.85% 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.
DP92.85%
EPS Next 2Y3.54%
EPS Next 3Y4.48%
MTY FOOD GROUP INC / MTY.CA FAQ
Can you provide the ChartMill fundamental rating for MTY FOOD GROUP INC?
ChartMill assigns a fundamental rating of 4 / 10 to MTY.CA.
What is the valuation status of MTY FOOD GROUP INC (MTY.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to MTY FOOD GROUP INC (MTY.CA). This can be considered as Undervalued.
Can you provide the profitability details for MTY FOOD GROUP INC?
MTY FOOD GROUP INC (MTY.CA) has a profitability rating of 5 / 10.
What are the PE and PB ratios of MTY FOOD GROUP INC (MTY.CA) stock?
The Price/Earnings (PE) ratio for MTY FOOD GROUP INC (MTY.CA) is 10.62 and the Price/Book (PB) ratio is 1.2.
Can you provide the expected EPS growth for MTY stock?
The Earnings per Share (EPS) of MTY FOOD GROUP INC (MTY.CA) is expected to grow by 6.11% in the next year.