MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
TSX:MTY - Toronto Stock Exchange - CA55378N1078 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to MTY. MTY was compared to 17 industry peers in the Hotels, Restaurants & Leisure industry. While MTY is still in line with the averages on profitability rating, there are concerns on its financial health. MTY is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In the past 5 years MTY always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.33%, MTY perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
MTY has a Return On Equity (1.05%) which is in line with its industry peers.
MTY has a better Return On Invested Capital (5.69%) than 64.71% of its industry peers.
MTY had an Average Return On Invested Capital over the past 3 years of 5.51%. This is below the industry average of 8.02%.
The last Return On Invested Capital (5.69%) for MTY is above the 3 year average (5.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 1.05% | ||
| ROIC | 5.69% |
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
The Profit Margin of MTY (0.74%) is comparable to the rest of the industry.
MTY's Profit Margin has declined in the last couple of years.
MTY has a Operating Margin of 14.66%. This is comparable to the rest of the industry: MTY outperforms 58.82% of its industry peers.
In the last couple of years the Operating Margin of MTY has declined.
With an excellent Gross Margin value of 62.23%, MTY belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
In the last couple of years the Gross Margin of MTY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.66% | ||
| PM (TTM) | 0.74% | ||
| GM | 62.23% |
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.
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.
Compared to 1 year ago, MTY has an improved debt to assets ratio.
2.2 Solvency
MTY has an Altman-Z score of 1.13. This is a bad value and indicates that MTY is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MTY (1.13) is comparable to the rest of the industry.
The Debt to FCF ratio of MTY is 6.61, which is on the high side as it means it would take MTY, 6.61 years of fcf income to pay off all of its debts.
MTY has a better Debt to FCF ratio (6.61) than 64.71% of its industry peers.
MTY has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.35, MTY perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 6.61 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.85
WACC6.69%
2.3 Liquidity
MTY has a Current Ratio of 0.62. This is a bad value and indicates that MTY is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.62, MTY is in line with its industry, outperforming 47.06% of the companies in the same industry.
MTY has a Quick Ratio of 0.62. 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 of 0.58. This is comparable to the rest of the industry: MTY outperforms 41.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
MTY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.63%.
MTY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.68% yearly.
The Revenue has been growing slightly by 0.33% 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%-89.47%
Revenue 1Y (TTM)0.33%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%2.21%
3.2 Future
The Earnings Per Share is expected to grow by 5.77% on average over the next years.
The Revenue is expected to grow by 1.92% on average over the next years.
EPS Next Y2.63%
EPS Next 2Y5.68%
EPS Next 3Y5.77%
EPS Next 5YN/A
Revenue Next Year2.5%
Revenue Next 2Y1.28%
Revenue Next 3Y1.92%
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 stable.
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
The Price/Earnings ratio is 10.42, which indicates a very decent valuation of MTY.
94.12% of the companies in the same industry are more expensive than MTY, based on the Price/Earnings ratio.
MTY is valuated cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.33, the valuation of MTY can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MTY is valued cheaper than 100.00% of the companies in the same industry.
MTY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.42 | ||
| Fwd PE | 9.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTY is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
100.00% 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 | 5.23 | ||
| EV/EBITDA | 8.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.96
PEG (5Y)1.84
EPS Next 2Y5.68%
EPS Next 3Y5.77%
5. Dividend
5.1 Amount
MTY has a Yearly Dividend Yield of 2.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.62, MTY has a dividend in line with its industry peers.
MTY's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
5.2 History
On average, the dividend of MTY grows each year by 11.08%, which is quite nice.
MTY has paid a dividend for at least 10 years, which is a reliable track record.
MTY has decreased its dividend recently.
Dividend Growth(5Y)11.08%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
MTY pays out 321.45% of its income as dividend. This is not a sustainable payout ratio.
MTY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP321.45%
EPS Next 2Y5.68%
EPS Next 3Y5.77%
TSX:MTY (5/21/2025, 7:00:00 PM)
41.9
-1.31 (-3.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners20.89%
Inst Owner ChangeN/A
Ins Owners16.27%
Ins Owner ChangeN/A
Market Cap965.38M
Analysts75
Price Target51.77 (23.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Yearly Dividend1.12
Dividend Growth(5Y)11.08%
DP321.45%
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)1
Avg Revenue beat(2)1.14%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)4.51%
Revenue beat(4)2
Avg Revenue beat(4)0.49%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)4.51%
Revenue beat(8)5
Avg Revenue beat(8)1.6%
Revenue beat(12)9
Avg Revenue beat(12)4.51%
Revenue beat(16)12
Avg Revenue beat(16)4.57%
PT rev (1m)-7.31%
PT rev (3m)-10.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.42 | ||
| Fwd PE | 9.33 | ||
| P/S | 0.83 | ||
| P/FCF | 5.23 | ||
| P/OCF | 4.61 | ||
| P/B | 1.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.03 |
EPS(TTM)4.02
EY9.59%
EPS(NY)4.49
Fwd EY10.71%
FCF(TTM)8.01
FCFY19.11%
OCF(TTM)9.09
OCFY21.69%
SpS50.6
BVpS35.46
TBVpS-43.3
PEG (NY)3.96
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 1.05% | ||
| ROCE | 7.9% | ||
| ROIC | 5.69% | ||
| ROICexc | 5.87% | ||
| ROICexgc | 43.92% | ||
| OM | 14.66% | ||
| PM (TTM) | 0.74% | ||
| GM | 62.23% | ||
| FCFM | 15.82% |
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-Score8
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 6.61 | ||
| Debt/EBITDA | 4.2 | ||
| Cap/Depr | 26.91% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 3.83 | ||
| Cash Conversion | 79.44% | ||
| Profit Quality | 2142.89% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.13 |
F-Score8
WACC6.69%
ROIC/WACC0.85
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%-89.47%
EPS Next Y2.63%
EPS Next 2Y5.68%
EPS Next 3Y5.77%
EPS Next 5YN/A
Revenue 1Y (TTM)0.33%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%2.21%
Revenue Next Year2.5%
Revenue Next 2Y1.28%
Revenue Next 3Y1.92%
Revenue Next 5YN/A
EBIT growth 1Y-3.72%
EBIT growth 3Y12.9%
EBIT growth 5Y8.44%
EBIT Next Year24.96%
EBIT Next 3Y8.65%
EBIT Next 5YN/A
FCF growth 1Y50.16%
FCF growth 3Y10.18%
FCF growth 5Y10.87%
OCF growth 1Y48.86%
OCF growth 3Y13.75%
OCF growth 5Y12.63%