MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
Canada - TSX:MTY - CA55378N1078 - Common Stock
35.86 CAD
+0.9 (+2.57%)
We assign a fundamental rating of 5 out of 10 to MTY. MTY was compared to 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
MTY had positive earnings in the past year.
In the past year MTY had a positive cash flow from operations.
Of the past 5 years MTY 4 years were profitable.
MTY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.27%, MTY is in line with its industry, outperforming 44.44% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.89%, MTY is in line with its industry, outperforming 44.44% of the companies in the same industry.
MTY has a better Return On Invested Capital (5.90%) than 72.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MTY is in line with the industry average of 6.58%.
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
The Profit Margin of MTY (2.70%) 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 14.39%. 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.
Looking at the Gross Margin, with a value of 61.08%, MTY is in the better half of the industry, outperforming 77.78% 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 | 14.39% | ||
| 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
MTY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MTY has been reduced compared to 1 year ago.
Compared to 5 years ago, MTY has less shares outstanding
The debt/assets ratio for MTY has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.18, we must say that MTY is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MTY (1.18) is better than 61.11% of its industry peers.
The Debt to FCF ratio of MTY is 6.89, which is on the high side as it means it would take MTY, 6.89 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.89, MTY is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.25 is on the high side and indicates that MTY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.25, MTY is in line with its industry, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 6.89 | ||
| Altman-Z | 1.18 |
ROIC/WACC0.98
WACC6.05%
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.
MTY has a Current ratio of 0.60. This is comparable to the rest of the industry: MTY outperforms 44.44% of its industry peers.
A Quick Ratio of 0.56 indicates that MTY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.56, MTY is doing worse than 61.11% of the companies in the same industry.
| 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 1.38% 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%-26.09%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%1.45%
3.2 Future
The Earnings Per Share is expected to grow by 4.48% on average over the next years.
Based on estimates for the next years, MTY will show a small growth in Revenue. The Revenue will grow by 1.02% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.92, the valuation of MTY can be described as reasonable.
Based on the Price/Earnings ratio, MTY is valued cheaper than 100.00% of the companies in the same industry.
MTY is valuated cheaply when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.32, the valuation of MTY can be described as reasonable.
Based on the Price/Forward Earnings ratio, MTY is valued cheaply inside the industry as 94.44% of the companies are valued more expensively.
MTY is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 8.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTY is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTY indicates a rather cheap valuation: MTY is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.01 | ||
| EV/EBITDA | 7.23 |
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)1.46
PEG (5Y)1.57
EPS Next 2Y3.54%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.87%, MTY has a reasonable but not impressive dividend return.
MTY's Dividend Yield is a higher than the industry average which is at 4.26.
MTY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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.
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%
TSX:MTY (11/20/2025, 7:00:00 PM)
35.86
+0.9 (+2.57%)
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 Cap819.04M
Revenue(TTM)1.17B
Net Income(TTM)31.61M
Analysts72
Price Target44.88 (25.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
Yearly Dividend1.12
Dividend Growth(5Y)11.08%
DP92.85%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.95%
Min EPS beat(2)-4.98%
Max EPS beat(2)-2.93%
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)-1.35%
Min Revenue beat(2)-1.72%
Max Revenue beat(2)-0.98%
Revenue beat(4)1
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)4.51%
Revenue beat(8)3
Avg Revenue beat(8)-0.07%
Revenue beat(12)7
Avg Revenue beat(12)3.3%
Revenue beat(16)10
Avg Revenue beat(16)3.64%
PT rev (1m)-7.69%
PT rev (3m)-7.69%
EPS NQ rev (1m)6.9%
EPS NQ rev (3m)6.9%
EPS NY rev (1m)-2.37%
EPS NY rev (3m)3.39%
Revenue NQ rev (1m)1.28%
Revenue NQ rev (3m)1.72%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 8.32 | ||
| P/S | 0.7 | ||
| P/FCF | 5.01 | ||
| P/OCF | 4.51 | ||
| P/B | 1.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.23 |
EPS(TTM)4.02
EY11.21%
EPS(NY)4.31
Fwd EY12.02%
FCF(TTM)7.16
FCFY19.97%
OCF(TTM)7.95
OCFY22.18%
SpS51.28
BVpS35.59
TBVpS-40.15
PEG (NY)1.46
PEG (5Y)1.57
Graham Number56.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 3.89% | ||
| ROCE | 8.2% | ||
| ROIC | 5.9% | ||
| ROICexc | 6.01% | ||
| ROICexgc | 42.09% | ||
| OM | 14.39% | ||
| PM (TTM) | 2.7% | ||
| GM | 61.08% | ||
| FCFM | 13.97% |
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%
ROICexgc growth 3Y1.96%
ROICexgc 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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 6.89 | ||
| Debt/EBITDA | 3.9 | ||
| Cap/Depr | 19.59% | ||
| Cap/Sales | 1.55% | ||
| Interest Coverage | 4.3 | ||
| Cash Conversion | 69.57% | ||
| Profit Quality | 517.43% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.18 |
F-Score6
WACC6.05%
ROIC/WACC0.98
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%-26.09%
EPS Next Y6.11%
EPS Next 2Y3.54%
EPS Next 3Y4.48%
EPS Next 5YN/A
Revenue 1Y (TTM)1.38%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%1.45%
Revenue Next Year1.64%
Revenue Next 2Y0.6%
Revenue Next 3Y1.02%
Revenue Next 5YN/A
EBIT growth 1Y-4.51%
EBIT growth 3Y12.9%
EBIT growth 5Y8.44%
EBIT Next Year23.01%
EBIT Next 3Y7.84%
EBIT Next 5Y4.95%
FCF growth 1Y14.18%
FCF growth 3Y10.18%
FCF growth 5Y10.87%
OCF growth 1Y4.24%
OCF growth 3Y13.75%
OCF growth 5Y12.63%
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 5 / 10 to MTY.CA.
Can you provide the valuation status for MTY FOOD GROUP INC?
ChartMill assigns a valuation rating of 8 / 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 6 / 10.
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.
Can you provide the dividend sustainability for MTY stock?
The dividend rating of MTY FOOD GROUP INC (MTY.CA) is 5 / 10 and the dividend payout ratio is 92.85%.