MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
Canada - TSX:MTY - CA55378N1078 - Common Stock
34.88 CAD
+0.56 (+1.63%)
Overall MTY gets a fundamental rating of 4 out of 10. We evaluated MTY against 17 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.
Of the past 5 years MTY 4 years were profitable.
In the past 5 years MTY always reported a positive cash flow from operatings.
1.2 Ratios
MTY has a Return On Assets (1.27%) which is comparable to the rest of the industry.
With a Return On Equity value of 3.89%, MTY perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
MTY has a better Return On Invested Capital (5.90%) than 70.59% 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 6.43%.
The 3 year average ROIC (5.51%) for MTY is below the current ROIC(5.90%), indicating increased profibility in the last year.
| 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.
MTY's Profit Margin has declined in the last couple of years.
MTY's Operating Margin of 14.39% is in line compared to the rest of the industry. MTY outperforms 58.82% of its industry peers.
MTY's Operating Margin has declined in the last couple of years.
MTY's Gross Margin of 61.08% is fine compared to the rest of the industry. MTY outperforms 76.47% of its industry peers.
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
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
MTY has less shares outstanding than it did 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 1.18. This is a bad value and indicates that MTY is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.18, MTY perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 6.89, MTY is in the better half of the industry, outperforming 64.71% 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.
MTY has a Debt to Equity ratio (1.25) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 6.89 | ||
| Altman-Z | 1.18 |
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.
Looking at the Current ratio, with a value of 0.60, MTY is doing worse than 70.59% of the companies in the same 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 worse Quick ratio (0.56) than 70.59% 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.
The Earnings Per Share has been growing slightly by 5.68% on average over the past years.
Looking at the last year, MTY shows a small growth in Revenue. The Revenue has grown by 1.38% in the last year.
Measured over the past years, MTY shows a quite strong growth in Revenue. The Revenue has been growing by 16.05% on average per year.
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 4.02% on average per year.
The Revenue is expected to grow by 0.97% on average over the next years.
EPS Next Y8.69%
EPS Next 2Y4.71%
EPS Next 3Y4.02%
EPS Next 5YN/A
Revenue Next Year1.46%
Revenue Next 2Y0.73%
Revenue Next 3Y0.97%
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.
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
With a Price/Earnings ratio of 8.68, the valuation of MTY can be described as very reasonable.
100.00% 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 26.83, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.91 indicates a rather cheap valuation of MTY.
100.00% of the companies in the same industry are more expensive than MTY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.82, MTY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.68 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
82.35% of the companies in the same industry are more expensive than MTY, based on the Enterprise Value to EBITDA ratio.
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 | 4.87 | ||
| EV/EBITDA | 7.23 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)1
PEG (5Y)1.53
EPS Next 2Y4.71%
EPS Next 3Y4.02%
5. Dividend
5.1 Amount
MTY has a Yearly Dividend Yield of 3.79%.
MTY's Dividend Yield is a higher than the industry average which is at 4.33.
MTY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
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.
MTY has decreased its dividend recently.
Dividend Growth(5Y)11.08%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
MTY pays out 92.85% of its income as dividend. 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 2Y4.71%
EPS Next 3Y4.02%
TSX:MTY (10/23/2025, 7:00:00 PM)
34.88
+0.56 (+1.63%)
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 Cap796.66M
Revenue(TTM)1.17B
Net Income(TTM)31.61M
Analysts72
Price Target48.62 (39.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
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)0%
PT rev (3m)-4.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)5.9%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)1.91%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.68 | ||
| Fwd PE | 7.91 | ||
| P/S | 0.68 | ||
| P/FCF | 4.87 | ||
| P/OCF | 4.38 | ||
| P/B | 0.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.23 |
EPS(TTM)4.02
EY11.53%
EPS(NY)4.41
Fwd EY12.64%
FCF(TTM)7.16
FCFY20.53%
OCF(TTM)7.95
OCFY22.81%
SpS51.28
BVpS35.59
TBVpS-40.15
PEG (NY)1
PEG (5Y)1.53
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
WACC6.14%
ROIC/WACC0.96
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 Y8.69%
EPS Next 2Y4.71%
EPS Next 3Y4.02%
EPS Next 5YN/A
Revenue 1Y (TTM)1.38%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%1.45%
Revenue Next Year1.46%
Revenue Next 2Y0.73%
Revenue Next 3Y0.97%
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 5Y5.53%
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 4 / 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 5 / 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 8.69% 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%.