MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MTY - CA55378N1078 - Common Stock
37 CAD
-0.47 (-1.25%)
Overall MTY gets a fundamental rating of 4 out of 10. We evaluated MTY against 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, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MTY had positive earnings in the past year.
MTY had a positive operating cash flow in the past year.
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 1.27%, MTY is in line with its industry, outperforming 41.18% 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 41.18% of the companies in the same industry.
MTY has a Return On Invested Capital of 5.90%. This is in the better half of the industry: MTY outperforms 70.59% 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 6.52%.
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
Looking at the Profit Margin, with a value of 2.70%, MTY is in line with its industry, outperforming 47.06% of the companies in the same industry.
MTY's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 14.39%, MTY is in line with its industry, outperforming 58.82% of the companies in the same industry.
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.
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
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.
The number of shares outstanding for MTY has been reduced compared to 5 years ago.
The debt/assets ratio for MTY has been reduced compared to a year ago.
2.2 Solvency
MTY has an Altman-Z score of 1.19. This is a bad value and indicates that MTY is not financially healthy and even has some risk of bankruptcy.
MTY has a Altman-Z score (1.19) which is in line with 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 70.59% of the companies in the same industry.
MTY has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external 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 | 1.19 |
ROIC/WACC0.92
WACC6.39%
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 comparable to the rest of the industry.
A Quick Ratio of 0.56 indicates that MTY may have some problems paying its short term obligations.
MTY's Quick ratio of 0.56 is on the low side compared to the rest of the industry. MTY is outperformed by 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 |
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%.
Measured over the past 5 years, MTY shows a small growth in Earnings Per Share. The EPS has been growing by 5.68% on average per year.
Looking at the last year, MTY shows a small growth in Revenue. The Revenue has grown by 1.38% in the last 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
MTY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.48% yearly.
The Revenue is expected to grow by 1.02% on average over the next years.
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
MTY is valuated reasonably with a Price/Earnings ratio of 9.20.
Compared to the rest of the industry, the Price/Earnings ratio of MTY indicates a rather cheap valuation: MTY is cheaper than 94.12% of the companies listed in the same industry.
MTY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.61.
The Price/Forward Earnings ratio is 8.59, which indicates a very decent valuation of MTY.
MTY's Price/Forward Earnings ratio is rather cheap when compared to the industry. MTY is cheaper than 94.12% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, MTY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.2 | ||
| Fwd PE | 8.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTY is valued cheaper than 82.35% of the companies in the same industry.
94.12% 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 | 5.17 | ||
| EV/EBITDA | 7.41 |
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)1.51
PEG (5Y)1.62
EPS Next 2Y3.54%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.49%, MTY has a reasonable but not impressive dividend return.
MTY's Dividend Yield is a higher than the industry average which is at 2.53.
Compared to an average S&P500 Dividend Yield of 1.87, MTY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
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.
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.
MTY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP92.85%
EPS Next 2Y3.54%
EPS Next 3Y4.48%
TSX:MTY (12/22/2025, 7:00:00 PM)
37
-0.47 (-1.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners19.43%
Inst Owner ChangeN/A
Ins Owners17.16%
Ins Owner ChangeN/A
Market Cap845.08M
Revenue(TTM)1.17B
Net Income(TTM)31.61M
Analysts72
Price Target44.2 (19.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
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)-1.52%
PT rev (3m)-9.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.2 | ||
| Fwd PE | 8.59 | ||
| P/S | 0.72 | ||
| P/FCF | 5.17 | ||
| P/OCF | 4.65 | ||
| P/B | 1.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.41 |
EPS(TTM)4.02
EY10.86%
EPS(NY)4.31
Fwd EY11.65%
FCF(TTM)7.16
FCFY19.35%
OCF(TTM)7.95
OCFY21.5%
SpS51.28
BVpS35.59
TBVpS-40.15
PEG (NY)1.51
PEG (5Y)1.62
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 | 1.19 |
F-Score6
WACC6.39%
ROIC/WACC0.92
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 Year23.48%
EBIT Next 3Y7.35%
EBIT Next 5Y5.01%
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 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.
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%.