MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
TSX:MTY - Toronto Stock Exchange - CA55378N1078 - Common Stock - Currency: CAD
Overall MTY gets a fundamental rating of 5 out of 10. We evaluated MTY against 19 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year MTY was profitable.
In the past year MTY had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 3.71%, MTY is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
MTY has a Return On Equity of 11.49%. This is in the better half of the industry: MTY outperforms 77.78% of its industry peers.
MTY's Return On Invested Capital of 7.09% is fine compared to the rest of the industry. MTY outperforms 72.22% of its industry peers.
MTY had an Average Return On Invested Capital over the past 3 years of 6.56%. This is in line with the industry average of 7.56%.
The 3 year average ROIC (6.56%) for MTY is below the current ROIC(7.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.71% | ||
| ROE | 11.49% | ||
| ROIC | 7.09% |
ROA(3y)3.86%
ROA(5y)2.89%
ROE(3y)12.13%
ROE(5y)8.34%
ROIC(3y)6.56%
ROIC(5y)6.22%
1.3 Margins
The Profit Margin of MTY (8.30%) is better than 61.11% of its industry peers.
In the last couple of years the Profit Margin of MTY has declined.
MTY has a better Operating Margin (15.28%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of MTY has declined.
MTY has a Gross Margin of 62.10%. This is amongst the best in the industry. MTY outperforms 83.33% of its industry peers.
In the last couple of years the Gross Margin of MTY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.28% | ||
| PM (TTM) | 8.3% | ||
| GM | 62.1% |
OM growth 3Y-1.3%
OM growth 5Y-8.06%
PM growth 3YN/A
PM growth 5Y-17.46%
GM growth 3Y3.5%
GM growth 5Y1.27%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MTY is destroying value.
MTY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MTY has less shares outstanding
MTY has a worse debt/assets ratio than last year.
2.2 Solvency
MTY has an Altman-Z score of 1.27. 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 (1.27) is comparable to the rest of the industry.
MTY has a debt to FCF ratio of 6.59. This is a slightly negative value and a sign of low solvency as MTY would need 6.59 years to pay back of all of its debts.
MTY's Debt to FCF ratio of 6.59 is fine compared to the rest of the industry. MTY outperforms 61.11% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that MTY has dependencies on debt financing.
The Debt to Equity ratio of MTY (1.29) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.59 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.88
WACC8.05%
2.3 Liquidity
MTY has a Current Ratio of 0.61. 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's Current ratio of 0.61 is in line compared 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.
MTY's Quick ratio of 0.56 is on the low side compared to the rest of the industry. MTY is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.75% over the past year.
MTY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.04% yearly.
MTY shows a small growth in Revenue. In the last year, the Revenue has grown by 2.11%.
MTY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.18% yearly.
EPS 1Y (TTM)2.75%
EPS 3Y5.58%
EPS 5Y10.04%
EPS Q2Q%1.26%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y31.77%
Revenue growth 5Y23.18%
Sales Q2Q%-1.79%
3.2 Future
The Earnings Per Share is expected to grow by 3.01% 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 0.03% on average per year.
EPS Next Y-4.57%
EPS Next 2Y-0.36%
EPS Next 3Y3.01%
EPS Next 5YN/A
Revenue Next Year-2.27%
Revenue Next 2Y-0.72%
Revenue Next 3Y0.03%
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.
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
A Price/Earnings ratio of 11.64 indicates a reasonable valuation of MTY.
83.33% 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 29.39, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.75, which indicates a very decent valuation of MTY.
88.89% 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 94.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.64 | ||
| Fwd PE | 11.75 |
4.2 Price Multiples
MTY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MTY is cheaper than 88.89% of the companies in the same industry.
MTY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MTY is cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.44 | ||
| EV/EBITDA | 8.71 |
4.3 Compensation for Growth
MTY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.16
EPS Next 2Y-0.36%
EPS Next 3Y3.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.40%, MTY has a reasonable but not impressive dividend return.
MTY's Dividend Yield is a higher than the industry average which is at 4.60.
Compared to an average S&P500 Dividend Yield of 2.30, MTY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
The dividend of MTY is nicely growing with an annual growth rate of 9.98%!
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)9.98%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
MTY pays out 27.44% of its income as dividend. This is a sustainable payout ratio.
MTY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.44%
EPS Next 2Y-0.36%
EPS Next 3Y3.01%
MTY FOOD GROUP INC
TSX:MTY (2/11/2025, 7:00:00 PM)
49.7
-0.1 (-0.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners19.03%
Inst Owner ChangeN/A
Ins Owners16.6%
Ins Owner ChangeN/A
Market Cap1.16B
Analysts75
Price Target57.89 (16.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend1
Dividend Growth(5Y)9.98%
DP27.44%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.64%
Min EPS beat(2)15.71%
Max EPS beat(2)45.58%
EPS beat(4)2
Avg EPS beat(4)4.3%
Min EPS beat(4)-29.58%
Max EPS beat(4)45.58%
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)-0.16%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)2.08%
Revenue beat(4)2
Avg Revenue beat(4)-0.04%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)2.08%
Revenue beat(8)6
Avg Revenue beat(8)5.01%
Revenue beat(12)9
Avg Revenue beat(12)4.89%
Revenue beat(16)11
Avg Revenue beat(16)3.78%
PT rev (1m)0%
PT rev (3m)1.34%
EPS NQ rev (1m)-44.24%
EPS NQ rev (3m)-44.24%
EPS NY rev (1m)0.81%
EPS NY rev (3m)0.75%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.64 | ||
| Fwd PE | 11.75 | ||
| P/S | 1.01 | ||
| P/FCF | 6.44 | ||
| P/OCF | 5.63 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.71 |
EPS(TTM)4.27
EY8.59%
EPS(NY)4.23
Fwd EY8.51%
FCF(TTM)7.71
FCFY15.52%
OCF(TTM)8.83
OCFY17.77%
SpS49.3
BVpS35.62
TBVpS-41.26
PEG (NY)N/A
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.71% | ||
| ROE | 11.49% | ||
| ROCE | 8.19% | ||
| ROIC | 7.09% | ||
| ROICexc | 7.27% | ||
| ROICexgc | 50.45% | ||
| OM | 15.28% | ||
| PM (TTM) | 8.3% | ||
| GM | 62.1% | ||
| FCFM | 15.64% |
ROA(3y)3.86%
ROA(5y)2.89%
ROE(3y)12.13%
ROE(5y)8.34%
ROIC(3y)6.56%
ROIC(5y)6.22%
ROICexc(3y)6.78%
ROICexc(5y)6.43%
ROICexgc(3y)43.19%
ROICexgc(5y)N/A
ROCE(3y)7.57%
ROCE(5y)7.18%
ROICexcg growth 3Y23.65%
ROICexcg growth 5YN/A
ROICexc growth 3Y17.3%
ROICexc growth 5Y-3.17%
OM growth 3Y-1.3%
OM growth 5Y-8.06%
PM growth 3YN/A
PM growth 5Y-17.46%
GM growth 3Y3.5%
GM growth 5Y1.27%
F-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.59 | ||
| Debt/EBITDA | 4.06 | ||
| Cap/Depr | 29.72% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 3.68 | ||
| Cash Conversion | 78.19% | ||
| Profit Quality | 188.42% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.27 |
F-Score8
WACC8.05%
ROIC/WACC0.88
Cap/Depr(3y)25.3%
Cap/Depr(5y)21.92%
Cap/Sales(3y)1.91%
Cap/Sales(5y)1.63%
Profit Quality(3y)160.86%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.75%
EPS 3Y5.58%
EPS 5Y10.04%
EPS Q2Q%1.26%
EPS Next Y-4.57%
EPS Next 2Y-0.36%
EPS Next 3Y3.01%
EPS Next 5YN/A
Revenue 1Y (TTM)2.11%
Revenue growth 3Y31.77%
Revenue growth 5Y23.18%
Sales Q2Q%-1.79%
Revenue Next Year-2.27%
Revenue Next 2Y-0.72%
Revenue Next 3Y0.03%
Revenue Next 5YN/A
EBIT growth 1Y2.32%
EBIT growth 3Y30.05%
EBIT growth 5Y13.25%
EBIT Next Year27.75%
EBIT Next 3Y9.48%
EBIT Next 5YN/A
FCF growth 1Y41.48%
FCF growth 3Y5.96%
FCF growth 5Y11.09%
OCF growth 1Y48.67%
OCF growth 3Y11.35%
OCF growth 5Y13.52%