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. A decent growth rate in combination with a cheap valuation! Better keep an eye on MTY.
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.
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
MTY's Return On Assets of 0.33% is in line compared to the rest of the industry. MTY outperforms 52.63% of its industry peers.
The Return On Equity of MTY (1.05%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.69%, MTY is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MTY is in line with the industry average of 7.05%.
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
MTY has a Profit Margin (0.74%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MTY has declined.
MTY has a Operating Margin (14.66%) which is in line with its industry peers.
In the last couple of years the Operating Margin of MTY has declined.
MTY's Gross Margin of 62.23% is amongst the best of the industry. MTY outperforms 84.21% of its industry peers.
MTY's Gross Margin has improved in the last couple of years.
| 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) just above the Cost of Capital (WACC), MTY is creating some value.
Compared to 1 year ago, MTY has less shares outstanding
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
Based on the Altman-Z score of 1.12, we must say that MTY is in the distress zone and has some risk of bankruptcy.
MTY has a Altman-Z score (1.12) which is in line with its industry peers.
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's Debt to FCF ratio of 6.61 is fine compared to the rest of the industry. MTY outperforms 68.42% of its industry peers.
A Debt/Equity ratio of 1.35 is on the high side and indicates that MTY has dependencies on debt financing.
MTY's Debt to Equity ratio of 1.35 is in line compared to the rest of the industry. MTY outperforms 47.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 6.61 | ||
| Altman-Z | 1.12 |
ROIC/WACC1.02
WACC5.56%
2.3 Liquidity
A Current Ratio of 0.62 indicates that MTY may have some problems paying its short term obligations.
With a Current ratio value of 0.62, MTY perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
A Quick Ratio of 0.58 indicates that MTY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.58, MTY is in line with its industry, outperforming 47.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 |
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.
MTY shows a small growth in Revenue. In the last year, the Revenue has grown by 0.33%.
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%-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
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 10.21, 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's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.32.
A Price/Forward Earnings ratio of 9.14 indicates a reasonable valuation of MTY.
Based on the Price/Forward 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/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 9.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTY is valued cheaply inside the industry as 94.74% 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 | 5.1 | ||
| EV/EBITDA | 7.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MTY does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of MTY may justify a higher PE ratio.
PEG (NY)3.88
PEG (5Y)1.8
EPS Next 2Y5.68%
EPS Next 3Y5.77%
5. Dividend
5.1 Amount
MTY has a Yearly Dividend Yield of 2.97%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.54, MTY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, MTY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
5.2 History
The dividend of MTY is nicely growing with an annual growth rate of 11.08%!
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
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 (6/17/2025, 7:00:00 PM)
41.04
+0.07 (+0.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners21.92%
Inst Owner ChangeN/A
Ins Owners17.15%
Ins Owner ChangeN/A
Market Cap941.05M
Analysts73.33
Price Target51.82 (26.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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)0.1%
PT rev (3m)-7.21%
EPS NQ rev (1m)8.85%
EPS NQ rev (3m)0.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)0.64%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 9.14 | ||
| P/S | 0.81 | ||
| P/FCF | 5.1 | ||
| P/OCF | 4.49 | ||
| P/B | 1.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.93 |
EPS(TTM)4.02
EY9.8%
EPS(NY)4.49
Fwd EY10.94%
FCF(TTM)8.04
FCFY19.6%
OCF(TTM)9.13
OCFY22.26%
SpS50.84
BVpS35.63
TBVpS-43.51
PEG (NY)3.88
PEG (5Y)1.8
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 | 1.12 |
F-Score8
WACC5.56%
ROIC/WACC1.02
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 Year24.09%
EBIT Next 3Y8.52%
EBIT Next 5Y6.39%
FCF growth 1Y50.16%
FCF growth 3Y10.18%
FCF growth 5Y10.87%
OCF growth 1Y48.86%
OCF growth 3Y13.75%
OCF growth 5Y12.63%