MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
TSX:MTY - Toronto Stock Exchange - CA55378N1078 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to MTY. MTY was compared to 19 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. 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.
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
MTY has a Return On Assets (1.54%) which is in line with its industry peers.
MTY has a Return On Equity (4.86%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.78%, MTY is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
MTY had an Average Return On Invested Capital over the past 3 years of 5.51%. This is in line with the industry average of 6.87%.
The 3 year average ROIC (5.51%) for MTY is below the current ROIC(5.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 4.86% | ||
| ROIC | 5.78% |
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 (3.31%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MTY has declined.
Looking at the Operating Margin, with a value of 14.33%, MTY is in line with its industry, outperforming 57.89% of the companies in the same industry.
MTY's Operating Margin has declined in the last couple of years.
MTY has a better Gross Margin (61.76%) than 78.95% of its industry peers.
In the last couple of years the Gross Margin of MTY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.33% | ||
| PM (TTM) | 3.31% | ||
| GM | 61.76% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MTY is destroying value.
The number of shares outstanding for MTY has been reduced compared to 1 year ago.
MTY has less shares outstanding than it did 5 years ago.
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.
MTY's Altman-Z score of 1.18 is in line compared to the rest of the industry. MTY outperforms 52.63% of its industry peers.
MTY has a debt to FCF ratio of 6.28. This is a slightly negative value and a sign of low solvency as MTY would need 6.28 years to pay back of all of its debts.
MTY has a Debt to FCF ratio of 6.28. This is in the better half of the industry: MTY outperforms 68.42% of its industry peers.
MTY has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
MTY has a Debt to Equity ratio (1.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 6.28 | ||
| Altman-Z | 1.18 |
ROIC/WACC0.8
WACC7.23%
2.3 Liquidity
A Current Ratio of 0.60 indicates that MTY may have some problems paying its short term obligations.
MTY has a worse Current ratio (0.60) than 63.16% of its industry peers.
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.
With a Quick ratio value of 0.56, MTY is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
| 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.
MTY shows a small growth in Revenue. In the last year, the Revenue has grown by 0.55%.
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%-7.87%
Revenue 1Y (TTM)0.55%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%0.37%
3.2 Future
The Earnings Per Share is expected to grow by 5.77% on average over the next years.
MTY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.92% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 9.80, the valuation of MTY can be described as reasonable.
Based on the Price/Earnings ratio, MTY is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
MTY is valuated cheaply when we compare the Price/Earnings ratio to 27.93, which is the current average of the S&P500 Index.
MTY is valuated reasonably with a Price/Forward Earnings ratio of 8.78.
MTY's Price/Forward Earnings ratio is rather cheap when compared to the industry. MTY is cheaper than 100.00% of the companies in the same industry.
MTY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 8.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MTY indicates a rather cheap valuation: MTY is cheaper than 89.47% of the companies listed in the same industry.
MTY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MTY is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.83 | ||
| EV/EBITDA | 7.81 |
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.
PEG (NY)3.72
PEG (5Y)1.73
EPS Next 2Y5.68%
EPS Next 3Y5.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.19%, MTY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.28, MTY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, MTY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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.
The dividend of MTY decreased recently.
Dividend Growth(5Y)11.08%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
MTY pays out 73.76% 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.
DP73.76%
EPS Next 2Y5.68%
EPS Next 3Y5.77%
TSX:MTY (7/28/2025, 7:00:00 PM)
39.41
-0.21 (-0.53%)
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 Cap900.52M
Analysts72
Price Target48.62 (23.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend1.12
Dividend Growth(5Y)11.08%
DP73.76%
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)0
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)-0.98%
Revenue beat(4)1
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)4.51%
Revenue beat(8)4
Avg Revenue beat(8)0.39%
Revenue beat(12)8
Avg Revenue beat(12)3.84%
Revenue beat(16)11
Avg Revenue beat(16)3.81%
PT rev (1m)-4.35%
PT rev (3m)-6.08%
EPS NQ rev (1m)3.33%
EPS NQ rev (3m)3.33%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.53%
Revenue NQ rev (3m)-2.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 8.78 | ||
| P/S | 0.77 | ||
| P/FCF | 4.83 | ||
| P/OCF | 4.31 | ||
| P/B | 1.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.81 |
EPS(TTM)4.02
EY10.2%
EPS(NY)4.49
Fwd EY11.39%
FCF(TTM)8.16
FCFY20.71%
OCF(TTM)9.15
OCFY23.21%
SpS51.07
BVpS34.76
TBVpS-41.58
PEG (NY)3.72
PEG (5Y)1.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 4.86% | ||
| ROCE | 8.03% | ||
| ROIC | 5.78% | ||
| ROICexc | 5.91% | ||
| ROICexgc | 41.23% | ||
| OM | 14.33% | ||
| PM (TTM) | 3.31% | ||
| GM | 61.76% | ||
| FCFM | 15.98% |
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-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 6.28 | ||
| Debt/EBITDA | 4.08 | ||
| Cap/Depr | 24.39% | ||
| Cap/Sales | 1.93% | ||
| Interest Coverage | 3.94 | ||
| Cash Conversion | 80.48% | ||
| Profit Quality | 482.86% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.18 |
F-Score6
WACC7.23%
ROIC/WACC0.8
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%-7.87%
EPS Next Y2.63%
EPS Next 2Y5.68%
EPS Next 3Y5.77%
EPS Next 5YN/A
Revenue 1Y (TTM)0.55%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%0.37%
Revenue Next Year2.5%
Revenue Next 2Y1.28%
Revenue Next 3Y1.92%
Revenue Next 5YN/A
EBIT growth 1Y-5.76%
EBIT growth 3Y12.9%
EBIT growth 5Y8.44%
EBIT Next Year24.09%
EBIT Next 3Y8.52%
EBIT Next 5Y5.53%
FCF growth 1Y32.28%
FCF growth 3Y10.18%
FCF growth 5Y10.87%
OCF growth 1Y26.37%
OCF growth 3Y13.75%
OCF growth 5Y12.63%