MAPLE LEAF FOODS INC (MFI.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MFI - CA5649051078 - Common Stock
25.55 CAD
-0.09 (-0.35%)
Taking everything into account, MFI scores 6 out of 10 in our fundamental rating. MFI was compared to 19 industry peers in the Food Products industry. MFI has an average financial health and profitability rating. MFI scores decently on growth, while it is valued quite cheap. This could make an interesting combination. MFI also has an excellent dividend rating. This makes MFI very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year MFI was profitable.
- In the past year MFI had a positive cash flow from operations.
- In multiple years MFI reported negative net income over the last 5 years.
- MFI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MFI has a Return On Assets of 4.58%. This is in the better half of the industry: MFI outperforms 73.68% of its industry peers.
- MFI has a Return On Equity of 12.48%. This is in the better half of the industry: MFI outperforms 78.95% of its industry peers.
- The Return On Invested Capital of MFI (7.30%) is better than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 12.48% | ||
| ROIC | 7.3% |
ROA(3y)-2.52%
ROA(5y)-0.46%
ROE(3y)-6.91%
ROE(5y)-1.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With an excellent Profit Margin value of 4.22%, MFI belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
- In the last couple of years the Profit Margin of MFI has remained more or less at the same level.
- MFI has a better Operating Margin (7.11%) than 89.47% of its industry peers.
- MFI's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 16.57%, MFI perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
- MFI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.11% | ||
| PM (TTM) | 4.22% | ||
| GM | 16.57% |
OM growth 3Y9.26%
OM growth 5Y9.75%
PM growth 3Y-4.62%
PM growth 5Y0.84%
GM growth 3Y-0.2%
GM growth 5Y-0.48%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MFI is still creating some value.
- MFI has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, MFI has more shares outstanding
- Compared to 1 year ago, MFI has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.38 indicates that MFI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- MFI has a Altman-Z score of 2.38. This is in the better half of the industry: MFI outperforms 63.16% of its industry peers.
- MFI has a debt to FCF ratio of 4.41. This is a neutral value as MFI would need 4.41 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 4.41, MFI belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
- MFI has a Debt/Equity ratio of 0.78. This is a neutral value indicating MFI is somewhat dependend on debt financing.
- The Debt to Equity ratio of MFI (0.78) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.41 | ||
| Altman-Z | 2.38 |
ROIC/WACC1.06
WACC6.9%
2.3 Liquidity
- MFI has a Current Ratio of 1.47. This is a normal value and indicates that MFI is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.47, MFI perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
- A Quick Ratio of 1.04 indicates that MFI should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.04, MFI is doing good in the industry, outperforming 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 287.50% over the past year.
- Measured over the past 5 years, MFI shows a small growth in Earnings Per Share. The EPS has been growing by 2.78% on average per year.
- The Revenue has decreased by -0.37% in the past year.
- The Revenue has been growing slightly by 4.43% on average over the past years.
EPS 1Y (TTM)287.5%
EPS 3Y-7.64%
EPS 5Y2.78%
EPS Q2Q%172.22%
Revenue 1Y (TTM)-0.37%
Revenue growth 3Y2.68%
Revenue growth 5Y4.43%
Sales Q2Q%7.63%
3.2 Future
- The Earnings Per Share is expected to grow by 30.01% on average over the next years. This is a very strong growth
- MFI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.17% yearly.
EPS Next Y34.67%
EPS Next 2Y38.14%
EPS Next 3Y36.56%
EPS Next 5Y30.01%
Revenue Next Year-19.73%
Revenue Next 2Y-6.42%
Revenue Next 3Y-2.58%
Revenue Next 5Y-3.17%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- The Price/Earnings ratio is 13.74, which indicates a correct valuation of MFI.
- Based on the Price/Earnings ratio, MFI is valued a bit cheaper than 68.42% of the companies in the same industry.
- When comparing the Price/Earnings ratio of MFI to the average of the S&P500 Index (27.32), we can say MFI is valued slightly cheaper.
- MFI is valuated rather expensively with a Price/Forward Earnings ratio of 17.17.
- 63.16% of the companies in the same industry are more expensive than MFI, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of MFI to the average of the S&P500 Index (24.32), we can say MFI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.74 | ||
| Fwd PE | 17.17 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MFI indicates a somewhat cheap valuation: MFI is cheaper than 78.95% of the companies listed in the same industry.
- MFI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MFI is cheaper than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.59 | ||
| EV/EBITDA | 7.8 |
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.
- MFI has a very decent profitability rating, which may justify a higher PE ratio.
- MFI's earnings are expected to grow with 36.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)4.94
EPS Next 2Y38.14%
EPS Next 3Y36.56%
5. Dividend
5.1 Amount
- MFI has a Yearly Dividend Yield of 3.16%. Purely for dividend investing, there may be better candidates out there.
- MFI's Dividend Yield is a higher than the industry average which is at 1.74.
- Compared to an average S&P500 Dividend Yield of 1.83, MFI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
5.2 History
- The dividend of MFI has a limited annual growth rate of 3.82%.
- MFI has paid a dividend for at least 10 years, which is a reliable track record.
- MFI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.82%
Div Incr Years10
Div Non Decr Years28
5.3 Sustainability
- MFI pays out 50.55% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of MFI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.55%
EPS Next 2Y38.14%
EPS Next 3Y36.56%
MAPLE LEAF FOODS INC / MFI.CA FAQ
What is the ChartMill fundamental rating of MAPLE LEAF FOODS INC (MFI.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MFI.CA.
What is the valuation status for MFI stock?
ChartMill assigns a valuation rating of 7 / 10 to MAPLE LEAF FOODS INC (MFI.CA). This can be considered as Undervalued.
Can you provide the profitability details for MAPLE LEAF FOODS INC?
MAPLE LEAF FOODS INC (MFI.CA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for MFI stock?
The Price/Earnings (PE) ratio for MAPLE LEAF FOODS INC (MFI.CA) is 13.74 and the Price/Book (PB) ratio is 1.95.
What is the earnings growth outlook for MAPLE LEAF FOODS INC?
The Earnings per Share (EPS) of MAPLE LEAF FOODS INC (MFI.CA) is expected to grow by 34.67% in the next year.