MAPLE LEAF FOODS INC (MFI.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MFI - CA5649051078 - Common Stock
25.31 CAD
-0.24 (-0.94%)
MFI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 19 industry peers in the Food Products industry. Both the profitability and the financial health of MFI get a neutral evaluation. Nothing too spectacular is happening here. MFI may be a bit undervalued, certainly considering the very reasonable score on growth MFI also has an excellent dividend rating. These ratings could make MFI a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
- MFI had positive earnings in the past year.
- 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.
- Each year in the past 5 years MFI had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.58%, MFI is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
- With a decent Return On Equity value of 12.48%, MFI is doing good in the industry, outperforming 78.95% of the companies in the same industry.
- MFI's Return On Invested Capital of 7.30% is fine compared to the rest of the industry. MFI outperforms 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.
- The Operating Margin of MFI (7.11%) is better than 89.47% of its industry peers.
- MFI's Operating Margin has improved in the last couple of years.
- MFI has a Gross Margin (16.57%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of MFI has remained more or less at the same level.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MFI is creating some value.
- Compared to 1 year ago, MFI has more shares outstanding
- The number of shares outstanding for MFI has been increased compared to 5 years ago.
- MFI has a better debt/assets ratio than last year.
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.
- With a decent Altman-Z score value of 2.38, MFI is doing good in the industry, outperforming 63.16% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 4.41, MFI belongs to the top 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
WACC6.89%
2.3 Liquidity
- A Current Ratio of 1.47 indicates that MFI should not have too much problems paying its short term obligations.
- MFI has a Current ratio (1.47) which is comparable to the rest of the industry.
- MFI has a Quick Ratio of 1.04. This is a normal value and indicates that MFI is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.04, MFI is in the better half of 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.
- MFI shows a decrease in Revenue. In the last year, the revenue decreased by -0.37%.
- Measured over the past years, MFI shows a small growth in Revenue. The Revenue has been growing by 4.43% on average per year.
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
- Based on estimates for the next years, MFI will show a very strong growth in Earnings Per Share. The EPS will grow by 30.01% on average per year.
- The Revenue is expected to decrease by -3.17% on average over the next years.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- MFI is valuated correctly with a Price/Earnings ratio of 13.61.
- Based on the Price/Earnings ratio, MFI is valued a bit cheaper than 68.42% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. MFI is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 17.00, the valuation of MFI can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MFI indicates a somewhat cheap valuation: MFI is cheaper than 63.16% of the companies listed in the same industry.
- MFI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 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 | 8.5 | ||
| EV/EBITDA | 7.8 |
4.3 Compensation for Growth
- MFI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of MFI may justify a higher PE ratio.
- A more expensive valuation may be justified as MFI's earnings are expected to grow with 36.56% in the coming years.
PEG (NY)0.39
PEG (5Y)4.89
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.
- Compared to an average industry Dividend Yield of 1.74, MFI pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
- MFI's earnings are growing more than its dividend. This makes the dividend growth 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 13.61 and the Price/Book (PB) ratio is 1.94.
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.