MAPLE LEAF FOODS INC (MFI.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MFI - CA5649051078 - Common Stock
25.49 CAD
+0.18 (+0.71%)
Taking everything into account, MFI scores 6 out of 10 in our fundamental rating. MFI was compared to 20 industry peers in the Food Products industry. MFI has only an average score on both its financial health and profitability. MFI is valued quite cheap, while showing a decent growth score. This is a good combination! 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
- In the past year MFI was profitable.
- MFI had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: MFI reported negative net income in multiple 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 75.00% of the companies in the same industry.
- MFI has a better Return On Equity (12.48%) than 80.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.30%, MFI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| 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
- MFI has a better Profit Margin (4.22%) than 90.00% of its industry peers.
- MFI's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 7.11%, MFI belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
- MFI's Operating Margin has improved in the last couple of years.
- MFI has a Gross Margin of 16.57%. This is comparable to the rest of the industry: MFI outperforms 55.00% of its industry peers.
- 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.
- MFI has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for MFI has been reduced compared to a year ago.
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 better Altman-Z score (2.38) than 65.00% of its industry peers.
- The Debt to FCF ratio of MFI is 4.41, which is a neutral value as it means it would take MFI, 4.41 years of fcf income to pay off 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 90.00% 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.
- MFI's Debt to Equity ratio of 0.78 is in line compared to the rest of the industry. MFI outperforms 55.00% of its industry peers.
| 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.
- With a decent Quick ratio value of 1.04, MFI is doing good in the industry, outperforming 70.00% 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.
- The Earnings Per Share has been growing slightly by 2.78% on average over the past years.
- Looking at the last year, MFI shows a decrease in Revenue. The Revenue has decreased by -0.37% in the last 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
- 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.
- MFI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.17% yearly.
EPS Next Y25.17%
EPS Next 2Y37.73%
EPS Next 3Y36.33%
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 13.70.
- Based on the Price/Earnings ratio, MFI is valued a bit cheaper than 70.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, MFI is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 17.23, the valuation of MFI can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, MFI is valued a bit cheaper than 65.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. MFI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 17.23 |
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 75.00% of the companies listed in the same industry.
- 90.00% of the companies in the same industry are more expensive than MFI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.57 | ||
| EV/EBITDA | 7.79 |
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 36.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)4.93
EPS Next 2Y37.73%
EPS Next 3Y36.33%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.29%, MFI has a reasonable but not impressive dividend return.
- MFI's Dividend Yield is a higher than the industry average which is at 1.68.
- MFI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
5.2 History
- The dividend of MFI has a limited annual growth rate of 3.82%.
- MFI has been paying a dividend for at least 10 years, so it has 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 2Y37.73%
EPS Next 3Y36.33%
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 13.7 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 25.17% in the next year.