MAPLE LEAF FOODS INC (MFI.CA) Stock Fundamental Analysis
TSX:MFI - Toronto Stock Exchange - CA5649051078 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to MFI. MFI was compared to 16 industry peers in the Food Products industry. The financial health of MFI is average, but there are quite some concerns on its profitability. MFI has a correct valuation and a medium growth rate. Finally MFI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MFI had positive earnings in the past year.
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.
In the past 5 years MFI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.76%, MFI is in line with its industry, outperforming 50.00% of the companies in the same industry.
MFI has a Return On Equity (2.23%) which is in line with its industry peers.
MFI's Return On Invested Capital of 4.24% is on the low side compared to the rest of the industry. MFI is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 2.23% | ||
| ROIC | 4.24% |
ROA(3y)-2.46%
ROA(5y)-0.47%
ROE(3y)-7.32%
ROE(5y)-2.45%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MFI has a Profit Margin of 0.70%. This is comparable to the rest of the industry: MFI outperforms 50.00% of its industry peers.
With a Operating Margin value of 4.27%, MFI is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of MFI has declined.
With a Gross Margin value of 13.40%, MFI is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MFI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.27% | ||
| PM (TTM) | 0.7% | ||
| GM | 13.4% |
OM growth 3Y-37.61%
OM growth 5Y-29.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16%
GM growth 5Y-9.33%
2. Health
2.1 Basic Checks
MFI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MFI has about the same amount of shares outstanding.
MFI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MFI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.04 indicates that MFI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.04, MFI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of MFI is 6.92, which is on the high side as it means it would take MFI, 6.92 years of fcf income to pay off all of its debts.
MFI has a better Debt to FCF ratio (6.92) than 81.25% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that MFI has dependencies on debt financing.
The Debt to Equity ratio of MFI (1.08) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 6.92 | ||
| Altman-Z | 2.04 |
ROIC/WACC0.63
WACC6.77%
2.3 Liquidity
A Current Ratio of 1.26 indicates that MFI should not have too much problems paying its short term obligations.
The Current ratio of MFI (1.26) is worse than 68.75% of its industry peers.
A Quick Ratio of 0.53 indicates that MFI may have some problems paying its short term obligations.
MFI's Quick ratio of 0.53 is in line compared to the rest of the industry. MFI outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 277.78% over the past year.
Measured over the past years, MFI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -40.53% on average per year.
MFI shows a decrease in Revenue. In the last year, the revenue decreased by -0.46%.
The Revenue has been growing slightly by 6.85% on average over the past years.
EPS 1Y (TTM)277.78%
EPS 3Y-55.63%
EPS 5Y-40.53%
EPS Q2Q%38.46%
Revenue 1Y (TTM)-0.46%
Revenue growth 3Y4.19%
Revenue growth 5Y6.85%
Sales Q2Q%1.21%
3.2 Future
MFI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 169.80% yearly.
MFI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.43% yearly.
EPS Next Y618.22%
EPS Next 2Y288.65%
EPS Next 3Y169.8%
EPS Next 5YN/A
Revenue Next Year-0.26%
Revenue Next 2Y1.69%
Revenue Next 3Y2.43%
Revenue Next 5YN/A
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
A Price/Earnings ratio of 45.38 indicates a quite expensive valuation of MFI.
Compared to the rest of the industry, the Price/Earnings ratio of MFI is on the same level as its industry peers.
MFI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.62.
MFI is valuated correctly with a Price/Forward Earnings ratio of 16.02.
68.75% of the companies in the same industry are more expensive than MFI, based on the Price/Forward Earnings ratio.
MFI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.38 | ||
| Fwd PE | 16.02 |
4.2 Price Multiples
MFI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MFI is cheaper than 68.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MFI is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.5 | ||
| EV/EBITDA | 9.44 |
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.
A more expensive valuation may be justified as MFI's earnings are expected to grow with 169.80% in the coming years.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y288.65%
EPS Next 3Y169.8%
5. Dividend
5.1 Amount
MFI has a Yearly Dividend Yield of 4.44%, which is a nice return.
MFI's Dividend Yield is rather good when compared to the industry average which is at 4.45. MFI pays more dividend than 87.50% of the companies in the same industry.
MFI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
5.2 History
On average, the dividend of MFI grows each year by 7.69%, which is quite nice.
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)7.69%
Div Incr Years10
Div Non Decr Years28
5.3 Sustainability
MFI pays out 253.40% of its income as dividend. This is not a sustainable payout ratio.
The dividend of MFI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP253.4%
EPS Next 2Y288.65%
EPS Next 3Y169.8%
TSX:MFI (2/21/2025, 7:00:00 PM)
21.78
+0.17 (+0.79%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners25.98%
Inst Owner ChangeN/A
Ins Owners40%
Ins Owner ChangeN/A
Market Cap2.70B
Analysts80
Price Target30.8 (41.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
Yearly Dividend0.75
Dividend Growth(5Y)7.69%
DP253.4%
Div Incr Years10
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.11%
Min EPS beat(2)-20.79%
Max EPS beat(2)-7.42%
EPS beat(4)0
Avg EPS beat(4)-38.01%
Min EPS beat(4)-68.32%
Max EPS beat(4)-7.42%
EPS beat(8)0
Avg EPS beat(8)-74.94%
EPS beat(12)0
Avg EPS beat(12)-79.96%
EPS beat(16)4
Avg EPS beat(16)-54.71%
Revenue beat(2)1
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-3.01%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-4.69%
Max Revenue beat(4)0.17%
Revenue beat(8)3
Avg Revenue beat(8)-2.24%
Revenue beat(12)3
Avg Revenue beat(12)-2.42%
Revenue beat(16)5
Avg Revenue beat(16)-1.41%
PT rev (1m)1.34%
PT rev (3m)1.34%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)-1.01%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-6.71%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.38 | ||
| Fwd PE | 16.02 | ||
| P/S | 0.56 | ||
| P/FCF | 9.5 | ||
| P/OCF | 6.88 | ||
| P/B | 1.79 | ||
| P/tB | 3.88 | ||
| EV/EBITDA | 9.44 |
EPS(TTM)0.48
EY2.2%
EPS(NY)1.36
Fwd EY6.24%
FCF(TTM)2.29
FCFY10.53%
OCF(TTM)3.17
OCFY14.53%
SpS39.18
BVpS12.19
TBVpS5.61
PEG (NY)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 2.23% | ||
| ROCE | 5.89% | ||
| ROIC | 4.24% | ||
| ROICexc | 4.47% | ||
| ROICexgc | 5.92% | ||
| OM | 4.27% | ||
| PM (TTM) | 0.7% | ||
| GM | 13.4% | ||
| FCFM | 5.85% |
ROA(3y)-2.46%
ROA(5y)-0.47%
ROE(3y)-7.32%
ROE(5y)-2.45%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-39.04%
ROICexcg growth 5Y-32.07%
ROICexc growth 3Y-36.82%
ROICexc growth 5Y-28.28%
OM growth 3Y-37.61%
OM growth 5Y-29.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16%
GM growth 5Y-9.33%
F-Score8
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 6.92 | ||
| Debt/EBITDA | 3.43 | ||
| Cap/Depr | 40.37% | ||
| Cap/Sales | 2.23% | ||
| Interest Coverage | 1.33 | ||
| Cash Conversion | 82.57% | ||
| Profit Quality | 841.51% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 2.04 |
F-Score8
WACC6.77%
ROIC/WACC0.63
Cap/Depr(3y)171.34%
Cap/Depr(5y)177.49%
Cap/Sales(3y)8.14%
Cap/Sales(5y)8.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)277.78%
EPS 3Y-55.63%
EPS 5Y-40.53%
EPS Q2Q%38.46%
EPS Next Y618.22%
EPS Next 2Y288.65%
EPS Next 3Y169.8%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.46%
Revenue growth 3Y4.19%
Revenue growth 5Y6.85%
Sales Q2Q%1.21%
Revenue Next Year-0.26%
Revenue Next 2Y1.69%
Revenue Next 3Y2.43%
Revenue Next 5YN/A
EBIT growth 1Y23239.7%
EBIT growth 3Y-35%
EBIT growth 5Y-24.31%
EBIT Next Year221.41%
EBIT Next 3Y61.41%
EBIT Next 5YN/A
FCF growth 1Y239.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y123.65%
OCF growth 3Y-18.05%
OCF growth 5Y-10.01%