MAPLE LEAF FOODS INC (MFI.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MFI - CA5649051078 - Common Stock
25.31 CAD
-0.33 (-1.29%)
We assign a fundamental rating of 6 out of 10 to MFI. MFI was compared to 19 industry peers in the Food Products industry. MFI has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on MFI. Finally MFI also has an excellent dividend rating. With these ratings, MFI could be worth investigating further 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.
- The reported net income has been mixed in the past 5 years: MFI reported negative net income in multiple years.
- MFI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 4.58%, MFI is doing good in the industry, outperforming 73.68% of the companies in the same industry.
- MFI has a better Return On Equity (12.48%) than 78.95% of its industry peers.
- 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
- MFI's Profit Margin of 4.22% is amongst the best of the industry. MFI outperforms 89.47% of its industry peers.
- In the last couple of years the Profit Margin of MFI has remained more or less at the same level.
- MFI's Operating Margin of 7.11% is amongst the best of the industry. MFI outperforms 89.47% of its industry peers.
- In the last couple of years the Operating Margin of MFI has grown nicely.
- 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
- 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
- MFI has more shares outstanding than it did 5 years ago.
- MFI has a better debt/assets ratio than last year.
2.2 Solvency
- MFI has an Altman-Z score of 2.38. This is not the best score and indicates that MFI is in the grey zone with still only limited risk for bankruptcy at the moment.
- MFI has a better Altman-Z score (2.38) than 63.16% 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.
- The Debt to FCF ratio of MFI (4.41) is better than 89.47% of its industry peers.
- A Debt/Equity ratio of 0.78 indicates that MFI is somewhat dependend on debt financing.
- MFI has a Debt to Equity ratio of 0.78. This is comparable to the rest of the industry: MFI outperforms 52.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.41 | ||
| Altman-Z | 2.38 |
ROIC/WACC1.06
WACC6.9%
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.
- A Quick Ratio of 1.04 indicates that MFI should not have too much problems paying its short term obligations.
- MFI has a Quick ratio of 1.04. This is in the better half of the industry: MFI outperforms 68.42% of its industry peers.
| 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.
- MFI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.78% yearly.
- 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
- 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
- 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.
- When comparing the Price/Earnings ratio of MFI to the average of the S&P500 Index (27.21), we can say MFI is valued slightly cheaper.
- MFI is valuated rather expensively with a Price/Forward Earnings ratio of 17.00.
- Based on the Price/Forward Earnings ratio, MFI is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. MFI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 17 |
4.2 Price Multiples
- MFI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MFI is cheaper than 78.95% of the companies in the same industry.
- 94.74% 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 | 8.5 | ||
| 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
- With a Yearly Dividend Yield of 3.16%, MFI has a reasonable but not impressive dividend return.
- 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 1.82, 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 been paying a dividend for at least 10 years, so it has 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
- 50.55% of the earnings are spent on dividend by MFI. 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.