MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
TSX:MTY - Toronto Stock Exchange - CA55378N1078 - Common Stock - Currency: CAD
Overall MTY gets a fundamental rating of 4 out of 10. We evaluated MTY against 20 industry peers in the Hotels, Restaurants & Leisure industry. While MTY is still in line with the averages on profitability rating, there are concerns on its financial health. MTY may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
MTY had positive earnings in the past year.
In the past year MTY had a positive cash flow from operations.
Of the past 5 years MTY 4 years were profitable.
In the past 5 years MTY always reported a positive cash flow from operatings.
1.2 Ratios
MTY has a Return On Assets of 0.33%. This is comparable to the rest of the industry: MTY outperforms 52.63% of its industry peers.
With a Return On Equity value of 1.05%, MTY perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
MTY's Return On Invested Capital of 5.69% is fine compared to the rest of the industry. MTY outperforms 63.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MTY is below the industry average of 7.62%.
The 3 year average ROIC (5.51%) for MTY is below the current ROIC(5.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 1.05% | ||
| ROIC | 5.69% |
ROA(3y)2.68%
ROA(5y)2.14%
ROE(3y)8.73%
ROE(5y)6.61%
ROIC(3y)5.51%
ROIC(5y)5.14%
1.3 Margins
The Profit Margin of MTY (0.74%) is comparable to the rest of the industry.
MTY's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 14.66%, MTY is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
MTY's Operating Margin has declined in the last couple of years.
The Gross Margin of MTY (62.23%) is better than 78.95% of its industry peers.
In the last couple of years the Gross Margin of MTY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.66% | ||
| PM (TTM) | 0.74% | ||
| GM | 62.23% |
OM growth 3Y-11.85%
OM growth 5Y-6.56%
PM growth 3Y-48.79%
PM growth 5Y-31.78%
GM growth 3Y4.71%
GM growth 5Y2.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MTY is destroying value.
MTY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MTY has less shares outstanding
The debt/assets ratio for MTY has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.13, we must say that MTY is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.13, MTY perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
MTY has a debt to FCF ratio of 6.61. This is a slightly negative value and a sign of low solvency as MTY would need 6.61 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.61, MTY is doing good in the industry, outperforming 68.42% of the companies in the same industry.
MTY has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.35, MTY perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 6.61 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.87
WACC6.55%
2.3 Liquidity
MTY has a Current Ratio of 0.62. This is a bad value and indicates that MTY is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of MTY (0.62) is comparable to the rest of the industry.
A Quick Ratio of 0.58 indicates that MTY may have some problems paying its short term obligations.
MTY has a Quick ratio of 0.58. This is comparable to the rest of the industry: MTY outperforms 42.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
MTY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.63%.
Measured over the past 5 years, MTY shows a small growth in Earnings Per Share. The EPS has been growing by 5.68% on average per year.
Looking at the last year, MTY shows a small growth in Revenue. The Revenue has grown by 0.33% in the last year.
Measured over the past years, MTY shows a quite strong growth in Revenue. The Revenue has been growing by 16.05% on average per year.
EPS 1Y (TTM)-5.63%
EPS 3Y2.8%
EPS 5Y5.68%
EPS Q2Q%-89.47%
Revenue 1Y (TTM)0.33%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%2.21%
3.2 Future
MTY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.77% yearly.
Based on estimates for the next years, MTY will show a small growth in Revenue. The Revenue will grow by 1.92% on average per year.
EPS Next Y2.63%
EPS Next 2Y5.68%
EPS Next 3Y5.77%
EPS Next 5YN/A
Revenue Next Year2.5%
Revenue Next 2Y1.28%
Revenue Next 3Y1.92%
Revenue Next 5YN/A
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 stable.
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
With a Price/Earnings ratio of 10.49, the valuation of MTY can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MTY indicates a rather cheap valuation: MTY is cheaper than 89.47% of the companies listed in the same industry.
MTY is valuated cheaply when we compare the Price/Earnings ratio to 28.78, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.39, the valuation of MTY can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MTY is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
MTY is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.49 | ||
| Fwd PE | 9.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MTY indicates a rather cheap valuation: MTY is cheaper than 89.47% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MTY is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.27 | ||
| EV/EBITDA | 8.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MTY does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.98
PEG (5Y)1.85
EPS Next 2Y5.68%
EPS Next 3Y5.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.94%, MTY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.63, MTY has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.46, MTY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
On average, the dividend of MTY grows each year by 11.08%, which is quite nice.
MTY has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of MTY decreased recently.
Dividend Growth(5Y)11.08%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
321.45% of the earnings are spent on dividend by MTY. This is not a sustainable payout ratio.
The dividend of MTY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP321.45%
EPS Next 2Y5.68%
EPS Next 3Y5.77%
TSX:MTY (4/25/2025, 7:00:00 PM)
42.17
+0.61 (+1.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners20.89%
Inst Owner ChangeN/A
Ins Owners16.27%
Ins Owner ChangeN/A
Market Cap971.60M
Analysts75
Price Target51.77 (22.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Yearly Dividend1.12
Dividend Growth(5Y)11.08%
DP321.45%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.14%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)4.51%
Revenue beat(4)2
Avg Revenue beat(4)0.49%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)4.51%
Revenue beat(8)5
Avg Revenue beat(8)1.6%
Revenue beat(12)9
Avg Revenue beat(12)4.51%
Revenue beat(16)12
Avg Revenue beat(16)4.57%
PT rev (1m)-7.31%
PT rev (3m)-10.57%
EPS NQ rev (1m)-7.38%
EPS NQ rev (3m)-7.38%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)-1.8%
Revenue NQ rev (1m)-1.43%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.49 | ||
| Fwd PE | 9.39 | ||
| P/S | 0.83 | ||
| P/FCF | 5.27 | ||
| P/OCF | 4.64 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.05 |
EPS(TTM)4.02
EY9.53%
EPS(NY)4.49
Fwd EY10.65%
FCF(TTM)8.01
FCFY18.99%
OCF(TTM)9.09
OCFY21.56%
SpS50.6
BVpS35.46
TBVpS-43.3
PEG (NY)3.98
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 1.05% | ||
| ROCE | 7.9% | ||
| ROIC | 5.69% | ||
| ROICexc | 5.87% | ||
| ROICexgc | 43.92% | ||
| OM | 14.66% | ||
| PM (TTM) | 0.74% | ||
| GM | 62.23% | ||
| FCFM | 15.82% |
ROA(3y)2.68%
ROA(5y)2.14%
ROE(3y)8.73%
ROE(5y)6.61%
ROIC(3y)5.51%
ROIC(5y)5.14%
ROICexc(3y)5.67%
ROICexc(5y)5.3%
ROICexgc(3y)36.63%
ROICexgc(5y)33.23%
ROCE(3y)7.66%
ROCE(5y)7.14%
ROICexcg growth 3Y1.96%
ROICexcg growth 5YN/A
ROICexc growth 3Y0.54%
ROICexc growth 5Y-0.8%
OM growth 3Y-11.85%
OM growth 5Y-6.56%
PM growth 3Y-48.79%
PM growth 5Y-31.78%
GM growth 3Y4.71%
GM growth 5Y2.34%
F-Score8
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 6.61 | ||
| Debt/EBITDA | 4.2 | ||
| Cap/Depr | 26.91% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 3.83 | ||
| Cash Conversion | 79.44% | ||
| Profit Quality | 2142.89% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.13 |
F-Score8
WACC6.55%
ROIC/WACC0.87
Cap/Depr(3y)30.32%
Cap/Depr(5y)23.56%
Cap/Sales(3y)2.3%
Cap/Sales(5y)1.85%
Profit Quality(3y)353.54%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.63%
EPS 3Y2.8%
EPS 5Y5.68%
EPS Q2Q%-89.47%
EPS Next Y2.63%
EPS Next 2Y5.68%
EPS Next 3Y5.77%
EPS Next 5YN/A
Revenue 1Y (TTM)0.33%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%2.21%
Revenue Next Year2.5%
Revenue Next 2Y1.28%
Revenue Next 3Y1.92%
Revenue Next 5YN/A
EBIT growth 1Y-3.72%
EBIT growth 3Y12.9%
EBIT growth 5Y8.44%
EBIT Next Year24.96%
EBIT Next 3Y8.65%
EBIT Next 5YN/A
FCF growth 1Y50.16%
FCF growth 3Y10.18%
FCF growth 5Y10.87%
OCF growth 1Y48.86%
OCF growth 3Y13.75%
OCF growth 5Y12.63%