MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
TSX:MTY - Toronto Stock Exchange - CA55378N1078 - Common Stock - Currency: CAD
MTY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 19 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
In the past year MTY was profitable.
MTY had a positive operating cash flow in the past year.
Of the past 5 years MTY 4 years were profitable.
MTY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.33%, MTY perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
The Return On Equity of MTY (1.05%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.69%, MTY is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
MTY had an Average Return On Invested Capital over the past 3 years of 5.51%. This is in line with the industry average of 6.86%.
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
MTY has a Profit Margin (0.74%) which is in line with its industry peers.
In the last couple of years the Profit Margin of MTY has declined.
MTY has a Operating Margin (14.66%) which is in line with its industry peers.
MTY's Operating Margin has declined in the last couple of years.
MTY has a Gross Margin of 62.23%. This is in the better half of the industry: MTY outperforms 78.95% of its industry peers.
MTY's Gross Margin has improved in the last couple of years.
| 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
MTY 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, MTY has less shares outstanding
The number of shares outstanding for MTY has been reduced compared to 5 years ago.
Compared to 1 year ago, MTY has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.16, we must say that MTY is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.16, MTY is in line with its industry, outperforming 52.63% 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.
Looking at the Debt to FCF ratio, with a value of 6.61, MTY is in the better half of 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.
MTY's Debt to Equity ratio of 1.35 is in line compared to the rest of the industry. MTY outperforms 42.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 6.61 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.83
WACC6.85%
2.3 Liquidity
A Current Ratio of 0.62 indicates that MTY may have some problems paying its short term obligations.
The Current ratio of MTY (0.62) is comparable to the rest of the industry.
MTY has a Quick 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.
Looking at the Quick ratio, with a value of 0.58, MTY is doing worse than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for MTY have decreased by -5.63% in the last year.
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
The Earnings Per Share is expected to grow by 5.77% on average over the next years.
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.
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
MTY is valuated reasonably with a Price/Earnings ratio of 9.91.
Compared to the rest of the industry, the Price/Earnings ratio of MTY indicates a rather cheap valuation: MTY is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MTY to the average of the S&P500 Index (27.30), we can say MTY is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.87, the valuation of MTY can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTY indicates a rather cheap valuation: MTY is cheaper than 94.74% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MTY to the average of the S&P500 Index (21.76), we can say MTY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.91 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
MTY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MTY is cheaper than 89.47% of the companies in the same industry.
100.00% of the companies in the same industry are more expensive than MTY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.95 | ||
| EV/EBITDA | 8.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.76
PEG (5Y)1.74
EPS Next 2Y5.68%
EPS Next 3Y5.77%
5. Dividend
5.1 Amount
MTY has a Yearly Dividend Yield of 2.85%.
MTY's Dividend Yield is comparable with the industry average which is at 4.35.
Compared to an average S&P500 Dividend Yield of 2.37, MTY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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
MTY pays out 321.45% of its income as dividend. This is not a sustainable payout ratio.
MTY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP321.45%
EPS Next 2Y5.68%
EPS Next 3Y5.77%
TSX:MTY (7/11/2025, 7:00:00 PM)
39.83
-5.87 (-12.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners21.92%
Inst Owner ChangeN/A
Ins Owners17.15%
Ins Owner ChangeN/A
Market Cap913.30M
Analysts72
Price Target50.83 (27.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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)-1.81%
PT rev (3m)-8.98%
EPS NQ rev (1m)-1.63%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.91 | ||
| Fwd PE | 8.87 | ||
| P/S | 0.78 | ||
| P/FCF | 4.95 | ||
| P/OCF | 4.36 | ||
| P/B | 1.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.34 |
EPS(TTM)4.02
EY10.09%
EPS(NY)4.49
Fwd EY11.27%
FCF(TTM)8.04
FCFY20.2%
OCF(TTM)9.13
OCFY22.93%
SpS50.84
BVpS35.63
TBVpS-43.51
PEG (NY)3.76
PEG (5Y)1.74
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 | 1.16 |
F-Score8
WACC6.85%
ROIC/WACC0.83
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 Year24.09%
EBIT Next 3Y8.52%
EBIT Next 5Y5.53%
FCF growth 1Y50.16%
FCF growth 3Y10.18%
FCF growth 5Y10.87%
OCF growth 1Y48.86%
OCF growth 3Y13.75%
OCF growth 5Y12.63%