MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
TSX:MTY - Toronto Stock Exchange - CA55378N1078 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to MTY. MTY was compared to 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year MTY was profitable.
In the past year MTY had a positive cash flow from operations.
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
MTY has a better Return On Assets (3.71%) than 61.11% of its industry peers.
MTY's Return On Equity of 11.49% is fine compared to the rest of the industry. MTY outperforms 77.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.09%, MTY is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MTY is in line with the industry average of 7.56%.
The 3 year average ROIC (6.56%) for MTY is below the current ROIC(7.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.71% | ||
| ROE | 11.49% | ||
| ROIC | 7.09% |
ROA(3y)3.86%
ROA(5y)2.89%
ROE(3y)12.13%
ROE(5y)8.34%
ROIC(3y)6.56%
ROIC(5y)6.22%
1.3 Margins
MTY's Profit Margin of 8.30% is fine compared to the rest of the industry. MTY outperforms 61.11% of its industry peers.
MTY's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 15.28%, MTY is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of MTY has declined.
MTY has a Gross Margin of 62.10%. This is amongst the best in the industry. MTY outperforms 83.33% of its industry peers.
In the last couple of years the Gross Margin of MTY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.28% | ||
| PM (TTM) | 8.3% | ||
| GM | 62.1% |
OM growth 3Y-1.3%
OM growth 5Y-8.06%
PM growth 3YN/A
PM growth 5Y-17.46%
GM growth 3Y3.5%
GM growth 5Y1.27%
2. Health
2.1 Basic Checks
MTY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MTY has less shares outstanding than it did 1 year ago.
MTY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MTY is higher compared to a year ago.
2.2 Solvency
MTY has an Altman-Z score of 1.29. This is a bad value and indicates that MTY is not financially healthy and even has some risk of bankruptcy.
MTY's Altman-Z score of 1.29 is fine compared to the rest of the industry. MTY outperforms 61.11% of its industry peers.
The Debt to FCF ratio of MTY is 6.59, which is on the high side as it means it would take MTY, 6.59 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MTY (6.59) is better than 61.11% of its industry peers.
MTY has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
MTY's Debt to Equity ratio of 1.29 is in line compared to the rest of the industry. MTY outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.59 | ||
| Altman-Z | 1.29 |
ROIC/WACC1.03
WACC6.88%
2.3 Liquidity
MTY has a Current Ratio of 0.61. 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 (0.61) is comparable to the rest of the industry.
A Quick Ratio of 0.56 indicates that MTY may have some problems paying its short term obligations.
MTY's Quick ratio of 0.56 is on the low side compared to the rest of the industry. MTY is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.75% over the past year.
MTY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.04% yearly.
The Revenue has been growing slightly by 2.11% in the past year.
The Revenue has been growing by 23.18% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)2.75%
EPS 3Y5.58%
EPS 5Y10.04%
EPS Q2Q%1.26%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y31.77%
Revenue growth 5Y23.18%
Sales Q2Q%-1.79%
3.2 Future
The Earnings Per Share is expected to grow by 2.88% on average over the next years.
The Revenue is expected to grow by 0.03% on average over the next years.
EPS Next Y-5.34%
EPS Next 2Y-0.69%
EPS Next 3Y2.88%
EPS Next 5YN/A
Revenue Next Year-2.27%
Revenue Next 2Y-0.72%
Revenue Next 3Y0.03%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 12.36 indicates a correct valuation of MTY.
Compared to the rest of the industry, the Price/Earnings ratio of MTY indicates a rather cheap valuation: MTY is cheaper than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.51. MTY is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 12.56, which indicates a correct valuation of MTY.
Based on the Price/Forward Earnings ratio, MTY is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 93.88. MTY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.36 | ||
| Fwd PE | 12.56 |
4.2 Price Multiples
83.33% of the companies in the same industry are more expensive than MTY, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTY indicates a rather cheap valuation: MTY is cheaper than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.84 | ||
| EV/EBITDA | 8.93 |
4.3 Compensation for Growth
The decent profitability rating of MTY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.23
EPS Next 2Y-0.69%
EPS Next 3Y2.88%
5. Dividend
5.1 Amount
MTY has a Yearly Dividend Yield of 2.31%.
Compared to an average industry Dividend Yield of 4.46, MTY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, MTY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
The dividend of MTY is nicely growing with an annual growth rate of 9.98%!
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)9.98%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
27.44% of the earnings are spent on dividend by MTY. This is a low number and sustainable payout ratio.
The dividend of MTY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.44%
EPS Next 2Y-0.69%
EPS Next 3Y2.88%
MTY FOOD GROUP INC
TSX:MTY (1/30/2025, 7:00:00 PM)
52.76
+0.56 (+1.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners19.03%
Inst Owner ChangeN/A
Ins Owners16.6%
Ins Owner ChangeN/A
Market Cap1.24B
Analysts75
Price Target57.89 (9.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend1
Dividend Growth(5Y)9.98%
DP27.44%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.64%
Min EPS beat(2)15.71%
Max EPS beat(2)45.58%
EPS beat(4)2
Avg EPS beat(4)4.3%
Min EPS beat(4)-29.58%
Max EPS beat(4)45.58%
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)-0.16%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)2.08%
Revenue beat(4)2
Avg Revenue beat(4)-0.04%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)2.08%
Revenue beat(8)6
Avg Revenue beat(8)5.01%
Revenue beat(12)9
Avg Revenue beat(12)4.89%
Revenue beat(16)11
Avg Revenue beat(16)3.78%
PT rev (1m)0%
PT rev (3m)2.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)7.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.36 | ||
| Fwd PE | 12.56 | ||
| P/S | 1.07 | ||
| P/FCF | 6.84 | ||
| P/OCF | 5.97 | ||
| P/B | 1.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.93 |
EPS(TTM)4.27
EY8.09%
EPS(NY)4.2
Fwd EY7.96%
FCF(TTM)7.71
FCFY14.62%
OCF(TTM)8.83
OCFY16.74%
SpS49.3
BVpS35.62
TBVpS-41.26
PEG (NY)N/A
PEG (5Y)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.71% | ||
| ROE | 11.49% | ||
| ROCE | 8.19% | ||
| ROIC | 7.09% | ||
| ROICexc | 7.27% | ||
| ROICexgc | 50.45% | ||
| OM | 15.28% | ||
| PM (TTM) | 8.3% | ||
| GM | 62.1% | ||
| FCFM | 15.64% |
ROA(3y)3.86%
ROA(5y)2.89%
ROE(3y)12.13%
ROE(5y)8.34%
ROIC(3y)6.56%
ROIC(5y)6.22%
ROICexc(3y)6.78%
ROICexc(5y)6.43%
ROICexgc(3y)43.19%
ROICexgc(5y)N/A
ROCE(3y)7.57%
ROCE(5y)7.18%
ROICexcg growth 3Y23.65%
ROICexcg growth 5YN/A
ROICexc growth 3Y17.3%
ROICexc growth 5Y-3.17%
OM growth 3Y-1.3%
OM growth 5Y-8.06%
PM growth 3YN/A
PM growth 5Y-17.46%
GM growth 3Y3.5%
GM growth 5Y1.27%
F-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.59 | ||
| Debt/EBITDA | 4.06 | ||
| Cap/Depr | 29.72% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 3.68 | ||
| Cash Conversion | 78.19% | ||
| Profit Quality | 188.42% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.29 |
F-Score8
WACC6.88%
ROIC/WACC1.03
Cap/Depr(3y)25.3%
Cap/Depr(5y)21.92%
Cap/Sales(3y)1.91%
Cap/Sales(5y)1.63%
Profit Quality(3y)160.86%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.75%
EPS 3Y5.58%
EPS 5Y10.04%
EPS Q2Q%1.26%
EPS Next Y-5.34%
EPS Next 2Y-0.69%
EPS Next 3Y2.88%
EPS Next 5YN/A
Revenue 1Y (TTM)2.11%
Revenue growth 3Y31.77%
Revenue growth 5Y23.18%
Sales Q2Q%-1.79%
Revenue Next Year-2.27%
Revenue Next 2Y-0.72%
Revenue Next 3Y0.03%
Revenue Next 5YN/A
EBIT growth 1Y2.32%
EBIT growth 3Y30.05%
EBIT growth 5Y13.25%
EBIT Next Year27.75%
EBIT Next 3Y9.48%
EBIT Next 5YN/A
FCF growth 1Y41.48%
FCF growth 3Y5.96%
FCF growth 5Y11.09%
OCF growth 1Y48.67%
OCF growth 3Y11.35%
OCF growth 5Y13.52%