MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
Canada - TSX:MTY - CA55378N1078 - Common Stock
35.07 CAD
-1.1 (-3.04%)
MTY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 16 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 has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
MTY had positive earnings in the past year.
MTY had a positive operating cash flow in the past year.
MTY had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MTY had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.54%, MTY perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.86%, MTY is in line with its industry, outperforming 43.75% of the companies in the same industry.
MTY's Return On Invested Capital of 5.78% is fine compared to the rest of the industry. MTY outperforms 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MTY is in line with the industry average of 6.47%.
The last Return On Invested Capital (5.78%) for MTY is above the 3 year average (5.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 4.86% | ||
| ROIC | 5.78% |
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 (3.31%) which is in line with its industry peers.
In the last couple of years the Profit Margin of MTY has declined.
The Operating Margin of MTY (14.33%) is better than 62.50% of its industry peers.
In the last couple of years the Operating Margin of MTY has declined.
MTY has a better Gross Margin (61.76%) than 81.25% of its industry peers.
MTY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.33% | ||
| PM (TTM) | 3.31% | ||
| GM | 61.76% |
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.
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 1.14, we must say that MTY is in the distress zone and has some risk of bankruptcy.
MTY has a Altman-Z score (1.14) which is in line with its industry peers.
The Debt to FCF ratio of MTY is 6.28, which is on the high side as it means it would take MTY, 6.28 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MTY (6.28) is better than 62.50% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that MTY has dependencies on debt financing.
The Debt to Equity ratio of MTY (1.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 6.28 | ||
| Altman-Z | 1.14 |
ROIC/WACC0.94
WACC6.18%
2.3 Liquidity
MTY has a Current Ratio of 0.60. This is a bad value and indicates that MTY is not financially healthy enough and could expect problems in meeting its short term obligations.
MTY has a worse Current ratio (0.60) than 68.75% of its industry peers.
MTY has a Quick Ratio of 0.60. This is a bad value and indicates that MTY is not financially healthy enough and could expect problems in meeting 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 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 |
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.
MTY shows a small growth in Revenue. In the last year, the Revenue has grown by 0.55%.
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%-7.87%
Revenue 1Y (TTM)0.55%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%0.37%
3.2 Future
MTY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.02% yearly.
Based on estimates for the next years, MTY will show a small growth in Revenue. The Revenue will grow by 0.97% on average per year.
EPS Next Y8.69%
EPS Next 2Y4.71%
EPS Next 3Y4.02%
EPS Next 5YN/A
Revenue Next Year1.46%
Revenue Next 2Y0.73%
Revenue Next 3Y0.97%
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.
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
MTY is valuated reasonably with a Price/Earnings ratio of 8.72.
Based on the Price/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/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.96, the valuation of MTY can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTY indicates a rather cheap valuation: MTY is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.04. MTY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.72 | ||
| Fwd PE | 7.96 |
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 81.25% 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 | 4.3 | ||
| EV/EBITDA | 7.41 |
4.3 Compensation for Growth
MTY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MTY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1
PEG (5Y)1.54
EPS Next 2Y4.71%
EPS Next 3Y4.02%
5. Dividend
5.1 Amount
MTY has a Yearly Dividend Yield of 3.36%.
Compared to an average industry Dividend Yield of 4.32, MTY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, MTY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
5.2 History
On average, the dividend of MTY grows each year by 11.08%, which is quite nice.
MTY has been paying a dividend for at least 10 years, so it has 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 73.76% 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.
DP73.76%
EPS Next 2Y4.71%
EPS Next 3Y4.02%
TSX:MTY (10/15/2025, 7:00:00 PM)
35.07
-1.1 (-3.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners18.79%
Inst Owner ChangeN/A
Ins Owners17.16%
Ins Owner ChangeN/A
Market Cap801.00M
Analysts72
Price Target48.62 (38.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
Yearly Dividend1.12
Dividend Growth(5Y)11.08%
DP73.76%
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)0
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)-0.98%
Revenue beat(4)1
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)4.51%
Revenue beat(8)4
Avg Revenue beat(8)0.39%
Revenue beat(12)8
Avg Revenue beat(12)3.84%
Revenue beat(16)11
Avg Revenue beat(16)3.81%
PT rev (1m)0%
PT rev (3m)-4.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.2%
EPS NY rev (1m)0%
EPS NY rev (3m)5.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.3%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.72 | ||
| Fwd PE | 7.96 | ||
| P/S | 0.69 | ||
| P/FCF | 4.3 | ||
| P/OCF | 3.83 | ||
| P/B | 1.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.41 |
EPS(TTM)4.02
EY11.46%
EPS(NY)4.41
Fwd EY12.57%
FCF(TTM)8.16
FCFY23.28%
OCF(TTM)9.15
OCFY26.1%
SpS51.09
BVpS34.77
TBVpS-41.6
PEG (NY)1
PEG (5Y)1.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 4.86% | ||
| ROCE | 8.03% | ||
| ROIC | 5.78% | ||
| ROICexc | 5.91% | ||
| ROICexgc | 41.23% | ||
| OM | 14.33% | ||
| PM (TTM) | 3.31% | ||
| GM | 61.76% | ||
| FCFM | 15.98% |
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-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 6.28 | ||
| Debt/EBITDA | 4.08 | ||
| Cap/Depr | 24.39% | ||
| Cap/Sales | 1.93% | ||
| Interest Coverage | 3.94 | ||
| Cash Conversion | 80.48% | ||
| Profit Quality | 482.86% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.14 |
F-Score6
WACC6.18%
ROIC/WACC0.94
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%-7.87%
EPS Next Y8.69%
EPS Next 2Y4.71%
EPS Next 3Y4.02%
EPS Next 5YN/A
Revenue 1Y (TTM)0.55%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%0.37%
Revenue Next Year1.46%
Revenue Next 2Y0.73%
Revenue Next 3Y0.97%
Revenue Next 5YN/A
EBIT growth 1Y-5.76%
EBIT growth 3Y12.9%
EBIT growth 5Y8.44%
EBIT Next Year23.01%
EBIT Next 3Y7.84%
EBIT Next 5Y5.53%
FCF growth 1Y32.28%
FCF growth 3Y10.18%
FCF growth 5Y10.87%
OCF growth 1Y26.37%
OCF growth 3Y13.75%
OCF growth 5Y12.63%