MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
Canada - TSX:MTY - CA55378N1078 - Common Stock
33.65 CAD
-0.46 (-1.35%)
MTY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 18 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of MTY while its profitability can be described as average. MTY is cheap, but on the other hand it scores bad 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.
MTY had positive earnings in 4 of the past 5 years.
MTY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MTY has a Return On Assets (1.27%) which is comparable to the rest of the industry.
MTY has a Return On Equity of 3.89%. This is comparable to the rest of the industry: MTY outperforms 50.00% of its industry peers.
With a decent Return On Invested Capital value of 5.90%, MTY is doing good in 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 6.54%.
The last Return On Invested Capital (5.90%) for MTY is above the 3 year average (5.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 3.89% | ||
| ROIC | 5.9% |
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 of 2.70%. This is comparable to the rest of the industry: MTY outperforms 55.56% of its industry peers.
MTY's Profit Margin has declined in the last couple of years.
The Operating Margin of MTY (14.39%) is better than 61.11% of its industry peers.
In the last couple of years the Operating Margin of MTY has declined.
MTY has a Gross Margin of 61.08%. This is in the better half of the industry: MTY outperforms 77.78% of its industry peers.
MTY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.39% | ||
| PM (TTM) | 2.7% | ||
| GM | 61.08% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MTY is destroying value.
The number of shares outstanding for MTY has been reduced compared to 1 year ago.
Compared to 5 years ago, MTY has less shares outstanding
MTY has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.17, we must say that MTY is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.17, MTY is doing good in the industry, outperforming 61.11% of the companies in the same industry.
MTY has a debt to FCF ratio of 6.89. This is a slightly negative value and a sign of low solvency as MTY would need 6.89 years to pay back of all of its debts.
MTY has a Debt to FCF ratio of 6.89. This is in the better half of the industry: MTY outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that MTY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.25, MTY is in line with its industry, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 6.89 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.98
WACC6.01%
2.3 Liquidity
A Current Ratio of 0.60 indicates that MTY may have some problems paying its short term obligations.
MTY's Current ratio of 0.60 is on the low side compared to the rest of the industry. MTY is outperformed by 66.67% 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 has a Quick ratio of 0.56. This is in the lower half of the industry: MTY underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 |
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%.
MTY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.68% yearly.
Looking at the last year, MTY shows a small growth in Revenue. The Revenue has grown by 1.38% in the last year.
MTY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.05% yearly.
EPS 1Y (TTM)-5.63%
EPS 3Y2.8%
EPS 5Y5.68%
EPS Q2Q%-26.09%
Revenue 1Y (TTM)1.38%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%1.45%
3.2 Future
The Earnings Per Share is expected to grow by 4.02% on average over the next years.
MTY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.97% yearly.
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.
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
Based on the Price/Earnings ratio of 8.37, the valuation of MTY can be described as reasonable.
MTY's Price/Earnings ratio is rather cheap when compared to the industry. MTY is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. MTY is valued rather cheaply when compared to this.
MTY is valuated cheaply with a Price/Forward Earnings ratio of 7.63.
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 22.27. MTY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 7.63 |
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.
Based on the Price/Free Cash Flow ratio, MTY is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.7 | ||
| EV/EBITDA | 7.16 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of MTY may justify a higher PE ratio.
PEG (NY)0.96
PEG (5Y)1.47
EPS Next 2Y4.71%
EPS Next 3Y4.02%
5. Dividend
5.1 Amount
MTY has a Yearly Dividend Yield of 3.93%. Purely for dividend investing, there may be better candidates out there.
MTY's Dividend Yield is a higher than the industry average which is at 4.22.
Compared to an average S&P500 Dividend Yield of 2.38, MTY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
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 92.85% of its income as dividend. 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.
DP92.85%
EPS Next 2Y4.71%
EPS Next 3Y4.02%
TSX:MTY (11/4/2025, 7:00:00 PM)
33.65
-0.46 (-1.35%)
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 Cap768.57M
Revenue(TTM)1.17B
Net Income(TTM)31.61M
Analysts72
Price Target44.88 (33.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
Yearly Dividend1.12
Dividend Growth(5Y)11.08%
DP92.85%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.95%
Min EPS beat(2)-4.98%
Max EPS beat(2)-2.93%
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)-1.35%
Min Revenue beat(2)-1.72%
Max Revenue beat(2)-0.98%
Revenue beat(4)1
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)4.51%
Revenue beat(8)3
Avg Revenue beat(8)-0.07%
Revenue beat(12)7
Avg Revenue beat(12)3.3%
Revenue beat(16)10
Avg Revenue beat(16)3.64%
PT rev (1m)-7.69%
PT rev (3m)-7.69%
EPS NQ rev (1m)6.9%
EPS NQ rev (3m)6.9%
EPS NY rev (1m)0%
EPS NY rev (3m)5.9%
Revenue NQ rev (1m)1.72%
Revenue NQ rev (3m)1.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 7.63 | ||
| P/S | 0.66 | ||
| P/FCF | 4.7 | ||
| P/OCF | 4.23 | ||
| P/B | 0.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.16 |
EPS(TTM)4.02
EY11.95%
EPS(NY)4.41
Fwd EY13.1%
FCF(TTM)7.16
FCFY21.28%
OCF(TTM)7.95
OCFY23.64%
SpS51.28
BVpS35.59
TBVpS-40.15
PEG (NY)0.96
PEG (5Y)1.47
Graham Number56.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 3.89% | ||
| ROCE | 8.2% | ||
| ROIC | 5.9% | ||
| ROICexc | 6.01% | ||
| ROICexgc | 42.09% | ||
| OM | 14.39% | ||
| PM (TTM) | 2.7% | ||
| GM | 61.08% | ||
| FCFM | 13.97% |
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%
ROICexgc growth 3Y1.96%
ROICexgc 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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 6.89 | ||
| Debt/EBITDA | 3.9 | ||
| Cap/Depr | 19.59% | ||
| Cap/Sales | 1.55% | ||
| Interest Coverage | 4.3 | ||
| Cash Conversion | 69.57% | ||
| Profit Quality | 517.43% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.17 |
F-Score6
WACC6.01%
ROIC/WACC0.98
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%-26.09%
EPS Next Y8.69%
EPS Next 2Y4.71%
EPS Next 3Y4.02%
EPS Next 5YN/A
Revenue 1Y (TTM)1.38%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%1.45%
Revenue Next Year1.46%
Revenue Next 2Y0.73%
Revenue Next 3Y0.97%
Revenue Next 5YN/A
EBIT growth 1Y-4.51%
EBIT growth 3Y12.9%
EBIT growth 5Y8.44%
EBIT Next Year23.01%
EBIT Next 3Y7.84%
EBIT Next 5Y5.53%
FCF growth 1Y14.18%
FCF growth 3Y10.18%
FCF growth 5Y10.87%
OCF growth 1Y4.24%
OCF growth 3Y13.75%
OCF growth 5Y12.63%
MTY FOOD GROUP INC / MTY.CA FAQ
Can you provide the ChartMill fundamental rating for MTY FOOD GROUP INC?
ChartMill assigns a fundamental rating of 5 / 10 to MTY.CA.
Can you provide the valuation status for MTY FOOD GROUP INC?
ChartMill assigns a valuation rating of 8 / 10 to MTY FOOD GROUP INC (MTY.CA). This can be considered as Undervalued.
Can you provide the profitability details for MTY FOOD GROUP INC?
MTY FOOD GROUP INC (MTY.CA) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for MTY stock?
The Earnings per Share (EPS) of MTY FOOD GROUP INC (MTY.CA) is expected to grow by 8.69% in the next year.
Can you provide the dividend sustainability for MTY stock?
The dividend rating of MTY FOOD GROUP INC (MTY.CA) is 5 / 10 and the dividend payout ratio is 92.85%.