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 18 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 correctly, but it does not seem to be growing.
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.
Each year in the past 5 years MTY had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.93%, MTY perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
MTY has a Return On Equity of 3.01%. This is comparable to the rest of the industry: MTY outperforms 52.94% of its industry peers.
The Return On Invested Capital of MTY (5.72%) is better than 64.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MTY is below the industry average of 7.54%.
The last Return On Invested Capital (5.72%) for MTY is above the 3 year average (5.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 3.01% | ||
| ROIC | 5.72% |
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 (2.08%) which is comparable to the rest of the industry.
MTY's Profit Margin has declined in the last couple of years.
MTY has a better Operating Margin (14.77%) than 64.71% of its industry peers.
In the last couple of years the Operating Margin of MTY has declined.
MTY's Gross Margin of 62.20% is amongst the best of the industry. MTY outperforms 88.24% of its industry peers.
In the last couple of years the Gross Margin of MTY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.77% | ||
| PM (TTM) | 2.08% | ||
| GM | 62.2% |
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.
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 1.18, 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 1.18, MTY is in line with its industry, outperforming 52.94% of the companies in the same industry.
The Debt to FCF ratio of MTY is 6.90, which is on the high side as it means it would take MTY, 6.90 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.90, MTY is in line with its industry, outperforming 58.82% of the companies in the same industry.
A Debt/Equity ratio of 1.38 is on the high side and indicates that MTY has dependencies on debt financing.
MTY has a Debt to Equity ratio (1.38) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 6.9 | ||
| Altman-Z | 1.18 |
ROIC/WACC0.84
WACC6.85%
2.3 Liquidity
A Current Ratio of 0.61 indicates that MTY may have some problems paying its short term obligations.
MTY's Current ratio of 0.61 is in line compared to the rest of the industry. MTY outperforms 47.06% of its industry peers.
MTY has a Quick 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.
Looking at the Quick ratio, with a value of 0.56, MTY is doing worse than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
MTY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -77.48%.
Measured over the past years, MTY shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.02% on average per year.
Looking at the last year, MTY shows a decrease in Revenue. The Revenue has decreased by -0.83% 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)-77.48%
EPS 3Y-33.71%
EPS 5Y-20.02%
EPS Q2Q%-447.86%
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%1.58%
3.2 Future
The Earnings Per Share is expected to grow by 5.38% on average over the next years.
The Revenue is expected to grow by 3.14% on average over the next years.
EPS Next Y2.92%
EPS Next 2Y7.29%
EPS Next 3Y5.38%
EPS Next 5YN/A
Revenue Next Year3.19%
Revenue Next 2Y2.3%
Revenue Next 3Y3.14%
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 accelerating.
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 46.56, the valuation of MTY can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as MTY.
When comparing the Price/Earnings ratio of MTY to the average of the S&P500 Index (29.35), we can say MTY is valued expensively.
The Price/Forward Earnings ratio is 10.68, which indicates a very decent valuation of MTY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTY indicates a rather cheap valuation: MTY is cheaper than 94.12% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, MTY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.56 | ||
| Fwd PE | 10.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTY is valued cheaper than 88.24% of the companies in the same industry.
94.12% 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 | 5.87 | ||
| EV/EBITDA | 8.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of MTY may justify a higher PE ratio.
PEG (NY)15.95
PEG (5Y)N/A
EPS Next 2Y7.29%
EPS Next 3Y5.38%
5. Dividend
5.1 Amount
MTY has a Yearly Dividend Yield of 2.63%.
MTY's Dividend Yield is comparable with the industry average which is at 4.45.
MTY's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
5.2 History
The dividend of MTY is nicely growing with an annual growth rate of 11.08%!
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
110.93% of the earnings are spent on dividend by MTY. This is not a sustainable payout ratio.
MTY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP110.93%
EPS Next 2Y7.29%
EPS Next 3Y5.38%
TSX:MTY (3/7/2025, 7:00:00 PM)
44.7
+0.13 (+0.29%)
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 Cap1.04B
Analysts75
Price Target55.85 (24.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Yearly Dividend1.12
Dividend Growth(5Y)11.08%
DP110.93%
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)1.06%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)4.51%
Revenue beat(4)3
Avg Revenue beat(4)1.35%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)4.51%
Revenue beat(8)6
Avg Revenue beat(8)3.72%
Revenue beat(12)10
Avg Revenue beat(12)5.3%
Revenue beat(16)12
Avg Revenue beat(16)4.35%
PT rev (1m)-3.52%
PT rev (3m)-3.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-1.07%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)2.31%
Revenue NY rev (3m)4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.56 | ||
| Fwd PE | 10.68 | ||
| P/S | 0.9 | ||
| P/FCF | 5.87 | ||
| P/OCF | 5.07 | ||
| P/B | 1.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.4 |
EPS(TTM)0.96
EY2.15%
EPS(NY)4.18
Fwd EY9.36%
FCF(TTM)7.62
FCFY17.05%
OCF(TTM)8.81
OCFY19.72%
SpS49.9
BVpS34.5
TBVpS-42.18
PEG (NY)15.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 3.01% | ||
| ROCE | 7.95% | ||
| ROIC | 5.72% | ||
| ROICexc | 5.86% | ||
| ROICexgc | 38.43% | ||
| OM | 14.77% | ||
| PM (TTM) | 2.08% | ||
| GM | 62.2% | ||
| FCFM | 15.27% |
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-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 6.9 | ||
| Debt/EBITDA | 4.21 | ||
| Cap/Depr | 30.2% | ||
| Cap/Sales | 2.39% | ||
| Interest Coverage | 3.64 | ||
| Cash Conversion | 77.86% | ||
| Profit Quality | 732.65% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.18 |
F-Score7
WACC6.85%
ROIC/WACC0.84
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)-77.48%
EPS 3Y-33.71%
EPS 5Y-20.02%
EPS Q2Q%-447.86%
EPS Next Y2.92%
EPS Next 2Y7.29%
EPS Next 3Y5.38%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%1.58%
Revenue Next Year3.19%
Revenue Next 2Y2.3%
Revenue Next 3Y3.14%
Revenue Next 5YN/A
EBIT growth 1Y-5.54%
EBIT growth 3Y12.9%
EBIT growth 5Y8.44%
EBIT Next Year25.79%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.18%
FCF growth 3Y10.18%
FCF growth 5Y10.87%
OCF growth 1Y10.95%
OCF growth 3Y13.75%
OCF growth 5Y12.63%