MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MTY - CA55378N1078 - Common Stock
40.19 CAD
+0.22 (+0.55%)
We assign a fundamental rating of 4 out of 10 to MTY. MTY was compared to 19 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 valued quite cheap, 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.
MTY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.27%, MTY perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.89%, MTY is in line with its industry, outperforming 47.37% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.90%, MTY is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MTY is below the industry average of 8.63%.
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 (2.70%) which is in line with its industry peers.
MTY's Profit Margin has declined in the last couple of years.
MTY's Operating Margin of 14.39% is in line compared to the rest of the industry. MTY outperforms 57.89% of its industry peers.
In the last couple of years the Operating Margin of MTY has declined.
With a decent Gross Margin value of 61.08%, MTY is doing good in the industry, outperforming 73.68% of the companies in the same industry.
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
MTY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MTY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MTY has less shares outstanding
The debt/assets ratio for MTY has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.22, we must say that MTY is in the distress zone and has some risk of bankruptcy.
MTY has a better Altman-Z score (1.22) than 63.16% of its industry peers.
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 73.68% 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.
With a Debt to Equity ratio value of 1.25, MTY perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 6.89 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.96
WACC6.17%
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 Current ratio (0.60) which is comparable to the rest of the industry.
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 in line compared to the rest of the industry. MTY outperforms 42.11% 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.
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.
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%-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 4.48% 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 1.02% yearly.
EPS Next Y6.11%
EPS Next 2Y3.54%
EPS Next 3Y4.48%
EPS Next 5YN/A
Revenue Next Year1.64%
Revenue Next 2Y0.6%
Revenue Next 3Y1.02%
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 decreasing.
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
The Price/Earnings ratio is 10.00, which indicates a very decent valuation of MTY.
MTY's Price/Earnings ratio is rather cheap when compared to the industry. MTY is cheaper than 94.74% of the companies in the same industry.
When comparing the Price/Earnings ratio of MTY to the average of the S&P500 Index (27.19), we can say MTY is valued rather cheaply.
The Price/Forward Earnings ratio is 9.33, which indicates a very decent valuation of MTY.
Based on the Price/Forward Earnings ratio, MTY is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
MTY is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | 9.33 |
4.2 Price Multiples
MTY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MTY is cheaper than 78.95% of the companies in the same industry.
89.47% 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 | 5.61 | ||
| EV/EBITDA | 7.69 |
4.3 Compensation for Growth
MTY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.64
PEG (5Y)1.76
EPS Next 2Y3.54%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
MTY has a Yearly Dividend Yield of 3.30%.
MTY's Dividend Yield is a higher than the industry average which is at 2.39.
MTY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
5.2 History
The dividend of MTY is nicely growing with an annual growth rate of 11.08%!
MTY has paid a dividend for at least 10 years, which is a reliable track record.
MTY has decreased its dividend recently.
Dividend Growth(5Y)11.08%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
92.85% 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.
DP92.85%
EPS Next 2Y3.54%
EPS Next 3Y4.48%
TSX:MTY (1/9/2026, 7:00:00 PM)
40.19
+0.22 (+0.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners19.47%
Inst Owner ChangeN/A
Ins Owners17.17%
Ins Owner ChangeN/A
Market Cap917.94M
Revenue(TTM)1.17B
Net Income(TTM)31.61M
Analysts72
Price Target44.2 (9.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Yearly Dividend1.12
Dividend Growth(5Y)11.08%
DP92.85%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)0%
PT rev (3m)-9.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | 9.33 | ||
| P/S | 0.78 | ||
| P/FCF | 5.61 | ||
| P/OCF | 5.05 | ||
| P/B | 1.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.69 |
EPS(TTM)4.02
EY10%
EPS(NY)4.31
Fwd EY10.72%
FCF(TTM)7.16
FCFY17.82%
OCF(TTM)7.95
OCFY19.79%
SpS51.28
BVpS35.59
TBVpS-40.15
PEG (NY)1.64
PEG (5Y)1.76
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 | 1.22 |
F-Score6
WACC6.17%
ROIC/WACC0.96
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 Y6.11%
EPS Next 2Y3.54%
EPS Next 3Y4.48%
EPS Next 5YN/A
Revenue 1Y (TTM)1.38%
Revenue growth 3Y28.08%
Revenue growth 5Y16.05%
Sales Q2Q%1.45%
Revenue Next Year1.64%
Revenue Next 2Y0.6%
Revenue Next 3Y1.02%
Revenue Next 5YN/A
EBIT growth 1Y-4.51%
EBIT growth 3Y12.9%
EBIT growth 5Y8.44%
EBIT Next Year23.34%
EBIT Next 3Y7.35%
EBIT Next 5Y4.51%
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 4 / 10 to MTY.CA.
What is the valuation status of MTY FOOD GROUP INC (MTY.CA) stock?
ChartMill assigns a valuation rating of 7 / 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 5 / 10.
What are the PE and PB ratios of MTY FOOD GROUP INC (MTY.CA) stock?
The Price/Earnings (PE) ratio for MTY FOOD GROUP INC (MTY.CA) is 10 and the Price/Book (PB) ratio is 1.13.
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 6.11% in the next year.