MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MTY - CA55378N1078 - Common Stock
37.69 CAD
+0.01 (+0.03%)
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. MTY has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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's Return On Assets of 1.27% is in line compared to the rest of the industry. MTY outperforms 44.44% of its industry peers.
MTY has a Return On Equity (3.89%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.90%, 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 6.52%.
The 3 year average ROIC (5.51%) for MTY is below the current ROIC(5.90%), indicating increased profibility in the last year.
| 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.
In the last couple of years the Profit Margin of MTY has declined.
MTY has a Operating Margin of 14.39%. This is in the better half of the industry: MTY outperforms 61.11% of its industry peers.
MTY's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 61.08%, MTY is doing good in the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Gross Margin of MTY has grown nicely.
| 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.
MTY has less shares outstanding than it did 1 year ago.
MTY has less shares outstanding than it did 5 years ago.
MTY has a better debt/assets ratio than last year.
2.2 Solvency
MTY has an Altman-Z score of 1.20. This is a bad value and indicates that MTY is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.20, MTY is doing good in the industry, outperforming 61.11% of the companies in the same industry.
The Debt to FCF ratio of MTY is 6.89, which is on the high side as it means it would take MTY, 6.89 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.89, MTY is doing good in the industry, outperforming 72.22% of the companies in the same industry.
A Debt/Equity ratio of 1.25 is on the high side and indicates that MTY has dependencies on debt financing.
MTY has a Debt to Equity ratio (1.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 6.89 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.95
WACC6.2%
2.3 Liquidity
A Current Ratio of 0.60 indicates that MTY may have some problems paying its short term obligations.
The Current ratio of MTY (0.60) 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 61.11% 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.
The Revenue has been growing slightly by 1.38% in the past year.
The Revenue has been growing by 16.05% on average over the past years. This is quite good.
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
Based on estimates for the next years, MTY will show a small growth in Earnings Per Share. The EPS will grow by 4.48% on average per year.
The Revenue is expected to grow by 1.02% on average over the next years.
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
A Price/Earnings ratio of 9.38 indicates a reasonable valuation of MTY.
Based on the Price/Earnings ratio, MTY is valued cheaper than 100.00% of the companies in the same industry.
MTY is valuated cheaply when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
MTY is valuated reasonably with a Price/Forward Earnings ratio of 8.75.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTY indicates a rather cheap valuation: MTY is cheaper than 94.44% of the companies listed in the same industry.
MTY is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 8.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTY is valued cheaper than 83.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MTY is valued cheaper than 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.26 | ||
| EV/EBITDA | 7.47 |
4.3 Compensation for Growth
The 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)1.53
PEG (5Y)1.65
EPS Next 2Y3.54%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
MTY has a Yearly Dividend Yield of 3.52%.
Compared to an average industry Dividend Yield of 4.21, MTY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, MTY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
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.
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.
The dividend of MTY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP92.85%
EPS Next 2Y3.54%
EPS Next 3Y4.48%
TSX:MTY (12/4/2025, 7:00:00 PM)
37.69
+0.01 (+0.03%)
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 Cap860.84M
Revenue(TTM)1.17B
Net Income(TTM)31.61M
Analysts72
Price Target44.88 (19.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
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)0%
EPS NQ rev (3m)6.9%
EPS NY rev (1m)-2.37%
EPS NY rev (3m)-2.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.72%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 8.75 | ||
| P/S | 0.74 | ||
| P/FCF | 5.26 | ||
| P/OCF | 4.74 | ||
| P/B | 1.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.47 |
EPS(TTM)4.02
EY10.67%
EPS(NY)4.31
Fwd EY11.43%
FCF(TTM)7.16
FCFY19%
OCF(TTM)7.95
OCFY21.11%
SpS51.28
BVpS35.59
TBVpS-40.15
PEG (NY)1.53
PEG (5Y)1.65
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 | 1.2 |
F-Score6
WACC6.2%
ROIC/WACC0.95
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 Year23.01%
EBIT Next 3Y7.84%
EBIT Next 5Y5.01%
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 6.11% 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%.