MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:MTY • CA55378N1078
42.41 CAD
+0.5 (+1.19%)
Last: Jan 30, 2026, 07:00 PM
Overall MTY gets a fundamental rating of 4 out of 10. We evaluated MTY against 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 has a bad growth rate and is valued cheaply.
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.
- 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
- 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 47.37% of its industry peers.
- With a decent Return On Invested Capital value of 5.90%, MTY is doing good in the industry, outperforming 68.42% of the companies in the same industry.
- MTY had an Average Return On Invested Capital over the past 3 years of 5.51%. This 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 of 2.70%. This is comparable to the rest of the industry: MTY outperforms 47.37% of its industry peers.
- In the last couple of years the Profit Margin of MTY has declined.
- MTY has a Operating Margin (14.39%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of MTY has declined.
- MTY's Gross Margin of 61.08% is fine compared to the rest of the industry. MTY outperforms 73.68% of its industry peers.
- 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
- MTY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
- The debt/assets ratio for MTY has been reduced compared to a year ago.
2.2 Solvency
- MTY has an Altman-Z score of 1.23. This is a bad value and indicates that MTY is not financially healthy and even has some risk of bankruptcy.
- MTY's Altman-Z score of 1.23 is fine compared to the rest of the industry. MTY outperforms 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.
- Looking at the Debt to FCF ratio, with a value of 6.89, MTY is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
- MTY has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
- MTY's Debt to Equity ratio of 1.25 is in line compared to the rest of the industry. MTY outperforms 47.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 6.89 | ||
| Altman-Z | 1.23 |
ROIC/WACC0.97
WACC6.1%
2.3 Liquidity
- A Current Ratio of 0.60 indicates that MTY may have some problems paying its short term obligations.
- MTY has a Current ratio (0.60) which 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 has a Quick ratio (0.56) which is in line with 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.
- 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
- MTY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.48% yearly.
- Based on estimates for the next years, MTY will show a small growth in Revenue. The Revenue will grow by 1.02% on average per year.
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
- 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
- A Price/Earnings ratio of 10.55 indicates a reasonable valuation of MTY.
- MTY's Price/Earnings ratio is rather cheap when compared to the industry. MTY is cheaper than 89.47% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.30. MTY is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 9.84, the valuation of MTY can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, MTY is valued cheaper than 89.47% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, MTY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.55 | ||
| Fwd PE | 9.84 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTY indicates a rather cheap valuation: MTY is cheaper than 89.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.92 | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.73
PEG (5Y)1.86
EPS Next 2Y3.54%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
- MTY has a Yearly Dividend Yield of 3.14%.
- MTY's Dividend Yield is a higher than the industry average which is at 2.40.
- MTY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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%
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 10.55 and the Price/Book (PB) ratio is 1.19.
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.