MTY FOOD GROUP INC (MTY.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MTY - CA55378N1078 - Common Stock
42.09 CAD
-1.17 (-2.7%)
Overall MTY gets a fundamental rating of 4 out of 10. We evaluated MTY against 19 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 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 of 1.27%. This is comparable to the rest of the industry: MTY outperforms 47.37% of its industry peers.
- With a Return On Equity value of 3.89%, MTY perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
- The Return On Invested Capital of MTY (5.90%) is better than 68.42% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MTY is below the industry average of 8.63%.
- 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
- With a Profit Margin value of 2.70%, MTY perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
- MTY's Profit Margin has declined in the last couple of years.
- MTY has a Operating Margin (14.39%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of MTY has declined.
- Looking at the Gross Margin, with a value of 61.08%, MTY is in the better half of the industry, outperforming 73.68% 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
- Based on the Altman-Z score of 1.24, 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 1.24, MTY is in the better half of the industry, outperforming 63.16% 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 better Debt to FCF ratio (6.89) than 73.68% of its industry peers.
- MTY has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of MTY (1.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 6.89 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.94
WACC6.31%
2.3 Liquidity
- A Current Ratio of 0.60 indicates that MTY may have some problems paying its short term obligations.
- With a Current ratio value of 0.60, MTY perfoms like the industry average, outperforming 47.37% of the companies in the same 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 comparable to the rest of the industry.
| 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.
- The Earnings Per Share has been growing slightly by 5.68% on average over the past years.
- MTY shows a small growth in Revenue. In the last year, the Revenue has grown by 1.38%.
- 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 4.48% on average over the next years.
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 10.47 indicates a reasonable valuation of MTY.
- Compared to the rest of the industry, the Price/Earnings ratio of MTY indicates a rather cheap valuation: MTY is cheaper than 89.47% of the companies listed in the same industry.
- MTY is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 9.77, 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 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 9.77 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MTY is valued a bit cheaper than 78.95% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, MTY is valued cheaper than 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.88 | ||
| EV/EBITDA | 7.96 |
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)1.71
PEG (5Y)1.84
EPS Next 2Y3.54%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.29%, MTY has a reasonable but not impressive dividend return.
- 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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.
- The dividend of MTY decreased 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%
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 10.47 and the Price/Book (PB) ratio is 1.18.
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.