Maple Leaf Foods Inc. Fundamental Analysis (TSX: MFI.TO)
Maple Leaf Foods Inc. (TSX: MFI.TO) shows moderate financial fundamentals with a PE ratio of 6.41, profit margin of 13.08%, and ROE of 36.83%. The company generates $4.0B in annual revenue with weak year-over-year growth of -20.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MFI.TO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMFI.TO demonstrates superior asset utilization.
Valuation Score
ExcellentMFI.TO trades at attractive valuation levels.
Growth Score
WeakMFI.TO faces weak or negative growth trends.
Financial Health Score
ExcellentMFI.TO maintains a strong and stable balance sheet.
Profitability Score
ModerateMFI.TO maintains healthy but balanced margins.
Key Financial Metrics
Is MFI.TO Expensive or Cheap?
P/E Ratio
MFI.TO trades at 6.41 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MFI.TO's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Maple Leaf Foods Inc. at 2.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.04 times EBITDA. This is generally considered low.
How Well Does MFI.TO Make Money?
Net Profit Margin
For every $100 in sales, Maple Leaf Foods Inc. keeps $13.08 as profit after all expenses.
Operating Margin
Core operations generate 7.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $36.83 in profit for every $100 of shareholder equity.
ROA
Maple Leaf Foods Inc. generates $14.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Maple Leaf Foods Inc. generates limited operating cash flow of $247.36M, signaling weaker underlying cash strength.
Free Cash Flow
Maple Leaf Foods Inc. produces free cash flow of $126.92M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.02 in free cash annually.
FCF Yield
MFI.TO converts 3.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.97
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.37
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How MFI.TO Stacks Against Its Sector Peers
| Metric | MFI.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.41 | 21.73 | Better (Cheaper) |
| ROE | 36.83% | 661.00% | Weak |
| Net Margin | 13.08% | -2335.00% (disorted) | Strong |
| Debt/Equity | 0.97 | 0.81 | Weak (High Leverage) |
| Current Ratio | 1.56 | 2.28 | Neutral |
| ROA | 14.36% | 313.00% | Weak |
MFI.TO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Maple Leaf Foods Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-9.89%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
373.91%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
34.29%
Industry Style: Defensive, Dividend, Low Volatility
High Growth