MTY Food Group Inc. Fundamental Analysis (TSX: MTY.TO)
MTY Food Group Inc. (TSX: MTY.TO) shows moderate financial fundamentals with a PE ratio of 7.38, profit margin of 9.78%, and ROE of 13.22%. The company generates $1.1B in annual revenue with weak year-over-year growth of 2.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MTY.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakMTY.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMTY.TO trades at attractive valuation levels.
Growth Score
WeakMTY.TO faces weak or negative growth trends.
Financial Health Score
WeakMTY.TO carries high financial risk with limited liquidity.
Profitability Score
WeakMTY.TO struggles to sustain strong margins.
Key Financial Metrics
Is MTY.TO Expensive or Cheap?
P/E Ratio
MTY.TO trades at 7.38 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MTY.TO's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values MTY Food Group Inc. at 0.95 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.70 times EBITDA. This is generally considered low.
How Well Does MTY.TO Make Money?
Net Profit Margin
For every $100 in sales, MTY Food Group Inc. keeps $9.78 as profit after all expenses.
Operating Margin
Core operations generate 16.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.22 in profit for every $100 of shareholder equity.
ROA
MTY Food Group Inc. generates $4.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MTY Food Group Inc. produces operating cash flow of $167.95M, showing steady but balanced cash generation.
Free Cash Flow
MTY Food Group Inc. generates strong free cash flow of $156.26M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.84 in free cash annually.
FCF Yield
MTY.TO converts 18.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How MTY.TO Stacks Against Its Sector Peers
| Metric | MTY.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.38 | 25.50 | Better (Cheaper) |
| ROE | 13.22% | 964.00% | Weak |
| Net Margin | 9.78% | -4901.00% (disorted) | Weak |
| Debt/Equity | 1.24 | 0.60 | Weak (High Leverage) |
| Current Ratio | 0.73 | 2.34 | Weak Liquidity |
| ROA | 4.54% | 322.00% | Weak |
MTY.TO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MTY Food Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
150.76%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
447.32%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
47.44%
Industry Style: Cyclical, Growth, Discretionary
High Growth