TSX:MTY

Stock Analysis Report

Executive Summary

MTY Food Group Inc. operates as a franchisor in the quick service and casual dining food industry in Canada, the United States, and internationally.

Snowflake

Fundamentals

Limited growth with questionable track record.

Share Price & News

How has MTY Food Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.09%

TSX:MTY

0.3%

CA Hospitality

1.6%

CA Market


1 Year Return

-0.6%

TSX:MTY

-17.4%

CA Hospitality

-0.3%

CA Market

MTY outperformed the Hospitality industry which returned -17.4% over the past year.

MTY matched the Canada Market (-0.3%) over the past year.


Share holder returns

MTYIndustryMarket
7 Day-0.09%0.3%1.6%
30 Day1.8%6.5%4.1%
90 Day-2.0%-2.9%1.1%
1 Year0.4%-0.6%-16.8%-17.4%3.3%-0.3%
3 Year45.9%41.4%22.9%19.6%19.3%8.6%
5 Year101.2%90.3%-3.4%-6.2%21.6%4.1%

Price Volatility Vs. Market

How volatile is MTY Food Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MTY Food Group undervalued based on future cash flows and its price relative to the stock market?

22.18x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

MTY Food Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

MTY Food Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

MTY Food Group is overvalued based on earnings compared to the CA Hospitality industry average.

MTY Food Group is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

MTY Food Group is poor value based on expected growth next year.


Price Based on Value of Assets

MTY Food Group is overvalued based on assets compared to the CA Hospitality industry average.


Next Steps

Future Growth

How is MTY Food Group expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

MTY Food Group's revenue is expected to grow by 12.2% yearly, however this is not considered high growth (20% yearly).

MTY Food Group's earnings are expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).

MTY Food Group's revenue growth is expected to exceed the Canada market average.

MTY Food Group's earnings growth is positive but not above the Canada market average.

MTY Food Group's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if MTY Food Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has MTY Food Group performed over the past 5 years?

29.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

MTY Food Group has delivered over 20% year on year earnings growth in the past 5 years.

MTY Food Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

MTY Food Group's 1-year earnings growth is negative, it can't be compared to the CA Hospitality industry average.


Return on Equity

MTY Food Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

MTY Food Group used its assets more efficiently than the CA Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

MTY Food Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is MTY Food Group's financial position?


Financial Position Analysis

MTY Food Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

MTY Food Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

MTY Food Group's level of debt (82.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (5% vs 82.7% today).

Debt is not well covered by operating cash flow (19.9%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

What is MTY Food Group's current dividend yield, its reliability and sustainability?

1.08%

Expected Dividend Yield


Dividend Yield and Payments Analysis

MTY Food Group's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (1.96%).

MTY Food Group's dividend is below the markets top 25% of dividend payers in Canada (5.79%).

MTY Food Group is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.

MTY Food Group is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of MTY Food Group's dividends as it is not paying a notable one for Canada.


Future Payout to Shareholders

No need to calculate the sustainability of MTY Food Group's dividends in 3 years as they are not expected to pay a notable one for Canada.


Next Steps

Management

What is the CEO of MTY Food Group's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Eric Lefebvre (42yo)

0.8yrs

Tenure

CA$385,342

Compensation

Mr. Eric Lefebvre, CPA, CA, MBA, QC, has been Chief Executive Officer and Director of MTY Food Group Inc. since November 5, 2018 and May 28, 2018 respectively. He has been Director and Vice President of Pa ...


CEO Compensation Analysis

Eric's remuneration is lower than average for companies of similar size in Canada.

Eric's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.3yrs

Average Tenure

50yo

Average Age

The tenure for the MTY Food Group management team is about average.


Board Age and Tenure

8.6yrs

Average Tenure

59yo

Average Age

The tenure for the MTY Food Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyCA$109,74006 May 19
Murat Armutlu
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceCA$54.87
SellCA$426,40809 Nov 18
Dickie Orr
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceCA$71.23

Ownership Breakdown


Management Team

  • Stanley Ma (72yo)

    Chairman & President

    • Tenure: 22.3yrs
    • Compensation: CA$467.66k
  • Claude St-Pierre (50yo)

    Secretary & Non-Independent Director

    • Tenure: 22.9yrs
    • Compensation: CA$8.74k
  • Jason Brading

    Chief Operating Officer of Quick Service Restaurants

    • Tenure: 0.8yrs
  • Eric Lefebvre (42yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: CA$385.34k
  • Jeff Smit (61yo)

    Chief Operating Officer of US Operations

    • Tenure: 3.2yrs
    • Compensation: CA$480.78k
  • Marc Benzacar

    Chief Operating Officer of Fast Casual Division

    • Tenure: 10.8yrs
    • Compensation: CA$294.61k
  • Marie-Line Beauchamp

    Chief Operating Officer of Casual Dining

    • Tenure: 1.5yrs
    • Compensation: CA$378.98k
  • Renée St-Onge (39yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
    • Compensation: CA$97.70k

Board Members

  • Murat Armutlu (59yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: CA$20.94k
  • Stanley Ma (72yo)

    Chairman & President

    • Tenure: 22.3yrs
    • Compensation: CA$467.66k
  • Claude St-Pierre (50yo)

    Secretary & Non-Independent Director

    • Tenure: 22.9yrs
    • Compensation: CA$8.74k
  • Eric Lefebvre (42yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: CA$385.34k
  • David Wong (51yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: CA$15.70k
  • Dickie Orr (67yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: CA$15.70k
  • Gary O'Connor (71yo)

    Additional Director

    • Tenure: 1.5yrs
    • Compensation: CA$12.09k

Company Information

MTY Food Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MTY Food Group Inc.
  • Ticker: MTY
  • Exchange: TSX
  • Founded: 1979
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: CA$1.602b
  • Shares outstanding: 25.17m
  • Website: https://www.mtygroup.com

Number of Employees


Location

  • MTY Food Group Inc.
  • 8210 Trans-Canada Highway
  • Saint-Laurent
  • Quebec
  • H4S 1M5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTYTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 1989
9MFDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1989
MTYF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 1989

Biography

MTY Food Group Inc. operates as a franchisor in the quick service and casual dining food industry in Canada, the United States, and internationally. The company franchises and operates corporate-owned loca ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:36
End of Day Share Price2019/09/18 00:00
Earnings2019/05/31
Annual Earnings2018/11/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.