TSX:MTY

Stock Analysis Report

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Executive Summary

MTY Food Group Inc. franchises and operates quick service, fast casual, and casual dining restaurants in Canada, the United States, and internationally. More Details


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

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

Stable Share Price: MTY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.3%

MTY

-0.4%

CA Hospitality

-3.3%

CA Market


1 Year Return

-44.9%

MTY

-27.4%

CA Hospitality

-9.7%

CA Market

Return vs Industry: MTY underperformed the Canadian Hospitality industry which returned -27.4% over the past year.

Return vs Market: MTY underperformed the Canadian Market which returned -9.7% over the past year.


Shareholder returns

MTYIndustryMarket
7 Day-3.3%-0.4%-3.3%
30 Day11.0%1.4%-4.4%
90 Day51.4%0.4%5.1%
1 Year-44.5%-44.9%-24.9%-27.4%-6.5%-9.7%
3 Year-27.0%-28.9%-5.7%-13.7%5.3%-4.9%
5 Year13.2%7.7%55.3%37.8%38.7%17.3%

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 compared to its fair value and its price relative to the market?

1.49x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MTY (CA$34.74) is trading above our estimate of fair value (CA$25.29)

Significantly Below Fair Value: MTY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MTY is unprofitable, so we can't compare its PE Ratio to the CA Hospitality industry average.

PE vs Market: MTY is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MTY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MTY is overvalued based on its PB Ratio (1.5x) compared to the CA Hospitality industry average (1x).


Next Steps

Future Growth

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

-1.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MTY's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if MTY's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MTY's revenue is expected to decline over the next 3 years (-1.1% per year).

High Growth Revenue: MTY's revenue is forecast to decline over the next 3 years (-1.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MTY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTY is currently unprofitable.

Growing Profit Margin: MTY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MTY is unprofitable, but has reduced losses over the past 5 years at a rate of 12.3% per year.

Accelerating Growth: Unable to compare MTY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MTY is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-6.7%).


Return on Equity

High ROE: MTY has a negative Return on Equity (-6.31%), as it is currently unprofitable.


Next Steps

Financial Health

How is MTY Food Group's financial position?


Financial Position Analysis

Short Term Liabilities: MTY's short term assets (CA$239.8M) do not cover its short term liabilities (CA$371.0M).

Long Term Liabilities: MTY's short term assets (CA$239.8M) do not cover its long term liabilities (CA$1.2B).


Debt to Equity History and Analysis

Debt Level: MTY's debt to equity ratio (92.8%) is considered high.

Reducing Debt: MTY's debt to equity ratio has increased from 11.3% to 92.8% over the past 5 years.

Debt Coverage: MTY's debt is well covered by operating cash flow (21.5%).

Interest Coverage: MTY is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

1.34%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MTY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MTY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MTY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MTY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MTY is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MTY's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Eric Lefebvre (43 yo)

1.83yrs

Tenure

CA$1,079,707

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

Compensation vs Market: Eric's total compensation ($USD811.32K) is below average for companies of similar size in the Canadian market ($USD1.38M).

Compensation vs Earnings: Eric's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Stanley Ma
Chairman & President23.33yrsCA$250.53k19.77%
CA$ 169.7m
Eric Lefebvre
CEO & Non-Independent Director1.83yrsCA$1.08m0.033%
CA$ 281.7k
Renée St-Onge
Chief Financial Officer1.83yrsCA$795.68k0.010%
CA$ 86.2k
Marc Benzacar
Chief Operating Officer of Fast Casual Restaurants11.83yrsCA$885.80k0.012%
CA$ 100.9k
Marie-Line Beauchamp
Chief Operating Officer of Casual Dining2.5yrsCA$779.79kno data
Jason Brading
Chief Operating Officer of Quick Service Restaurants1.83yrsCA$855.69k0.0027%
CA$ 23.6k
Claude St-Pierre
Secretary & Non-Independent Director23.92yrsCA$117.93k2.08%
CA$ 17.9m
Jeff Smit
Chief Operating Officer of US Operations4.17yrsCA$480.78kno data

3.3yrs

Average Tenure

51yo

Average Age

Experienced Management: MTY's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stanley Ma
Chairman & President23.33yrsCA$250.53k19.77%
CA$ 169.7m
Eric Lefebvre
CEO & Non-Independent Director1.83yrsCA$1.08m0.033%
CA$ 281.7k
Claude St-Pierre
Secretary & Non-Independent Director23.92yrsCA$117.93k2.08%
CA$ 17.9m
Murat Armutlu
Independent Director15.33yrsCA$20.77k0.42%
CA$ 3.6m
David Wong
Independent Director9.58yrsCA$16.86kno data
Dickie Orr
Independent Director9.33yrsCA$16.86k0.36%
CA$ 3.1m
Gary O'Connor
Independent Director2.5yrsCA$20.29k0.00040%
CA$ 3.4k

9.6yrs

Average Tenure

60yo

Average Age

Experienced Board: MTY's board of directors are considered experienced (9.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MTY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$858.302m
  • Shares outstanding: 24.71m
  • 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. franchises and operates quick service, fast casual, and casual dining restaurants in Canada, the United States, and internationally. The company franchises and operates corporate-owned ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/25 05:35
End of Day Share Price2020/09/24 00:00
Earnings2020/05/31
Annual Earnings2019/11/30


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.