TSX:MFI

Stock Analysis Report

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Executive Summary

Maple Leaf Foods Inc. operates as a consumer protein company.


Snowflake Analysis

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has Maple Leaf Foods's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MFI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.1%

MFI

-0.8%

CA Food

4.1%

CA Market


1 Year Return

-16.7%

MFI

-15.4%

CA Food

-8.6%

CA Market

Return vs Industry: MFI exceeded the Canadian Food industry which returned -18.2% over the past year.

Return vs Market: MFI underperformed the Canadian Market which returned -10.3% over the past year.


Shareholder returns

MFIIndustryMarket
7 Day-3.1%-0.8%4.1%
30 Day2.1%2.7%7.9%
90 Day11.0%-2.1%-3.4%
1 Year-15.2%-16.7%-13.8%-15.4%-5.5%-8.6%
3 Year-21.4%-25.4%-20.3%-24.4%3.6%-6.1%
5 Year16.4%7.7%16.5%7.0%21.4%3.5%

Price Volatility Vs. Market

How volatile is Maple Leaf Foods's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Maple Leaf Foods undervalued compared to its fair value and its price relative to the market?

151.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MFI (CA$25.67) is trading above our estimate of fair value (CA$13.85)

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


Price To Earnings Ratio

PE vs Industry: MFI is poor value based on its PE Ratio (152.3x) compared to the Food industry average (17x).

PE vs Market: MFI is poor value based on its PE Ratio (152.3x) compared to the Canadian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: MFI is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: MFI is overvalued based on its PB Ratio (1.6x) compared to the CA Food industry average (1.5x).


Next Steps

Future Growth

How is Maple Leaf Foods forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

51.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFI's forecast earnings growth (51.7% per year) is above the savings rate (1.7%).

Earnings vs Market: MFI's earnings (51.7% per year) are forecast to grow faster than the Canadian market (23.7% per year).

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

Revenue vs Market: MFI's revenue (4.5% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: MFI's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Maple Leaf Foods performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFI has a large one-off loss of CA$4.5M impacting its March 31 2020 financial results.

Growing Profit Margin: MFI's current net profit margins (0.5%) are lower than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: MFI has become profitable over the past 5 years, growing earnings by 15.4% per year.

Accelerating Growth: MFI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MFI had negative earnings growth (-83.1%) over the past year, making it difficult to compare to the Food industry average (-8.9%).


Return on Equity

High ROE: MFI's Return on Equity (1.1%) is considered low.


Next Steps

Financial Health

How is Maple Leaf Foods's financial position?


Financial Position Analysis

Short Term Liabilities: MFI's short term assets (CA$919.9M) exceed its short term liabilities (CA$520.3M).

Long Term Liabilities: MFI's short term assets (CA$919.9M) do not cover its long term liabilities (CA$1.2B).


Debt to Equity History and Analysis

Debt Level: MFI's debt to equity ratio (39%) is considered satisfactory.

Reducing Debt: MFI's debt to equity ratio has increased from 1.3% to 39% over the past 5 years.

Debt Coverage: MFI's debt is well covered by operating cash flow (27.5%).

Interest Coverage: MFI's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Maple Leaf Foods's current dividend yield, its reliability and sustainability?

2.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MFI's dividend (2.49%) is higher than the bottom 25% of dividend payers in the Canadian market (1.96%).

High Dividend: MFI's dividend (2.49%) is low compared to the top 25% of dividend payers in the Canadian market (6.25%).


Stability and Growth of Payments

Stable Dividend: MFI's dividends per share have been stable in the past 10 years.

Growing Dividend: MFI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (353%), MFI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MFI's dividends in 3 years are forecast to be covered by earnings (53.9% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Michael McCain (60yo)

21.42yrs

Tenure

CA$6,851,743

Compensation

Mr. Michael H. McCain, O.C., B.B.A., has been the Chief Executive Officer of Maple Leaf Foods Inc., since January 1, 1999 and has been its President since April 1995. Mr. McCain served as the Chief Operati ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD5.08M) is above average for companies of similar size in the Canadian market ($USD2.12M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael McCain
President21.42yrsCA$6.85m39.43% CA$1.2b
Curtis Frank
President & COOno dataCA$1.90m0.024% CA$756.3k
Suzanne Hathaway
Senior VPno dataCA$1.88m0.0023% CA$73.2k
Randall Huffman
Chief Food Safety & Sustainability Officer11.42yrsCA$1.30m0.045% CA$1.4m
Geert Verellen
Chief Financial Officer0.42yrno data0.0017% CA$53.8k
Andreas Liris
Chief Information Officer5.33yrsno data0.013% CA$417.4k
Kim Lee
Vice President of Investor Relations1.75yrsno datano data
Casey Richards
Senior Vice-President of Marketing & Innovation0.75yrno datano data
Stephane Dubreuil
Senior Vice President of Strategy & Corporate Development1.42yrsno data0.0012% CA$38.7k
Ian Henry
Senior Vice President of People6.83yrsno data0.013% CA$421.8k

3.5yrs

Average Tenure

Experienced Management: MFI's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael McCain
President21.42yrsCA$6.85m39.43% CA$1.2b
Ronald Close
Independent Corporate Director5.17yrsCA$186.50k0.0068% CA$214.7k
William Beattie
Independent Chairman of the Board1.08yrsCA$299.70k0.019% CA$591.6k
Jean Fraser
Independent Director5.67yrsCA$192.00kno data
John Lederer
Independent Corporate Director4.08yrsCA$179.00k0.061% CA$1.9m
Carol Stephenson
Independent Corporate Director4.08yrsCA$192.00k0.019% CA$597.2k
Timothy Hockey
Independent Director0.17yrno datano data
William Aziz
Independent Director6.08yrsCA$197.00k0.015% CA$474.3k
Katherine Lemon
Independent Director2.08yrsCA$179.00k0.0081% CA$256.2k
Jonathan McCain
Director2.08yrsCA$177.00kno data

4.1yrs

Average Tenure

60.5yo

Average Age

Experienced Board: MFI's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Maple Leaf Foods Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Maple Leaf Foods Inc.
  • Ticker: MFI
  • Exchange: TSX
  • Founded:
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: CA$3.143b
  • Shares outstanding: 122.93m
  • Website: https://www.mapleleaffoods.com

Number of Employees


Location

  • Maple Leaf Foods Inc.
  • 6985 Financial Drive
  • Mississauga
  • Ontario
  • L5N 0A1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MFITSX (The Toronto Stock Exchange)YesVoting Common SharesCACADApr 1995
M1LDB (Deutsche Boerse AG)YesVoting Common SharesDEEURApr 1995
MLFN.FOTCPK (Pink Sheets LLC)YesVoting Common SharesUSUSDApr 1995
0V5GLSE (London Stock Exchange)YesVoting Common SharesGBCADApr 1995

Biography

Maple Leaf Foods Inc. operates as a consumer protein company. It produces various food products, including prepared meats, ready-to-cook and ready-to-serve meals, fresh pork, poultry, and plant protein products. The company offers its products under various brands, including Maple Leaf, Maple Leaf Prime, Maple Leaf Natural Selections, Schneiders, Schneiders Country Naturals, Mina, Greenfield Natural Meat Co., Lightlife, Field Roast Grain Meat Co., and Swift. It primarily markets its products in Canada, the United States, and Asia. The company is headquartered in Mississauga, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 02:42
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.