DB:9MF

Stock Analysis Report

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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 Analysis

Fair value with acceptable 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

Stable Share Price: 9MF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.3%

9MF

-1.6%

DE Hospitality

0.7%

DE Market


1 Year Return

-57.2%

9MF

-35.2%

DE Hospitality

3.9%

DE Market

Return vs Industry: 9MF underperformed the German Hospitality industry which returned -35.2% over the past year.

Return vs Market: 9MF underperformed the German Market which returned 3.9% over the past year.


Shareholder returns

9MFIndustryMarket
7 Day8.3%-1.6%0.7%
30 Day3.4%-7.4%5.3%
90 Day28.9%3.8%17.3%
1 Year-56.9%-57.2%-32.4%-35.2%6.2%3.9%
3 Year-41.5%-43.2%-49.4%-56.3%1.8%-6.2%
5 Year-24.1%-28.0%-50.8%-61.2%9.3%-5.4%

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

No news available

Valuation

Is MTY Food Group undervalued compared to its fair value and its price relative to the market?

8.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 9MF (€18.3) is trading above our estimate of fair value (€16.27)

Significantly Below Fair Value: 9MF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 9MF is good value based on its PE Ratio (8.8x) compared to the DE Hospitality industry average (20.3x).

PE vs Market: 9MF is good value based on its PE Ratio (8.8x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 9MF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 9MF is good value based on its PB Ratio (1.1x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is MTY Food Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-0.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 9MF's forecast earnings growth is above the savings rate (0.2%).

Earnings vs Market: Insufficient data to determine if 9MF's earnings are forecast to grow faster than the German market

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

Revenue vs Market: 9MF's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: 9MF's revenue is forecast to decline over the next 3 years (-0.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 9MF'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?

24.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 9MF has high quality earnings.

Growing Profit Margin: 9MF's current net profit margins (13.8%) are lower than last year (14.9%).


Past Earnings Growth Analysis

Earnings Trend: 9MF's earnings have grown significantly by 24.3% per year over the past 5 years.

Accelerating Growth: 9MF's earnings growth over the past year (23.6%) is below its 5-year average (24.3% per year).

Earnings vs Industry: 9MF earnings growth over the past year (23.6%) exceeded the Hospitality industry -15.6%.


Return on Equity

High ROE: 9MF's Return on Equity (12.3%) is considered low.


Next Steps

Financial Health

How is MTY Food Group's financial position?


Financial Position Analysis

Short Term Liabilities: 9MF's short term assets (CA$260.2M) do not cover its short term liabilities (CA$363.1M).

Long Term Liabilities: 9MF's short term assets (CA$260.2M) do not cover its long term liabilities (CA$1.2B).


Debt to Equity History and Analysis

Debt Level: 9MF's debt to equity ratio (84.2%) is considered high.

Reducing Debt: 9MF's debt to equity ratio has increased from 11.6% to 84.2% over the past 5 years.

Debt Coverage: 9MF's debt is well covered by operating cash flow (20.9%).

Interest Coverage: 9MF's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


Next Steps

Dividend

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

1.61%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 9MF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 9MF'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 9MF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 9MF's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 9MF is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 9MF's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Eric Lefebvre (43yo)

1.67yrs

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 ($USD794.09K) is about average for companies of similar size in the German market ($USD1.06M).

Compensation vs Earnings: Eric's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stanley Ma
Chairman & President23.17yrsCA$250.53k19.77% CA$91.5m
Eric Lefebvre
CEO & Non-Independent Director1.67yrsCA$1.08m0.025% CA$114.4k
Renée St-Onge
Chief Financial Officer1.67yrsCA$795.68k0.0096% CA$44.6k
Marc Benzacar
Chief Operating Officer of Fast Casual Restaurants11.67yrsCA$885.80k0.012% CA$54.4k
Marie-Line Beauchamp
Chief Operating Officer of Casual Dining2.33yrsCA$779.79kno data
Jason Brading
Chief Operating Officer of Quick Service Restaurants1.67yrsCA$855.69k0.0027% CA$12.7k
Claude St-Pierre
Secretary & Non-Independent Director23.75yrsCA$117.93k2.08% CA$9.6m
Jeff Smit
Chief Operating Officer of US Operations4yrsCA$480.78kno data

3.2yrs

Average Tenure

51yo

Average Age

Experienced Management: 9MF's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stanley Ma
Chairman & President23.17yrsCA$250.53k19.77% CA$91.5m
Eric Lefebvre
CEO & Non-Independent Director1.67yrsCA$1.08m0.025% CA$114.4k
Claude St-Pierre
Secretary & Non-Independent Director23.75yrsCA$117.93k2.08% CA$9.6m
Murat Armutlu
Independent Director15.17yrsCA$20.77k0.42% CA$1.9m
David Wong
Independent Director9.42yrsCA$16.86kno data
Dickie Orr
Independent Director9.17yrsCA$16.86k0.36% CA$1.7m
Gary O'Connor
Independent Director2.33yrsCA$20.29k0.00040% CA$1.9k

9.4yrs

Average Tenure

60yo

Average Age

Experienced Board: 9MF's board of directors are considered experienced (9.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 9MF 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: 9MF
  • Exchange: DB
  • Founded: 1979
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: CA$711.793m
  • Listing Market Cap: CA$462.722m
  • 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. 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 locations in the quick service restaurant and casual dining segments of the restaurant industry; and sells retail products under a multitude of banners. It also operates two distribution centers and two food processing plants. As of May 31, 2020, the company had 7,236 locations comprising 7,077 franchised, 22 joint ventures, and 137 company operated locations. The company was formerly known as iNsu Innovations Group Inc. and changed its name to MTY Food Group Inc. in July 2003. MTY Food Group Inc. was founded in 1979 and is headquartered in Saint-Laurent, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 21:57
End of Day Share Price2020/07/10 00:00
Earnings2020/02/29
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.