DB:M1L

Stock Analysis Report

Executive Summary

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

Snowflake

Adequate balance sheet average dividend payer.

Rewards

Trading at 95.6% below its fair value

Earnings are forecast to grow 23.94% per year

Earnings have grown 43% per year over the past 5 years

Pays a reliable dividend of 2.51%

Risk Analysis

Dividend of 2.51% is not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Profit margins (1.8%) are lower than last year (4.3%)

+ 1 more risk


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: M1L's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.6%

M1L

-1.3%

DE Food

0.03%

DE Market


1 Year Return

-18.8%

M1L

-2.9%

DE Food

9.9%

DE Market

Return vs Industry: M1L underperformed the German Food industry which returned -2.9% over the past year.

Return vs Market: M1L underperformed the German Market which returned 9.9% over the past year.


Shareholder returns

M1LIndustryMarket
7 Day0.6%-1.3%0.03%
30 Day-22.8%3.3%4.6%
90 Day-29.1%-8.7%12.1%
1 Year-17.2%-18.8%-1.3%-2.9%13.4%9.9%
3 Year-16.9%-20.8%-16.5%-21.6%25.6%14.6%
5 Year27.8%18.7%21.8%11.1%36.9%18.2%

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

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: M1L (€15.9) is trading below our estimate of fair value (€361.01)

Significantly Below Fair Value: M1L is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: M1L is poor value based on its PE Ratio (41.4x) compared to the Food industry average (22.6x).

PE vs Market: M1L is poor value based on its PE Ratio (41.4x) compared to the German market (20x).


Price to Earnings Growth Ratio

PEG Ratio: M1L is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: M1L is good value based on its PB Ratio (1.5x) compared to the DE Food industry average (1.9x).


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?

23.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: M1L's forecast earnings growth (23.9% per year) is above the savings rate (0.2%).

Earnings vs Market: M1L's earnings (23.9% per year) are forecast to grow faster than the German market (12.5% per year).

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

Revenue vs Market: M1L's revenue (3.6% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: M1L's revenue (3.6% 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 M1L'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?

43.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: M1L has large one-off items impacting its financial results.

Growing Profit Margin: M1L's current net profit margins (1.8%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: M1L has become profitable over the past 5 years, growing earnings by 43% per year.

Accelerating Growth: M1L's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: M1L had negative earnings growth (-53.4%) over the past year, making it difficult to compare to the Food industry average (11%).


Return on Equity

High ROE: M1L's Return on Equity (3.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Maple Leaf Foods's financial position?


Financial Position Analysis

Short Term Liabilities: M1L's short term assets (CA$824.3M) exceeds its short term liabilities (CA$481.1M)

Long Term Liabilities: M1L's short term assets (CA$824.3M) do not cover its long term liabilities (997.7M)


Debt to Equity History and Analysis

Debt Level: M1L's debt to equity ratio (24.3%) is considered satisfactory.

Reducing Debt: M1L's debt to equity ratio has increased from 1.1% to 24.3% over the past 5 years.

Debt Coverage: M1L's debt is well covered by operating cash flow (62.5%).

Interest Coverage: M1L's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet

Inventory Level: M1L has a high level of physical assets or inventory.

Debt Coverage by Assets: M1L's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

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

2.51%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Maple Leaf Foods before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.5%marketbottom25%1.3%markettop25%3.7%industryaverage1.6%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: M1L's dividend (2.51%) is higher than the bottom 25% of dividend payers in the German market (1.33%).

High Dividend: M1L's dividend (2.51%) is low compared to the top 25% of dividend payers in the German market (3.68%).


Stability and Growth of Payments

Stable Dividend: M1L's dividends per share have been stable in the past 10 years.

Growing Dividend: M1L's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (101%), M1L's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: M1L's dividends in 3 years are forecast to be well covered by earnings (48% payout ratio).


Next Steps

Management

What is the CEO of Maple Leaf Foods's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average management tenure


CEO

Michael McCain (60yo)

20.8yrs

Tenure

CA$6,677,210

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 ($USD5.05M) is above average for companies of similar size in the German market ($USD1.60M).

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


Management Age and Tenure

5.5yrs

Average Tenure

Experienced Management: M1L's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

60yo

Average Age

Experienced Board: M1L's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: M1L insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyCA$16,09206 Nov 19
Stephane Dubreuil
EntityIndividual
Shares1,000
Max PriceCA$16.09
BuyCA$23,22001 Nov 19
Suzanne Hathaway
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,500
Max PriceCA$15.48
SellCA$23,37112 Sep 19
Joshua Kuehnbaum
EntityIndividual
Shares1,040
Max PriceCA$22.47
SellCA$1,578,50112 Sep 19
Deborah Simpson
EntityIndividual
Shares75,000
Max PriceCA$21.15
SellCA$517,88417 Jun 19
Richard Young
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Operations
Shares25,000
Max PriceCA$20.76
SellCA$41,49407 Jun 19
Ian Henry
EntityIndividual
Role
Head of Human Resources
Senior Vice President of People
Shares2,000
Max PriceCA$20.75
SellCA$36,07713 May 19
Rory McAlpine
EntityIndividual
Shares1,641
Max PriceCA$21.98
SellCA$74,84610 May 19
Andreas Liris
EntityIndividual
Role
Chief Information Officer
Chief Information Officer
Shares3,388
Max PriceCA$22.09
BuyCA$21,77009 May 19
Suzanne Hathaway
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,000
Max PriceCA$21.77
SellCA$67,71808 May 19
Ian Henry
EntityIndividual
Role
Head of Human Resources
Senior Vice President of People
Shares3,000
Max PriceCA$22.57
SellCA$196,49908 May 19
Rory McAlpine
EntityIndividual
Shares8,800
Max PriceCA$22.33
SellCA$89,02906 May 19
Glen Gratton
EntityIndividual
Shares4,000
Max PriceCA$22.26
SellCA$71,63618 Mar 19
Glen Gratton
EntityIndividual
Shares4,000
Max PriceCA$17.91
BuyCA$26,08313 Mar 19
William Beattie
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares1,592
Max PriceCA$16.38
SellCA$72,27213 Mar 19
Rory McAlpine
EntityIndividual
Shares4,000
Max PriceCA$18.07
BuyCA$40,79004 Mar 19
William Aziz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,230
Max PriceCA$18.29
BuyCA$436,05225 Dec 18
John Lederer
EntityIndividual
Role
Member of the Board of Directors
Corporate Director
Shares25,000
Max PriceCA$17.44

Ownership Breakdown

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


Management Team

  • Michael McCain (60yo)

    President

    • Tenure: 20.8yrs
    • Compensation: CA$6.68m
  • Rick Young

    Senior Vice President of Operations

    • Tenure: 9.8yrs
    • Compensation: CA$1.35m
  • Kim Lee

    Vice President of Investor Relations

    • Tenure: 1.2yrs
  • Randall Huffman

    Chief Food Safety & Sustainability Officer

    • Tenure: 10.8yrs
    • Compensation: CA$1.22m
  • Suzanne Hathaway

    Senior VP

    • Tenure: 0yrs
  • Stephane Dubreuil

    Senior Vice President of Strategy & Corporate Development

    • Tenure: 0.8yrs
  • Ian Henry

    Senior Vice President of People

    • Tenure: 6.3yrs
  • Curtis Frank

    President & COO

    • Tenure: 0yrs
    • Compensation: CA$1.57m
  • Andreas Liris

    Chief Information Officer

    • Tenure: 4.8yrs
  • Casey Richards

    Senior Vice-President of Marketing & Innovation

    • Tenure: 0.2yrs

Board Members

  • Ron Close (60yo)

    Corporate Director

    • Tenure: 4.6yrs
    • Compensation: CA$179.00k
  • Geoff Beattie (59yo)

    Independent Chairman of the Board

    • Tenure: 0.5yrs
    • Compensation: CA$192.00k
  • Jean Fraser (71yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: CA$192.00k
  • Michael McCain (60yo)

    President

    • Tenure: 20.8yrs
    • Compensation: CA$6.68m
  • John Lederer (63yo)

    Corporate Director

    • Tenure: 3.5yrs
    • Compensation: CA$179.00k
  • Carol Stephenson (68yo)

    Corporate Director

    • Tenure: 3.5yrs
    • Compensation: CA$187.00k
  • Bill Aziz (63yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: CA$198.50k
  • Katherine Lemon (60yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: CA$119.01k
  • Jonathan McCain (34yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: CA$117.68k

Company Information

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


Key Information

  • Name: Maple Leaf Foods Inc.
  • Ticker: M1L
  • Exchange: DB
  • Founded:
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: CA$2.859b
  • Listing Market Cap: CA$1.956b
  • Shares outstanding: 123.59m
  • Website: https://www.mapleleaffoods.com

Number of Employees


Location

  • Maple Leaf Foods Inc.
  • 6897 Financial Drive
  • Mississauga
  • Ontario
  • L5N 0A8
  • 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 pro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 21:27
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.