MTY Food Group, Inc. (MTY) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Restaurant Brands International, Inc.

Restaurant Brands International LP

Pizza Pizza Royalty Corp.

MTY Food Group, Inc.

Aegis Brands, Inc.

Spot Coffee (Canada) Ltd.

Just Kitchen Holdings Corp.

Pangea Natural Food, Inc.

Why is MTY Food Group, Inc. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 5.09

Healthy long term growth as Net Sales has grown by an annual rate of 15.75%

Positive results in May 25

OPERATING CASH FLOW(Y) Highest at CAD 209.04 MM
DIVIDEND PER SHARE(HY) Highest at CAD 6.74
INTEREST COVERAGE RATIO(Q) Highest at 593.55

With ROE of 14.18%, it has a very expensive valuation with a 1.13 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -13.98%, its profits have risen by 3% ; the PEG ratio of the company is 1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.98% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is MTY Food Group, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

MTY Food Group, Inc.

-21.77%

-0.58

30.34%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.01%

EBIT Growth (5y)

11.62%

EBIT to Interest (avg)

5.09

Debt to EBITDA (avg)

3.01

Net Debt to Equity (avg)

0.92

Sales to Capital Employed (avg)

0.70

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

111.11%

Pledged Shares

Institutional Holding

0.13%

ROCE (avg)

10.71%

ROE (avg)

13.47%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.00

EV to EBIT

9.03

EV to EBITDA

5.83

EV to Capital Employed

1.00

EV to Sales

1.30

PEG Ratio

Dividend Yield

ROCE (Latest)

11.08%

ROE (Latest)

13.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 209.04 MM

DIVIDEND PER SHARE(HY)

Highest at CAD 6.74

INTEREST COVERAGE RATIO(Q)

Highest at 593.55

DEBT-EQUITY RATIO (HY)

Lowest at 141.41 %

INVENTORY TURNOVER RATIO(HY)

Highest at 47.84%

NET SALES(Q)

Highest at CAD 304.87 MM

PRE-TAX PROFIT(Q)

Highest at CAD 70.13 MM

NET PROFIT(Q)

Highest at CAD 57.78 MM

EPS(Q)

Highest at CAD 2.49

-1What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 8.9% (YoY

Here's what is working for MTY Food Group, Inc.

Pre-Tax Profit

At CAD 70.13 MM has Grown at 285.02%

over average net sales of the previous four periods of CAD 18.22 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Operating Cash Flow

Highest at CAD 209.04 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Interest Coverage Ratio

Highest at 593.55

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At CAD 57.78 MM has Grown at 172.33%

over average net sales of the previous four periods of CAD 21.22 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Dividend per share

Highest at CAD 6.74 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Net Sales

Highest at CAD 304.87 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Pre-Tax Profit

Highest at CAD 70.13 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 57.78 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 2.49

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Lowest at 141.41 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 47.84%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for MTY Food Group, Inc.

Raw Material Cost

Grown by 8.9% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales