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TSX hits high, Wall Street sinksBoC cuts rates as S&P, Nasdaq hit highsStocks sink for the day and weekThis summary was created by AI, based on 4 opinions in the last 12 months.
MTY Food Group (MTY-T) used to be a good compounder with around 20% annual growth, but that has slowed to around 10%. The company's revenue and EPS have seen a slight decrease but beat estimates, showing signs of improvement. However, concerns about the company's ability to grow and its reliance on business units in shopping malls and food courts have been raised. Despite this, the valuation is considered reasonable, with a flat growth prospect over the next few years. Overall, the stock is seen as a speculative buy due to attractive valuation and potential for improvement.
In Q2-2024, MTY reported a slight decrease in revenue by around 1% to $303.7M, beating the estimate of $294.5M, and EPS came at $1.27, which also beats the estimate of $1.07. The results are just OK, but improving, and came in better than expected in both the top and bottom line. MTY continues to run a leveraged balance sheet with a net debt of $1.2B and net debt/EBITDA of 4.7x. The company also repurchased shares at a more aggressive pace recently and just renewed its share repurchase authorization. MTY’s businesses continue to generate healthy cash flow, however, MTY’s growth prospect sover the next few years is expected to be flat, but the valuation is also reasonable, trading at 12.7x Forward P/E.
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Company has been around for a long time. Concern is that M&A not performing well. Location of business units in shopping malls, and food courts a concern (unsure on traffic in these locations). Ability to grow business is in question. However, value of business on markets is cheap. Would recommend investors look elsewhere.
Impacted by wage inflation, rising food costs, and consumers spending less on eating out. Valuation is now attractive enough for a speculative (small position) buy.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Debt levels can be a concern. Operating cash flow stable. Management focused on cost cutting. Unlock Premium - Try 5i Free
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Proven food consolidator in North America. Regained pre-pandemic sales levels. Trading at a good valuation. Geographic diversification. Unlock Premium - Try 5i Free
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Proven food consolidator in North America. Regained pre-pandemic sales levels. Trading at a good valuation. Geographic diversification. MTY can be defined as a network of restaurant and food brand names and has proven itself to be a successful consolidator in the industry. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They generate free cash flow and the valuation is fairly cheap now at 2.5x forward sales and 15x forward P/E. Liquidity is not great. If rates rise, the debt could become a problem and put pressure on their margins and balance sheet. Valuation is at historical lows and there is decent upside potential with good downside protection. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The current valuation is relatively cheap if the current rate of reopening locations is maintained. Debt to equity ratio is around 1.6 due to the pandemic. The positive trend should continue into summer and fall with further reopenings. Unlock Premium - Try 5i Free
MTY Food Group is a Canadian stock, trading under the symbol MTY-T on the Toronto Stock Exchange (MTY-CT). It is usually referred to as TSX:MTY or MTY-T
In the last year, 3 stock analysts published opinions about MTY-T. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for MTY Food Group.
MTY Food Group was recommended as a Top Pick by on . Read the latest stock experts ratings for MTY Food Group.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
3 stock analysts on Stockchase covered MTY Food Group In the last year. It is a trending stock that is worth watching.
On 2024-12-06, MTY Food Group (MTY-T) stock closed at a price of $47.75.
Used to be a good "compounder" (~20% annually). However, growth has slowed to around 10%. Is watching, but not investing at this time.