MTY Food Group Inc revenue growth accelerated from 13.6% in FY2014 to 26.1% in FY2015
15.02.2016 • About MTY Food Group Inc (
$MTY) • By InTwits
MTY Food Group Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- MTY Food Group Inc is a fast growth stock: FY2015 revenue growth was 26.1%, 5 year revenue CAGR was 16.8% at FY2015 ROIC 22.3%
- MTY Food Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's in pair with industry average of 93.9%.
- CAPEX is quite volatile: 3.4 in FY2015, 0.61 in FY2014, 0.84 in FY2013, 1.1 in FY2012, 0.95 in FY2011
- The company has highly profitable business model: ROIC is at 22.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
MTY Food Group Inc ($MTY) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 78.4 | 96.2 | 101.4 | 115.2 | 145.2 | 26.1% |
| Gross Profit | 77.1 | | | | | |
| EBITDA | 25.2 | 34.9 | 39.2 | 42.7 | 50.7 | 18.8% |
| Net Income | 15.0 | 22.1 | 25.7 | 25.2 | 26.0 | 3.2% |
Balance Sheet
|
|---|
| Cash | 6.0 | 33.0 | 6.1 | 6.7 | 33.4 | 398.7% |
| Short Term Debt | 2.0 | 7.2 | 14.7 | 18.6 | 12.6 | -32.0% |
| Long Term Debt | 7.1 | 0.3 | 4.5 | 3.8 | 1.6 | -57.7% |
Cash flow
|
|---|
| Capex | 1.0 | 1.1 | 0.8 | 0.6 | 3.4 | 461.6% |
Ratios
|
|---|
| Revenue growth | 17.2% | 22.8% | 5.3% | 13.6% | 26.1% | |
| EBITDA growth | -2.3% | 38.6% | 12.3% | 8.7% | 18.8% | |
| Gross Margin | 98.4% | | | | | 0.0% |
| EBITDA Margin | 32.2% | 36.3% | 38.7% | 37.0% | 34.9% | -2.1% |
| Net Income Margin | 19.1% | 22.9% | 25.4% | 21.9% | 17.9% | -4.0% |
| CAPEX, % of revenue | 1.2% | 1.1% | 0.8% | 0.5% | 2.4% | 1.8% |
| ROIC | 22.8% | 27.5% | 24.5% | 20.9% | 22.3% | 1.4% |
| ROE | 18.2% | 22.8% | 22.1% | 18.6% | 16.7% | -1.9% |
| Net Debt/EBITDA | 0.1x | -0.7x | 0.3x | 0.4x | -0.4x | -0.7x |
Revenue and profitability
MTY Food Group Inc's Revenue surged on 26.1% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 56.2 pp from 19.2% to 75.4% in 2015.
Net Income marign decreased on 4.0 pp from 21.9% to 17.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 MTY Food Group Inc had CAPEX/Revenue of 2.4%. MTY Food Group Inc's CAPEX/Revenue increased slightly on 1.3 pp from 1.1% in FY2012 to 2.4% in FY2015. For the last three years the average CAPEX/Revenue was 1.2%.
Return on investment
The company operates at high and attractive ROIC (22.31%) while ROE is a bit lower (16.72%). ROIC increased slightly on 1.4 pp from 20.9% to 22.3% in FY2015. ROE decreased slightly on 1.9 pp from 18.6% to 16.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.4x and Debt / EBITDA is 0.3x. Net Debt / EBITDA dropped on 0.7x from 0.4x to -0.4x in FY2015. Debt dropped on 36.4% in FY2015 while cash jumped on 399% in FY2015.
Appendix 1: Peers in Consumer, Cyclical
Below we provide MTY Food Group Inc benchmarking against other companies in Consumer, Cyclical industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amaya Inc ($AYA) | 216.4% | 311.5% | 85.2% | 254.0% | |
| Partner Jet Corp ($PJT) | -19.9% | -15.2% | 1.2% | 119.7% | |
| Kelso Technologies Inc ($KLS) | 80.5% | 577.5% | 487.8% | 81.4% | |
| XPEL Technologies Corp ($DAP.U) | 46.3% | 76.6% | 67.7% | 65.5% | |
| Holloway Lodging Corp ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (67 companies) | 11.0% | 5.3% | 4.9% | 7.2% | 3.3% |
|---|
| MTY Food Group Inc ($MTY) | | 22.8% | 5.3% | 13.6% | 26.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 69.7% | 87.0% | |
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (60 companies) | 36.1% | 35.3% | 31.8% | 33.5% | 36.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | |
| Amaya Inc ($AYA) | -5.7% | 7.2% | 38.2% | 39.3% | |
| Whistler Blackcomb Holdings Inc ($WB) | 34.8% | 36.0% | 35.9% | 36.4% | 35.4% |
| |
|---|
| Median (65 companies) | 8.4% | 7.9% | 9.7% | 9.6% | 9.4% |
|---|
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | 34.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 32.5% | |
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | 22.5% |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | |
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | |
| Kelso Technologies Inc ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (68 companies) | 2.9% | 2.7% | 2.9% | 2.4% | 2.7% |
|---|
| MTY Food Group Inc ($MTY) | 1.2% | 1.1% | 0.8% | 0.5% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | |
| Kelso Technologies Inc ($KLS) | -121.3% | | | 48.8% | |
| XPEL Technologies Corp ($DAP.U) | 52.9% | 54.7% | 57.5% | 43.2% | |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| Iplayco Corp Ltd ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | 10.9% |
| |
|---|
| Median (68 companies) | 10.4% | 9.7% | 10.1% | 9.7% | 9.4% |
|---|
| MTY Food Group Inc ($MTY) | 22.8% | 27.5% | 24.5% | 20.9% | 22.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | | | | 317.1x | |
| Restaurant Brands International Inc ($QSR) | | | 3.8x | 33.6x | |
| Allied Hotel Properties Inc ($AHP) | | | | 21.3x | |
| Hudson's Bay Co ($HBC) | 8.7x | 3.8x | 3.6x | 19.1x | 3.6x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (57 companies) | 1.3x | 1.4x | 1.8x | 2.0x | 1.1x |
|---|
| MTY Food Group Inc ($MTY) | 0.1x | -0.7x | 0.3x | 0.4x | -0.4x |
