MTY Food Group Inc reports 121% Net Income growth and 1.1 pp EBITDA Margin growth from 34.9% to 36.0%
23.02.2017 • About MTY Food Group Inc (
$MTY) • By InTwits
MTY Food Group Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- MTY Food Group Inc is a fast growth stock: FY2016 revenue growth was 35.2%, 5 year revenue CAGR was 20.2% at FY2016 ROIC 12.6%
- MTY Food Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's a lot of higher than industry average of 45.3%.
- CAPEX is quite volatile: 2.8 in FY2016, 3.4 in FY2015, 0.61 in FY2014, 0.84 in FY2013, 1.1 in FY2012
- The company has highly profitable business model: ROIC is at 12.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.1x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
MTY Food Group Inc ($MTY) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 96.2 | 101.4 | 115.2 | 145.2 | 196.4 | 35.2% |
| EBITDA | 34.9 | 39.2 | 42.7 | 50.7 | 70.7 | 39.6% |
| Net Income | 22.1 | 25.7 | 25.2 | 26.0 | 57.4 | 120.6% |
Balance Sheet
|
|---|
| Cash | 33.0 | 6.1 | 6.7 | 33.4 | 36.3 | 8.5% |
| Short Term Debt | 7.2 | 14.7 | 18.6 | 12.6 | 15.0 | 19.0% |
| Long Term Debt | 0.3 | 4.5 | 3.8 | 1.6 | 238.7 | 14,707.2% |
Cash flow
|
|---|
| Capex | 1.1 | 0.8 | 0.6 | 3.4 | 2.8 | -18.6% |
Ratios
|
|---|
| Revenue growth | 22.8% | 5.3% | 13.6% | 26.1% | 35.2% | |
| EBITDA growth | 38.6% | 12.3% | 8.7% | 18.8% | 39.6% | |
| EBITDA Margin | 36.3% | 38.7% | 37.0% | 34.9% | 36.0% | 1.1% |
| Net Income Margin | 22.9% | 25.4% | 21.9% | 17.9% | 29.2% | 11.3% |
| CAPEX, % of revenue | 1.1% | 0.8% | 0.5% | 2.4% | 1.4% | -0.9% |
| ROIC | 27.5% | 24.5% | 20.9% | 22.3% | 12.6% | -9.7% |
| ROE | 22.8% | 22.1% | 18.6% | 16.7% | 23.9% | 7.2% |
| Net Debt/EBITDA | -0.7x | 0.3x | 0.4x | -0.4x | 3.1x | 3.5x |
MTY Food Group Inc ($MTY) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 35 | 35 | 53 | 73 | 9.1% | -7.8% | 51.1% | 84.4% |
| EBITDA | 12 | 13 | 18 | 28 | 16.1% | -4.6% | 34.6% | 118.1% |
| Net Income | 8 | 8 | 17 | 25 | 27.5% | -2.0% | 102.0% | 704.6% |
Balance Sheet
|
|---|
| Cash | 40 | 50 | 44 | 36 | 782.1% | 330.7% | 61.2% | 8.5% |
| Short Term Debt | 12 | 12 | 62 | 15 | -8.4% | -14.2% | 308.9% | 19.0% |
| Long Term Debt | 1 | 1 | 176 | 239 | -78.1% | -79.3% | 7,372.5% | 14,707.2% |
Ratios
|
|---|
| EBITDA Margin | 34.3% | 36.3% | 33.9% | 38.3% | 2.1% | 1.2% | -4.2% | 5.9% |
| Net Income Margin | 22.4% | 23.6% | 31.2% | 33.8% | 3.2% | 1.4% | 7.9% | 26.1% |
Revenue and profitability
MTY Food Group Inc's Revenue jumped on 35.2%. Revenue growth showed acceleration in FY16Q4 - it increased 84.4% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 8.0 pp from 47.9% to 39.9% in FY2016.
Net Income marign jumped on 11.3 pp from 17.9% to 29.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 1.4%. MTY Food Group Inc's CAPEX/Revenue increased slightly on 0.59 pp from 0.83% in FY2013 to 1.4% in FY2016. Average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at high and attractive ROE (23.92%) while ROIC is a bit lower (12.63%). ROIC decreased on 9.7 pp from 22.3% to 12.6% in FY2016. ROE increased on 7.2 pp from 16.7% to 23.9% in FY2016.
Leverage (Debt)
Debt level is 3.1x Net Debt / EBITDA and 3.6x Debt / EBITDA. Net Debt / EBITDA surged on 3.5x from -0.4x to 3.1x in FY2016. Debt jumped on 1,680% while cash increased on 8.5%.
Appendix 1: Peers in Consumer, Cyclical
Below you can find MTY Food Group Inc benchmarking vs. other companies in Consumer, Cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Flyer Industries Inc ($NFI) | | 38.6% | 21.0% | 6.1% | 47.8% |
| Hardwoods Distribution Inc ($HWD) | | 21.3% | 22.8% | 25.4% | 38.1% |
| Spin Master Corp ($TOY) | | 21.5% | 41.0% | 22.9% | 31.3% |
| Great Canadian Gaming Corp ($GC) | | -0.3% | 9.6% | 3.7% | 22.4% |
| CanWel Building Materials Group Ltd ($CWX) | | 2.1% | 4.6% | 8.6% | 18.6% |
| |
|---|
| Median (36 companies) | | 4.9% | 6.9% | 6.8% | 5.0% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($IGG) | 89.3% | 82.4% | 85.3% | 92.9% | 88.1% |
| Second Cup Ltd/The ($SCU) | 86.6% | 85.1% | 72.7% | 81.1% | |
| New Look Vision Group Inc ($BCI) | 71.8% | 72.6% | 72.6% | 78.7% | |
| Cara Operations Ltd ($CAO) | | 79.2% | 78.9% | 78.4% | |
| Canlan Ice Sports Corp ($ICE) | 71.6% | 69.7% | 70.7% | 78.2% | |
| |
|---|
| Median (37 companies) | 36.1% | 31.6% | 32.5% | 31.5% | 34.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($WTE) | 49.7% | 65.9% | 60.9% | 59.6% | |
| Gamehost Inc ($GH) | 46.1% | 45.7% | 45.9% | 42.8% | 42.6% |
| Great Canadian Gaming Corp ($GC) | 16.8% | 41.1% | 40.1% | 36.6% | 34.4% |
| Restaurant Brands International Inc ($QSR) | | 51.1% | 20.8% | 33.9% | 44.4% |
| Cara Operations Ltd ($CAO) | | 9.6% | 22.6% | 32.6% | |
| |
|---|
| Median (39 companies) | 8.1% | 9.8% | 12.3% | 10.1% | 15.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | 8.2% | 6.7% | 14.8% | 26.7% | 9.3% |
| WestJet Airlines Ltd ($WJA) | 7.9% | 19.5% | 18.6% | 22.5% | 22.4% |
| Westshore Terminals Investment Corp ($WTE) | 25.7% | 11.5% | 6.2% | 21.2% | |
| Innova Gaming Group Inc ($IGG) | 20.6% | 26.7% | 15.9% | 15.6% | 15.1% |
| Exchange Income Corp ($EIF) | 7.9% | 15.8% | 15.5% | 15.4% | 29.7% |
| |
|---|
| Median (42 companies) | 2.7% | 3.1% | 3.4% | 3.4% | 4.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spin Master Corp ($TOY) | | 19.2% | 56.9% | 48.2% | 44.5% |
| Magna International Inc ($MG) | 16.3% | 18.6% | 25.2% | 21.9% | 21.2% |
| Linamar Corp ($LNR) | 12.9% | 17.0% | 21.7% | 23.7% | 19.8% |
| Sleep Country Canada Holdings Inc ($ZZZ) | | | 9.7% | 12.7% | 19.0% |
| Air Canada ($AC) | | 37.0% | 23.2% | 28.4% | 18.8% |
| |
|---|
| Median (42 companies) | 10.5% | 12.5% | 10.8% | 10.6% | 11.2% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | | 5.8x | 8.4x | 17.1x | 8.6x |
| AutoCanada Inc ($ACQ) | 4.2x | 4.7x | 6.4x | 8.0x | 13.7x |
| Second Cup Ltd/The ($SCU) | 1.0x | 0.6x | 0.0x | 7.5x | 0.0x |
| Amaya Inc ($AYA) | 17.9x | 1.8x | 13.5x | 6.6x | 5.0x |
| Performance Sports Group Ltd ($PSG) | 2.6x | 3.5x | 12.2x | 6.5x | |
| |
|---|
| Median (35 companies) | 1.9x | 2.8x | 2.4x | 2.5x | 2.1x |
|---|
