Is It Too Late To Consider Buying MTY Food Group Inc. (TSE:MTY)?
In This Article:
MTY Food Group Inc. (TSE:MTY), might not be a large cap stock, but it saw significant share price movement during recent months on the TSX, rising to highs of CA$52.76 and falling to the lows of CA$37.88. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether MTY Food Group's current trading price of CA$39.94 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at MTY Food Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What Is MTY Food Group Worth?
Great news for investors – MTY Food Group is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is CA$57.70, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because MTY Food Group’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Check out our latest analysis for MTY Food Group
Can we expect growth from MTY Food Group?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of MTY Food Group, it is expected to deliver a relatively unexciting top-line growth of 4.6% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since MTY is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on MTY for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MTY. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.