Analysts rate Maple Leaf Foods Inc.(MFI:TSX) with a Strong Buy rating and a $39 target

by: Gillian Lawrence
Maple Leaf Foods Inc.

Analysts rate Maple Leaf Foods Inc. with a consensus Strong Buy rating and a 12-month average target price of $39.13 per share.

Based on the Maple Leaf Foods Inc. stock forecasts from 5 analysts, the average analyst target price for Maple Leaf Foods Inc. is CAD 39.13 over the next 12 months. Maple Leaf Foods Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Maple Leaf Foods Inc. is Neutral, which is based on 6 positive signals and 6 negative signals. At the last closing, Maple Leaf Foods Inc.’s stock price was CAD 23.80Maple Leaf Foods Inc.’s stock price has changed by +3.84% over the past week, -6.11% over the past month and -11.85% over the last year.

About Maple Leaf Foods Inc. (MFI:CA:TSX)

Maple Leaf Foods Inc. produces food products in the United States, Canada, Japan, China, and internationally. It produces various food products, including prepared meats, ready-to-cook and ready-to-serve meals, snacks kits, fresh pork and poultry, and plant protein products. The company offers its products under various brands, including Maple Leaf, Schneiders, Greenfield Natural Meat Co., Swift, Prime, Maple Leaf Natural Selections, Mina, Big Stick, Cappola, Deli Express, Field Roast Grain Meat Co., Holiday, Hygrade, Larsen, Lightlife, Lunch Mate, Main Street Deli, Maple Leaf Foodservice, Mitchell’s, Olympic Craft Meats, Parma, Shopsy’s, Sunrise, and Swift. Maple Leaf Foods Inc. is based in Mississauga, Canada.

Most Recent Analyst Ratings for Maple Leaf Foods:

News:

Maple Leaf Foods outsized plans for ramped up growth in the popular “no-meat” sector id gradually seeing a reduction in demand, thus creating a declining market for meat alternatives. The company is adjusting it’s production levels of this market segment with demand allocation.

Michael H. McCain, the company’s CEO states of the matter:

“We now understand why it did not materialize, and we no longer believe that it will materialize,” and  “So, we are altering our business model and dialing back our investment to reflect the goal of profitable growth …” during his address during the August 4, 2022 conference  regarding the company’s second-quarter results.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Disclaimer

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