MTY Food Group: An Undervalued Gem Punished By The Market

  • MTY Food Group is deeply undervalued, trading at just 7x free cash flow, despite strong fundamentals and ongoing buybacks at rock-bottom valuations. The market's pessimism is overblown. MTY's asset-light franchisor model generates resilient, growing cash flows, and dividends. Key risks are high interest expenses and debt, but manageable payout ratios provide a margin of safety at current prices.