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Maple Leaf Foods Inc (TSE:MFI)
TSX:MFI
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Maple Leaf Foods (MFI) AI Stock Analysis

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TSE:MFI

Maple Leaf Foods

(TSX:MFI)

Rating:72Outperform
Price Target:
C$39.00
â–²(8.91% Upside)
Maple Leaf Foods has a strong overall stock score driven by robust financial performance and positive earnings call highlights. The stock's technical indicators suggest strong momentum, although caution is advised due to overbought conditions. Valuation metrics indicate potential overvaluation, but the company's strategic initiatives and brand success provide a positive outlook.

Maple Leaf Foods (MFI) vs. iShares MSCI Canada ETF (EWC)

Maple Leaf Foods Business Overview & Revenue Model

Company DescriptionMaple 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.
How the Company Makes MoneyMaple Leaf Foods generates revenue primarily through the sale of its diverse range of protein products. Its key revenue streams include retail sales to grocery stores, food service sales to restaurants and other institutions, and exports to international markets. The company benefits from strong brand recognition and customer loyalty, which bolsters its market position. Additionally, Maple Leaf Foods has implemented strategic partnerships and acquisitions to expand its product offerings and market reach. Its focus on innovation and sustainability also contributes to its financial performance by aligning with consumer trends towards healthier and environmentally conscious food options.

Maple Leaf Foods Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call presented strong financial performance with significant sales and EBITDA growth, successful brand initiatives, and an optimistic outlook. However, the challenging consumer environment and uncertainties around capital expenditures were noted as concerns. Overall, the positive highlights significantly outweigh the lowlights.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Sales increased by over 8%, adjusted EBITDA increased by 29% to $182 million, and the adjusted EBITDA margin rose to 13.3%, a year-over-year gain of 210 basis points. Free cash flow grew to $216 million, and net debt decreased by $379 million versus a year ago to approximately $1.34 billion.
Pork Complex Growth
Top line growth of 10.7% in the Pork operating unit, driven by a 6% year-over-year increase in hog processing volumes and improved market conditions.
Brand and Product Success
The Greenfield Natural Meat Co. brand continued to grow at a double-digit pace and achieved a 5-year compound annual sales growth rate of 15%. Similarly, the Mina halal brand delivered double-digit sales growth and achieved a 5-year compound annual sales growth rate of 23%.
Positive Outlook and Guidance
Increased 2025 adjusted EBITDA outlook to be in the range of $680 million to $700 million. Expecting mid-single-digit sales growth for the year.
Operational Efficiency and Strategic Initiatives
Completion of the decommissioning of the Brantford facility and progress on the Canada Packers spinoff, which is expected to be completed in the second half of 2025.
Negative Updates
Consumer Environment Challenges
The consumer demand environment remains stable yet challenging due to inflationary pressures and geopolitical factors, requiring increased trade promotions.
Uncertain Timing of CapEx Projects
Capital expenditure plan revised to a range of $160 million to $180 million, down from $175 million to $200 million due to the timing of projects.
Company Guidance
During the second quarter of 2025, Maple Leaf Foods demonstrated a robust financial performance, with sales increasing by over 8% and adjusted EBITDA rising by 29% to $182 million, leading to an adjusted EBITDA margin growth of 210 basis points to 13.3%. Free cash flow grew to $216 million, and the company successfully deleveraged its balance sheet. The Pork Complex achieved a 10.7% top-line growth, driven by a 6% increase in hog processing volumes. Maple Leaf Foods has raised its 2025 adjusted EBITDA outlook to a range of $680 million to $700 million, reflecting confidence in their strategic blueprint and continued strong momentum. The company highlighted its brand resilience, particularly noting the Greenfield Natural Meat Co. and Mina halal brands' significant growth. Additionally, Maple Leaf Foods is progressing on the Canada Packers spinoff, with completion anticipated in the second half of 2025, aiming to unlock long-term value as a global leader in sustainably-produced, premium-quality pork.

Maple Leaf Foods Financial Statement Overview

Summary
Maple Leaf Foods maintains a solid financial foundation with stable revenue growth and efficient cash flow management. While profitability margins remain a challenge, the company exhibits strengths in operational efficiency and cash generation. The balance sheet reflects a prudent approach to leverage, though there is potential for enhancing equity returns.
Income Statement
70
Positive
Maple Leaf Foods demonstrates moderate revenue growth with a TTM revenue of CAD 4.98 billion, marking a slight increase from the previous annual period. Gross profit margin stands at 15.48% for TTM, showing consistent performance, although lower than historical highs. Net profit margin is relatively low at 1.90%, indicating pressure on profitability. Both EBIT and EBITDA margins show stability, with EBITDA margin at 10.91% TTM, suggesting reasonable operating efficiency despite industry challenges.
Balance Sheet
65
Positive
The debt-to-equity ratio is approximately 1.18, reflecting a balanced but leveraged financial structure. Return on equity is modest at 6.02% TTM, indicating limited profitability from equity investments. The equity ratio stands at 35.44%, suggesting a stable capital structure with room for improvement in equity financing. Overall, the balance sheet shows a stable position with manageable debt levels.
Cash Flow
75
Positive
The company shows a strong free cash flow growth rate of 79% from the previous year, indicating effective cash management and operational efficiency. The operating cash flow to net income ratio is robust at 4.10 TTM, highlighting strong cash conversion. The free cash flow to net income ratio is 3.92, suggesting excellent cash generation capabilities relative to net earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.08B4.90B4.87B4.74B4.52B4.30B
Gross Profit876.00M780.01M451.37M424.14M659.08M703.05M
EBITDA637.75M561.19M279.62M-8.99M373.43M387.62M
Net Income178.56M96.60M-124.98M-311.89M102.82M113.28M
Balance Sheet
Total Assets4.45B4.43B4.60B4.44B4.39B3.86B
Cash, Cash Equivalents and Short-Term Investments236.04M175.91M203.36M91.08M162.03M100.83M
Total Debt1.76B1.88B2.13B1.89B1.43B986.18M
Total Liabilities2.86B2.89B3.09B2.78B2.35B1.93B
Stockholders Equity1.59B1.54B1.51B1.66B2.04B1.93B
Cash Flow
Free Cash Flow525.66M464.92M-21.30M-306.42M-275.56M-111.09M
Operating Cash Flow581.57M464.92M176.88M49.32M304.79M321.45M
Investing Cash Flow-80.44M-82.54M-188.57M-377.01M-623.48M-417.43M
Financing Cash Flow-423.46M-409.84M123.97M256.74M379.90M99.53M

Maple Leaf Foods Technical Analysis

Technical Analysis Sentiment
Positive
Last Price35.81
Price Trends
50DMA
30.98
Positive
100DMA
28.39
Positive
200DMA
25.30
Positive
Market Momentum
MACD
1.58
Negative
RSI
84.78
Negative
STOCH
83.40
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MFI, the sentiment is Positive. The current price of 35.81 is above the 20-day moving average (MA) of 33.66, above the 50-day MA of 30.98, and above the 200-day MA of 25.30, indicating a bullish trend. The MACD of 1.58 indicates Negative momentum. The RSI at 84.78 is Negative, neither overbought nor oversold. The STOCH value of 83.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MFI.

Maple Leaf Foods Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
C$1.51B26.0712.75%2.34%11.87%56.93%
73
Outperform
C$4.25B45.265.36%3.63%8.42%-17.99%
72
Outperform
C$4.42B24.6911.29%2.56%5.44%1391.43%
63
Neutral
C$13.98B42.30-2.20%2.21%7.58%-155.93%
63
Neutral
$20.42B14.38-3.60%3.17%2.07%-6.17%
61
Neutral
C$468.20M7.2612.01%4.98%1.05%13.40%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:MFI
Maple Leaf Foods
35.99
14.73
69.29%
TSE:HLF
High Liner Foods
16.17
3.18
24.48%
TSE:PBH
Premium Brands
93.74
9.83
11.71%
TSE:SAP
Saputo Inc.
34.33
5.19
17.81%
TSE:JWEL
Jamieson Wellness Inc
36.80
6.27
20.54%

Maple Leaf Foods Corporate Events

Business Operations and StrategyFinancial Disclosures
Maple Leaf Foods Reports Strong Q2 Growth and Advances Spin-off Plans
Positive
Aug 7, 2025

Maple Leaf Foods reported significant financial growth in the second quarter of 2025, with an 8.5% increase in sales and a 28.9% rise in Adjusted EBITDA. The company is also advancing the spin-off of its Pork Operations into Canada Packers Inc., a move expected to enhance shareholder value and establish two focused, market-leading entities. The spin-off is on track for completion in the latter half of 2025, subject to regulatory approvals.

The most recent analyst rating on (TSE:MFI) stock is a Buy with a C$30.00 price target. To see the full list of analyst forecasts on Maple Leaf Foods stock, see the TSE:MFI Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Maple Leaf Foods Shareholders Approve Strategic Spin-Off of Pork Operations
Positive
Jun 11, 2025

Maple Leaf Foods Inc. announced that its shareholders have approved the spin-off of its pork operations to form Canada Packers Inc. This strategic move aims to create two independent companies with distinct business models and growth potentials, enhancing Maple Leaf Foods’ focus on being a purpose-driven, protein-focused, branded consumer packaged goods company. The spin-off, which received overwhelming shareholder support, is expected to be completed in the second half of 2025, pending regulatory approvals. Additionally, all incumbent directors were re-elected to the Board, and other resolutions, including the reappointment of KPMG LLP as auditors, were approved.

The most recent analyst rating on (TSE:MFI) stock is a Buy with a C$31.00 price target. To see the full list of analyst forecasts on Maple Leaf Foods stock, see the TSE:MFI Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Maple Leaf Foods Reaffirms Commitment to Board Diversity
Positive
May 20, 2025

Maple Leaf Foods has reaffirmed its commitment to board diversity, maintaining a policy to have at least 30% representation from each gender on its Board of Directors. Although the current representation of women has temporarily decreased to 27%, the company plans to appoint another woman director by its 2026 annual meeting. This move underscores Maple Leaf Foods’ dedication to diversity and inclusion, which is an important aspect of its corporate governance and may influence its industry positioning and stakeholder relations.

The most recent analyst rating on (TSE:MFI) stock is a Buy with a C$31.00 price target. To see the full list of analyst forecasts on Maple Leaf Foods stock, see the TSE:MFI Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Maple Leaf Foods Proposes Spin-off to Focus on Protein-Centric Strategy
Positive
May 12, 2025

Maple Leaf Foods has announced its 2025 Notice of Annual and Special Meeting of Shareholders, highlighting a significant proposal for the spin-off of its pork operations into a new independent company, Canada Packers Inc. This strategic move aims to position Maple Leaf Foods as a focused, protein-centric company while establishing Canada Packers as a leader in sustainable pork production. The spin-off is expected to enhance the companies’ abilities to meet global protein demand and create value for stakeholders.

The most recent analyst rating on (TSE:MFI) stock is a Buy with a C$31.00 price target. To see the full list of analyst forecasts on Maple Leaf Foods stock, see the TSE:MFI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025