Meritage Hospitality GroupMHGU +0.90%45 Piotroski F-Score is 3 as of Jun. 25, 2026, which is 40% below its 10-year median of 5.00. GuruFocus rates MHGU with a GF Score™ of 45/100 and a GF Value™ of $17.12 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 357 Restaurants companies, Meritage Hospitality Group ranks worse than 86.83% on this metric.
Warning Sign:
Piotroski F-Score of 3 is low, which usually implies poor business operation.
The zones of discrimination were as such:
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Meritage Hospitality Group has an F-score of 3. It is a bad or low score, which usually implies poor business operation.
The historical rank and industry rank for Meritage Hospitality Group's Piotroski F-Score or its related term are showing as below:
MHGU'
s Piotroski F-Score Range Over the Past 10 Years
Min: 3 Med: 5 Max: 8
Current: 3
During the past 13 years, the highest Piotroski F-Score of Meritage Hospitality Group was 8. The lowest was 3. And the median was 5.
Meritage Hospitality Group (OTCPK:MHGU) Piotroski F-Score Explanation
The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.
He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.
He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.
What he found was something that exceeded his most optimistic expectations.
Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.
Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).
Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.
Meritage Hospitality Group Piotroski F-Score Related Terms
Meritage Hospitality Group Piotroski F-Score Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Meritage Hospitality Group Piotroski F-Score Chart
MHGU vs PETZ, GTIM, GENK: Piotroski F-Score Comparison
For the Restaurants subindustry, Meritage Hospitality Group's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Meritage Hospitality Group Piotroski F-Score vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Meritage Hospitality Group's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where Meritage Hospitality Group's Piotroski F-Score falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.
Profitability
Question 1. Return on Assets (ROA)
Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
Meritage Hospitality Group's current Net Income (TTM) was -37.0.
==> Negative ==> Score 0.
Question 2. Cash Flow Return on Assets (CFROA)
Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
Meritage Hospitality Group's current Cash Flow from Operations (TTM) was 2.3.
==> Positive ==> Score 1.
Question 3. Change in Return on Assets
Compare this year's return on assets (1) to last year's return on assets.
Meritage Hospitality Group's return on assets of this year was -0.04583064. Meritage Hospitality Group's return on assets of last year was 0.00275854.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Meritage Hospitality Group's gearing of this year was 0.4866512. Meritage Hospitality Group's gearing of last year was 0.63508778.
==> This year is lower or equal to last year. ==> Score 1.
Question 6. Change in Working Capital (Liquidity)
Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.
Score 1 if this year's current ratio is higher, 0 if it's lower
Meritage Hospitality Group's current ratio of this year was 0.1487417. Meritage Hospitality Group's current ratio of last year was 0.30263158.
==> Last year's current ratio is higher ==> Score 0.
Question 7. Change in Shares in Issue
Compare the number of shares in issue this year, to the number in issue last year.
Score 0 if there is larger number of shares in issue this year, 1 otherwise.
Meritage Hospitality Group's number of shares in issue this year was 6.704. Meritage Hospitality Group's number of shares in issue last year was 6.701.
==> There is larger number of shares in issue this year. ==> Score 0.
Efficiency
Question 8. Change in Gross Margin
Compare this year's gross margin (Gross Profit divided by sales) to last year's.
Score 1 if this year's gross margin is higher, 0 if it's lower.
Meritage Hospitality Group's gross margin of this year was 0.38903493. Meritage Hospitality Group's gross margin of last year was 0.4082491.
==> Last year's gross margin is higher ==> Score 0.
Question 9. Change in asset turnover
Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.
Score 1 if this year's asset turnover ratio is higher, 0 if it's lower
Meritage Hospitality Group's asset turnover of this year was 0.73820497. Meritage Hospitality Group's asset turnover of last year was 0.8159291.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
Piotroski F-Score
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Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Meritage Hospitality Group has an F-score of 3. It is a bad or low score, which usually implies poor business operation.
Meritage Hospitality Group (MHGU) has a Piotroski F-Score of 3 as of Jun. 25, 2026. The Piotroski F-score grades a company's business operating strength from 0-9. View historical data on Meritage Hospitality Group and its competitors. This is 40% below median its historical median of 5.00. Over the past decade, Meritage Hospitality Group's Piotroski F-Score has ranged from 3.00 to 8.00. According to the industry distribution chart, Meritage Hospitality Group ranks #310 out of 357 companies in the Restaurants industry, placing it in the top 86.8%.
Is Meritage Hospitality Group's Piotroski F-Score too high?
Meritage Hospitality Group's current Piotroski F-Score of 3 is 40% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 8.00. The Restaurants industry median Piotroski F-Score is 5.00. Meritage Hospitality Group's value of 3 is 40% below this industry median. Based on the distribution chart, Meritage Hospitality Group ranks #310 out of 357 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Meritage Hospitality Group has a GF Score™ of 45/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Meritage Hospitality Group's Piotroski F-Score compare to PETZ and GTIM?
According to the Restaurants industry distribution chart, Meritage Hospitality Group ranks #310 out of 357 companies for Piotroski F-Score. This places Meritage Hospitality Group in the lower half of its industry. The industry median Piotroski F-Score is 5.00. Meritage Hospitality Group's value of 3 is 40% below this benchmark. Historically, Meritage Hospitality Group's own Piotroski F-Score has ranged from 3.00 to 8.00 over the past decade. While the company's 10-year median is 5.00 vs. the industry median of 5.00, Meritage Hospitality Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Piotroski F-Score for a Restaurants company?
The median Piotroski F-Score among Restaurants companies is 5.00, based on 357 companies in the industry. Companies in the top quartile (top 25%) have a Piotroski F-Score significantly above this median, while those in the bottom quartile fall well below. However, Piotroski F-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Hospitality Group's current Piotroski F-Score of 3 is 40% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Piotroski F-Score mean?
A high Piotroski F-Score can signal that a stock is expensive relative to its fundamentals. The Piotroski F-score grades a company's business operating strength from 0-9. View historical data on Meritage Hospitality Group and its competitors. For the Restaurants industry, the median Piotroski F-Score is 5.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Hospitality Group's current Piotroski F-Score is 3, which is 40% below median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Meritage Hospitality Group stock overvalued right now?
Based on GuruFocus' analysis, Meritage Hospitality Group (MHGU) is currently considered Possible Value Trap. The stock's GF Value™ is $17.12, compared to a current price of $2.98 — trading 82.6% below its estimated fair value. The current Piotroski F-Score is 3, which is 40% below median its 10-year median of 5.00 and 40% below the Restaurants industry median of 5.00. Meritage Hospitality Group's overall GF Score™ is 45/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Piotroski F-Score calculated?
Piotroski F-Score is calculated from a company's financial statements. For Meritage Hospitality Group (MHGU), the current Piotroski F-Score is 3 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Meritage Hospitality Group (MHGU) Overvalued in 2026?
Based on GuruFocus' analysis, Meritage Hospitality Group stock appears to be undervalued.
The current stock price of $2.98 is trading 82.6% below its estimated GF Value™ of $17.12.
GuruFocus considers Meritage Hospitality Group to be Possible Value Trap.
Key valuation signals for MHGU:
Piotroski F-Score: 3 (40% below median its 10-year median of 5.00)
GF Value™: $17.12 vs. price of $2.98 (82.6% below fair value)
Industry Position: 40% below the Restaurants median (#310 of 357)
No single metric tells the full story. See the MHGU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Meritage Hospitality Group Inc is engaged in operating quick-service and casual dining restaurants across various states in the United States. It operates Wendy's quick-service restaurants across various states under franchise agreements with its franchisor. It also operates independent restaurants under three concepts throughout Michigan, which include Morning Belle restaurants, Stan's Tacos restaurant, and Blue Porch Bar & Grill restaurant. It is focused on the future development and long-term growth of its Morning Belle brand.
45GF Score
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