Meritage Hospitality GroupMHGU -0.16%45 OCF Yield % is 11.76 as of Jun. 27, 2026, which is 41% below its 10-year median of 19.80. GuruFocus rates MHGU with a GF Score™ of 45/100 and a GF Value™ of $17.13 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 366 Restaurants companies, Meritage Hospitality Group ranks better than 54.1% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Meritage Hospitality Group OCF Yield % Explanation
Similar to Earnings Yield %, OCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high operating cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Meritage Hospitality Group OCF Yield % Related Terms
Meritage Hospitality Group OCF Yield % 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.
For the Restaurants subindustry, Meritage Hospitality Group's OCF Yield %, along with its competitors' market caps and OCF Yield % 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 OCF Yield % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Meritage Hospitality Group's OCF Yield % distribution charts can be found below:
* The bar in red indicates where Meritage Hospitality Group's OCF Yield % 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.
Meritage Hospitality Group (MHGU) has a OCF Yield % of 11.76 as of Jun. 27, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Meritage Hospitality Group and its competitors. This is 41% below median its historical median of 19.80. Over the past decade, Meritage Hospitality Group's OCF Yield % has ranged from 7.15 to 53.91. According to the industry distribution chart, Meritage Hospitality Group ranks #168 out of 366 companies in the Restaurants industry, placing it in the top 45.9%.
Is Meritage Hospitality Group's OCF Yield % too high?
Meritage Hospitality Group's current OCF Yield % of 11.76 is 41% below median its 10-year median of 19.80. Over the past 10 years, this metric has ranged from a low of 7.15 to a high of 53.91. The Restaurants industry median OCF Yield % is 10.04. Meritage Hospitality Group's value of 11.76 is 17.1% above this industry median. Based on the distribution chart, Meritage Hospitality Group ranks #168 out of 366 companies in the Restaurants industry, which is above the industry midpoint. 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 OCF Yield % compare to PETZ and GTIM?
According to the Restaurants industry distribution chart, Meritage Hospitality Group ranks #168 out of 366 companies for OCF Yield %. This puts Meritage Hospitality Group in the upper half of its industry. The industry median OCF Yield % is 10.04. Meritage Hospitality Group's value of 11.76 is 17.1% above this benchmark. Historically, Meritage Hospitality Group's own OCF Yield % has ranged from 7.15 to 53.91 over the past decade. While the company's 10-year median is 19.80 vs. the industry median of 10.04, Meritage Hospitality Group has consistently been above 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 OCF Yield % for a Restaurants company?
The median OCF Yield % among Restaurants companies is 10.04, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meritage Hospitality Group's current OCF Yield % of 11.76 is 17.1% above 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 OCF Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Meritage Hospitality Group and its competitors. For the Restaurants industry, the median OCF Yield % is 10.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meritage Hospitality Group's current OCF Yield % is 11.76, which is 41% below median its own 10-year median of 19.80. 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 $17.13, compared to a current price of $2.97 — trading 82.7% below its estimated fair value. The current OCF Yield % is 11.76, which is 41% below median its 10-year median of 19.80 and 17.1% above the Restaurants industry median of 10.04. 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 OCF Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For Meritage Hospitality Group (MHGU), the current OCF Yield % is 11.76 as of Jun. 27, 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 $2.97 is trading 82.7% below its estimated GF Value™ of $17.13.
GuruFocus considers Meritage Hospitality Group to be Possible Value Trap.
Key valuation signals for MHGU:
OCF Yield %: 11.76 (41% below median its 10-year median of 19.80)
GF Value™: $17.13 vs. price of $2.97 (82.7% below fair value)
Industry Position: 17.1% above the Restaurants median (#168 of 366)
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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