MONRO INC (MNRO) Stock Fundamental Analysis
NASDAQ:MNRO - Nasdaq - US6102361010 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MNRO. MNRO was compared to 124 industry peers in the Specialty Retail industry. MNRO has a bad profitability rating. Also its financial health evaluation is rather negative. MNRO has a valuation in line with the averages, but it does not seem to be growing. Finally MNRO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MNRO had positive earnings in the past year.
MNRO had a positive operating cash flow in the past year.
Of the past 5 years MNRO 4 years were profitable.
In the past 5 years MNRO always reported a positive cash flow from operatings.
1.2 Ratios
MNRO has a Return On Assets of -0.40%. This is comparable to the rest of the industry: MNRO outperforms 45.97% of its industry peers.
MNRO's Return On Equity of -1.05% is in line compared to the rest of the industry. MNRO outperforms 53.23% of its industry peers.
The Return On Invested Capital of MNRO (0.81%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MNRO is significantly below the industry average of 11.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.4% | ||
| ROE | -1.05% | ||
| ROIC | 0.81% |
ROA(3y)1.31%
ROA(5y)1.81%
ROE(3y)3.35%
ROE(5y)4.47%
ROIC(3y)3.12%
ROIC(5y)3.51%
1.3 Margins
MNRO has a Operating Margin (1.05%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MNRO has declined.
With a Gross Margin value of 34.94%, MNRO perfoms like the industry average, outperforming 45.97% of the companies in the same industry.
MNRO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.05% | ||
| PM (TTM) | N/A | ||
| GM | 34.94% |
OM growth 3Y-48.06%
OM growth 5Y-33.7%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.48%
GM growth 5Y-1.63%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MNRO is destroying value.
Compared to 1 year ago, MNRO has about the same amount of shares outstanding.
MNRO has less shares outstanding than it did 5 years ago.
MNRO has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that MNRO is in the distress zone and has some risk of bankruptcy.
MNRO has a Altman-Z score of 1.37. This is in the lower half of the industry: MNRO underperforms 68.55% of its industry peers.
MNRO has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as MNRO would need 3.05 years to pay back of all of its debts.
MNRO's Debt to FCF ratio of 3.05 is fine compared to the rest of the industry. MNRO outperforms 75.81% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that MNRO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.45, MNRO is in line with its industry, outperforming 51.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.09
WACC8.58%
2.3 Liquidity
MNRO has a Current Ratio of 0.53. This is a bad value and indicates that MNRO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of MNRO (0.53) is worse than 90.32% of its industry peers.
MNRO has a Quick Ratio of 0.53. This is a bad value and indicates that MNRO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.18, MNRO is doing worse than 89.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
MNRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -60.16%.
The earnings per share for MNRO have been decreasing by -23.90% on average. This is quite bad
Looking at the last year, MNRO shows a decrease in Revenue. The Revenue has decreased by -6.38% in the last year.
MNRO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.99% yearly.
EPS 1Y (TTM)-60.16%
EPS 3Y-35.89%
EPS 5Y-23.9%
EPS Q2Q%0%
Revenue 1Y (TTM)-6.38%
Revenue growth 3Y-4.19%
Revenue growth 5Y-0.99%
Sales Q2Q%2.68%
3.2 Future
Based on estimates for the next years, MNRO will show a very strong growth in Earnings Per Share. The EPS will grow by 36.25% on average per year.
Based on estimates for the next years, MNRO will show a small growth in Revenue. The Revenue will grow by 1.15% on average per year.
EPS Next Y51.25%
EPS Next 2Y36.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.25%
Revenue Next 2Y1.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.04, the valuation of MNRO can be described as expensive.
MNRO's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.84, MNRO is valued at the same level.
MNRO is valuated rather expensively with a Price/Forward Earnings ratio of 17.26.
MNRO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MNRO is cheaper than 63.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.29. MNRO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.04 | ||
| Fwd PE | 17.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MNRO is valued a bit cheaper than 62.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MNRO is valued cheaply inside the industry as 94.35% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.46 | ||
| EV/EBITDA | 9.42 |
4.3 Compensation for Growth
MNRO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MNRO's earnings are expected to grow with 36.25% in the coming years.
PEG (NY)0.63
PEG (5Y)N/A
EPS Next 2Y36.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.04%, MNRO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.90, MNRO pays a better dividend. On top of this MNRO pays more dividend than 95.16% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, MNRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.04% |
5.2 History
The dividend of MNRO has a limited annual growth rate of 5.46%.
MNRO has been paying a dividend for at least 10 years, so it has a reliable track record.
MNRO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.46%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
MNRO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of MNRO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-534.18%
EPS Next 2Y36.25%
EPS Next 3YN/A
15.7
-0.21 (-1.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners115.78%
Inst Owner Change3.94%
Ins Owners0.57%
Ins Owner Change6.86%
Market Cap470.69M
Analysts76.36
Price Target15.98 (1.78%)
Short Float %16.74%
Short Ratio5.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.04% |
Yearly Dividend1.17
Dividend Growth(5Y)5.46%
DP-534.18%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-225.81%
Min EPS beat(2)-415.13%
Max EPS beat(2)-36.5%
EPS beat(4)1
Avg EPS beat(4)751.84%
Min EPS beat(4)-415.13%
Max EPS beat(4)3494.77%
EPS beat(8)2
Avg EPS beat(8)369.33%
EPS beat(12)3
Avg EPS beat(12)241.45%
EPS beat(16)5
Avg EPS beat(16)177.98%
Revenue beat(2)0
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-3.64%
Max Revenue beat(2)-0.1%
Revenue beat(4)0
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)-0.1%
Revenue beat(8)0
Avg Revenue beat(8)-3.07%
Revenue beat(12)0
Avg Revenue beat(12)-2.9%
Revenue beat(16)2
Avg Revenue beat(16)-2.14%
PT rev (1m)-12.96%
PT rev (3m)-14.55%
EPS NQ rev (1m)-2.64%
EPS NQ rev (3m)-21.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.28%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)1%
Revenue NY rev (3m)-3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.04 | ||
| Fwd PE | 17.26 | ||
| P/S | 0.39 | ||
| P/FCF | 4.46 | ||
| P/OCF | 3.57 | ||
| P/B | 0.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.42 |
EPS(TTM)0.49
EY3.12%
EPS(NY)0.91
Fwd EY5.79%
FCF(TTM)3.52
FCFY22.42%
OCF(TTM)4.4
OCFY28.03%
SpS39.87
BVpS20.71
TBVpS-4.2
PEG (NY)0.63
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.4% | ||
| ROE | -1.05% | ||
| ROCE | 1.12% | ||
| ROIC | 0.81% | ||
| ROICexc | 0.83% | ||
| ROICexgc | 2.6% | ||
| OM | 1.05% | ||
| PM (TTM) | N/A | ||
| GM | 34.94% | ||
| FCFM | 8.83% |
ROA(3y)1.31%
ROA(5y)1.81%
ROE(3y)3.35%
ROE(5y)4.47%
ROIC(3y)3.12%
ROIC(5y)3.51%
ROICexc(3y)3.13%
ROICexc(5y)3.54%
ROICexgc(3y)7.83%
ROICexgc(5y)8.05%
ROCE(3y)4.3%
ROCE(5y)4.85%
ROICexcg growth 3Y-36.19%
ROICexcg growth 5Y-23.6%
ROICexc growth 3Y-44.26%
ROICexc growth 5Y-30.6%
OM growth 3Y-48.06%
OM growth 5Y-33.7%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.48%
GM growth 5Y-1.63%
F-Score4
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 3.44 | ||
| Cap/Depr | 38% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 0.68 | ||
| Cash Conversion | 160.99% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 1.37 |
F-Score4
WACC8.58%
ROIC/WACC0.09
Cap/Depr(3y)41.31%
Cap/Depr(5y)45.01%
Cap/Sales(3y)2.38%
Cap/Sales(5y)2.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-60.16%
EPS 3Y-35.89%
EPS 5Y-23.9%
EPS Q2Q%0%
EPS Next Y51.25%
EPS Next 2Y36.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.38%
Revenue growth 3Y-4.19%
Revenue growth 5Y-0.99%
Sales Q2Q%2.68%
Revenue Next Year-0.25%
Revenue Next 2Y1.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-82.41%
EBIT growth 3Y-50.24%
EBIT growth 5Y-34.36%
EBIT Next Year141.73%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.85%
FCF growth 3Y-10.25%
FCF growth 5Y10.05%
OCF growth 1Y5.36%
OCF growth 3Y-8.78%
OCF growth 5Y1.69%