MONRO INC (MNRO) Stock Fundamental Analysis
NASDAQ:MNRO - Nasdaq - US6102361010 - Common Stock - Currency: USD
MNRO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 120 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
In the past year MNRO was profitable.
MNRO had a positive operating cash flow in the past year.
MNRO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MNRO had a positive operating cash flow.
1.2 Ratios
MNRO has a Return On Assets (-0.40%) which is comparable to the rest of the industry.
MNRO has a Return On Equity (-1.05%) which is comparable to the rest of the industry.
MNRO has a Return On Invested Capital (0.81%) which is in line with its industry peers.
MNRO had an Average Return On Invested Capital over the past 3 years of 3.12%. This is significantly below the industry average of 13.33%.
| 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 45.00% 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.
The number of shares outstanding for MNRO has been reduced compared to 5 years ago.
Compared to 1 year ago, MNRO has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that MNRO is in the distress zone and has some risk of bankruptcy.
MNRO's Altman-Z score of 1.38 is on the low side compared to the rest of the industry. MNRO is outperformed by 65.83% 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 73.33% of its industry peers.
MNRO has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
MNRO has a Debt to Equity ratio (0.45) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.09
WACC8.75%
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.
Looking at the Current ratio, with a value of 0.53, MNRO is doing worse than 93.33% of the companies in the same industry.
A Quick Ratio of 0.18 indicates that MNRO may have some problems paying its short term obligations.
MNRO has a worse Quick ratio (0.18) than 90.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
The earnings per share for MNRO have decreased strongly by -62.88% in the last year.
Measured over the past years, MNRO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.90% on average per year.
The Revenue has decreased by -6.38% in the past year.
The Revenue has been decreasing by -0.99% on average over the past years.
EPS 1Y (TTM)-62.88%
EPS 3Y-35.89%
EPS 5Y-23.9%
EPS Q2Q%-142.86%
Revenue 1Y (TTM)-6.38%
Revenue growth 3Y-4.19%
Revenue growth 5Y-0.99%
Sales Q2Q%-4.86%
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 33.02% on average per year.
MNRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.57% yearly.
EPS Next Y76.94%
EPS Next 2Y33.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.24%
Revenue Next 2Y0.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 33.08, which means the current valuation is very expensive for MNRO.
MNRO's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.55. MNRO is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 18.70 indicates a rather expensive valuation of MNRO.
MNRO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of MNRO to the average of the S&P500 Index (22.30), we can say MNRO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.08 | ||
| Fwd PE | 18.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MNRO is valued a bit cheaper than 61.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MNRO is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.6 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
The 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 33.02% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y33.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MNRO has a Yearly Dividend Yield of 7.07%, which is a nice return.
MNRO's Dividend Yield is rather good when compared to the industry average which is at 5.22. MNRO pays more dividend than 96.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, MNRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.07% |
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 2Y33.02%
EPS Next 3YN/A
16.21
+0.37 (+2.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners110.4%
Inst Owner Change6.55%
Ins Owners0.84%
Ins Owner Change0%
Market Cap485.49M
Analysts76.36
Price Target18.36 (13.26%)
Short Float %14.96%
Short Ratio4.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.07% |
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)-8.86%
PT rev (3m)-20%
EPS NQ rev (1m)-19.15%
EPS NQ rev (3m)-15.77%
EPS NY rev (1m)2.62%
EPS NY rev (3m)6.47%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-4%
Revenue NY rev (3m)-3.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.08 | ||
| Fwd PE | 18.7 | ||
| P/S | 0.41 | ||
| P/FCF | 4.6 | ||
| P/OCF | 3.68 | ||
| P/B | 0.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.6 |
EPS(TTM)0.49
EY3.02%
EPS(NY)0.87
Fwd EY5.35%
FCF(TTM)3.52
FCFY21.74%
OCF(TTM)4.4
OCFY27.17%
SpS39.91
BVpS20.73
TBVpS-4.21
PEG (NY)0.43
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 | 1.38 |
F-Score4
WACC8.75%
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)-62.88%
EPS 3Y-35.89%
EPS 5Y-23.9%
EPS Q2Q%-142.86%
EPS Next Y76.94%
EPS Next 2Y33.02%
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%-4.86%
Revenue Next Year-1.24%
Revenue Next 2Y0.57%
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 Year164.55%
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%