MONRO INC (MNRO)
US6102361010 - Common Stock
We assign a fundamental rating of 4 out of 10 to MNRO. MNRO was compared to 126 industry peers in the Specialty Retail industry. There are concerns on the financial health of MNRO while its profitability can be described as average. MNRO has a valuation in line with the averages, but it does not seem to be growing. MNRO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MNRO was profitable.
In the past year MNRO had a positive cash flow from operations.
In the past 5 years MNRO has always been profitable.
Each year in the past 5 years MNRO had a positive operating cash flow.
1.2 Ratios
MNRO has a Return On Assets (1.92%) which is in line with its industry peers.
MNRO has a Return On Equity (5.05%) which is in line with its industry peers.
MNRO has a Return On Invested Capital (4.00%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for MNRO is significantly below the industry average of 13.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 5.05% | ||
| ROIC | 4% |
ROA(3y)2.43%
ROA(5y)3.23%
ROE(3y)5.96%
ROE(5y)7.41%
ROIC(3y)4.28%
ROIC(5y)5.14%
1.3 Margins
With a decent Profit Margin value of 2.61%, MNRO is doing good in the industry, outperforming 60.32% of the companies in the same industry.
In the last couple of years the Profit Margin of MNRO has declined.
MNRO's Operating Margin of 5.27% is fine compared to the rest of the industry. MNRO outperforms 64.29% of its industry peers.
MNRO's Operating Margin has declined in the last couple of years.
The Gross Margin of MNRO (34.90%) is comparable to the rest of the industry.
MNRO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.27% | ||
| PM (TTM) | 2.61% | ||
| GM | 34.9% |
OM growth 3Y-9.8%
OM growth 5Y-11.88%
PM growth 3Y-14.11%
PM growth 5Y-12.43%
GM growth 3Y-3.19%
GM growth 5Y-2.28%
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 less shares outstanding
Compared to 5 years ago, MNRO has less shares outstanding
The debt/assets ratio for MNRO has been reduced compared to a year ago.
2.2 Solvency
MNRO has an Altman-Z score of 1.76. This is a bad value and indicates that MNRO is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.76, MNRO is doing worse than 60.32% of the companies in the same industry.
The Debt to FCF ratio of MNRO is 2.71, which is a good value as it means it would take MNRO, 2.71 years of fcf income to pay off all of its debts.
MNRO's Debt to FCF ratio of 2.71 is fine compared to the rest of the industry. MNRO outperforms 65.87% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that MNRO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, MNRO is in line with its industry, outperforming 49.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.49
WACC8.23%
2.3 Liquidity
MNRO has a Current Ratio of 0.56. This is a bad value and indicates that MNRO is not financially healthy enough and could expect problems in meeting its short term obligations.
MNRO has a Current ratio of 0.56. This is amonst the worse of the industry: MNRO underperforms 96.03% of its industry peers.
A Quick Ratio of 0.23 indicates that MNRO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.23, MNRO is doing worse than 84.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The earnings per share for MNRO have decreased strongly by -19.59% in the last year.
MNRO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.79% yearly.
The Revenue has decreased by -4.84% in the past year.
MNRO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.28% yearly.
EPS 1Y (TTM)-19.59%
EPS 3Y-10.86%
EPS 5Y-7.79%
EPS growth Q2Q-9.3%
Revenue 1Y (TTM)-4.84%
Revenue growth 3Y1.8%
Revenue growth 5Y3.28%
Revenue growth Q2Q-5.23%
3.2 Future
MNRO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.03% yearly.
The Revenue is expected to grow by 0.80% on average over the next years.
EPS Next Y5.6%
EPS Next 2Y11.1%
EPS Next 3Y11.03%
EPS Next 5YN/A
Revenue Next Year-3.16%
Revenue Next 2Y-0.48%
Revenue Next 3Y0.8%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.04 indicates a quite expensive valuation of MNRO.
MNRO's Price/Earnings ratio is in line with the industry average.
MNRO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.75, which indicates a rather expensive current valuation of MNRO.
Based on the Price/Forward Earnings ratio, MNRO is valued a bit cheaper than 65.87% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MNRO to the average of the S&P500 Index (21.60), we can say MNRO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.04 | ||
| Fwd PE | 17.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MNRO is valued a bit cheaper than the industry average as 63.49% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MNRO indicates a rather cheap valuation: MNRO is cheaper than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.15 | ||
| EV/EBITDA | 9.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.47
PEG (5Y)N/A
EPS Next 2Y11.1%
EPS Next 3Y11.03%
5. Dividend
5.1 Amount
MNRO has a Yearly Dividend Yield of 3.77%.
MNRO's Dividend Yield is rather good when compared to the industry average which is at 3.51. MNRO pays more dividend than 92.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, MNRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
5.2 History
On average, the dividend of MNRO grows each year by 8.89%, which is quite nice.
MNRO has paid a dividend for at least 10 years, which is a reliable track record.
MNRO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.89%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
107.09% of the earnings are spent on dividend by MNRO. This is not a sustainable payout ratio.
The dividend of MNRO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP107.09%
EPS Next 2Y11.1%
EPS Next 3Y11.03%
MONRO INC
NASDAQ:MNRO (4/24/2024, 10:10:55 AM)
29.8
-0.85 (-2.77%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap891.02M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.04 | ||
| Fwd PE | 17.75 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 5.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.27% | ||
| PM (TTM) | 2.61% | ||
| GM | 34.9% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-19.59%
EPS 3Y-10.86%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.84%
Revenue growth 3Y1.8%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y