MONRO INC (MNRO) Stock Fundamental Analysis
NASDAQ:MNRO - Nasdaq - US6102361010 - Common Stock - Currency: USD
Overall MNRO gets a fundamental rating of 4 out of 10. We evaluated MNRO against 121 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 on the other hand it scores bad on growth. 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.
MNRO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MNRO has a Return On Assets (-0.40%) which is in line with its industry peers.
The Return On Equity of MNRO (-1.05%) is comparable to the rest of the industry.
MNRO has a Return On Invested Capital of 0.81%. This is comparable to the rest of the industry: MNRO outperforms 42.15% of 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 13.07%.
| 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 in line with its industry peers.
MNRO's Operating Margin has declined in the last couple of years.
MNRO has a Gross Margin of 34.94%. This is comparable to the rest of the industry: MNRO outperforms 45.45% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MNRO is destroying value.
The number of shares outstanding for MNRO remains at a similar level compared to 1 year ago.
The number of shares outstanding for MNRO has been reduced compared to 5 years ago.
The debt/assets ratio for MNRO has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.36, we must say that MNRO is in the distress zone and has some risk of bankruptcy.
MNRO has a worse Altman-Z score (1.36) than 66.12% 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 has a better Debt to FCF ratio (3.05) than 75.21% 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 50.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.09
WACC8.59%
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.
With a Current ratio value of 0.53, MNRO is not doing good in the industry: 92.56% of the companies in the same industry are doing better.
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.
MNRO has a worse Quick ratio (0.18) than 90.08% of its industry peers.
| 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 -62.88%.
MNRO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.90% yearly.
MNRO shows a decrease in Revenue. In the last year, the revenue decreased by -6.38%.
MNRO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.99% yearly.
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 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 0.57% on average per year.
EPS Next Y51.25%
EPS Next 2Y36.25%
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 32.59, which means the current valuation is very expensive for MNRO.
The rest of the industry has a similar Price/Earnings ratio as MNRO.
MNRO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.15.
MNRO is valuated rather expensively with a Price/Forward Earnings ratio of 21.55.
MNRO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, MNRO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.59 | ||
| Fwd PE | 21.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MNRO is valued a bit cheaper than the industry average as 61.98% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MNRO is valued cheaply inside the industry as 93.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.53 | ||
| EV/EBITDA | 9.12 |
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.
MNRO's earnings are expected to grow with 36.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y36.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MNRO has a Yearly Dividend Yield of 8.07%, which is a nice return.
Compared to an average industry Dividend Yield of 5.27, MNRO pays a better dividend. On top of this MNRO pays more dividend than 95.87% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, MNRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.07% |
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 their dividend for at least 10 years, which is a reliable track record.
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
NASDAQ:MNRO (7/1/2025, 3:26:01 PM)
15.97
+1.06 (+7.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners115.76%
Inst Owner Change6.55%
Ins Owners0.57%
Ins Owner Change3.4%
Market Cap478.30M
Analysts76.36
Price Target18.36 (14.97%)
Short Float %16.61%
Short Ratio5.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.07% |
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)-1.82%
PT rev (3m)-20%
EPS NQ rev (1m)-19.15%
EPS NQ rev (3m)-15.77%
EPS NY rev (1m)-14.52%
EPS NY rev (3m)-8.99%
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 | 32.59 | ||
| Fwd PE | 21.55 | ||
| P/S | 0.4 | ||
| P/FCF | 4.53 | ||
| P/OCF | 3.63 | ||
| P/B | 0.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.12 |
EPS(TTM)0.49
EY3.07%
EPS(NY)0.74
Fwd EY4.64%
FCF(TTM)3.52
FCFY22.07%
OCF(TTM)4.4
OCFY27.58%
SpS39.91
BVpS20.73
TBVpS-4.21
PEG (NY)0.64
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 | 1.36 |
F-Score4
WACC8.59%
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 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%-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%