MONRO INC (MNRO) Stock Fundamental Analysis
NASDAQ:MNRO - US6102361010 - Common Stock
16.85 USD
-0.94 (-5.28%)
16.8 USD
-0.05 (-0.3%)
We assign a fundamental rating of 3 out of 10 to MNRO. MNRO was compared to 123 industry peers in the Specialty Retail industry. Both the profitability and financial health of MNRO have multiple concerns. MNRO is valued correctly, 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.
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's Return On Assets of -1.27% is on the low side compared to the rest of the industry. MNRO is outperformed by 60.16% of its industry peers.
MNRO has a Return On Equity (-3.38%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.27% | ||
| ROE | -3.38% | ||
| ROIC | N/A |
ROA(3y)1.31%
ROA(5y)1.81%
ROE(3y)3.35%
ROE(5y)4.47%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Operating Margin of MNRO has declined.
MNRO's Gross Margin of 34.52% is in line compared to the rest of the industry. MNRO outperforms 45.53% of its industry peers.
In the last couple of years the Gross Margin of MNRO has declined.
MNRO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 34.52% |
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
MNRO does not have a ROIC to compare to the WACC, probably because it is not profitable.
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.
The debt/assets ratio for MNRO has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.37, 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 64.23% of its industry peers.
The Debt to FCF ratio of MNRO is 4.03, which is a neutral value as it means it would take MNRO, 4.03 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.03, MNRO is in the better half of the industry, outperforming 67.48% of the companies in the same industry.
MNRO has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.47, MNRO is in line with its industry, outperforming 50.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 1.37 |
ROIC/WACCN/A
WACC8.71%
2.3 Liquidity
MNRO has a Current Ratio of 0.50. 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 0.50. This is amonst the worse of the industry: MNRO underperforms 92.68% of its industry peers.
A Quick Ratio of 0.16 indicates that MNRO may have some problems paying its short term obligations.
MNRO has a worse Quick ratio (0.16) than 91.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.16 |
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%.
MNRO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.90% yearly.
The Revenue has decreased by -3.20% in the past year.
The Revenue has been decreasing by -0.99% on average over the past years.
EPS 1Y (TTM)-60.16%
EPS 3Y-35.89%
EPS 5Y-23.9%
EPS Q2Q%0%
Revenue 1Y (TTM)-3.2%
Revenue growth 3Y-4.19%
Revenue growth 5Y-0.99%
Sales Q2Q%2.68%
3.2 Future
MNRO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.14% yearly.
The Revenue is expected to grow by 1.47% on average over the next years.
EPS Next Y26.77%
EPS Next 2Y32.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0%
Revenue Next 2Y1.47%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.39, the valuation of MNRO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MNRO is on the same level as its industry peers.
MNRO is valuated rather expensively when we compare the Price/Earnings ratio to 27.07, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.70, which indicates a rather expensive current valuation of MNRO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MNRO indicates a somewhat cheap valuation: MNRO is cheaper than 60.98% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MNRO to the average of the S&P500 Index (22.59), we can say MNRO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.39 | ||
| Fwd PE | 19.7 |
4.2 Price Multiples
MNRO's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, MNRO is valued cheaply inside the industry as 95.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.36 | ||
| EV/EBITDA | 13.53 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MNRO's earnings are expected to grow with 32.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.28
PEG (5Y)N/A
EPS Next 2Y32.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MNRO has a Yearly Dividend Yield of 6.52%, which is a nice return.
Compared to an average industry Dividend Yield of 5.22, MNRO pays a better dividend. On top of this MNRO pays more dividend than 95.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, MNRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.52% |
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
The earnings of MNRO are negative and hence is the payout ratio. MNRO will probably not be able to sustain this dividend level.
The dividend of MNRO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-170.7%
EPS Next 2Y32.14%
EPS Next 3YN/A
16.85
-0.94 (-5.28%)
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 Cap505.16M
Analysts76.36
Price Target16.32 (-3.15%)
Short Float %18.85%
Short Ratio5.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.52% |
Yearly Dividend1.17
Dividend Growth(5Y)5.46%
DP-170.7%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-184.4%
Min EPS beat(2)-415.13%
Max EPS beat(2)46.33%
EPS beat(4)1
Avg EPS beat(4)-110.27%
Min EPS beat(4)-415.13%
Max EPS beat(4)46.33%
EPS beat(8)3
Avg EPS beat(8)377.49%
EPS beat(12)3
Avg EPS beat(12)243.06%
EPS beat(16)5
Avg EPS beat(16)180.56%
Revenue beat(2)0
Avg Revenue beat(2)-0.22%
Min Revenue beat(2)-0.34%
Max Revenue beat(2)-0.1%
Revenue beat(4)0
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)-0.1%
Revenue beat(8)0
Avg Revenue beat(8)-2.67%
Revenue beat(12)0
Avg Revenue beat(12)-2.91%
Revenue beat(16)1
Avg Revenue beat(16)-2.29%
PT rev (1m)2.13%
PT rev (3m)-11.11%
EPS NQ rev (1m)2.28%
EPS NQ rev (3m)-9.64%
EPS NY rev (1m)-16.18%
EPS NY rev (3m)-28.35%
Revenue NQ rev (1m)0.67%
Revenue NQ rev (3m)-2.44%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)-2.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.39 | ||
| Fwd PE | 19.7 | ||
| P/S | 0.42 | ||
| P/FCF | 6.36 | ||
| P/OCF | 4.84 | ||
| P/B | 0.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.53 |
EPS(TTM)0.49
EY2.91%
EPS(NY)0.86
Fwd EY5.08%
FCF(TTM)2.65
FCFY15.73%
OCF(TTM)3.48
OCFY20.65%
SpS40.13
BVpS20.18
TBVpS-4.71
PEG (NY)1.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.27% | ||
| ROE | -3.38% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 34.52% | ||
| FCFM | 6.6% |
ROA(3y)1.31%
ROA(5y)1.81%
ROE(3y)3.35%
ROE(5y)4.47%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)4.3%
ROCE(5y)4.85%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.03 | ||
| Debt/EBITDA | 4.66 | ||
| Cap/Depr | 37.01% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 172.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z | 1.37 |
F-Score4
WACC8.71%
ROIC/WACCN/A
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 Y26.77%
EPS Next 2Y32.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.2%
Revenue growth 3Y-4.19%
Revenue growth 5Y-0.99%
Sales Q2Q%2.68%
Revenue Next Year0%
Revenue Next 2Y1.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-110.03%
EBIT growth 3Y-50.24%
EBIT growth 5Y-34.36%
EBIT Next Year141.73%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-53.54%
FCF growth 3Y-10.25%
FCF growth 5Y10.05%
OCF growth 1Y-50.2%
OCF growth 3Y-8.78%
OCF growth 5Y1.69%