MONRO INC (MNRO) Stock Fundamental Analysis
NASDAQ:MNRO - Nasdaq - US6102361010 - Common Stock - Currency: USD
Taking everything into account, MNRO scores 3 out of 10 in our fundamental rating. MNRO was compared to 121 industry peers in the Specialty Retail industry. While MNRO is still in line with the averages on profitability rating, there are concerns on its financial health. MNRO is valued correctly, 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.
MNRO had a positive operating cash flow in the past year.
In the past 5 years MNRO has always been profitable.
In the past 5 years MNRO always reported a positive cash flow from operatings.
1.2 Ratios
MNRO's Return On Assets of 1.10% is in line compared to the rest of the industry. MNRO outperforms 53.72% of its industry peers.
MNRO's Return On Equity of 2.84% is fine compared to the rest of the industry. MNRO outperforms 60.33% of its industry peers.
MNRO has a Return On Invested Capital of 2.83%. This is comparable to the rest of the industry: MNRO outperforms 47.93% of its industry peers.
MNRO had an Average Return On Invested Capital over the past 3 years of 4.31%. This is significantly below the industry average of 13.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 2.84% | ||
| ROIC | 2.83% |
ROA(3y)2.53%
ROA(5y)2.45%
ROE(3y)6.3%
ROE(5y)6.25%
ROIC(3y)4.31%
ROIC(5y)4.06%
1.3 Margins
MNRO has a Profit Margin (1.52%) which is in line with its industry peers.
In the last couple of years the Profit Margin of MNRO has declined.
MNRO's Operating Margin of 3.86% is in line compared to the rest of the industry. MNRO outperforms 58.68% of its industry peers.
MNRO's Operating Margin has declined in the last couple of years.
The Gross Margin of MNRO (35.56%) 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 | 3.86% | ||
| PM (TTM) | 1.52% | ||
| GM | 35.56% |
OM growth 3Y-4.59%
OM growth 5Y-12.01%
PM growth 3Y-1.78%
PM growth 5Y-15.46%
GM growth 3Y0.29%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MNRO is destroying value.
The number of shares outstanding for MNRO has been reduced compared to 1 year ago.
Compared to 5 years ago, MNRO has less shares outstanding
Compared to 1 year ago, MNRO has an improved debt to assets ratio.
2.2 Solvency
MNRO has an Altman-Z score of 1.43. 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 1.43, MNRO is doing worse than 70.25% of the companies in the same industry.
MNRO has a debt to FCF ratio of 4.69. This is a neutral value as MNRO would need 4.69 years to pay back of all of its debts.
MNRO has a Debt to FCF ratio of 4.69. This is in the better half of the industry: MNRO outperforms 62.81% 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.
With a Debt to Equity ratio value of 0.45, MNRO perfoms like the industry average, outperforming 49.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.33
WACC8.46%
2.3 Liquidity
MNRO has a Current Ratio of 0.54. 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 0.54. This is amonst the worse of the industry: MNRO underperforms 94.21% of its industry peers.
MNRO has a Quick Ratio of 0.54. 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 Quick ratio of MNRO (0.19) is worse than 89.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
MNRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.61%.
MNRO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.20% yearly.
The Revenue has decreased by -5.25% in the past year.
Measured over the past years, MNRO shows a small growth in Revenue. The Revenue has been growing by 1.24% on average per year.
EPS 1Y (TTM)-33.61%
EPS 3Y5.01%
EPS 5Y-11.2%
EPS Q2Q%-51.28%
Revenue 1Y (TTM)-5.25%
Revenue growth 3Y4.29%
Revenue growth 5Y1.24%
Sales Q2Q%-3.74%
3.2 Future
Based on estimates for the next years, MNRO will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.07% on average per year.
The Revenue is expected to decrease by -1.73% on average over the next years.
EPS Next Y-53.48%
EPS Next 2Y-18.96%
EPS Next 3Y-13.07%
EPS Next 5YN/A
Revenue Next Year-7.54%
Revenue Next 2Y-2.47%
Revenue Next 3Y-1.73%
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 stable.
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
With a Price/Earnings ratio of 17.19, MNRO is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of MNRO indicates a somewhat cheap valuation: MNRO is cheaper than 71.90% of the companies listed in the same industry.
MNRO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.68.
The Price/Forward Earnings ratio is 15.66, which indicates a correct 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 68.59% of the companies listed in the same industry.
MNRO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
74.38% of the companies in the same industry are more expensive than MNRO, based on the Enterprise Value to EBITDA ratio.
MNRO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MNRO is cheaper than 91.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.77 | ||
| EV/EBITDA | 6.22 |
4.3 Compensation for Growth
MNRO's earnings are expected to decrease with -13.07% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-18.96%
EPS Next 3Y-13.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.65%, MNRO is a good candidate for dividend investing.
In the last 3 months the price of MNRO has falen by -31.34%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MNRO's Dividend Yield is rather good when compared to the industry average which is at 5.10. MNRO pays more dividend than 96.69% of the companies in the same industry.
MNRO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.65% |
5.2 History
The dividend of MNRO is nicely growing with an annual growth rate of 7.36%!
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)7.36%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
MNRO pays out 187.21% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of MNRO has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP187.21%
EPS Next 2Y-18.96%
EPS Next 3Y-13.07%
13.58
+0.63 (+4.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners110.4%
Inst Owner Change6.38%
Ins Owners0.84%
Ins Owner Change0%
Market Cap406.72M
Analysts78.33
Price Target18.7 (37.7%)
Short Float %13.76%
Short Ratio4.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.65% |
Yearly Dividend1.16
Dividend Growth(5Y)7.36%
DP187.21%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-36.15%
Min EPS beat(2)-36.5%
Max EPS beat(2)-35.8%
EPS beat(4)1
Avg EPS beat(4)847.51%
Min EPS beat(4)-36.5%
Max EPS beat(4)3494.77%
EPS beat(8)2
Avg EPS beat(8)411.85%
EPS beat(12)3
Avg EPS beat(12)271.27%
EPS beat(16)6
Avg EPS beat(16)205.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.58%
Min Revenue beat(2)-3.64%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-3.08%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)-1.53%
Revenue beat(8)0
Avg Revenue beat(8)-3.41%
Revenue beat(12)0
Avg Revenue beat(12)-2.97%
Revenue beat(16)3
Avg Revenue beat(16)-2.09%
PT rev (1m)-18.52%
PT rev (3m)-36.23%
EPS NQ rev (1m)12%
EPS NQ rev (3m)12%
EPS NY rev (1m)0.33%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 15.66 | ||
| P/S | 0.34 | ||
| P/FCF | 5.77 | ||
| P/OCF | 4.16 | ||
| P/B | 0.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.22 |
EPS(TTM)0.79
EY5.82%
EPS(NY)0.87
Fwd EY6.38%
FCF(TTM)2.35
FCFY17.32%
OCF(TTM)3.26
OCFY24.03%
SpS40.41
BVpS21.67
TBVpS-3.29
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 2.84% | ||
| ROCE | 4.02% | ||
| ROIC | 2.83% | ||
| ROICexc | 2.86% | ||
| ROICexgc | 8.13% | ||
| OM | 3.86% | ||
| PM (TTM) | 1.52% | ||
| GM | 35.56% | ||
| FCFM | 5.82% |
ROA(3y)2.53%
ROA(5y)2.45%
ROE(3y)6.3%
ROE(5y)6.25%
ROIC(3y)4.31%
ROIC(5y)4.06%
ROICexc(3y)4.33%
ROICexc(5y)4.28%
ROICexgc(3y)10.01%
ROICexgc(5y)9.26%
ROCE(3y)6.12%
ROCE(5y)5.78%
ROICexcg growth 3Y16.65%
ROICexcg growth 5Y-11.3%
ROICexc growth 3Y6.07%
ROICexc growth 5Y-13.09%
OM growth 3Y-4.59%
OM growth 5Y-12.01%
PM growth 3Y-1.78%
PM growth 5Y-15.46%
GM growth 3Y0.29%
GM growth 5Y-1.79%
F-Score6
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 4.69 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 38.87% | ||
| Cap/Sales | 2.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.61% | ||
| Profit Quality | 382% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | 1.43 |
F-Score6
WACC8.46%
ROIC/WACC0.33
Cap/Depr(3y)40.06%
Cap/Depr(5y)54.61%
Cap/Sales(3y)2.33%
Cap/Sales(5y)3.2%
Profit Quality(3y)323.27%
Profit Quality(5y)295.26%
High Growth Momentum
Growth
EPS 1Y (TTM)-33.61%
EPS 3Y5.01%
EPS 5Y-11.2%
EPS Q2Q%-51.28%
EPS Next Y-53.48%
EPS Next 2Y-18.96%
EPS Next 3Y-13.07%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.25%
Revenue growth 3Y4.29%
Revenue growth 5Y1.24%
Sales Q2Q%-3.74%
Revenue Next Year-7.54%
Revenue Next 2Y-2.47%
Revenue Next 3Y-1.73%
Revenue Next 5YN/A
EBIT growth 1Y-30.52%
EBIT growth 3Y-0.5%
EBIT growth 5Y-10.91%
EBIT Next Year41.78%
EBIT Next 3Y15.14%
EBIT Next 5YN/A
FCF growth 1Y-60.62%
FCF growth 3Y-9.2%
FCF growth 5Y-1.66%
OCF growth 1Y-55.13%
OCF growth 3Y-12.19%
OCF growth 5Y-3.92%