METRO INC/CN (MRU.CA) Stock Fundamental Analysis
Canada - TSX:MRU - CA59162N1096 - Common Stock
93.07 CAD
-0.45 (-0.48%)
We assign a fundamental rating of 5 out of 10 to MRU. MRU was compared to 17 industry peers in the Consumer Staples Distribution & Retail industry. MRU has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, MRU is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MRU was profitable.
MRU had a positive operating cash flow in the past year.
Each year in the past 5 years MRU has been profitable.
Each year in the past 5 years MRU had a positive operating cash flow.
1.2 Ratios
MRU has a Return On Assets of 7.14%. This is amongst the best in the industry. MRU outperforms 94.44% of its industry peers.
MRU has a Return On Equity of 14.31%. This is comparable to the rest of the industry: MRU outperforms 55.56% of its industry peers.
MRU has a Return On Invested Capital (8.99%) which is in line with its industry peers.
MRU had an Average Return On Invested Capital over the past 3 years of 8.97%. This is in line with the industry average of 7.74%.
The 3 year average ROIC (8.97%) for MRU is below the current ROIC(8.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 14.31% | ||
| ROIC | 8.99% |
ROA(3y)6.73%
ROA(5y)6.44%
ROE(3y)13.65%
ROE(5y)13.35%
ROIC(3y)8.97%
ROIC(5y)8.66%
1.3 Margins
MRU's Profit Margin of 4.67% is amongst the best of the industry. MRU outperforms 94.44% of its industry peers.
MRU's Profit Margin has been stable in the last couple of years.
MRU has a Operating Margin of 6.71%. This is comparable to the rest of the industry: MRU outperforms 55.56% of its industry peers.
In the last couple of years the Operating Margin of MRU has remained more or less at the same level.
MRU has a Gross Margin of 19.80%. This is in the lower half of the industry: MRU underperforms 77.78% of its industry peers.
MRU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.71% | ||
| PM (TTM) | 4.67% | ||
| GM | 19.8% |
OM growth 3Y-1.08%
OM growth 5Y0.89%
PM growth 3Y-0.93%
PM growth 5Y0.61%
GM growth 3Y-0.5%
GM growth 5Y-0.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MRU is creating some value.
The number of shares outstanding for MRU has been reduced compared to 1 year ago.
The number of shares outstanding for MRU has been reduced compared to 5 years ago.
MRU has a better debt/assets ratio than last year.
2.2 Solvency
MRU has an Altman-Z score of 4.16. This indicates that MRU is financially healthy and has little risk of bankruptcy at the moment.
MRU has a Altman-Z score of 4.16. This is amongst the best in the industry. MRU outperforms 83.33% of its industry peers.
The Debt to FCF ratio of MRU is 3.68, which is a good value as it means it would take MRU, 3.68 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.68, MRU belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
MRU has a Debt/Equity ratio of 0.58. This is a neutral value indicating MRU is somewhat dependend on debt financing.
MRU has a Debt to Equity ratio of 0.58. This is amongst the best in the industry. MRU outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 4.16 |
ROIC/WACC1.25
WACC7.21%
2.3 Liquidity
A Current Ratio of 1.37 indicates that MRU should not have too much problems paying its short term obligations.
MRU has a Current ratio of 1.37. This is in the better half of the industry: MRU outperforms 77.78% of its industry peers.
A Quick Ratio of 0.56 indicates that MRU may have some problems paying its short term obligations.
With a Quick ratio value of 0.56, MRU is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.13% over the past year.
The Earnings Per Share has been growing by 8.57% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.26% in the past year.
The Revenue has been growing slightly by 4.82% on average over the past years.
EPS 1Y (TTM)9.13%
EPS 3Y7.72%
EPS 5Y8.57%
EPS Q2Q%12.59%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y5.09%
Revenue growth 5Y4.82%
Sales Q2Q%3.3%
3.2 Future
MRU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.02% yearly.
MRU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.69% yearly.
EPS Next Y11.62%
EPS Next 2Y10.93%
EPS Next 3Y9.88%
EPS Next 5Y6.02%
Revenue Next Year3.91%
Revenue Next 2Y3.69%
Revenue Next 3Y3.6%
Revenue Next 5Y3.69%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.97, which indicates a rather expensive current valuation of MRU.
MRU's Price/Earnings ratio is a bit cheaper when compared to the industry. MRU is cheaper than 66.67% of the companies in the same industry.
MRU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.86.
With a Price/Forward Earnings ratio of 17.59, MRU is valued on the expensive side.
61.11% of the companies in the same industry are cheaper than MRU, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.32. MRU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 17.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MRU indicates a slightly more expensive valuation: MRU is more expensive than 66.67% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MRU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.84 | ||
| EV/EBITDA | 11.88 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of MRU may justify a higher PE ratio.
PEG (NY)1.72
PEG (5Y)2.33
EPS Next 2Y10.93%
EPS Next 3Y9.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.58%, MRU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.52, MRU has a dividend in line with its industry peers.
MRU's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
On average, the dividend of MRU grows each year by 10.85%, which is quite nice.
MRU has paid a dividend for at least 10 years, which is a reliable track record.
MRU has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.85%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
MRU pays out 30.52% of its income as dividend. This is a sustainable payout ratio.
MRU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.52%
EPS Next 2Y10.93%
EPS Next 3Y9.88%
TSX:MRU (10/3/2025, 7:00:00 PM)
93.07
-0.45 (-0.48%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners46.04%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap20.11B
Analysts70
Price Target109.34 (17.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly Dividend1.31
Dividend Growth(5Y)10.85%
DP30.52%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.58%
Min EPS beat(2)-1.8%
Max EPS beat(2)-1.35%
EPS beat(4)2
Avg EPS beat(4)-0.17%
Min EPS beat(4)-1.8%
Max EPS beat(4)2.31%
EPS beat(8)4
Avg EPS beat(8)-0.84%
EPS beat(12)8
Avg EPS beat(12)0.14%
EPS beat(16)9
Avg EPS beat(16)-0.13%
Revenue beat(2)0
Avg Revenue beat(2)-0.87%
Min Revenue beat(2)-1.74%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)0.54%
Revenue beat(8)2
Avg Revenue beat(8)-0.59%
Revenue beat(12)4
Avg Revenue beat(12)-0.07%
Revenue beat(16)4
Avg Revenue beat(16)-0.38%
PT rev (1m)0%
PT rev (3m)2.68%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 17.59 | ||
| P/S | 0.92 | ||
| P/FCF | 16.84 | ||
| P/OCF | 11.95 | ||
| P/B | 2.82 | ||
| P/tB | 17.51 | ||
| EV/EBITDA | 11.88 |
EPS(TTM)4.66
EY5.01%
EPS(NY)5.29
Fwd EY5.69%
FCF(TTM)5.53
FCFY5.94%
OCF(TTM)7.79
OCFY8.37%
SpS101.07
BVpS33.01
TBVpS5.31
PEG (NY)1.72
PEG (5Y)2.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 14.31% | ||
| ROCE | 11.85% | ||
| ROIC | 8.99% | ||
| ROICexc | 9.04% | ||
| ROICexgc | 17.62% | ||
| OM | 6.71% | ||
| PM (TTM) | 4.67% | ||
| GM | 19.8% | ||
| FCFM | 5.47% |
ROA(3y)6.73%
ROA(5y)6.44%
ROE(3y)13.65%
ROE(5y)13.35%
ROIC(3y)8.97%
ROIC(5y)8.66%
ROICexc(3y)8.99%
ROICexc(5y)8.81%
ROICexgc(3y)18.54%
ROICexgc(5y)18.85%
ROCE(3y)11.83%
ROCE(5y)11.43%
ROICexcg growth 3Y-2.53%
ROICexcg growth 5Y-9.1%
ROICexc growth 3Y1.32%
ROICexc growth 5Y-0.04%
OM growth 3Y-1.08%
OM growth 5Y0.89%
PM growth 3Y-0.93%
PM growth 5Y0.61%
GM growth 3Y-0.5%
GM growth 5Y-0.16%
F-Score7
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 82.79% | ||
| Cap/Sales | 2.24% | ||
| Interest Coverage | 8.28 | ||
| Cash Conversion | 81.85% | ||
| Profit Quality | 116.98% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 4.16 |
F-Score7
WACC7.21%
ROIC/WACC1.25
Cap/Depr(3y)118.16%
Cap/Depr(5y)118.04%
Cap/Sales(3y)3.1%
Cap/Sales(5y)3.08%
Profit Quality(3y)101.62%
Profit Quality(5y)109.12%
High Growth Momentum
Growth
EPS 1Y (TTM)9.13%
EPS 3Y7.72%
EPS 5Y8.57%
EPS Q2Q%12.59%
EPS Next Y11.62%
EPS Next 2Y10.93%
EPS Next 3Y9.88%
EPS Next 5Y6.02%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y5.09%
Revenue growth 5Y4.82%
Sales Q2Q%3.3%
Revenue Next Year3.91%
Revenue Next 2Y3.69%
Revenue Next 3Y3.6%
Revenue Next 5Y3.69%
EBIT growth 1Y3.98%
EBIT growth 3Y3.95%
EBIT growth 5Y5.75%
EBIT Next Year45.32%
EBIT Next 3Y17.09%
EBIT Next 5Y10.14%
FCF growth 1Y17.66%
FCF growth 3Y3.79%
FCF growth 5Y22.54%
OCF growth 1Y2.4%
OCF growth 3Y2%
OCF growth 5Y16.15%