METRO INC/CN (MRU.CA) Stock Fundamental Analysis
Canada - TSX:MRU - CA59162N1096 - Common Stock
93.03 CAD
+1.04 (+1.13%)
Overall MRU gets a fundamental rating of 5 out of 10. We evaluated MRU against 17 industry peers in the Consumer Staples Distribution & Retail industry. While MRU has a great health rating, its profitability is only average at the moment. MRU is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
MRU had positive earnings in the past year.
MRU had a positive operating cash flow in the past year.
MRU had positive earnings in each of the past 5 years.
In the past 5 years MRU always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MRU (7.14%) is better than 94.12% of its industry peers.
MRU has a Return On Equity (14.31%) which is in line with its industry peers.
With a Return On Invested Capital value of 8.99%, MRU perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
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 7.78%.
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
With an excellent Profit Margin value of 4.67%, MRU belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
MRU's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 6.71%, MRU is in line with its industry, outperforming 52.94% of the companies in the same industry.
In the last couple of years the Operating Margin of MRU has remained more or less at the same level.
MRU's Gross Margin of 19.80% is on the low side compared to the rest of the industry. MRU is outperformed by 76.47% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MRU is still creating some value.
Compared to 1 year ago, MRU has less shares outstanding
MRU has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MRU has been reduced compared to a year ago.
2.2 Solvency
MRU has an Altman-Z score of 4.15. This indicates that MRU is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.15, MRU belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
MRU has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as MRU would need 3.68 years to pay back of all of its debts.
The Debt to FCF ratio of MRU (3.68) is better than 94.12% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that MRU is somewhat dependend on debt financing.
MRU's Debt to Equity ratio of 0.58 is amongst the best of the industry. MRU outperforms 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 4.15 |
ROIC/WACC1.28
WACC7.04%
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 76.47% of its industry peers.
A Quick Ratio of 0.56 indicates that MRU may have some problems paying its short term obligations.
The Quick ratio of MRU (0.56) is worse than 76.47% of its industry peers.
| 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.
Looking at the last year, MRU shows a small growth in Revenue. The Revenue has grown by 2.26% in the last year.
Measured over the past years, MRU shows a small growth in Revenue. The Revenue has been growing by 4.82% on average per year.
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
The Earnings Per Share is expected to grow by 6.02% on average over the next years.
Based on estimates for the next years, MRU will show a small growth in Revenue. The Revenue will grow by 3.69% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 19.96, MRU is valued on the expensive side.
MRU's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of MRU to the average of the S&P500 Index (26.19), we can say MRU is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.58 indicates a rather expensive valuation of MRU.
Based on the Price/Forward Earnings ratio, MRU is valued a bit more expensive than 64.71% of the companies in the same industry.
MRU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 17.58 |
4.2 Price Multiples
MRU's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MRU is more expensive than 76.47% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRU is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.76 | ||
| EV/EBITDA | 11.83 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MRU has a very decent profitability rating, which 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
MRU has a Yearly Dividend Yield of 1.57%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.60, MRU has a dividend in line with its industry peers.
MRU's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of MRU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP30.52%
EPS Next 2Y10.93%
EPS Next 3Y9.88%
TSX:MRU (10/30/2025, 7:00:00 PM)
93.03
+1.04 (+1.13%)
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 Cap20.01B
Revenue(TTM)21.84B
Net Income(TTM)1.02B
Analysts70
Price Target109.34 (17.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)-1.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 17.58 | ||
| P/S | 0.92 | ||
| P/FCF | 16.76 | ||
| P/OCF | 11.89 | ||
| P/B | 2.81 | ||
| P/tB | 17.43 | ||
| EV/EBITDA | 11.83 |
EPS(TTM)4.66
EY5.01%
EPS(NY)5.29
Fwd EY5.69%
FCF(TTM)5.55
FCFY5.97%
OCF(TTM)7.82
OCFY8.41%
SpS101.54
BVpS33.16
TBVpS5.34
PEG (NY)1.72
PEG (5Y)2.33
Graham Number58.97
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%
ROICexgc growth 3Y-2.53%
ROICexgc 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 | 4.15 |
F-Score7
WACC7.04%
ROIC/WACC1.28
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%
METRO INC/CN / MRU.CA FAQ
What is the ChartMill fundamental rating of METRO INC/CN (MRU.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MRU.CA.
What is the valuation status of METRO INC/CN (MRU.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to METRO INC/CN (MRU.CA). This can be considered as Overvalued.
Can you provide the profitability details for METRO INC/CN?
METRO INC/CN (MRU.CA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for MRU stock?
The Price/Earnings (PE) ratio for METRO INC/CN (MRU.CA) is 19.96 and the Price/Book (PB) ratio is 2.81.
How financially healthy is METRO INC/CN?
The financial health rating of METRO INC/CN (MRU.CA) is 7 / 10.