METRO INC/CN (MRU.CA) Stock Fundamental Analysis
TSX:MRU - Toronto Stock Exchange - CA59162N1096 - Common Stock - Currency: CAD
Overall MRU gets a fundamental rating of 5 out of 10. We evaluated MRU against 16 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. MRU does not seem to be growing, but still is valued expensively.
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.
Each year in the past 5 years MRU has been profitable.
In the past 5 years MRU always reported a positive cash flow from operatings.
1.2 Ratios
MRU has a better Return On Assets (6.97%) than 93.75% of its industry peers.
MRU has a Return On Equity (14.04%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 8.84%, MRU is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MRU is in line with the industry average of 8.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.04% | ||
| ROIC | 8.84% |
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 has a better Profit Margin (4.59%) than 93.75% of its industry peers.
MRU's Profit Margin has been stable in the last couple of years.
MRU has a Operating Margin of 6.67%. This is comparable to the rest of the industry: MRU outperforms 50.00% of its industry peers.
MRU's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 19.75%, MRU is doing worse than 75.00% of the companies in the same industry.
MRU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.67% | ||
| PM (TTM) | 4.59% | ||
| GM | 19.75% |
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.
Compared to 1 year ago, MRU has less shares outstanding
The number of shares outstanding for MRU has been reduced compared to 5 years ago.
Compared to 1 year ago, MRU has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.41 indicates that MRU is not in any danger for bankruptcy at the moment.
MRU has a Altman-Z score of 4.41. This is amongst the best in the industry. MRU outperforms 87.50% of its industry peers.
MRU has a debt to FCF ratio of 4.19. This is a neutral value as MRU would need 4.19 years to pay back of all of its debts.
The Debt to FCF ratio of MRU (4.19) is better than 81.25% of its industry peers.
MRU has a Debt/Equity ratio of 0.59. This is a neutral value indicating MRU is somewhat dependend on debt financing.
MRU's Debt to Equity ratio of 0.59 is amongst the best of the industry. MRU outperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 4.41 |
ROIC/WACC1.23
WACC7.21%
2.3 Liquidity
A Current Ratio of 1.42 indicates that MRU should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.42, MRU belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
MRU has a Quick Ratio of 1.42. This is a bad value and indicates that MRU is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.56, MRU is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.15% over the past year.
MRU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.57% yearly.
MRU shows a small growth in Revenue. In the last year, the Revenue has grown by 2.31%.
MRU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.82% yearly.
EPS 1Y (TTM)5.15%
EPS 3Y7.72%
EPS 5Y8.57%
EPS Q2Q%12.09%
Revenue 1Y (TTM)2.31%
Revenue growth 3Y5.09%
Revenue growth 5Y4.82%
Sales Q2Q%5.46%
3.2 Future
The Earnings Per Share is expected to grow by 5.88% on average over the next years.
The Revenue is expected to grow by 2.99% on average over the next years.
EPS Next Y12.69%
EPS Next 2Y11.34%
EPS Next 3Y9.96%
EPS Next 5Y5.88%
Revenue Next Year4.1%
Revenue Next 2Y3.79%
Revenue Next 3Y3.62%
Revenue Next 5Y2.99%
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
MRU is valuated rather expensively with a Price/Earnings ratio of 23.47.
Compared to the rest of the industry, the Price/Earnings ratio of MRU is on the same level as its industry peers.
MRU's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.54.
A Price/Forward Earnings ratio of 19.77 indicates a rather expensive valuation of MRU.
Based on the Price/Forward Earnings ratio, MRU is valued a bit more expensive than the industry average as 68.75% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.28, MRU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 19.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRU is valued more expensive than 87.50% of the companies in the same industry.
MRU's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. MRU is more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.49 | ||
| EV/EBITDA | 13.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of MRU may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)2.74
EPS Next 2Y11.34%
EPS Next 3Y9.96%
5. Dividend
5.1 Amount
MRU has a Yearly Dividend Yield of 1.40%.
MRU's Dividend Yield is rather good when compared to the industry average which is at 1.52. MRU pays more dividend than 87.50% of the companies in the same industry.
With a Dividend Yield of 1.40, MRU pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
The dividend of MRU is nicely growing with an annual growth rate of 10.85%!
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 30.76% 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.
DP30.76%
EPS Next 2Y11.34%
EPS Next 3Y9.96%
TSX:MRU (8/7/2025, 7:00:00 PM)
105.37
-1.53 (-1.43%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners44.67%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap22.98B
Analysts72
Price Target106.49 (1.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Yearly Dividend1.31
Dividend Growth(5Y)10.85%
DP30.76%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.6%
Min EPS beat(2)-1.35%
Max EPS beat(2)0.15%
EPS beat(4)2
Avg EPS beat(4)0.23%
Min EPS beat(4)-1.35%
Max EPS beat(4)2.31%
EPS beat(8)5
Avg EPS beat(8)-0.12%
EPS beat(12)8
Avg EPS beat(12)0.17%
EPS beat(16)9
Avg EPS beat(16)-0.45%
Revenue beat(2)0
Avg Revenue beat(2)-0.67%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-1.33%
Max Revenue beat(4)0.54%
Revenue beat(8)3
Avg Revenue beat(8)-0.01%
Revenue beat(12)4
Avg Revenue beat(12)-0.02%
Revenue beat(16)4
Avg Revenue beat(16)-0.3%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)0.33%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 19.77 | ||
| P/S | 1.06 | ||
| P/FCF | 21.49 | ||
| P/OCF | 14.37 | ||
| P/B | 3.25 | ||
| P/tB | 21.33 | ||
| EV/EBITDA | 13.74 |
EPS(TTM)4.49
EY4.26%
EPS(NY)5.33
Fwd EY5.06%
FCF(TTM)4.9
FCFY4.65%
OCF(TTM)7.33
OCFY6.96%
SpS99.13
BVpS32.44
TBVpS4.94
PEG (NY)1.85
PEG (5Y)2.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.04% | ||
| ROCE | 11.66% | ||
| ROIC | 8.84% | ||
| ROICexc | 8.87% | ||
| ROICexgc | 17.25% | ||
| OM | 6.67% | ||
| PM (TTM) | 4.59% | ||
| GM | 19.75% | ||
| FCFM | 4.95% |
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-Score6
Asset Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.19 | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 91.46% | ||
| Cap/Sales | 2.45% | ||
| Interest Coverage | 7.98 | ||
| Cash Conversion | 79.07% | ||
| Profit Quality | 107.65% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 4.41 |
F-Score6
WACC7.21%
ROIC/WACC1.23
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)5.15%
EPS 3Y7.72%
EPS 5Y8.57%
EPS Q2Q%12.09%
EPS Next Y12.69%
EPS Next 2Y11.34%
EPS Next 3Y9.96%
EPS Next 5Y5.88%
Revenue 1Y (TTM)2.31%
Revenue growth 3Y5.09%
Revenue growth 5Y4.82%
Sales Q2Q%5.46%
Revenue Next Year4.1%
Revenue Next 2Y3.79%
Revenue Next 3Y3.62%
Revenue Next 5Y2.99%
EBIT growth 1Y2.04%
EBIT growth 3Y3.95%
EBIT growth 5Y5.75%
EBIT Next Year45.25%
EBIT Next 3Y17.1%
EBIT Next 5Y9.4%
FCF growth 1Y17.97%
FCF growth 3Y3.79%
FCF growth 5Y22.54%
OCF growth 1Y4.5%
OCF growth 3Y2%
OCF growth 5Y16.15%