Logo image of MRU.CA

METRO INC/CN (MRU.CA) Stock Fundamental Analysis

TSX:MRU - Toronto Stock Exchange - CA59162N1096 - Common Stock - Currency: CAD

91.73  -0.91 (-0.98%)

Fundamental Rating

5

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 scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, MRU is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year MRU was profitable.
In the past year MRU had a positive cash flow from operations.
MRU had positive earnings in each of the past 5 years.
Each year in the past 5 years MRU had a positive operating cash flow.
MRU.CA Yearly Net Income VS EBIT VS OCF VS FCFMRU.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

1.2 Ratios

Looking at the Return On Assets, with a value of 6.57%, MRU belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
The Return On Equity of MRU (13.23%) is better than 75.00% of its industry peers.
MRU has a better Return On Invested Capital (9.01%) than 75.00% of 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 8.25%.
The 3 year average ROIC (8.97%) for MRU is below the current ROIC(9.01%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.57%
ROE 13.23%
ROIC 9.01%
ROA(3y)6.73%
ROA(5y)6.44%
ROE(3y)13.65%
ROE(5y)13.35%
ROIC(3y)8.97%
ROIC(5y)8.66%
MRU.CA Yearly ROA, ROE, ROICMRU.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

MRU's Profit Margin of 4.38% is amongst the best of the industry. MRU outperforms 93.75% of its industry peers.
In the last couple of years the Profit Margin of MRU has remained more or less at the same level.
Looking at the Operating Margin, with a value of 6.64%, MRU is in line with its industry, outperforming 56.25% of the companies in the same industry.
MRU's Operating Margin has been stable in the last couple of years.
The Gross Margin of MRU (19.70%) is worse than 68.75% of its industry peers.
In the last couple of years the Gross Margin of MRU has remained more or less at the same level.
Industry RankSector Rank
OM 6.64%
PM (TTM) 4.38%
GM 19.7%
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%
MRU.CA Yearly Profit, Operating, Gross MarginsMRU.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

6

2. Health

2.1 Basic Checks

MRU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, MRU has an improved debt to assets ratio.
MRU.CA Yearly Shares OutstandingMRU.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
MRU.CA Yearly Total Debt VS Total AssetsMRU.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

2.2 Solvency

MRU has an Altman-Z score of 4.12. This indicates that MRU is financially healthy and has little risk of bankruptcy at the moment.
MRU has a Altman-Z score of 4.12. This is amongst the best in the industry. MRU outperforms 87.50% of its industry peers.
MRU has a debt to FCF ratio of 3.92. This is a good value and a sign of high solvency as MRU would need 3.92 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.92, MRU belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
MRU has a Debt/Equity ratio of 0.53. This is a neutral value indicating MRU is somewhat dependend on debt financing.
MRU has a Debt to Equity ratio of 0.53. This is amongst the best in the industry. MRU outperforms 81.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 3.92
Altman-Z 4.12
ROIC/WACC1.29
WACC7%
MRU.CA Yearly LT Debt VS Equity VS FCFMRU.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.3 Liquidity

A Current Ratio of 1.08 indicates that MRU should not have too much problems paying its short term obligations.
MRU has a Current ratio of 1.08. This is in the lower half of the industry: MRU underperforms 68.75% of its industry peers.
MRU has a Quick Ratio of 1.08. 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 0.42, MRU is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.42
MRU.CA Yearly Current Assets VS Current LiabilitesMRU.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

4

3. Growth

3.1 Past

MRU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
Measured over the past years, MRU shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.57% on average per year.
Looking at the last year, MRU shows a small growth in Revenue. The Revenue has grown by 2.39% in the last year.
The Revenue has been growing slightly by 4.82% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y7.72%
EPS 5Y8.57%
EPS Q2Q%3.03%
Revenue 1Y (TTM)2.39%
Revenue growth 3Y5.09%
Revenue growth 5Y4.82%
Sales Q2Q%-2.63%

3.2 Future

MRU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.23% yearly.
The Revenue is expected to grow by 3.89% on average over the next years.
EPS Next Y11.44%
EPS Next 2Y10.93%
EPS Next 3Y9.52%
EPS Next 5Y7.23%
Revenue Next Year3.79%
Revenue Next 2Y3.55%
Revenue Next 3Y3.15%
Revenue Next 5Y3.89%

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 stable.
MRU.CA Yearly Revenue VS EstimatesMRU.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B 25B
MRU.CA Yearly EPS VS EstimatesMRU.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6

2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 21.33, the valuation of MRU can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MRU indicates a slightly more expensive valuation: MRU is more expensive than 68.75% of the companies listed in the same industry.
MRU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.12.
MRU is valuated rather expensively with a Price/Forward Earnings ratio of 19.14.
Based on the Price/Forward Earnings ratio, MRU is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
MRU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.77.
Industry RankSector Rank
PE 21.33
Fwd PE 19.14
MRU.CA Price Earnings VS Forward Price EarningsMRU.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MRU indicates a rather expensive valuation: MRU more expensive than 93.75% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MRU is valued a bit more expensive than 75.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.51
EV/EBITDA 12.55
MRU.CA Per share dataMRU.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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)1.86
PEG (5Y)2.49
EPS Next 2Y10.93%
EPS Next 3Y9.52%

6

5. Dividend

5.1 Amount

MRU has a Yearly Dividend Yield of 1.63%. Purely for dividend investing, there may be better candidates out there.
MRU's Dividend Yield is rather good when compared to the industry average which is at 1.63. MRU pays more dividend than 81.25% of the companies in the same industry.
MRU's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
Industry RankSector Rank
Dividend Yield 1.63%

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
MRU.CA Yearly Dividends per shareMRU.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

MRU pays out 31.72% 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.
DP31.72%
EPS Next 2Y10.93%
EPS Next 3Y9.52%
MRU.CA Yearly Income VS Free CF VS DividendMRU.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
MRU.CA Dividend Payout.MRU.CA Dividend Payout, showing the Payout Ratio.MRU.CA Dividend Payout.PayoutRetained Earnings

METRO INC/CN

TSX:MRU (2/7/2025, 7:00:00 PM)

91.73

-0.91 (-0.98%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)01-28 2025-01-28
Earnings (Next)N/A N/A
Inst Owners46.83%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap20.37B
Analysts70.67
Price Target96.29 (4.97%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.63%
Yearly Dividend1.31
Dividend Growth(5Y)10.85%
DP31.72%
Div Incr Years26
Div Non Decr Years26
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.06%
Min EPS beat(2)-0.19%
Max EPS beat(2)2.31%
EPS beat(4)3
Avg EPS beat(4)1.26%
Min EPS beat(4)-0.19%
Max EPS beat(4)2.31%
EPS beat(8)6
Avg EPS beat(8)0.36%
EPS beat(12)8
Avg EPS beat(12)0.09%
EPS beat(16)9
Avg EPS beat(16)-0.66%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)0.54%
Revenue beat(4)2
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)0.54%
Revenue beat(8)3
Avg Revenue beat(8)0%
Revenue beat(12)4
Avg Revenue beat(12)-0.08%
Revenue beat(16)4
Avg Revenue beat(16)-0.45%
PT rev (1m)0.75%
PT rev (3m)9.13%
EPS NQ rev (1m)-0.88%
EPS NQ rev (3m)-2.68%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.76%
Valuation
Industry RankSector Rank
PE 21.33
Fwd PE 19.14
P/S 0.96
P/FCF 18.51
P/OCF 12.12
P/B 2.9
P/tB 20.19
EV/EBITDA 12.55
EPS(TTM)4.3
EY4.69%
EPS(NY)4.79
Fwd EY5.22%
FCF(TTM)4.96
FCFY5.4%
OCF(TTM)7.57
OCFY8.25%
SpS95.57
BVpS31.62
TBVpS4.54
PEG (NY)1.86
PEG (5Y)2.49
Profitability
Industry RankSector Rank
ROA 6.57%
ROE 13.23%
ROCE 11.89%
ROIC 9.01%
ROICexc 9.04%
ROICexgc 18.39%
OM 6.64%
PM (TTM) 4.38%
GM 19.7%
FCFM 5.19%
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 Turnover1.5
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 3.92
Debt/EBITDA 1.88
Cap/Depr 101.63%
Cap/Sales 2.73%
Interest Coverage 7.72
Cash Conversion 84.84%
Profit Quality 118.47%
Current Ratio 1.08
Quick Ratio 0.42
Altman-Z 4.12
F-Score6
WACC7%
ROIC/WACC1.29
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)0%
EPS 3Y7.72%
EPS 5Y8.57%
EPS Q2Q%3.03%
EPS Next Y11.44%
EPS Next 2Y10.93%
EPS Next 3Y9.52%
EPS Next 5Y7.23%
Revenue 1Y (TTM)2.39%
Revenue growth 3Y5.09%
Revenue growth 5Y4.82%
Sales Q2Q%-2.63%
Revenue Next Year3.79%
Revenue Next 2Y3.55%
Revenue Next 3Y3.15%
Revenue Next 5Y3.89%
EBIT growth 1Y-2.11%
EBIT growth 3Y3.95%
EBIT growth 5Y5.75%
EBIT Next Year46.42%
EBIT Next 3Y17.05%
EBIT Next 5Y10.76%
FCF growth 1Y24.52%
FCF growth 3Y3.79%
FCF growth 5Y22.54%
OCF growth 1Y7.45%
OCF growth 3Y2%
OCF growth 5Y16.15%