METRO INC/CN (MRU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MRU - CA59162N1096 - Common Stock
100.81 CAD
+0.55 (+0.55%)
MRU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 17 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and the financial health of MRU get a neutral evaluation. Nothing too spectacular is happening here. MRU is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years MRU has always been profitable.
MRU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MRU has a Return On Assets of 6.99%. This is amongst the best in the industry. MRU outperforms 94.12% of its industry peers.
The Return On Equity of MRU (14.47%) is comparable to the rest of the industry.
MRU has a Return On Invested Capital (9.05%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MRU is in line with the industry average of 8.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.99% | ||
| ROE | 14.47% | ||
| ROIC | 9.05% |
ROA(3y)6.96%
ROA(5y)6.65%
ROE(3y)14.21%
ROE(5y)13.66%
ROIC(3y)9.08%
ROIC(5y)8.87%
1.3 Margins
Looking at the Profit Margin, with a value of 4.62%, MRU belongs to the top 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.
MRU has a Operating Margin (6.76%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MRU has remained more or less at the same level.
Looking at the Gross Margin, with a value of 19.86%, MRU is doing worse than 76.47% of the companies in the same industry.
In the last couple of years the Gross Margin of MRU has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.76% | ||
| PM (TTM) | 4.62% | ||
| GM | 19.86% |
OM growth 3Y-1.01%
OM growth 5Y-0.21%
PM growth 3Y1.05%
PM growth 5Y0.91%
GM growth 3Y-0.28%
GM growth 5Y-0.04%
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.
MRU has less shares outstanding than it did 1 year ago.
MRU has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MRU has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.15 indicates that MRU is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.15, MRU belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
MRU has a debt to FCF ratio of 3.79. This is a good value and a sign of high solvency as MRU would need 3.79 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.79, MRU belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
MRU has a Debt/Equity ratio of 0.61. This is a neutral value indicating MRU is somewhat dependend on debt financing.
MRU has a Debt to Equity ratio of 0.61. This is amongst the best in the industry. MRU outperforms 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 4.15 |
ROIC/WACC1.3
WACC6.96%
2.3 Liquidity
A Current Ratio of 1.30 indicates that MRU should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.30, MRU is doing good in the industry, outperforming 64.71% of the companies in the same industry.
A Quick Ratio of 0.51 indicates that MRU may have some problems paying its short term obligations.
MRU has a worse Quick ratio (0.51) than 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.93% over the past year.
Measured over the past 5 years, MRU shows a small growth in Earnings Per Share. The EPS has been growing by 7.78% on average per year.
MRU shows a small growth in Revenue. In the last year, the Revenue has grown by 3.71%.
Measured over the past years, MRU shows a small growth in Revenue. The Revenue has been growing by 4.10% on average per year.
EPS 1Y (TTM)10.93%
EPS 3Y7.87%
EPS 5Y7.78%
EPS Q2Q%10.78%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y5.22%
Revenue growth 5Y4.1%
Sales Q2Q%3.45%
3.2 Future
MRU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.02% yearly.
The Revenue is expected to grow by 3.79% on average over the next years.
EPS Next Y10.55%
EPS Next 2Y9.01%
EPS Next 3Y7.49%
EPS Next 5Y5.02%
Revenue Next Year3.48%
Revenue Next 2Y3.41%
Revenue Next 3Y3.17%
Revenue Next 5Y3.79%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.13, MRU is valued on the expensive side.
MRU's Price/Earnings ratio is in line with the industry average.
MRU is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.12 indicates a rather expensive valuation of MRU.
MRU's Price/Forward Earnings is on the same level as the industry average.
MRU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 19.12 |
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 82.35% 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 | 17.76 | ||
| EV/EBITDA | 12.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MRU does not grow enough to justify the current Price/Earnings ratio.
MRU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2
PEG (5Y)2.72
EPS Next 2Y9.01%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
MRU has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.55, MRU has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.32, MRU is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
The dividend of MRU is nicely growing with an annual growth rate of 10.60%!
MRU has been paying a dividend for at least 10 years, so it has a reliable track record.
MRU has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.6%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
MRU pays out 31.15% 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.
DP31.15%
EPS Next 2Y9.01%
EPS Next 3Y7.49%
TSX:MRU (12/1/2025, 7:00:00 PM)
100.81
+0.55 (+0.55%)
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 Cap21.57B
Revenue(TTM)22.01B
Net Income(TTM)1.02B
Analysts70
Price Target108.53 (7.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend1.45
Dividend Growth(5Y)10.6%
DP31.15%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.04%
Min EPS beat(2)-1.8%
Max EPS beat(2)1.71%
EPS beat(4)2
Avg EPS beat(4)-0.32%
Min EPS beat(4)-1.8%
Max EPS beat(4)1.71%
EPS beat(8)5
Avg EPS beat(8)0.47%
EPS beat(12)8
Avg EPS beat(12)0.13%
EPS beat(16)10
Avg EPS beat(16)-0.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-1.74%
Max Revenue beat(2)-1.13%
Revenue beat(4)0
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-0.59%
Revenue beat(12)3
Avg Revenue beat(12)-0.35%
Revenue beat(16)4
Avg Revenue beat(16)-0.32%
PT rev (1m)-0.75%
PT rev (3m)-0.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 19.12 | ||
| P/S | 0.98 | ||
| P/FCF | 17.76 | ||
| P/OCF | 12.5 | ||
| P/B | 3.07 | ||
| P/tB | 20.57 | ||
| EV/EBITDA | 12.53 |
EPS(TTM)4.77
EY4.73%
EPS(NY)5.27
Fwd EY5.23%
FCF(TTM)5.68
FCFY5.63%
OCF(TTM)8.06
OCFY8%
SpS102.86
BVpS32.84
TBVpS4.9
PEG (NY)2
PEG (5Y)2.72
Graham Number59.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.99% | ||
| ROE | 14.47% | ||
| ROCE | 11.92% | ||
| ROIC | 9.05% | ||
| ROICexc | 9.09% | ||
| ROICexgc | 17.54% | ||
| OM | 6.76% | ||
| PM (TTM) | 4.62% | ||
| GM | 19.86% | ||
| FCFM | 5.52% |
ROA(3y)6.96%
ROA(5y)6.65%
ROE(3y)14.21%
ROE(5y)13.66%
ROIC(3y)9.08%
ROIC(5y)8.87%
ROICexc(3y)9.12%
ROICexc(5y)8.96%
ROICexgc(3y)18.23%
ROICexgc(5y)18.62%
ROCE(3y)11.97%
ROCE(5y)11.69%
ROICexgc growth 3Y-1.81%
ROICexgc growth 5Y-1.36%
ROICexc growth 3Y1.34%
ROICexc growth 5Y1.62%
OM growth 3Y-1.01%
OM growth 5Y-0.21%
PM growth 3Y1.05%
PM growth 5Y0.91%
GM growth 3Y-0.28%
GM growth 5Y-0.04%
F-Score8
Asset Turnover1.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.79 | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 85.9% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 8.31 | ||
| Cash Conversion | 82.82% | ||
| Profit Quality | 119.4% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 4.15 |
F-Score8
WACC6.96%
ROIC/WACC1.3
Cap/Depr(3y)105.66%
Cap/Depr(5y)113.14%
Cap/Sales(3y)2.78%
Cap/Sales(5y)2.98%
Profit Quality(3y)108.31%
Profit Quality(5y)108.76%
High Growth Momentum
Growth
EPS 1Y (TTM)10.93%
EPS 3Y7.87%
EPS 5Y7.78%
EPS Q2Q%10.78%
EPS Next Y10.55%
EPS Next 2Y9.01%
EPS Next 3Y7.49%
EPS Next 5Y5.02%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y5.22%
Revenue growth 5Y4.1%
Sales Q2Q%3.45%
Revenue Next Year3.48%
Revenue Next 2Y3.41%
Revenue Next 3Y3.17%
Revenue Next 5Y3.79%
EBIT growth 1Y5.58%
EBIT growth 3Y4.16%
EBIT growth 5Y3.89%
EBIT Next Year47.27%
EBIT Next 3Y16.08%
EBIT Next 5Y9.98%
FCF growth 1Y10.36%
FCF growth 3Y13.06%
FCF growth 5Y4.74%
OCF growth 1Y2.67%
OCF growth 3Y5.68%
OCF growth 5Y3.19%
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 2 / 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 21.13 and the Price/Book (PB) ratio is 3.07.
How financially healthy is METRO INC/CN?
The financial health rating of METRO INC/CN (MRU.CA) is 6 / 10.