MONRO INC (MNRO) Stock Fundamental Analysis
NASDAQ:MNRO - Nasdaq - US6102361010 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MNRO. MNRO was compared to 121 industry peers in the Specialty Retail industry. MNRO has a bad profitability rating. Also its financial health evaluation is rather negative. MNRO is valued correctly, but it does not seem to be growing. MNRO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MNRO was profitable.
In the past year MNRO had a positive cash flow from operations.
Of the past 5 years MNRO 4 years were profitable.
Each year in the past 5 years MNRO had a positive operating cash flow.
1.2 Ratios
MNRO's Return On Assets of -0.40% is in line compared to the rest of the industry. MNRO outperforms 45.45% of its industry peers.
MNRO's Return On Equity of -1.05% is in line compared to the rest of the industry. MNRO outperforms 52.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.81%, MNRO is in line with its industry, outperforming 42.15% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MNRO is significantly below the industry average of 13.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.4% | ||
| ROE | -1.05% | ||
| ROIC | 0.81% |
ROA(3y)1.31%
ROA(5y)1.81%
ROE(3y)3.35%
ROE(5y)4.47%
ROIC(3y)3.12%
ROIC(5y)3.51%
1.3 Margins
MNRO's Operating Margin of 1.05% is in line compared to the rest of the industry. MNRO outperforms 44.63% of its industry peers.
MNRO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 34.94%, MNRO is in line with its industry, outperforming 45.45% of the companies in the same industry.
MNRO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.05% | ||
| PM (TTM) | N/A | ||
| GM | 34.94% |
OM growth 3Y-48.06%
OM growth 5Y-33.7%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.48%
GM growth 5Y-1.63%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MNRO is destroying value.
MNRO has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for MNRO has been reduced compared to 5 years ago.
Compared to 1 year ago, MNRO has an improved debt to assets ratio.
2.2 Solvency
MNRO has an Altman-Z score of 1.39. This is a bad value and indicates that MNRO is not financially healthy and even has some risk of bankruptcy.
MNRO has a Altman-Z score of 1.39. This is in the lower half of the industry: MNRO underperforms 66.12% of its industry peers.
The Debt to FCF ratio of MNRO is 3.05, which is a good value as it means it would take MNRO, 3.05 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MNRO (3.05) is better than 75.21% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that MNRO is not too dependend on debt financing.
MNRO has a Debt to Equity ratio (0.45) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.09
WACC8.59%
2.3 Liquidity
MNRO has a Current Ratio of 0.53. This is a bad value and indicates that MNRO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of MNRO (0.53) is worse than 92.56% of its industry peers.
MNRO has a Quick Ratio of 0.53. This is a bad value and indicates that MNRO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of MNRO (0.18) is worse than 90.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
MNRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -62.88%.
Measured over the past years, MNRO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.90% on average per year.
The Revenue has decreased by -6.38% in the past year.
Measured over the past years, MNRO shows a decrease in Revenue. The Revenue has been decreasing by -0.99% on average per year.
EPS 1Y (TTM)-62.88%
EPS 3Y-35.89%
EPS 5Y-23.9%
EPS Q2Q%-142.86%
Revenue 1Y (TTM)-6.38%
Revenue growth 3Y-4.19%
Revenue growth 5Y-0.99%
Sales Q2Q%-4.86%
3.2 Future
MNRO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.25% yearly.
MNRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.57% yearly.
EPS Next Y51.25%
EPS Next 2Y36.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.24%
Revenue Next 2Y0.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 33.96, MNRO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of MNRO is on the same level as its industry peers.
MNRO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.28.
MNRO is valuated rather expensively with a Price/Forward Earnings ratio of 22.45.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MNRO is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of MNRO to the average of the S&P500 Index (21.76), we can say MNRO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.96 | ||
| Fwd PE | 22.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MNRO indicates a somewhat cheap valuation: MNRO is cheaper than 60.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MNRO is valued cheaper than 93.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.72 | ||
| EV/EBITDA | 9.76 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MNRO's earnings are expected to grow with 36.25% in the coming years.
PEG (NY)0.66
PEG (5Y)N/A
EPS Next 2Y36.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MNRO has a Yearly Dividend Yield of 8.07%, which is a nice return.
MNRO's Dividend Yield is rather good when compared to the industry average which is at 5.27. MNRO pays more dividend than 95.87% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, MNRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.07% |
5.2 History
The dividend of MNRO has a limited annual growth rate of 5.46%.
MNRO has been paying a dividend for at least 10 years, so it has a reliable track record.
MNRO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.46%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
The earnings of MNRO are negative and hence is the payout ratio. MNRO will probably not be able to sustain this dividend level.
The dividend of MNRO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-534.18%
EPS Next 2Y36.25%
EPS Next 3YN/A
16.64
+0.67 (+4.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners115.76%
Inst Owner Change6.55%
Ins Owners0.57%
Ins Owner Change3.4%
Market Cap498.37M
Analysts76.36
Price Target18.36 (10.34%)
Short Float %16.61%
Short Ratio5.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.07% |
Yearly Dividend1.17
Dividend Growth(5Y)5.46%
DP-534.18%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-225.81%
Min EPS beat(2)-415.13%
Max EPS beat(2)-36.5%
EPS beat(4)1
Avg EPS beat(4)751.84%
Min EPS beat(4)-415.13%
Max EPS beat(4)3494.77%
EPS beat(8)2
Avg EPS beat(8)369.33%
EPS beat(12)3
Avg EPS beat(12)241.45%
EPS beat(16)5
Avg EPS beat(16)177.98%
Revenue beat(2)0
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-3.64%
Max Revenue beat(2)-0.1%
Revenue beat(4)0
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)-0.1%
Revenue beat(8)0
Avg Revenue beat(8)-3.07%
Revenue beat(12)0
Avg Revenue beat(12)-2.9%
Revenue beat(16)2
Avg Revenue beat(16)-2.14%
PT rev (1m)-1.82%
PT rev (3m)-20%
EPS NQ rev (1m)-19.15%
EPS NQ rev (3m)-15.77%
EPS NY rev (1m)-14.52%
EPS NY rev (3m)-8.99%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-4%
Revenue NY rev (3m)-3.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.96 | ||
| Fwd PE | 22.45 | ||
| P/S | 0.42 | ||
| P/FCF | 4.72 | ||
| P/OCF | 3.78 | ||
| P/B | 0.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.76 |
EPS(TTM)0.49
EY2.94%
EPS(NY)0.74
Fwd EY4.45%
FCF(TTM)3.52
FCFY21.18%
OCF(TTM)4.4
OCFY26.47%
SpS39.91
BVpS20.73
TBVpS-4.21
PEG (NY)0.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.4% | ||
| ROE | -1.05% | ||
| ROCE | 1.12% | ||
| ROIC | 0.81% | ||
| ROICexc | 0.83% | ||
| ROICexgc | 2.6% | ||
| OM | 1.05% | ||
| PM (TTM) | N/A | ||
| GM | 34.94% | ||
| FCFM | 8.83% |
ROA(3y)1.31%
ROA(5y)1.81%
ROE(3y)3.35%
ROE(5y)4.47%
ROIC(3y)3.12%
ROIC(5y)3.51%
ROICexc(3y)3.13%
ROICexc(5y)3.54%
ROICexgc(3y)7.83%
ROICexgc(5y)8.05%
ROCE(3y)4.3%
ROCE(5y)4.85%
ROICexcg growth 3Y-36.19%
ROICexcg growth 5Y-23.6%
ROICexc growth 3Y-44.26%
ROICexc growth 5Y-30.6%
OM growth 3Y-48.06%
OM growth 5Y-33.7%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.48%
GM growth 5Y-1.63%
F-Score4
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 3.44 | ||
| Cap/Depr | 38% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 0.68 | ||
| Cash Conversion | 160.99% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 1.39 |
F-Score4
WACC8.59%
ROIC/WACC0.09
Cap/Depr(3y)41.31%
Cap/Depr(5y)45.01%
Cap/Sales(3y)2.38%
Cap/Sales(5y)2.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-62.88%
EPS 3Y-35.89%
EPS 5Y-23.9%
EPS Q2Q%-142.86%
EPS Next Y51.25%
EPS Next 2Y36.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.38%
Revenue growth 3Y-4.19%
Revenue growth 5Y-0.99%
Sales Q2Q%-4.86%
Revenue Next Year-1.24%
Revenue Next 2Y0.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-82.41%
EBIT growth 3Y-50.24%
EBIT growth 5Y-34.36%
EBIT Next Year164.55%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.85%
FCF growth 3Y-10.25%
FCF growth 5Y10.05%
OCF growth 1Y5.36%
OCF growth 3Y-8.78%
OCF growth 5Y1.69%