MONRO INC (MNRO) Stock Fundamental Analysis
NASDAQ:MNRO - Nasdaq - US6102361010 - Common Stock - Currency: USD
Taking everything into account, MNRO scores 3 out of 10 in our fundamental rating. MNRO was compared to 121 industry peers in the Specialty Retail industry. MNRO has a medium profitability rating, but doesn't score so well on its financial health evaluation. MNRO has a valuation in line with the averages, but on the other hand it scores bad on growth. MNRO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MNRO had positive earnings in the past year.
MNRO had a positive operating cash flow in the past year.
MNRO had positive earnings in each of the past 5 years.
MNRO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MNRO (1.10%) is comparable to the rest of the industry.
The Return On Equity of MNRO (2.84%) is better than 60.33% of its industry peers.
MNRO has a Return On Invested Capital (2.83%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MNRO is significantly below the industry average of 14.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 2.84% | ||
| ROIC | 2.83% |
ROA(3y)2.53%
ROA(5y)2.45%
ROE(3y)6.3%
ROE(5y)6.25%
ROIC(3y)4.31%
ROIC(5y)4.06%
1.3 Margins
The Profit Margin of MNRO (1.52%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MNRO has declined.
MNRO has a Operating Margin of 3.86%. This is comparable to the rest of the industry: MNRO outperforms 57.02% of its industry peers.
MNRO's Operating Margin has declined in the last couple of years.
MNRO has a Gross Margin (35.56%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MNRO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.86% | ||
| PM (TTM) | 1.52% | ||
| GM | 35.56% |
OM growth 3Y-4.59%
OM growth 5Y-12.01%
PM growth 3Y-1.78%
PM growth 5Y-15.46%
GM growth 3Y0.29%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MNRO is destroying value.
Compared to 1 year ago, MNRO has less shares outstanding
Compared to 5 years ago, MNRO has less shares outstanding
Compared to 1 year ago, MNRO has an improved debt to assets ratio.
2.2 Solvency
MNRO has an Altman-Z score of 1.44. This is a bad value and indicates that MNRO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MNRO (1.44) is worse than 61.98% of its industry peers.
The Debt to FCF ratio of MNRO is 4.69, which is a neutral value as it means it would take MNRO, 4.69 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.69, MNRO is in the better half of the industry, outperforming 61.16% of the companies in the same industry.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.35
WACC7.98%
2.3 Liquidity
MNRO has a Current Ratio of 0.54. This is a bad value and indicates that MNRO is not financially healthy enough and could expect problems in meeting its short term obligations.
MNRO has a worse Current ratio (0.54) than 91.74% of its industry peers.
MNRO has a Quick Ratio of 0.54. This is a bad value and indicates that MNRO is not financially healthy enough and could expect problems in meeting its short term obligations.
MNRO's Quick ratio of 0.19 is on the low side compared to the rest of the industry. MNRO is outperformed by 88.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
The earnings per share for MNRO have decreased strongly by -33.61% in the last year.
The earnings per share for MNRO have been decreasing by -11.20% on average. This is quite bad
The Revenue has decreased by -5.25% in the past year.
Measured over the past years, MNRO shows a small growth in Revenue. The Revenue has been growing by 1.24% on average per year.
EPS 1Y (TTM)-33.61%
EPS 3Y5.01%
EPS 5Y-11.2%
EPS Q2Q%-51.28%
Revenue 1Y (TTM)-5.25%
Revenue growth 3Y4.29%
Revenue growth 5Y1.24%
Sales Q2Q%-3.74%
3.2 Future
The Earnings Per Share is expected to decrease by -12.40% on average over the next years. This is quite bad
MNRO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.39% yearly.
EPS Next Y-53.64%
EPS Next 2Y-20%
EPS Next 3Y-12.4%
EPS Next 5YN/A
Revenue Next Year-7.62%
Revenue Next 2Y-2.51%
Revenue Next 3Y-1.39%
Revenue Next 5YN/A
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.
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
Based on the Price/Earnings ratio of 17.67, the valuation of MNRO can be described as rather expensive.
66.12% of the companies in the same industry are more expensive than MNRO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MNRO to the average of the S&P500 Index (28.29), we can say MNRO is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.52 indicates a correct valuation of MNRO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MNRO indicates a somewhat cheap valuation: MNRO is cheaper than 62.81% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MNRO to the average of the S&P500 Index (21.32), we can say MNRO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 16.52 |
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 65.29% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MNRO is valued cheaply inside the industry as 89.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.93 | ||
| EV/EBITDA | 6.32 |
4.3 Compensation for Growth
MNRO's earnings are expected to decrease with -12.40% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20%
EPS Next 3Y-12.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.02%, MNRO is a good candidate for dividend investing.
In the last 3 months the price of MNRO has falen by -35.49%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.62, MNRO pays a better dividend. On top of this MNRO pays more dividend than 96.69% of the companies listed in the same industry.
MNRO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.02% |
5.2 History
On average, the dividend of MNRO grows each year by 7.36%, which is quite nice.
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)7.36%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
MNRO pays out 187.21% of its income as dividend. This is not a sustainable payout ratio.
MNRO's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP187.21%
EPS Next 2Y-20%
EPS Next 3Y-12.4%
13.96
+0.22 (+1.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners110.4%
Inst Owner Change0.21%
Ins Owners0.84%
Ins Owner Change0%
Market Cap418.10M
Analysts75
Price Target22.95 (64.4%)
Short Float %14.65%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.02% |
Yearly Dividend1.16
Dividend Growth(5Y)7.36%
DP187.21%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-36.15%
Min EPS beat(2)-36.5%
Max EPS beat(2)-35.8%
EPS beat(4)1
Avg EPS beat(4)847.51%
Min EPS beat(4)-36.5%
Max EPS beat(4)3494.77%
EPS beat(8)2
Avg EPS beat(8)411.85%
EPS beat(12)3
Avg EPS beat(12)271.27%
EPS beat(16)6
Avg EPS beat(16)205.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.58%
Min Revenue beat(2)-3.64%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-3.08%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)-1.53%
Revenue beat(8)0
Avg Revenue beat(8)-3.41%
Revenue beat(12)0
Avg Revenue beat(12)-2.97%
Revenue beat(16)3
Avg Revenue beat(16)-2.09%
PT rev (1m)0%
PT rev (3m)-24.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-86.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-31.82%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-4.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 16.52 | ||
| P/S | 0.35 | ||
| P/FCF | 5.93 | ||
| P/OCF | 4.28 | ||
| P/B | 0.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.32 |
EPS(TTM)0.79
EY5.66%
EPS(NY)0.84
Fwd EY6.05%
FCF(TTM)2.35
FCFY16.85%
OCF(TTM)3.26
OCFY23.37%
SpS40.41
BVpS21.67
TBVpS-3.29
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 2.84% | ||
| ROCE | 4.02% | ||
| ROIC | 2.83% | ||
| ROICexc | 2.86% | ||
| ROICexgc | 8.13% | ||
| OM | 3.86% | ||
| PM (TTM) | 1.52% | ||
| GM | 35.56% | ||
| FCFM | 5.82% |
ROA(3y)2.53%
ROA(5y)2.45%
ROE(3y)6.3%
ROE(5y)6.25%
ROIC(3y)4.31%
ROIC(5y)4.06%
ROICexc(3y)4.33%
ROICexc(5y)4.28%
ROICexgc(3y)10.01%
ROICexgc(5y)9.26%
ROCE(3y)6.12%
ROCE(5y)5.78%
ROICexcg growth 3Y16.65%
ROICexcg growth 5Y-11.3%
ROICexc growth 3Y6.07%
ROICexc growth 5Y-13.09%
OM growth 3Y-4.59%
OM growth 5Y-12.01%
PM growth 3Y-1.78%
PM growth 5Y-15.46%
GM growth 3Y0.29%
GM growth 5Y-1.79%
F-Score6
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 4.69 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 38.87% | ||
| Cap/Sales | 2.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.61% | ||
| Profit Quality | 382% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | 1.44 |
F-Score6
WACC7.98%
ROIC/WACC0.35
Cap/Depr(3y)40.06%
Cap/Depr(5y)54.61%
Cap/Sales(3y)2.33%
Cap/Sales(5y)3.2%
Profit Quality(3y)323.27%
Profit Quality(5y)295.26%
High Growth Momentum
Growth
EPS 1Y (TTM)-33.61%
EPS 3Y5.01%
EPS 5Y-11.2%
EPS Q2Q%-51.28%
EPS Next Y-53.64%
EPS Next 2Y-20%
EPS Next 3Y-12.4%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.25%
Revenue growth 3Y4.29%
Revenue growth 5Y1.24%
Sales Q2Q%-3.74%
Revenue Next Year-7.62%
Revenue Next 2Y-2.51%
Revenue Next 3Y-1.39%
Revenue Next 5YN/A
EBIT growth 1Y-30.52%
EBIT growth 3Y-0.5%
EBIT growth 5Y-10.91%
EBIT Next Year41.78%
EBIT Next 3Y15.14%
EBIT Next 5YN/A
FCF growth 1Y-60.62%
FCF growth 3Y-9.2%
FCF growth 5Y-1.66%
OCF growth 1Y-55.13%
OCF growth 3Y-12.19%
OCF growth 5Y-3.92%