METRO INC/CN (MRU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MRU - CA59162N1096 - Common Stock
99.95 CAD
+1.58 (+1.61%)
We assign a fundamental rating of 5 out of 10 to MRU. MRU was compared to 18 industry peers in the Consumer Staples Distribution & Retail industry. MRU has an average financial health and profitability rating. MRU is valied quite expensively at the moment, while it does show a decent growth rate.
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.
MRU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MRU (6.99%) is better than 94.44% of its industry peers.
MRU has a Return On Equity (14.47%) which is in line with its industry peers.
MRU's Return On Invested Capital of 9.05% is in line compared to the rest of the industry. MRU outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRU is in line with the industry average of 8.07%.
| 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
The Profit Margin of MRU (4.62%) is better than 94.44% of its industry peers.
MRU's Profit Margin has been stable in the last couple of years.
MRU's Operating Margin of 6.76% is in line compared to the rest of the industry. MRU outperforms 55.56% of its industry peers.
In the last couple of years the Operating Margin of MRU has remained more or less at the same level.
MRU has a worse Gross Margin (19.86%) than 77.78% of its industry peers.
MRU's Gross Margin has been stable in the last couple of years.
| 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
MRU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for MRU is higher compared to a year ago.
2.2 Solvency
MRU has an Altman-Z score of 4.14. This indicates that MRU is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MRU (4.14) is better than 83.33% of its industry peers.
The Debt to FCF ratio of MRU is 3.79, which is a good value as it means it would take MRU, 3.79 years of fcf income to pay off all of its debts.
MRU has a Debt to FCF ratio of 3.79. This is amongst the best in the industry. MRU outperforms 94.44% of its industry peers.
MRU has a Debt/Equity ratio of 0.61. This is a neutral value indicating MRU is somewhat dependend on debt financing.
The Debt to Equity ratio of MRU (0.61) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 4.14 |
ROIC/WACC1.29
WACC6.99%
2.3 Liquidity
MRU has a Current Ratio of 1.30. This is a normal value and indicates that MRU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.30, MRU is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
MRU has a Quick Ratio of 1.30. This is a bad value and indicates that MRU is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.51, MRU is doing worse than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
MRU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.93%, which is quite good.
The Earnings Per Share has been growing slightly by 7.78% on average over the past years.
MRU shows a small growth in Revenue. In the last year, the Revenue has grown by 3.71%.
The Revenue has been growing slightly by 4.10% on average over the past years.
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
Based on estimates for the next years, MRU will show a small growth in Earnings Per Share. The EPS will grow by 4.52% on average per year.
Based on estimates for the next years, MRU will show a small growth in Revenue. The Revenue will grow by 3.30% on average per year.
EPS Next Y10.93%
EPS Next 2Y9.99%
EPS Next 3Y9.08%
EPS Next 5Y4.52%
Revenue Next Year3.14%
Revenue Next 2Y3.15%
Revenue Next 3Y3.12%
Revenue Next 5Y3.3%
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 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 20.95, MRU is valued on the expensive side.
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 valuation a bit cheaper than the S&P500 average which is at 27.25.
A Price/Forward Earnings ratio of 18.89 indicates a rather expensive valuation of MRU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRU is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of MRU to the average of the S&P500 Index (23.98), we can say MRU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 18.89 |
4.2 Price Multiples
72.22% of the companies in the same industry are cheaper than MRU, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRU is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.61 | ||
| EV/EBITDA | 12.44 |
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)1.92
PEG (5Y)2.69
EPS Next 2Y9.99%
EPS Next 3Y9.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.51%, MRU has a reasonable but not impressive dividend return.
MRU's Dividend Yield is comparable with the industry average which is at 2.13.
MRU's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
On average, the dividend of MRU grows each year by 10.60%, which is quite nice.
MRU has been paying a dividend for at least 10 years, so it has 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)10.6%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
31.15% of the earnings are spent on dividend by MRU. This is a low number and sustainable payout ratio.
MRU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.15%
EPS Next 2Y9.99%
EPS Next 3Y9.08%
TSX:MRU (1/12/2026, 7:00:00 PM)
99.95
+1.58 (+1.61%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners45.62%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap21.38B
Revenue(TTM)22.01B
Net Income(TTM)1.02B
Analysts70
Price Target110.61 (10.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Yearly Dividend1.45
Dividend Growth(5Y)10.6%
DP31.15%
Div Incr Years26
Div Non Decr Years26
Ex-DateN/A
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%
PT rev (3m)1.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.55%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 18.89 | ||
| P/S | 0.97 | ||
| P/FCF | 17.61 | ||
| P/OCF | 12.4 | ||
| P/B | 3.04 | ||
| P/tB | 20.4 | ||
| EV/EBITDA | 12.44 |
EPS(TTM)4.77
EY4.77%
EPS(NY)5.29
Fwd EY5.29%
FCF(TTM)5.68
FCFY5.68%
OCF(TTM)8.06
OCFY8.07%
SpS102.86
BVpS32.84
TBVpS4.9
PEG (NY)1.92
PEG (5Y)2.69
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 | 4.14 |
F-Score8
WACC6.99%
ROIC/WACC1.29
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 Y10.93%
EPS Next 2Y9.99%
EPS Next 3Y9.08%
EPS Next 5Y4.52%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y5.22%
Revenue growth 5Y4.1%
Sales Q2Q%3.45%
Revenue Next Year3.14%
Revenue Next 2Y3.15%
Revenue Next 3Y3.12%
Revenue Next 5Y3.3%
EBIT growth 1Y5.58%
EBIT growth 3Y4.16%
EBIT growth 5Y3.89%
EBIT Next Year46.6%
EBIT Next 3Y17.22%
EBIT Next 5Y9.57%
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.
Can you provide the valuation status for METRO INC/CN?
ChartMill assigns a valuation rating of 3 / 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.
What is the valuation of METRO INC/CN based on its PE and PB ratios?
The Price/Earnings (PE) ratio for METRO INC/CN (MRU.CA) is 20.95 and the Price/Book (PB) ratio is 3.04.
Can you provide the dividend sustainability for MRU stock?
The dividend rating of METRO INC/CN (MRU.CA) is 5 / 10 and the dividend payout ratio is 31.15%.