METRO INC/CN (MRU.CA) Stock Fundamental Analysis
TSX:MRU - Toronto Stock Exchange - CA59162N1096 - Common Stock - Currency: CAD
Taking everything into account, MRU scores 5 out of 10 in our fundamental rating. MRU was compared to 16 industry peers in the Consumer Staples Distribution & Retail industry. MRU has an excellent financial health rating, but there are some minor concerns on its profitability. MRU is valued expensive and it does not seem to be growing.
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.
In the past 5 years MRU always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.97%, MRU belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
MRU has a Return On Equity (14.04%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 8.84%, MRU is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MRU is in line with the industry average of 8.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.04% | ||
| ROIC | 8.84% |
ROA(3y)6.73%
ROA(5y)6.44%
ROE(3y)13.65%
ROE(5y)13.35%
ROIC(3y)8.97%
ROIC(5y)8.66%
1.3 Margins
The Profit Margin of MRU (4.59%) is better than 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.
The Operating Margin of MRU (6.67%) 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.
The Gross Margin of MRU (19.75%) is worse than 68.75% of its industry peers.
MRU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.67% | ||
| PM (TTM) | 4.59% | ||
| GM | 19.75% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MRU is still creating some value.
MRU has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MRU has been reduced compared to 5 years ago.
MRU has a better debt/assets ratio than last year.
2.2 Solvency
MRU has an Altman-Z score of 4.36. This indicates that MRU is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MRU (4.36) is better than 87.50% of its industry peers.
The Debt to FCF ratio of MRU is 4.19, which is a neutral value as it means it would take MRU, 4.19 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MRU (4.19) is better than 81.25% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that MRU is somewhat dependend on debt financing.
MRU's Debt to Equity ratio of 0.59 is fine compared to the rest of the industry. MRU outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 4.36 |
ROIC/WACC1.24
WACC7.12%
2.3 Liquidity
MRU has a Current Ratio of 1.42. This is a normal value and indicates that MRU is financially healthy and should not expect problems in meeting its short term obligations.
MRU has a Current ratio of 1.42. This is amongst the best in the industry. MRU outperforms 81.25% of its industry peers.
A Quick Ratio of 0.56 indicates that MRU may have some problems paying its short term obligations.
With a Quick ratio value of 0.56, MRU is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
MRU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.15%.
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.
The Revenue has been growing slightly by 2.31% in the past year.
The Revenue has been growing slightly by 4.82% on average over the past years.
EPS 1Y (TTM)5.15%
EPS 3Y7.72%
EPS 5Y8.57%
EPS Q2Q%12.09%
Revenue 1Y (TTM)2.31%
Revenue growth 3Y5.09%
Revenue growth 5Y4.82%
Sales Q2Q%5.46%
3.2 Future
The Earnings Per Share is expected to grow by 5.88% on average over the next years.
MRU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.99% yearly.
EPS Next Y12.69%
EPS Next 2Y11.34%
EPS Next 3Y9.96%
EPS Next 5Y5.88%
Revenue Next Year4.08%
Revenue Next 2Y3.78%
Revenue Next 3Y3.6%
Revenue Next 5Y2.99%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.28, MRU is valued on the expensive side.
MRU's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.41, MRU is valued at the same level.
MRU is valuated rather expensively with a Price/Forward Earnings ratio of 19.61.
MRU's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MRU is more expensive than 68.75% of the companies in the same industry.
MRU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.28 | ||
| Fwd PE | 19.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRU is valued expensively inside the industry as 81.25% of the companies are valued cheaper.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.32 | ||
| EV/EBITDA | 13.47 |
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)1.83
PEG (5Y)2.71
EPS Next 2Y11.34%
EPS Next 3Y9.96%
5. Dividend
5.1 Amount
MRU has a Yearly Dividend Yield of 1.41%.
MRU's Dividend Yield is rather good when compared to the industry average which is at 1.51. MRU pays more dividend than 87.50% of the companies in the same industry.
With a Dividend Yield of 1.41, MRU pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
The dividend of MRU is nicely growing with an annual growth rate of 10.85%!
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
5.3 Sustainability
MRU pays out 30.76% 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.
DP30.76%
EPS Next 2Y11.34%
EPS Next 3Y9.96%
TSX:MRU (7/11/2025, 7:00:00 PM)
104.51
-0.46 (-0.44%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners44.67%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap22.79B
Analysts72
Price Target106.49 (1.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend1.31
Dividend Growth(5Y)10.85%
DP30.76%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.6%
Min EPS beat(2)-1.35%
Max EPS beat(2)0.15%
EPS beat(4)2
Avg EPS beat(4)0.23%
Min EPS beat(4)-1.35%
Max EPS beat(4)2.31%
EPS beat(8)5
Avg EPS beat(8)-0.12%
EPS beat(12)8
Avg EPS beat(12)0.17%
EPS beat(16)9
Avg EPS beat(16)-0.45%
Revenue beat(2)0
Avg Revenue beat(2)-0.67%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-1.33%
Max Revenue beat(4)0.54%
Revenue beat(8)3
Avg Revenue beat(8)-0.01%
Revenue beat(12)4
Avg Revenue beat(12)-0.02%
Revenue beat(16)4
Avg Revenue beat(16)-0.3%
PT rev (1m)0%
PT rev (3m)9.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.28 | ||
| Fwd PE | 19.61 | ||
| P/S | 1.05 | ||
| P/FCF | 21.32 | ||
| P/OCF | 14.25 | ||
| P/B | 3.22 | ||
| P/tB | 21.16 | ||
| EV/EBITDA | 13.47 |
EPS(TTM)4.49
EY4.3%
EPS(NY)5.33
Fwd EY5.1%
FCF(TTM)4.9
FCFY4.69%
OCF(TTM)7.33
OCFY7.02%
SpS99.13
BVpS32.44
TBVpS4.94
PEG (NY)1.83
PEG (5Y)2.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.04% | ||
| ROCE | 11.66% | ||
| ROIC | 8.84% | ||
| ROICexc | 8.87% | ||
| ROICexgc | 17.25% | ||
| OM | 6.67% | ||
| PM (TTM) | 4.59% | ||
| GM | 19.75% | ||
| FCFM | 4.95% |
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 Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.19 | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 91.46% | ||
| Cap/Sales | 2.45% | ||
| Interest Coverage | 7.98 | ||
| Cash Conversion | 79.07% | ||
| Profit Quality | 107.65% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 4.36 |
F-Score6
WACC7.12%
ROIC/WACC1.24
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)5.15%
EPS 3Y7.72%
EPS 5Y8.57%
EPS Q2Q%12.09%
EPS Next Y12.69%
EPS Next 2Y11.34%
EPS Next 3Y9.96%
EPS Next 5Y5.88%
Revenue 1Y (TTM)2.31%
Revenue growth 3Y5.09%
Revenue growth 5Y4.82%
Sales Q2Q%5.46%
Revenue Next Year4.08%
Revenue Next 2Y3.78%
Revenue Next 3Y3.6%
Revenue Next 5Y2.99%
EBIT growth 1Y2.04%
EBIT growth 3Y3.95%
EBIT growth 5Y5.75%
EBIT Next Year45.25%
EBIT Next 3Y17.1%
EBIT Next 5Y9.4%
FCF growth 1Y17.97%
FCF growth 3Y3.79%
FCF growth 5Y22.54%
OCF growth 1Y4.5%
OCF growth 3Y2%
OCF growth 5Y16.15%