METRO INC/CN (MRU.CA) Stock Fundamental Analysis
TSX:MRU - Toronto Stock Exchange - CA59162N1096 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to MRU. MRU was compared to 19 industry peers in the Consumer Staples Distribution & Retail industry. While MRU belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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.
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 (6.57%) is better than 84.21% of its industry peers.
MRU has a Return On Equity of 13.23%. This is in the better half of the industry: MRU outperforms 73.68% of its industry peers.
The Return On Invested Capital of MRU (9.01%) is better than 73.68% 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 8.58%.
The 3 year average ROIC (8.97%) for MRU is below the current ROIC(9.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.57% | ||
| ROE | 13.23% | ||
| ROIC | 9.01% |
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
MRU has a better Profit Margin (4.38%) than 94.74% of its industry peers.
MRU's Profit Margin has been stable in the last couple of years.
MRU has a better Operating Margin (6.64%) than 63.16% of its industry peers.
MRU's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 19.70%, MRU is doing worse than 63.16% 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 | 6.64% | ||
| PM (TTM) | 4.38% | ||
| GM | 19.7% |
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.
The number of shares outstanding for MRU has been reduced compared to 1 year ago.
MRU has less shares outstanding than it did 5 years ago.
MRU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.11 indicates that MRU is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.11, MRU is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
The Debt to FCF ratio of MRU is 3.92, which is a good value as it means it would take MRU, 3.92 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.92, MRU belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that MRU is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.53, MRU is doing good in the industry, outperforming 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.92 | ||
| Altman-Z | 4.11 |
ROIC/WACC1.29
WACC7%
2.3 Liquidity
MRU has a Current Ratio of 1.08. 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 worse Current ratio (1.08) than 63.16% of its industry peers.
MRU has a Quick Ratio of 1.08. This is a bad value and indicates that MRU is not financially healthy enough and could expect problems in meeting its short term obligations.
MRU's Quick ratio of 0.42 is on the low side compared to the rest of the industry. MRU is outperformed by 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
MRU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.39%.
The Earnings Per Share has been growing by 8.57% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.39% in the past year.
The Revenue has been growing slightly by 4.82% on average over the past years.
EPS 1Y (TTM)1.39%
EPS 3Y7.72%
EPS 5Y8.57%
EPS Q2Q%7.84%
Revenue 1Y (TTM)2.39%
Revenue growth 3Y5.09%
Revenue growth 5Y4.82%
Sales Q2Q%2.87%
3.2 Future
The Earnings Per Share is expected to grow by 7.23% on average over the next years.
The Revenue is expected to grow by 3.89% on average over the next years.
EPS Next Y12.92%
EPS Next 2Y11.78%
EPS Next 3Y10.89%
EPS Next 5Y7.23%
Revenue Next Year3.81%
Revenue Next 2Y3.61%
Revenue Next 3Y3.09%
Revenue Next 5Y3.89%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 21.17, the valuation of MRU can be described as rather expensive.
63.16% of the companies in the same industry are cheaper than MRU, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, MRU is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.26 indicates a rather expensive valuation of MRU.
MRU's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MRU to the average of the S&P500 Index (22.68), we can say MRU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 17.26 |
4.2 Price Multiples
MRU's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. MRU is more expensive than 84.21% of the companies in the same industry.
MRU's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. MRU is more expensive than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.65 | ||
| EV/EBITDA | 12.52 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MRU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.64
PEG (5Y)2.47
EPS Next 2Y11.78%
EPS Next 3Y10.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.60%, MRU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.55, MRU pays a better dividend. On top of this MRU pays more dividend than 89.47% of the companies listed in the same industry.
MRU's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
On average, the dividend of MRU grows each year by 10.85%, 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)10.85%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
MRU pays out 31.72% of its income as dividend. This is a sustainable payout ratio.
The dividend of MRU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.72%
EPS Next 2Y11.78%
EPS Next 3Y10.89%
TSX:MRU (2/21/2025, 7:00:00 PM)
92.73
+0.02 (+0.02%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners45.56%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap20.52B
Analysts72
Price Target97.1 (4.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend1.31
Dividend Growth(5Y)10.85%
DP31.72%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.06%
Min EPS beat(2)-0.19%
Max EPS beat(2)2.31%
EPS beat(4)3
Avg EPS beat(4)1.26%
Min EPS beat(4)-0.19%
Max EPS beat(4)2.31%
EPS beat(8)6
Avg EPS beat(8)0.36%
EPS beat(12)8
Avg EPS beat(12)0.09%
EPS beat(16)9
Avg EPS beat(16)-0.66%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)0.54%
Revenue beat(4)2
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)0.54%
Revenue beat(8)3
Avg Revenue beat(8)0%
Revenue beat(12)4
Avg Revenue beat(12)-0.08%
Revenue beat(16)4
Avg Revenue beat(16)-0.45%
PT rev (1m)1.6%
PT rev (3m)10.06%
EPS NQ rev (1m)-0.88%
EPS NQ rev (3m)-2.68%
EPS NY rev (1m)1.4%
EPS NY rev (3m)1.93%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 17.26 | ||
| P/S | 0.97 | ||
| P/FCF | 18.65 | ||
| P/OCF | 12.21 | ||
| P/B | 2.92 | ||
| P/tB | 20.35 | ||
| EV/EBITDA | 12.52 |
EPS(TTM)4.38
EY4.72%
EPS(NY)5.37
Fwd EY5.79%
FCF(TTM)4.97
FCFY5.36%
OCF(TTM)7.59
OCFY8.19%
SpS95.89
BVpS31.73
TBVpS4.56
PEG (NY)1.64
PEG (5Y)2.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.57% | ||
| ROE | 13.23% | ||
| ROCE | 11.89% | ||
| ROIC | 9.01% | ||
| ROICexc | 9.04% | ||
| ROICexgc | 18.39% | ||
| OM | 6.64% | ||
| PM (TTM) | 4.38% | ||
| GM | 19.7% | ||
| FCFM | 5.19% |
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 Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.92 | ||
| Debt/EBITDA | 1.88 | ||
| Cap/Depr | 101.63% | ||
| Cap/Sales | 2.73% | ||
| Interest Coverage | 7.72 | ||
| Cash Conversion | 84.84% | ||
| Profit Quality | 118.47% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 4.11 |
F-Score6
WACC7%
ROIC/WACC1.29
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)1.39%
EPS 3Y7.72%
EPS 5Y8.57%
EPS Q2Q%7.84%
EPS Next Y12.92%
EPS Next 2Y11.78%
EPS Next 3Y10.89%
EPS Next 5Y7.23%
Revenue 1Y (TTM)2.39%
Revenue growth 3Y5.09%
Revenue growth 5Y4.82%
Sales Q2Q%2.87%
Revenue Next Year3.81%
Revenue Next 2Y3.61%
Revenue Next 3Y3.09%
Revenue Next 5Y3.89%
EBIT growth 1Y-2.11%
EBIT growth 3Y3.95%
EBIT growth 5Y5.75%
EBIT Next Year46.42%
EBIT Next 3Y17.05%
EBIT Next 5Y10.76%
FCF growth 1Y24.52%
FCF growth 3Y3.79%
FCF growth 5Y22.54%
OCF growth 1Y7.45%
OCF growth 3Y2%
OCF growth 5Y16.15%