METRO INC/CN (MRU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MRU - CA59162N1096 - Common Stock
98.79 CAD
+0.21 (+0.21%)
We assign a fundamental rating of 5 out of 10 to MRU. MRU was compared to 17 industry peers in the Consumer Staples Distribution & Retail industry. MRU has an average financial health and profitability rating. 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.
In the past 5 years MRU always reported a positive cash flow from operatings.
1.2 Ratios
MRU has a better Return On Assets (6.99%) than 94.12% of its industry peers.
MRU has a Return On Equity (14.47%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 9.05%, MRU perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MRU is in line with the industry average of 8.35%.
| 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
MRU's Profit Margin of 4.62% is amongst the best of the industry. MRU outperforms 94.12% 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 (6.76%) 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 (19.86%) is worse than 76.47% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MRU is still creating some value.
Compared to 1 year ago, MRU has less shares outstanding
The number of shares outstanding for MRU has been reduced compared to 5 years ago.
Compared to 1 year ago, MRU has a worse debt to assets ratio.
2.2 Solvency
MRU has an Altman-Z score of 4.11. This indicates that MRU is financially healthy and has little risk of bankruptcy at the moment.
MRU has a Altman-Z score of 4.11. This is amongst the best in the industry. MRU outperforms 82.35% of its industry peers.
MRU has a debt to FCF ratio of 3.79. This is a good value and a sign of high solvency as MRU would need 3.79 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.79, MRU belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that MRU is somewhat dependend on debt financing.
MRU has a better Debt to Equity ratio (0.61) than 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 4.11 |
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 76.47% of the companies in the same industry.
A Quick Ratio of 0.51 indicates that MRU may have some problems paying its short term obligations.
MRU's Quick ratio of 0.51 is on the low side compared to the rest of the industry. MRU is outperformed by 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.93% over the past year.
Measured over the past 5 years, MRU shows a small growth in Earnings Per Share. The EPS has been growing by 7.78% on average per year.
Looking at the last year, MRU shows a small growth in Revenue. The Revenue has grown by 3.71% in the last year.
MRU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.10% yearly.
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 5.02% on average per year.
Based on estimates for the next years, MRU will show a small growth in Revenue. The Revenue will grow by 3.79% on average per year.
EPS Next Y10.93%
EPS Next 2Y9.99%
EPS Next 3Y9.08%
EPS Next 5Y5.02%
Revenue Next Year3.14%
Revenue Next 2Y3.15%
Revenue Next 3Y3.12%
Revenue Next 5Y3.79%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 20.71, which indicates a rather expensive current valuation of MRU.
MRU's Price/Earnings ratio is in line with the industry average.
MRU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.51.
MRU is valuated rather expensively with a Price/Forward Earnings ratio of 18.67.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRU is on the same level as its industry peers.
MRU's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.71 | ||
| Fwd PE | 18.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MRU indicates a slightly more expensive valuation: MRU is more expensive than 70.59% of the companies listed in the same industry.
MRU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.41 | ||
| EV/EBITDA | 12.31 |
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)1.9
PEG (5Y)2.66
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 2.30.
Compared to the average S&P500 Dividend Yield of 2.00, MRU is paying slightly less dividend.
| 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
MRU pays out 31.15% 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.
DP31.15%
EPS Next 2Y9.99%
EPS Next 3Y9.08%
TSX:MRU (12/31/2025, 7:00:00 PM)
98.79
+0.21 (+0.21%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners45.95%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap21.14B
Revenue(TTM)22.01B
Net Income(TTM)1.02B
Analysts70
Price Target110.61 (11.96%)
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)1.92%
PT rev (3m)1.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.71 | ||
| Fwd PE | 18.67 | ||
| P/S | 0.96 | ||
| P/FCF | 17.41 | ||
| P/OCF | 12.25 | ||
| P/B | 3.01 | ||
| P/tB | 20.16 | ||
| EV/EBITDA | 12.31 |
EPS(TTM)4.77
EY4.83%
EPS(NY)5.29
Fwd EY5.36%
FCF(TTM)5.68
FCFY5.75%
OCF(TTM)8.06
OCFY8.16%
SpS102.86
BVpS32.84
TBVpS4.9
PEG (NY)1.9
PEG (5Y)2.66
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 | 4.11 |
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 5Y5.02%
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 5Y3.79%
EBIT growth 1Y5.58%
EBIT growth 3Y4.16%
EBIT growth 5Y3.89%
EBIT Next Year46.6%
EBIT Next 3Y17.22%
EBIT Next 5Y10.09%
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 20.71 and the Price/Book (PB) ratio is 3.01.
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%.