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 only an average score on both its financial health and profitability. While showing a medium growth rate, MRU is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MRU was profitable.
MRU had a positive operating cash flow in the past year.
MRU had positive earnings in each of the past 5 years.
MRU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MRU's Return On Assets of 6.99% is amongst the best of the industry. MRU outperforms 94.44% of its industry peers.
Looking at the Return On Equity, with a value of 14.47%, MRU is in line with its industry, outperforming 55.56% of the companies in the same industry.
MRU has a Return On Invested Capital of 9.05%. This is comparable to the rest of the industry: MRU outperforms 50.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 4.62%, MRU belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
MRU's Profit Margin has been stable in the last couple of years.
MRU has a Operating Margin (6.76%) which 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.
MRU's Gross Margin of 19.86% is on the low side compared to the rest of the industry. MRU is outperformed by 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.
The number of shares outstanding for MRU has been reduced compared to 1 year ago.
The number of shares outstanding for MRU has been reduced compared to 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 4.11. 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 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's Debt to FCF ratio of 3.79 is amongst the best of the industry. MRU outperforms 94.44% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that MRU is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, MRU belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 4.11 |
ROIC/WACC1.29
WACC6.99%
2.3 Liquidity
A Current Ratio of 1.30 indicates that MRU should not have too much problems paying its short term obligations.
MRU has a Current ratio of 1.30. This is in the better half of the industry: MRU outperforms 77.78% of its industry peers.
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.
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 4.52% on average per year.
The Revenue is expected to grow by 3.30% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
MRU is valuated rather expensively with a Price/Earnings ratio of 20.95.
The rest of the industry has a similar Price/Earnings ratio as MRU.
Compared to an average S&P500 Price/Earnings ratio of 27.25, MRU is valued a bit cheaper.
MRU is valuated rather expensively with a Price/Forward Earnings ratio of 18.89.
The rest of the industry has a similar Price/Forward Earnings ratio as MRU.
The average S&P500 Price/Forward Earnings ratio is at 23.98. MRU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 18.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRU is valued a bit more expensive than the industry average as 72.22% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as MRU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.61 | ||
| EV/EBITDA | 12.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of MRU 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
MRU has a Yearly Dividend Yield of 1.51%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.13, MRU has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 1.92, MRU is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
The dividend of MRU is nicely growing with an annual growth rate of 10.60%!
MRU has been paying a dividend for at least 10 years, so it has a reliable track record.
MRU has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.6%
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.
The dividend of MRU is growing, but the earnings are growing slower. 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 | 12.28 |
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 | 4.11 |
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 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%.