METRO INC/CN (MRU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MRU - CA59162N1096 - Common Stock
98.39 CAD
-1.32 (-1.32%)
MRU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.
In the past year MRU had a positive cash flow from operations.
In the past 5 years MRU has always been profitable.
Each year in the past 5 years MRU had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.99%, MRU belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
MRU's Return On Equity of 14.47% is in line compared to the rest of the industry. MRU outperforms 52.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.05%, MRU is in line with its industry, 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 8.34%.
| 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 has a better Profit Margin (4.62%) than 94.12% of its industry peers.
MRU's Profit Margin has been stable in the last couple of years.
MRU has a Operating Margin of 6.76%. This is comparable to the rest of the industry: MRU outperforms 52.94% 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's Gross Margin of 19.86% is on the low side compared to the rest of the industry. MRU is outperformed by 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.
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.
Compared to 1 year ago, MRU has a worse debt to assets ratio.
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 belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 3.79, MRU belongs to the top 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 Debt to Equity ratio of 0.61. This is amongst the best in the industry. MRU outperforms 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 4.11 |
ROIC/WACC1.3
WACC6.94%
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 64.71% 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.
MRU has a worse Quick ratio (0.51) than 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.
The Earnings Per Share has been growing slightly by 7.78% on average over the past years.
The Revenue has been growing slightly by 3.71% in the past year.
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 5.02% on average per year.
The Revenue is expected to grow by 3.79% on average over the next years.
EPS Next Y10.55%
EPS Next 2Y9.01%
EPS Next 3Y7.49%
EPS Next 5Y5.02%
Revenue Next Year3.48%
Revenue Next 2Y3.41%
Revenue Next 3Y3.17%
Revenue Next 5Y3.79%
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
A Price/Earnings ratio of 20.63 indicates a rather expensive valuation of MRU.
MRU's Price/Earnings is on the same level as the industry average.
MRU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.37.
A Price/Forward Earnings ratio of 18.66 indicates a rather expensive valuation of MRU.
MRU's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.20, MRU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.63 | ||
| Fwd PE | 18.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRU is valued more expensive than 82.35% of the companies in the same industry.
MRU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.34 | ||
| EV/EBITDA | 12.28 |
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)1.96
PEG (5Y)2.65
EPS Next 2Y9.01%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
MRU has a Yearly Dividend Yield of 1.48%.
MRU's Dividend Yield is comparable with the industry average which is at 3.55.
Compared to the average S&P500 Dividend Yield of 2.32, MRU is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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 2Y9.01%
EPS Next 3Y7.49%
TSX:MRU (12/3/2025, 7:00:00 PM)
98.39
-1.32 (-1.32%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners46.04%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap21.05B
Revenue(TTM)22.01B
Net Income(TTM)1.02B
Analysts70
Price Target108.53 (10.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend1.45
Dividend Growth(5Y)10.6%
DP31.15%
Div Incr Years26
Div Non Decr Years26
Ex-Date
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)-0.75%
PT rev (3m)-0.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.63 | ||
| Fwd PE | 18.66 | ||
| P/S | 0.96 | ||
| P/FCF | 17.34 | ||
| P/OCF | 12.2 | ||
| P/B | 3 | ||
| P/tB | 20.08 | ||
| EV/EBITDA | 12.28 |
EPS(TTM)4.77
EY4.85%
EPS(NY)5.27
Fwd EY5.36%
FCF(TTM)5.68
FCFY5.77%
OCF(TTM)8.06
OCFY8.19%
SpS102.86
BVpS32.84
TBVpS4.9
PEG (NY)1.96
PEG (5Y)2.65
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
WACC6.94%
ROIC/WACC1.3
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 Y10.55%
EPS Next 2Y9.01%
EPS Next 3Y7.49%
EPS Next 5Y5.02%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y5.22%
Revenue growth 5Y4.1%
Sales Q2Q%3.45%
Revenue Next Year3.48%
Revenue Next 2Y3.41%
Revenue Next 3Y3.17%
Revenue Next 5Y3.79%
EBIT growth 1Y5.58%
EBIT growth 3Y4.16%
EBIT growth 5Y3.89%
EBIT Next Year47.27%
EBIT Next 3Y16.08%
EBIT Next 5Y9.98%
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.
What is the valuation status of METRO INC/CN (MRU.CA) stock?
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.
Can you provide the PE and PB ratios for MRU stock?
The Price/Earnings (PE) ratio for METRO INC/CN (MRU.CA) is 20.63 and the Price/Book (PB) ratio is 3.
How financially healthy is METRO INC/CN?
The financial health rating of METRO INC/CN (MRU.CA) is 6 / 10.