METRO INC/CN (MRU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MRU - CA59162N1096 - Common Stock
98.37 CAD
+0.42 (+0.43%)
Overall MRU gets a fundamental rating of 5 out of 10. We evaluated MRU against 18 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and the financial health of MRU get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, MRU is valued expensive at the moment.
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.
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
MRU's Return On Assets of 6.99% is amongst the best of the industry. MRU outperforms 94.44% of its industry peers.
MRU has a Return On Equity (14.47%) which is in line with its industry peers.
MRU has a Return On Invested Capital (9.05%) which is in line with its industry peers.
MRU had an Average Return On Invested Capital over the past 3 years of 9.08%. This 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
With an excellent Profit Margin value of 4.62%, MRU belongs to the best 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.
The Gross Margin of MRU (19.86%) is worse than 77.78% of its industry peers.
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 | 6.76% | ||
| 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.
MRU has less shares outstanding than it did 5 years ago.
MRU has a worse debt/assets ratio than last year.
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's Altman-Z score of 4.11 is amongst the best of the industry. MRU outperforms 83.33% 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.
The Debt to FCF ratio of MRU (3.79) is better than 94.44% of its industry peers.
MRU has a Debt/Equity ratio of 0.61. This is a neutral value indicating 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 83.33% 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
A Current Ratio of 1.30 indicates that MRU should not have too much problems paying 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 77.78% 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 77.78% 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.
Looking at the last year, MRU shows a small growth in Revenue. The Revenue has grown by 3.71% in the last 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
The Earnings Per Share is expected to grow by 4.52% 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 3.30% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 20.62 indicates a rather expensive valuation of MRU.
MRU's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.19. MRU is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 18.59, MRU is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as MRU.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, MRU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.62 | ||
| Fwd PE | 18.59 |
4.2 Price Multiples
72.22% of the companies in the same industry are cheaper than MRU, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRU is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.33 | ||
| 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)1.89
PEG (5Y)2.65
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 paid a dividend for at least 10 years, which is 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
31.15% of the earnings are spent on dividend by MRU. This is a low number and 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 (1/9/2026, 7:00:00 PM)
98.37
+0.42 (+0.43%)
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 Cap21.05B
Revenue(TTM)22.01B
Net Income(TTM)1.02B
Analysts70
Price Target110.61 (12.44%)
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 | 20.62 | ||
| Fwd PE | 18.59 | ||
| P/S | 0.96 | ||
| P/FCF | 17.33 | ||
| P/OCF | 12.2 | ||
| P/B | 3 | ||
| P/tB | 20.07 | ||
| EV/EBITDA | 12.28 |
EPS(TTM)4.77
EY4.85%
EPS(NY)5.29
Fwd EY5.38%
FCF(TTM)5.68
FCFY5.77%
OCF(TTM)8.06
OCFY8.2%
SpS102.86
BVpS32.84
TBVpS4.9
PEG (NY)1.89
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
WACC6.99%
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 20.62 and the Price/Book (PB) ratio is 3.
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%.