METRO INC/CN (MRU.CA) Stock Fundamental Analysis
TSX:MRU - Toronto Stock Exchange - CA59162N1096 - Common Stock - Currency: CAD
Taking everything into account, MRU scores 5 out of 10 in our fundamental rating. MRU was compared to 18 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
MRU had positive earnings in the past year.
In the past year MRU had a positive cash flow from operations.
Each year in the past 5 years MRU has 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 6.97%, MRU belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
MRU has a Return On Equity of 14.04%. This is comparable to the rest of the industry: MRU outperforms 50.00% of its industry peers.
MRU's Return On Invested Capital of 8.84% is fine compared to the rest of the industry. MRU outperforms 77.78% of its industry peers.
MRU had an Average Return On Invested Capital over the past 3 years of 8.97%. This is in line with the industry average of 8.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.04% | ||
| ROIC | 8.84% |
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's Profit Margin of 4.59% is amongst the best of the industry. MRU outperforms 88.89% of its industry peers.
MRU's Profit Margin has been stable in the last couple of years.
MRU's Operating Margin of 6.67% is fine compared to the rest of the industry. MRU outperforms 61.11% 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 19.75%, MRU is doing worse than 66.67% of the companies in the same industry.
MRU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.67% | ||
| PM (TTM) | 4.59% | ||
| GM | 19.75% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MRU 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.
MRU has a better debt/assets ratio than last year.
2.2 Solvency
MRU has an Altman-Z score of 4.34. This indicates that MRU is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MRU (4.34) is better than 83.33% of its industry peers.
MRU has a debt to FCF ratio of 4.19. This is a neutral value as MRU would need 4.19 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 4.19, MRU belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that MRU is somewhat dependend on debt financing.
MRU has a better Debt to Equity ratio (0.59) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 4.34 |
ROIC/WACC1.27
WACC6.94%
2.3 Liquidity
A Current Ratio of 1.42 indicates that MRU should not have too much problems paying its short term obligations.
The Current ratio of MRU (1.42) is better than 77.78% of its industry peers.
MRU has a Quick Ratio of 1.42. This is a bad value and indicates that MRU is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.56, MRU is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.15% over the past year.
Measured over the past years, MRU shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.57% on average per year.
MRU shows a small growth in Revenue. In the last year, the Revenue has grown by 2.31%.
Measured over the past years, MRU shows a small growth in Revenue. The Revenue has been growing by 4.82% on average per year.
EPS 1Y (TTM)5.15%
EPS 3Y7.72%
EPS 5Y8.57%
EPS Q2Q%12.09%
Revenue 1Y (TTM)2.31%
Revenue growth 3Y5.09%
Revenue growth 5Y4.82%
Sales Q2Q%5.46%
3.2 Future
The Earnings Per Share is expected to grow by 7.23% on average over the next years.
Based on estimates for the next years, MRU will show a small growth in Revenue. The Revenue will grow by 3.89% on average per year.
EPS Next Y12.69%
EPS Next 2Y11.34%
EPS Next 3Y9.96%
EPS Next 5Y7.23%
Revenue Next Year4.08%
Revenue Next 2Y3.78%
Revenue Next 3Y3.6%
Revenue Next 5Y3.89%
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 stable.
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
MRU is valuated rather expensively with a Price/Earnings ratio of 22.89.
Based on the Price/Earnings ratio, MRU is valued a bit more expensive than 61.11% of the companies in the same industry.
When comparing the Price/Earnings ratio of MRU to the average of the S&P500 Index (28.78), we can say MRU is valued slightly cheaper.
MRU is valuated rather expensively with a Price/Forward Earnings ratio of 19.28.
The rest of the industry has a similar Price/Forward Earnings ratio as MRU.
When comparing the Price/Forward Earnings ratio of MRU to the average of the S&P500 Index (21.32), we can say MRU is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.89 | ||
| Fwd PE | 19.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MRU indicates a rather expensive valuation: MRU more expensive than 83.33% of the companies listed in the same industry.
66.67% of the companies in the same industry are cheaper than MRU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.09 | ||
| EV/EBITDA | 13.35 |
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)1.8
PEG (5Y)2.67
EPS Next 2Y11.34%
EPS Next 3Y9.96%
5. Dividend
5.1 Amount
MRU has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
MRU's Dividend Yield is rather good when compared to the industry average which is at 1.43. MRU pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, MRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
On average, the dividend of MRU grows each year by 10.85%, which is quite nice.
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)10.85%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
30.76% 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.
DP30.76%
EPS Next 2Y11.34%
EPS Next 3Y9.96%
TSX:MRU (4/25/2025, 7:00:00 PM)
102.76
+0.27 (+0.26%)
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 Cap22.55B
Analysts72
Price Target106.49 (3.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend1.31
Dividend Growth(5Y)10.85%
DP30.76%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.6%
Min EPS beat(2)-1.35%
Max EPS beat(2)0.15%
EPS beat(4)2
Avg EPS beat(4)0.23%
Min EPS beat(4)-1.35%
Max EPS beat(4)2.31%
EPS beat(8)5
Avg EPS beat(8)-0.12%
EPS beat(12)8
Avg EPS beat(12)0.17%
EPS beat(16)9
Avg EPS beat(16)-0.45%
Revenue beat(2)0
Avg Revenue beat(2)-0.67%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-1.33%
Max Revenue beat(4)0.54%
Revenue beat(8)3
Avg Revenue beat(8)-0.01%
Revenue beat(12)4
Avg Revenue beat(12)-0.02%
Revenue beat(16)4
Avg Revenue beat(16)-0.3%
PT rev (1m)9.66%
PT rev (3m)11.42%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)1.13%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.89 | ||
| Fwd PE | 19.28 | ||
| P/S | 1.04 | ||
| P/FCF | 21.09 | ||
| P/OCF | 14.1 | ||
| P/B | 3.19 | ||
| P/tB | 20.93 | ||
| EV/EBITDA | 13.35 |
EPS(TTM)4.49
EY4.37%
EPS(NY)5.33
Fwd EY5.19%
FCF(TTM)4.87
FCFY4.74%
OCF(TTM)7.29
OCFY7.09%
SpS98.52
BVpS32.24
TBVpS4.91
PEG (NY)1.8
PEG (5Y)2.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.04% | ||
| ROCE | 11.66% | ||
| ROIC | 8.84% | ||
| ROICexc | 8.87% | ||
| ROICexgc | 17.25% | ||
| OM | 6.67% | ||
| PM (TTM) | 4.59% | ||
| GM | 19.75% | ||
| FCFM | 4.95% |
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 Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.19 | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 91.46% | ||
| Cap/Sales | 2.45% | ||
| Interest Coverage | 7.98 | ||
| Cash Conversion | 79.07% | ||
| Profit Quality | 107.65% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 4.34 |
F-Score6
WACC6.94%
ROIC/WACC1.27
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)5.15%
EPS 3Y7.72%
EPS 5Y8.57%
EPS Q2Q%12.09%
EPS Next Y12.69%
EPS Next 2Y11.34%
EPS Next 3Y9.96%
EPS Next 5Y7.23%
Revenue 1Y (TTM)2.31%
Revenue growth 3Y5.09%
Revenue growth 5Y4.82%
Sales Q2Q%5.46%
Revenue Next Year4.08%
Revenue Next 2Y3.78%
Revenue Next 3Y3.6%
Revenue Next 5Y3.89%
EBIT growth 1Y2.04%
EBIT growth 3Y3.95%
EBIT growth 5Y5.75%
EBIT Next Year45.74%
EBIT Next 3Y17.34%
EBIT Next 5Y10.76%
FCF growth 1Y17.97%
FCF growth 3Y3.79%
FCF growth 5Y22.54%
OCF growth 1Y4.5%
OCF growth 3Y2%
OCF growth 5Y16.15%