METRO INC/CN (MRU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MRU - CA59162N1096 - Common Stock
99.32 CAD
+0.3 (+0.3%)
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. Both the profitability and the financial health of MRU get a neutral evaluation. Nothing too spectacular is happening here. MRU is valied quite expensively at the moment, while 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.
In the past 5 years MRU has always been profitable.
In the past 5 years MRU always reported a positive cash flow from operatings.
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 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 8.37%.
| 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 94.12% 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 in line with its industry peers.
In the last couple of years the Operating Margin of MRU has remained more or less at the same level.
Looking at the Gross Margin, with a value of 19.86%, MRU is doing worse than 76.47% 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 | 6.76% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MRU is 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
An Altman-Z score of 4.13 indicates that MRU is not in any danger for bankruptcy at the moment.
The Altman-Z score of MRU (4.13) is better than 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.
MRU's Debt to FCF ratio of 3.79 is amongst the best of the industry. MRU outperforms 88.24% 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 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 4.13 |
ROIC/WACC1.3
WACC6.95%
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.
MRU has a better Current ratio (1.30) than 76.47% 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.
MRU has a Quick ratio of 0.51. This is amonst the worse of the industry: MRU underperforms 82.35% of its industry peers.
| 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 5.02% on average per year.
MRU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.79% yearly.
EPS Next Y10.93%
EPS Next 2Y10.07%
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.
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 20.82.
The rest of the industry has a similar Price/Earnings ratio as MRU.
The average S&P500 Price/Earnings ratio is at 26.43. MRU is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 18.77 indicates a rather expensive valuation of MRU.
MRU's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.66. MRU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 18.77 |
4.2 Price Multiples
MRU's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MRU is more expensive than 76.47% of the companies in the same industry.
MRU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.5 | ||
| EV/EBITDA | 12.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MRU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.91
PEG (5Y)2.68
EPS Next 2Y10.07%
EPS Next 3Y9.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.50%, MRU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.32, MRU has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, MRU has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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 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
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 2Y10.07%
EPS Next 3Y9.08%
TSX:MRU (12/16/2025, 7:00:00 PM)
99.32
+0.3 (+0.3%)
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 Cap21.25B
Revenue(TTM)22.01B
Net Income(TTM)1.02B
Analysts70
Price Target110.61 (11.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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)1.44%
PT rev (3m)1.16%
EPS NQ rev (1m)1.26%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 18.77 | ||
| P/S | 0.97 | ||
| P/FCF | 17.5 | ||
| P/OCF | 12.32 | ||
| P/B | 3.02 | ||
| P/tB | 20.27 | ||
| EV/EBITDA | 12.38 |
EPS(TTM)4.77
EY4.8%
EPS(NY)5.29
Fwd EY5.33%
FCF(TTM)5.68
FCFY5.71%
OCF(TTM)8.06
OCFY8.12%
SpS102.86
BVpS32.84
TBVpS4.9
PEG (NY)1.91
PEG (5Y)2.68
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 | 4.13 |
F-Score8
WACC6.95%
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 Y10.93%
EPS Next 2Y10.07%
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 Year46.73%
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.
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 20.82 and the Price/Book (PB) ratio is 3.02.
How financially healthy is METRO INC/CN?
The financial health rating of METRO INC/CN (MRU.CA) is 6 / 10.