METRO INC/CN (MRU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MRU - CA59162N1096 - Common Stock
100.05 CAD
-0.09 (-0.09%)
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. 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
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.
MRU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MRU has a Return On Assets of 6.99%. This is amongst the best in the industry. MRU outperforms 94.12% of its industry peers.
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.
The Return On Invested Capital of MRU (9.05%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for MRU is in line with the industry average of 8.15%.
| 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.
With a Operating Margin value of 6.76%, MRU perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
In the last couple of years the Operating Margin of MRU has remained more or less at the same level.
MRU has a Gross Margin of 19.86%. This is in the lower half of the industry: MRU underperforms 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
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
Compared to 5 years ago, MRU has less shares outstanding
The debt/assets ratio for MRU is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.14 indicates that MRU is not in any danger for bankruptcy at the moment.
MRU has a Altman-Z score of 4.14. This is amongst the best in the industry. MRU outperforms 82.35% 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.
The Debt to FCF ratio of MRU (3.79) is better than 94.12% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that MRU is somewhat dependend on debt financing.
The Debt to Equity ratio of MRU (0.61) is better than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 4.14 |
ROIC/WACC1.3
WACC6.96%
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.
The Current ratio of MRU (1.30) is better than 64.71% of its industry peers.
A Quick Ratio of 0.51 indicates that MRU may have some problems paying its short term obligations.
The Quick ratio of MRU (0.51) is worse than 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.
Measured over the past 5 years, MRU shows a small growth in Earnings Per Share. The EPS has been growing by 7.78% on average per year.
The Revenue has been growing slightly by 3.71% in the past 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
The Earnings Per Share is expected to grow by 5.02% on average over the next years.
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.
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 20.97 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 similar valuation than the S&P500 average which is at 26.15.
With a Price/Forward Earnings ratio of 18.97, MRU is valued on the expensive side.
MRU's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.12. MRU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 18.97 |
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 70.59% of the companies in the same industry.
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 | 17.63 | ||
| EV/EBITDA | 12.45 |
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)1.99
PEG (5Y)2.7
EPS Next 2Y9.01%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
MRU has a Yearly Dividend Yield of 1.48%.
Compared to an average industry Dividend Yield of 3.57, MRU has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.41, 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 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
MRU pays out 31.15% of its income as dividend. This is a sustainable payout ratio.
MRU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.15%
EPS Next 2Y9.01%
EPS Next 3Y7.49%
TSX:MRU (11/26/2025, 7:00:00 PM)
100.05
-0.09 (-0.09%)
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 Cap21.41B
Revenue(TTM)22.01B
Net Income(TTM)1.02B
Analysts70
Price Target108.53 (8.48%)
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)0.47%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-0.41%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-1.08%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 18.97 | ||
| P/S | 0.97 | ||
| P/FCF | 17.63 | ||
| P/OCF | 12.41 | ||
| P/B | 3.05 | ||
| P/tB | 20.42 | ||
| EV/EBITDA | 12.45 |
EPS(TTM)4.77
EY4.77%
EPS(NY)5.27
Fwd EY5.27%
FCF(TTM)5.68
FCFY5.67%
OCF(TTM)8.06
OCFY8.06%
SpS102.86
BVpS32.84
TBVpS4.9
PEG (NY)1.99
PEG (5Y)2.7
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 | 4.14 |
F-Score8
WACC6.96%
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 2 / 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 20.97 and the Price/Book (PB) ratio is 3.05.
How financially healthy is METRO INC/CN?
The financial health rating of METRO INC/CN (MRU.CA) is 6 / 10.