METRO INC/CN (MRU.CA) Stock Fundamental Analysis
Canada - TSX:MRU - CA59162N1096 - Common Stock
95.4 CAD
+1.86 (+1.99%)
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 excellent financial health rating, but there are some minor concerns on its profitability. 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.
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
MRU has a Return On Assets of 7.14%. This is amongst the best in the industry. MRU outperforms 94.12% of its industry peers.
Looking at the Return On Equity, with a value of 14.31%, MRU is in line with its industry, outperforming 52.94% of the companies in the same industry.
MRU's Return On Invested Capital of 8.99% is in line compared to the rest of the industry. MRU outperforms 47.06% 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 7.78%.
The 3 year average ROIC (8.97%) for MRU is below the current ROIC(8.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 14.31% | ||
| ROIC | 8.99% |
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
With an excellent Profit Margin value of 4.67%, MRU belongs to the best 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 6.71%, 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.
Looking at the Gross Margin, with a value of 19.80%, 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 | 6.71% | ||
| PM (TTM) | 4.67% | ||
| GM | 19.8% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MRU is still creating some value.
MRU has less shares outstanding than it did 1 year ago.
MRU has less shares outstanding than it did 5 years ago.
MRU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.19 indicates that MRU is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.19, MRU belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
MRU has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as MRU would need 3.68 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.68, MRU belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that MRU is somewhat dependend on debt financing.
The Debt to Equity ratio of MRU (0.58) is better than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 4.19 |
ROIC/WACC1.27
WACC7.05%
2.3 Liquidity
MRU has a Current Ratio of 1.37. 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 1.37, MRU is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
MRU has a Quick Ratio of 1.37. 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's Quick ratio of 0.56 is on the low side compared to the rest of the industry. MRU is outperformed by 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
MRU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.13%, which is quite good.
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.
Looking at the last year, MRU shows a small growth in Revenue. The Revenue has grown by 2.26% in the last year.
The Revenue has been growing slightly by 4.82% on average over the past years.
EPS 1Y (TTM)9.13%
EPS 3Y7.72%
EPS 5Y8.57%
EPS Q2Q%12.59%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y5.09%
Revenue growth 5Y4.82%
Sales Q2Q%3.3%
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 6.02% on average per year.
Based on estimates for the next years, MRU will show a small growth in Revenue. The Revenue will grow by 3.69% on average per year.
EPS Next Y11.62%
EPS Next 2Y10.93%
EPS Next 3Y9.88%
EPS Next 5Y6.02%
Revenue Next Year3.91%
Revenue Next 2Y3.69%
Revenue Next 3Y3.6%
Revenue Next 5Y3.69%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MRU is valuated rather expensively with a Price/Earnings ratio of 20.47.
Compared to the rest of the industry, the Price/Earnings ratio of MRU is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.13, MRU is valued a bit cheaper.
With a Price/Forward Earnings ratio of 18.03, MRU is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRU indicates a slightly more expensive valuation: MRU is more expensive than 64.71% of the companies listed in the same industry.
MRU's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 18.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRU is valued a bit more expensive than 76.47% 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 | 17.19 | ||
| EV/EBITDA | 12.08 |
4.3 Compensation for Growth
MRU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MRU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.76
PEG (5Y)2.39
EPS Next 2Y10.93%
EPS Next 3Y9.88%
5. Dividend
5.1 Amount
MRU has a Yearly Dividend Yield of 1.59%.
MRU's Dividend Yield is comparable with the industry average which is at 3.61.
MRU's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
The dividend of MRU is nicely growing with an annual growth rate of 10.85%!
MRU has been paying a dividend for at least 10 years, so it has 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
30.52% 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.
DP30.52%
EPS Next 2Y10.93%
EPS Next 3Y9.88%
TSX:MRU (11/5/2025, 7:00:00 PM)
95.4
+1.86 (+1.99%)
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 Cap20.52B
Revenue(TTM)21.84B
Net Income(TTM)1.02B
Analysts70
Price Target109.04 (14.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend1.31
Dividend Growth(5Y)10.85%
DP30.52%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.58%
Min EPS beat(2)-1.8%
Max EPS beat(2)-1.35%
EPS beat(4)2
Avg EPS beat(4)-0.17%
Min EPS beat(4)-1.8%
Max EPS beat(4)2.31%
EPS beat(8)4
Avg EPS beat(8)-0.84%
EPS beat(12)8
Avg EPS beat(12)0.14%
EPS beat(16)9
Avg EPS beat(16)-0.13%
Revenue beat(2)0
Avg Revenue beat(2)-0.87%
Min Revenue beat(2)-1.74%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)0.54%
Revenue beat(8)2
Avg Revenue beat(8)-0.59%
Revenue beat(12)4
Avg Revenue beat(12)-0.07%
Revenue beat(16)4
Avg Revenue beat(16)-0.38%
PT rev (1m)-0.28%
PT rev (3m)2.39%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)-2.62%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 18.03 | ||
| P/S | 0.94 | ||
| P/FCF | 17.19 | ||
| P/OCF | 12.19 | ||
| P/B | 2.88 | ||
| P/tB | 17.87 | ||
| EV/EBITDA | 12.08 |
EPS(TTM)4.66
EY4.88%
EPS(NY)5.29
Fwd EY5.55%
FCF(TTM)5.55
FCFY5.82%
OCF(TTM)7.82
OCFY8.2%
SpS101.54
BVpS33.16
TBVpS5.34
PEG (NY)1.76
PEG (5Y)2.39
Graham Number58.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 14.31% | ||
| ROCE | 11.85% | ||
| ROIC | 8.99% | ||
| ROICexc | 9.04% | ||
| ROICexgc | 17.62% | ||
| OM | 6.71% | ||
| PM (TTM) | 4.67% | ||
| GM | 19.8% | ||
| FCFM | 5.47% |
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%
ROICexgc growth 3Y-2.53%
ROICexgc 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-Score7
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 82.79% | ||
| Cap/Sales | 2.24% | ||
| Interest Coverage | 8.28 | ||
| Cash Conversion | 81.85% | ||
| Profit Quality | 116.98% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 4.19 |
F-Score7
WACC7.05%
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)9.13%
EPS 3Y7.72%
EPS 5Y8.57%
EPS Q2Q%12.59%
EPS Next Y11.62%
EPS Next 2Y10.93%
EPS Next 3Y9.88%
EPS Next 5Y6.02%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y5.09%
Revenue growth 5Y4.82%
Sales Q2Q%3.3%
Revenue Next Year3.91%
Revenue Next 2Y3.69%
Revenue Next 3Y3.6%
Revenue Next 5Y3.69%
EBIT growth 1Y3.98%
EBIT growth 3Y3.95%
EBIT growth 5Y5.75%
EBIT Next Year45.32%
EBIT Next 3Y17.09%
EBIT Next 5Y10.14%
FCF growth 1Y17.66%
FCF growth 3Y3.79%
FCF growth 5Y22.54%
OCF growth 1Y2.4%
OCF growth 3Y2%
OCF growth 5Y16.15%
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 20.47 and the Price/Book (PB) ratio is 2.88.
How financially healthy is METRO INC/CN?
The financial health rating of METRO INC/CN (MRU.CA) is 7 / 10.