TSX:MRU

Stock Analysis Report

Executive Summary

Metro Inc. operates as a retailer and distributor in the food and pharmaceutical sectors in Canada.

Snowflake

Fundamentals

Average dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Metro's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.0%

MRU

-2.7%

CA Consumer Retailing

-0.1%

CA Market


1 Year Return

39.9%

MRU

25.7%

CA Consumer Retailing

0.9%

CA Market

Return vs Industry: MRU exceeded the Canadian Consumer Retailing industry which returned 25.7% over the past year.

Return vs Market: MRU exceeded the Canadian Market which returned 0.9% over the past year.


Shareholder returns

MRUIndustryMarket
7 Day-3.0%-2.7%-0.1%
30 Day-1.9%-2.5%-2.1%
90 Day13.6%2.9%-1.6%
1 Year42.1%39.9%34.2%25.7%4.4%0.9%
3 Year41.9%35.1%29.1%18.0%15.5%5.2%
5 Year140.2%122.8%86.9%64.8%25.7%7.5%

Price Volatility Vs. Market

How volatile is Metro's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Metro undervalued compared to its fair value and its price relative to the market?

15.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MRU (CA$56.41) is trading below our estimate of fair value (CA$66.61)

Significantly Undervalued: MRU is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MRU is good value based on its PE Ratio (20.9x) compared to the Consumer Retailing industry average (20.9x).

PE vs Market: MRU is poor value based on its PE Ratio (20.9x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: MRU is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: MRU is overvalued based on its PB Ratio (2.4x) compared to the CA Consumer Retailing industry average (2.1x).


Next Steps

Future Growth

How is Metro forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRU's forecast earnings growth (7% per year) is above the savings rate (1.9%).

Earnings vs Market: MRU's earnings (7% per year) are forecast to grow slower than the Canadian market (13.2% per year).

High Growth Earnings: MRU's earnings are forecast to grow, but not significantly.

Revenue vs Market: MRU's revenue (2.5% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: MRU's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if MRU's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Metro performed over the past 5 years?

22.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MRU's earnings have grown significantly by 22.3% per year over the past 5 years.

Accelerating Growth: MRU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MRU had negative earnings growth (-60%) over the past year, making it difficult to compare to the Consumer Retailing industry average (8.9%).


Return on Equity

High ROE: MRU's Return on Equity (11.7%) is considered low.


Return on Assets

ROA vs Industry: MRU has a higher Return on Assets than the Consumer Retailing industry average last year.


Return on Capital Employed

ROCE Improving: MRU's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Metro's financial position?


Financial Position Analysis

Short Term Liabilities: MRU's short term assets (CA$1.9B) exceeds its short term liabilities (CA$1.3B)

Long Term Liabilities: MRU's short term assets (1.9B) do not cover its long term liabilities (3.6B)


Debt to Equity History and Analysis

Debt Level: MRU's debt to equity ratio (44.8%) is considered high

Reducing Debt: MRU's debt to equity ratio has increased from 31.1% to 44.8% over the past 5 years.

Debt Coverage: MRU's debt is well covered by operating cash flow (26.9%).

Interest Coverage: MRU's interest payments on its debt are well covered by EBIT (10.3x coverage).


Balance Sheet

Inventory Level: MRU has a high level of physical assets or inventory.

Debt Coverage by Assets: MRU's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Metro's current dividend yield, its reliability and sustainability?

1.42%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Metro before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.4%marketbottom25%2.0%markettop25%6.0%industryaverage1.3%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MRU's dividend (1.42%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: MRU's dividend (1.42%) is low compared to the top 25% of dividend payers in the Canadian market (5.98%).

Stable Dividend: MRU's dividends per share have been stable in the past 10 years.

Growing Dividend: MRU's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.8%), MRU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MRU's dividends in 3 years are forecast to be well covered by earnings (24% payout ratio).


Next Steps

Management

What is the CEO of Metro's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

Eric La Flèche (57yo)

11.5yrs

Tenure

CA$6,580,728

Compensation

Mr. Eric Richer La Flèche has been the Chief Executive Officer and President of Metro Inc. since April 1, 2008. Mr. La Flèche served as the Chief Operating Officer and Executive Vice President of Metro fro ...


CEO Compensation Analysis

Compensation vs. Market: Eric's total compensation ($USD4.97M) is about average for companies of similar size in the Canadian market ($USD6.86M).

Compensation vs Earnings: Eric's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

5.1yrs

Average Tenure

Experienced Management: MRU's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

9.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: MRU's board of directors are considered experienced (9.6 years average tenure).


Insider Trading

Insider Buying: MRU insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$433,25506 Sep 19
Marie-José Nadeau
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,690
Max PriceCA$56.34
SellCA$54,20526 Feb 19
Geneviève Bich
EntityIndividual
Role
Head of Human Resources
Vice President of Human Resources
Shares1,100
Max PriceCA$49.28
SellCA$58,40022 Feb 19
Serge Boulanger
EntityIndividual
Role
Senior Key Executive
Senior Vice President of National Procurement and Corporate Brands
Shares1,200
Max PriceCA$48.67
SellCA$2,150,41722 Feb 19
Christian Bourbonniere
EntityIndividual
Shares44,280
Max PriceCA$48.57

Ownership Breakdown


Management Team

  • Eric La Flèche (57yo)

    President

    • Tenure: 11.5yrs
    • Compensation: CA$6.58m
  • Simon Rivet

    VP, General Counsel & Corporate Secretary

    • Tenure: 0yrs
  • Serge Boulanger

    Senior Vice President of National Procurement and Corporate Brands

    • Tenure: 0yrs
    • Compensation: CA$908.62k
  • Richard Beaubien

    Senior Vice President of Store Operations - Ontario Division

    • Tenure: 0yrs
  • Carmen Fortino (60yo)

    Executive VP

    • Tenure: 5.1yrs
    • Compensation: CA$1.66m
  • Marie-Claude Bacon

    Vice President of Public Affairs & Communications

    • Tenure: 1.8yrs
  • Geneviève Bich

    Vice President of Human Resources

    • Tenure: 0yrs
  • François Thibault

    Executive VP

    • Tenure: 7.2yrs
    • Compensation: CA$1.74m
  • Marc Giroux

    Executive VP & Head of Quebec Division

    • Tenure: 0.08yrs
  • Joe Fusco

    Senior Vice-President of Merchandising - Ontario Division

    • Tenure: 0yrs

Board Members

  • Christine Magee (59yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: CA$113.53k
  • Christian Wilhelm Haub (55yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: CA$139.79k
  • Réal Raymond (68yo)

    Chair of the Board

    • Tenure: 4.8yrs
    • Compensation: CA$273.92k
  • Claude Dussault (65yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: CA$142.56k
  • Maryse Bertrand (60yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: CA$119.60k
  • Marc DeSerres (66yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: CA$135.03k
  • Eric La Flèche (57yo)

    President

    • Tenure: 11.5yrs
    • Compensation: CA$6.58m
  • Marie-José Nadeau (66yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: CA$146.54k
  • Russ Goodman (66yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: CA$135.98k
  • Line Rivard (60yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: CA$125.62k

Company Information

Metro Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Metro Inc.
  • Ticker: MRU
  • Exchange: TSX
  • Founded: 1947
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: CA$14.329b
  • Shares outstanding: 254.02m
  • Website: https://corpo.metro.ca

Number of Employees


Location

  • Metro Inc.
  • 11011 Maurice-Duplessis Boulevard
  • Montréal
  • Quebec
  • H1C 1V6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRUTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 1988
62MDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1988
MTRA.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 1988

Biography

Metro Inc. operates as a retailer and distributor in the food and pharmaceutical sectors in Canada. It operates food stores, including supermarkets and discount stores that provide fresh and grocery produc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:38
End of Day Share Price2019/10/11 00:00
Earnings2019/07/06
Annual Earnings2018/09/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.