TSX:MRU

Stock Analysis Report

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Executive Summary

Metro Inc. operates as a retailer, franchisor, distributor, and manufacturer in the food and pharmaceutical sectors in Canada. More Details


Snowflake Analysis

Proven track record average dividend payer.


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

Stable Share Price: MRU is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MRU's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.7%

MRU

-0.6%

CA Consumer Retailing

2.8%

CA Market


1 Year Return

2.7%

MRU

-4.0%

CA Consumer Retailing

-0.3%

CA Market

Return vs Industry: MRU exceeded the Canadian Consumer Retailing industry which returned -4.6% over the past year.

Return vs Market: MRU exceeded the Canadian Market which returned -0.5% over the past year.


Shareholder returns

MRUIndustryMarket
7 Day-0.7%-0.6%2.8%
30 Day-4.2%-1.2%10.0%
90 Day1.0%-1.3%5.7%
1 Year4.3%2.7%-2.7%-4.0%3.3%-0.3%
3 Year55.6%48.3%26.7%15.8%12.2%1.3%
5 Year67.0%54.6%34.6%20.0%49.1%26.2%

Long-Term 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?

18.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MRU (CA$59.91) is trading above our estimate of fair value (CA$25.85)

Significantly Below Fair Value: MRU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MRU is poor value based on its PE Ratio (19x) compared to the CA Consumer Retailing industry average (14.6x).

PE vs Market: MRU is poor value based on its PE Ratio (19x) compared to the Canadian market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: MRU is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: MRU's PB Ratio (2.4x) is in line with the CA Consumer Retailing industry average.


Next Steps

Future Growth

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

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRU's forecast earnings growth (4.3% per year) is above the savings rate (1.7%).

Earnings vs Market: MRU's earnings (4.3% per year) are forecast to grow slower than the Canadian market (27.2% per year).

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

Revenue vs Market: MRU's revenue (1.6% per year) is forecast to grow slower than the Canadian market (6.1% per year).

High Growth Revenue: MRU's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRU's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Metro performed over the past 5 years?

7.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRU has high quality earnings.

Growing Profit Margin: MRU's current net profit margins (4.4%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: MRU's earnings have grown by 7.1% per year over the past 5 years.

Accelerating Growth: MRU's earnings growth over the past year (11.8%) exceeds its 5-year average (7.1% per year).

Earnings vs Industry: MRU earnings growth over the past year (11.8%) underperformed the Consumer Retailing industry 21.5%.


Return on Equity

High ROE: MRU's Return on Equity (12.9%) is considered low.


Next Steps

Financial Health

How is Metro's financial position?


Financial Position Analysis

Short Term Liabilities: MRU's short term assets (CA$2.5B) exceed its short term liabilities (CA$1.9B).

Long Term Liabilities: MRU's short term assets (CA$2.5B) do not cover its long term liabilities (CA$5.4B).


Debt to Equity History and Analysis

Debt Level: MRU's debt to equity ratio (42.8%) is considered high.

Reducing Debt: MRU's debt to equity ratio has increased from 39.5% to 42.8% over the past 5 years.

Debt Coverage: MRU's debt is well covered by operating cash flow (56%).

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


Balance Sheet


Next Steps

Dividend

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

1.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MRU's dividend (1.5%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.61%).

High Dividend: MRU's dividend (1.5%) is low compared to the top 25% of dividend payers in the Canadian market (5.26%).


Stability and Growth of Payments

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 (28.5%), 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 (29.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average management tenure


CEO

Eric La Flèche (58 yo)

12.58yrs

Tenure

CA$4,958,038

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD3.81M) is below average for companies of similar size in the Canadian market ($USD7.03M).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eric La Flèche
President12.58yrsCA$4.96m0.11%
CA$ 16.1m
François Thibault
Executive VP8.25yrsCA$1.73m0.011%
CA$ 1.7m
Serge Boulanger
Senior Vice President of National Procurement and Corporate Brandsno dataCA$957.00k0.010%
CA$ 1.5m
Carmine Fortino
Executive VP and Head of Ontario Division & National Supply Chain6.17yrsCA$2.12m0.0092%
CA$ 1.4m
Simon Rivet
VP, General Counsel & Corporate Secretaryno datano data0.0083%
CA$ 1.2m
Marie-Claude Bacon
Vice President of Public Affairs & Communications2.83yrsno data0.00052%
CA$ 77.7k
Alain Tadros
Vice President of Marketingno datano data0.00032%
CA$ 47.8k
Geneviève Bich
Vice President of Human Resourcesno datano data0.0054%
CA$ 803.6k
Richard Beaubien
Senior Vice President of Store Operations - Ontario Divisionno datano datano data
Marc Giroux
Executive VP and Head of Quebec Division & E-Commerce1.17yrsno data0.0051%
CA$ 764.8k
Joe Fusco
Senior Vice-President of Merchandising - Ontario Divisionno datano datano data
Alain Champagne
President of Jean Coutu Groupno datano datano data

6.2yrs

Average Tenure

Experienced Management: MRU's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric La Flèche
President12.58yrsCA$4.96m0.11%
CA$ 16.1m
Christine Magee
Independent Director4.83yrsCA$110.00k0.00015%
CA$ 22.4k
Christian Wilhelm Haub
Independent Director14.83yrsCA$110.00k0.0054%
CA$ 806.6k
Réal Raymond
Independent Chairman5.83yrsCA$250.00k0.0072%
CA$ 1.1m
François Coutu
Non Independent Director2.5yrsCA$2.44mno data
Michel Coutu
Non Independent Director2.5yrsCA$110.00k0.000070%
CA$ 10.5k
Claude Dussault
Independent Director15.83yrsCA$130.00k0.0048%
CA$ 717.0k
Maryse Bertrand
Independent Director5.83yrsCA$120.00k0.0035%
CA$ 518.3k
Russell Goodman
Independent Director8.83yrsCA$135.00k0.0032%
CA$ 483.9k
Marc Guay
Independent Director4.83yrsCA$116.69k0.0017%
CA$ 250.9k
Stephanie Coyles
Independent Director5.83yrsCA$110.00k0.00040%
CA$ 59.7k
Line Rivard
Independent Director6.83yrsCA$120.00k0.00036%
CA$ 53.8k

5.8yrs

Average Tenure

61yo

Average Age

Experienced Board: MRU's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$14.937b
  • Shares outstanding: 250.20m
  • 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, franchisor, distributor, and manufacturer in the food and pharmaceutical sectors in Canada. It operates food stores, including supermarkets and discount stores that provi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 23:15
End of Day Share Price2020/11/26 00:00
Earnings2020/09/26
Annual Earnings2020/09/26


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.