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

-0.3%

MRU

0.8%

CA Consumer Retailing

1.3%

CA Market


1 Year Return

40.8%

MRU

23.0%

CA Consumer Retailing

-0.1%

CA Market

MRU outperformed the Consumer Retailing industry which returned 23% over the past year.

MRU outperformed the Market in Canada which returned -0.1% over the past year.


Share holder returns

MRUIndustryMarket
7 Day-0.3%0.8%1.3%
30 Day4.7%3.4%4.7%
90 Day14.8%7.0%1.6%
1 Year43.1%40.8%31.5%23.0%3.4%-0.1%
3 Year36.4%30.0%31.8%20.2%19.1%8.4%
5 Year150.9%132.7%93.8%70.5%23.2%5.7%

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 based on future cash flows and its price relative to the stock market?

14%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Metro's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Metro's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Metro is good value based on earnings compared to the CA Consumer Retailing industry average.

Metro is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Metro is poor value based on expected growth next year.


Price Based on Value of Assets

Metro is overvalued based on assets compared to the CA Consumer Retailing industry average.


Next Steps

Future Growth

How is Metro expected 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 Estimates


Future Annual Growth Analysis

Metro's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

Metro's earnings are expected to grow by 7% yearly, however this is not considered high growth (20% yearly).

Metro's revenue growth is positive but not above the Canada market average.

Metro's earnings growth is positive but not above the Canada market average.

Metro's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Metro will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Metro has delivered over 20% year on year earnings growth in the past 5 years.

Metro's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Metro's 1-year earnings growth is negative, it can't be compared to the CA Consumer Retailing industry average.


Return on Equity

Metro has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Metro used its assets more efficiently than the CA Consumer Retailing industry average last year based on Return on Assets.


Return on Capital Employed

Metro's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Metro's financial position?


Financial Position Analysis

Metro is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Metro's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Metro's level of debt (44.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (31.1% vs 44.8% today).

Debt is well covered by operating cash flow (26.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.3x coverage).


Balance Sheet

High level of physical assets or inventory.

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%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Metro's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (1.95%).

Metro's dividend is below the markets top 25% of dividend payers in Canada (5.77%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.2x coverage).


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Eric La Flèche (57yo)

11.4yrs

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

Eric's remuneration is about average for companies of similar size in Canada.

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

7.1yrs

Average Tenure

The average tenure for the Metro management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.5yrs

Average Tenure

62.5yo

Average Age

The tenure for the Metro board of directors is about average.


Insider Trading

Metro individual 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$2,150,41722 Feb 19
Christian Bourbonniere
EntityIndividual
Role
Senior Key Executive
Executive VP & Head of Quebec Division
Shares44,280
Max PriceCA$48.57
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

Ownership Breakdown


Management Team

  • Eric La Flèche (57yo)

    President

    • Tenure: 11.4yrs
    • 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
  • Christian Bourbonniere

    Executive VP & Head of Quebec Division

    • Tenure: 11yrs
    • Compensation: CA$1.50m
  • Richard Beaubien

    Senior Vice President of Store Operations - Ontario Division

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

    Executive VP

    • Tenure: 5yrs
    • Compensation: CA$1.66m
  • Marie-Claude Bacon

    Vice President of Public Affairs & Communications

    • Tenure: 1.7yrs
  • Geneviève Bich

    Vice President of Human Resources

    • Tenure: 0yrs
  • François Thibault

    Executive VP

    • Tenure: 7.1yrs
    • Compensation: CA$1.74m
  • Joe Fusco

    Senior Vice-President of Merchandising - Ontario Division

    • Tenure: 0yrs

Board Members

  • Christine Magee (59yo)

    Director

    • Tenure: 3.7yrs
    • Compensation: CA$113.53k
  • Christian Wilhelm Haub (55yo)

    Independent Director

    • Tenure: 13.7yrs
  • Réal Raymond (68yo)

    Chair of the Board

    • Tenure: 4.7yrs
    • Compensation: CA$273.92k
  • Claude Dussault (65yo)

    Independent Director

    • Tenure: 14.7yrs
    • Compensation: CA$142.56k
  • Maryse Bertrand (60yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: CA$119.60k
  • Marc DeSerres (66yo)

    Independent Director

    • Tenure: 17.7yrs
    • Compensation: CA$135.03k
  • Eric La Flèche (57yo)

    President

    • Tenure: 11.4yrs
    • Compensation: CA$6.58m
  • Marie-José Nadeau (66yo)

    Independent Director

    • Tenure: 19.7yrs
    • Compensation: CA$146.54k
  • Russ Goodman (66yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: CA$135.98k
  • Line Rivard (60yo)

    Independent Director

    • Tenure: 5.7yrs
    • 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$14.558b
  • 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 Analysis2019/09/21 23:41
End of Day Share Price2019/09/20 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.