Metro Retail Stores Group (PSE:MRSGI) - Share price, News & Analysis

Q: What is the Fair Price of MRSGI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

MRSGI (₱1.45) is trading above our estimate of [[fair value]] (₱0.18)

MRSGI fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

MRSGI Stock Overview

Metro Retail Stores Group, Inc. engages in the department store, hypermarket, supermarket, and ancillary businesses in the Philippines and the Visayas.

Risk Analysis

Earnings have declined by 48.8% per year over past 5 years

Does not have a meaningful market cap (₱5B)

Metro Retail Stores Group Competitors

Robinsons Retail Holdings

PSE:RRHI

₱74.5b

Puregold Price Club

PSE:PGOLD

₱89.8b

AgriNurture

PSE:ANI

₱4.7b

AllDay Marts

PSE:ALLDY

₱6.9b

Price History & Performance

Summary of all time highs, changes and price drops for Metro Retail Stores Group
Historical stock prices
Current Share Price	₱1.45
52 Week High	₱1.49
52 Week Low	₱1.24
Beta	0.65
1 Month Change	1.40%
3 Month Change	4.32%
1 Year Change	-1.36%
3 Year Change	-44.02%
5 Year Change	-71.29%
Change since IPO	-63.75%

Shareholder Returns

	MRSGI	PH Consumer Retailing	PH Market
7D	0%	2.8%	1.9%
1Y	-1.4%	-50.1%	-7.6%

Return vs Industry: MRSGI exceeded the PH Consumer Retailing industry which returned -50.3% over the past year.

Return vs Market: MRSGI exceeded the PH Market which returned -7.5% over the past year.

Price Volatility

Is MRSGI's price volatile compared to industry and market?
MRSGI volatility
MRSGI Average Weekly Movement	3.0%
Consumer Retailing Industry Average Movement	4.8%
Market Average Movement	5.3%
10% most volatile stocks in PH Market	10.1%
10% least volatile stocks in PH Market	3.0%

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

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

About the Company

Founded	Employees	CEO	Website
1982	6,362	Frank Gaisano	https://www.metroretail.com.ph

Metro Retail Stores Group, Inc. engages in the department store, hypermarket, supermarket, and ancillary businesses in the Philippines and the Visayas. It operates department stores under the Metro Department Store brand name; hypermarket under the brand name of Super Metro; and supermarkets under the Metro Supermarket and Metro Fresh N Easy brand names. The company also operates food courts primarily under Food Avenue brand; sells branded and generic health and wellness products under the Metro Pharmacy brand; operates Metro Gourmet dine-in cafe; offers baked breads, cakes, and pastries under the Suisse Cottage brand; and leases its stores space and warehouse.

Metro Retail Stores Group Fundamentals Summary

How do Metro Retail Stores Group's earnings and revenue compare to its market cap?
MRSGI fundamental statistics
Market Cap	₱4.79b
Earnings (TTM)	-₱158.29m
Revenue (TTM)	₱32.99b

0.1x

P/S Ratio

-30.3x

P/E Ratio

Is MRSGI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MRSGI income statement (TTM)
Revenue	₱32.99b
Cost of Revenue	₱26.72b
Gross Profit	₱6.27b
Other Expenses	₱6.43b
Earnings	-₱158.29m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.048
Gross Margin	19.02%
Net Profit Margin	-0.48%
Debt/Equity Ratio	39.5%

How did MRSGI perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is MRSGI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MRSGI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MRSGI. This is calculated by dividing MRSGI's market cap by their current preferred multiple.
What is MRSGI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₱4.79b

MRSGI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.3x
Enterprise Value/EBITDA	13.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does MRSGI's PS Ratio compare to its peers?

MRSGI PS Ratio vs Peers

The above table shows the PS ratio for MRSGI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	0.7x
RRHI Robinsons Retail Holdings	0.5x	8.4%	₱74.5b
PGOLD Puregold Price Club	0.5x	7.9%	₱89.8b
ANI AgriNurture	1.1x	n/a	₱4.7b
ALLDY AllDay Marts	0.7x	n/a	₱6.9b
MRSGI Metro Retail Stores Group	0.1x	n/a	₱4.8b

Forward PS

Price-To-Sales vs Peers: MRSGI is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.7x).

Price to Earnings Ratio vs Industry

How does MRSGI's PE Ratio compare vs other companies in the Asian Consumer Retailing Industry?

Price-To-Sales vs Industry: MRSGI is good value based on its Price-To-Sales Ratio (0.1x) compared to the PH Consumer Retailing industry average (0.7x)

Price to Sales Ratio vs Fair Ratio

What is MRSGI's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MRSGI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.1x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate MRSGI's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of MRSGI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MRSGI (₱1.45) is trading above our estimate of fair value (₱0.18)

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

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MRSGI's PEG Ratio to determine if it is good value.

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Future Growth

How is Metro Retail Stores Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.3%

Forecasted Consumer Retailing industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Metro Retail Stores Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine Metro Retail Stores Group's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Metro Retail Stores Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-48.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MRSGI is currently unprofitable.

Growing Profit Margin: MRSGI is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: MRSGI is unprofitable, and losses have increased over the past 5 years at a rate of 48.8% per year.

Accelerating Growth: Unable to compare MRSGI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MRSGI is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (5.6%).

Return on Equity

High ROE: MRSGI has a negative Return on Equity (-1.94%), as it is currently unprofitable.

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Financial Health

How is Metro Retail Stores Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MRSGI's short term assets (₱9.7B) exceed its short term liabilities (₱3.7B).

Long Term Liabilities: MRSGI's short term assets (₱9.7B) exceed its long term liabilities (₱8.9B).

Debt to Equity History and Analysis

Debt Level: MRSGI has more cash than its total debt.

Reducing Debt: MRSGI's debt to equity ratio has increased from 4.5% to 39.5% over the past 5 years.

Debt Coverage: MRSGI's debt is well covered by operating cash flow (42.3%).

Interest Coverage: MRSGI's interest payments on its debt are not well covered by EBIT (0.2x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate MRSGI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MRSGI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MRSGI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MRSGI's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: MRSGI is not paying a notable dividend for the PH market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MRSGI has not reported any payouts.

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Management

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

6.6yrs

Average management tenure

CEO

Frank Gaisano (63 yo)

10.42yrs

Tenure

Mr. Frank S. Gaisano serves as the Chairman and Chief Executive Officer at AB Capital & Investment Corporation. He has been the Chief Executive Officer and Chairman at Metro Retail Stores Group, Inc. since...

Leadership Team

Experienced Management: MRSGI's management team is seasoned and experienced (6.6 years average tenure).

Board Members

Experienced Board: MRSGI's board of directors are seasoned and experienced ( 18.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31