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MNRO

Monro NasdaqGS:MNRO Stock Report

Last Price

US$51.38

Market Cap

US$1.7b

7D

3.3%

1Y

-10.3%

Updated

09 Aug, 2022

Data

Company Financials +
MNRO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance3/6
Financial Health4/6
Dividends5/6

MNRO Stock Overview

Monro, Inc. provides automotive undercar repair, and tire sales and services in the United States.

Monro, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Monro
Historical stock prices
Current Share PriceUS$51.38
52 Week HighUS$64.72
52 Week LowUS$37.49
Beta1.06
1 Month Change16.72%
3 Month Change18.14%
1 Year Change-10.25%
3 Year Change-34.34%
5 Year Change14.43%
Change since IPO1,241.31%

Recent News & Updates

Jul 27

Monro Non-GAAP EPS of $0.42 beats by $0.06, revenue of $349.54M beats by $3.29M

Monro press release (NASDAQ:MNRO): Q1 Non-GAAP EPS of $0.42 beats by $0.06. Revenue of $349.54M (+2.3% Y/Y) beats by $3.29M. Comparable Store Sales Increased 2.8% in Retail locations, driven by a 15% Comparable Store Sales Increase in ~300 Small or Underperforming Stores. Generated Record Operating Cash Flow of ~$77M Completed Divestiture of Non-Core Wholesale and Tire Distribution Assets for Total Transaction Value of ~$102 Million Repurchased ~414K Shares of Common Stock at an Average Price of $41.60, for a Total of ~$17M.

Jul 21
A Look At The Fair Value Of Monro, Inc. (NASDAQ:MNRO)

A Look At The Fair Value Of Monro, Inc. (NASDAQ:MNRO)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Monro, Inc...

Jul 15

Monro: Still A Good Play In This Market

Monro has performed exceptionally well compared to the broader market in recent months. The company has been supported by somewhat mixed but mostly favorable performance and its low trading multiples. In all, the company still seems to offer some upside potential from here moving forward. The market can be extremely volatile from time to time. In fact, many would argue that the market has not been more volatile in many years than it has been this year. This volatility can push most companies down significantly. But the benefit to buying cheap stocks is that you get the opportunity to have limited downside so long as those cheap stocks are of sufficient quality. A great example of this strategy playing out can be seen by looking at Monro (MNRO). This firm which operates tire and automotive service shops, has done quite well in recent months. And while I would say that the company is more or less fairly valued compared to similar firms, I do think that it's cheap enough to retain the 'buy' designation I placed on it previously. Kicking the tires The last time I wrote an article about Monro was in April of this year. In that article, I acknowledged that the company had been punished by investors in the months leading up to that point. The pain was so significant that it was indicative of a company with poor fundamental performance. However, performance for the company leading up to that point had actually been strong and there were no obvious signs of that picture changing in the near term. This, combined with how cheap shares were on an absolute basis, led me to rate it a 'buy'. When I give a company this kind of designation, I am taking the stance that it will likely drastically outperform the market for the foreseeable future. So far, Monro has achieved just that. Why are the S&P 500 is down by 13.6%, shares of this firm have actually generated a profit for investors of 0.2%. Author - SEC EDGAR Data When I last wrote about Monro, we had data covering through the third quarter of the company's 2022 fiscal year. Fast forward to today, and that data now covers the final quarter of that year as well. And while that quarter was not perfect, the overall picture for investors was largely positive. Consider, for instance, revenue. During that time, sales came in at $328 million. That represents an increase of 7.4% over the $305.5 million reported the same quarter one year earlier. According to management, of the $22.5 million in increased revenue, $19 million was attributed to new stores, largely as a result of acquisitions the company made. However, it also saw comparable store sales rise by 1.4% year over year. While revenue was higher, profitability was somewhat mixed. Net income in the final quarter came in at $8.6 million. That was down from the $11.8 million reported the same time one year earlier. This was driven in large part by a 3.2% decline in the company's gross margin. Most of this decrease, however, which driven by incremental investments that the company made into its technician headcount and wages. Although net income was lower, operating cash flow managed to rise year over year, climbing from $25.7 million to $46.6 million. If we adjust for changes in working capital, the picture does not look quite as great, with the metric inching up from $35.2 million to $38.3 million. Meanwhile, EBITDA for the quarter fell from $41.4 million to $33.4 million. Author - SEC EDGAR Data Overall for the 2022 fiscal year, the company's results came in quite strong. Driven by a combination of acquisitions and strengthening comparable store sales, revenue rose from $1.13 billion in 2021 to $1.36 billion in 2022. Profitability also followed the company higher. Net income of $61.6 million came in above the $34.3 million the company reported just one year earlier. However, this net income was only marginally higher than the $58 million the company saw in 2020. Unfortunately, not every profitability metric was stronger. Operating cash flow actually decreased, falling from $184.9 million in 2021 to $173.8 million last year. If we adjust for changes in working capital, however, we would have seen an improvement, with the metric climbing from $124.5 million in 2021 to an impressive $160.9 million last year. The 2022 figure was even higher than the $144.6 million the company generated in its 2020 fiscal year. Another metric that improved year over year was EBITDA. It ultimately rose from $152.1 million in 2021 to $186.8 million last year. At present, management is refraining from providing any real guidance for the current fiscal year. In part, this is because of the company's decision, earlier this year, to sell off its wholesale tire distribution assets, currently known as Tires Now, to American Tire Distributors. It's unclear what kind of impact this will ultimately have on the company and management has not provided any guidance on the impact that it will have on revenue or profitability. But we do know that the deal is being done at a valuation of $105 million, with $65 million of it being paid at closing and the other $40 million being paid in quarterly installments over an unspecified period of time.

Shareholder Returns

MNROUS Specialty RetailUS Market
7D3.3%2.8%0.3%
1Y-10.3%-34.0%-13.5%

Return vs Industry: MNRO exceeded the US Specialty Retail industry which returned -29.6% over the past year.

Return vs Market: MNRO exceeded the US Market which returned -13% over the past year.

Price Volatility

Is MNRO's price volatile compared to industry and market?
MNRO volatility
MNRO Average Weekly Movement7.0%
Specialty Retail Industry Average Movement8.9%
Market Average Movement7.9%
10% most volatile stocks in US Market17.2%
10% least volatile stocks in US Market3.2%

Stable Share Price: MNRO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MNRO's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19578,750Mike Broderickhttps://www.monro.com

Monro, Inc. provides automotive undercar repair, and tire sales and services in the United States. It offers replacement tires and tire related services; routine maintenance services on passenger cars, light trucks, and vans; products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment. The company also provides automotive undercar repair services, including tire replacement sales, and tire related service.

Monro, Inc. Fundamentals Summary

How do Monro's earnings and revenue compare to its market cap?
MNRO fundamental statistics
Market CapUS$1.65b
Earnings (TTM)US$57.88m
Revenue (TTM)US$1.37b

28.6x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MNRO income statement (TTM)
RevenueUS$1.37b
Cost of RevenueUS$888.95m
Gross ProfitUS$478.09m
Other ExpensesUS$420.21m
EarningsUS$57.88m

Last Reported Earnings

Jun 25, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.80
Gross Margin34.97%
Net Profit Margin4.23%
Debt/Equity Ratio14.3%

How did MNRO perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

61%

Payout Ratio