NasdaqGS:MNRO

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MNRO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.4%

MNRO

1.9%

US Specialty Retail

2.5%

US Market


1 Year Return

-33.2%

MNRO

6.0%

US Specialty Retail

15.9%

US Market

Return vs Industry: MNRO underperformed the US Specialty Retail industry which returned 5.5% over the past year.

Return vs Market: MNRO underperformed the US Market which returned 14.9% over the past year.


Shareholder returns

MNROIndustryMarket
7 Day-4.4%1.9%2.5%
30 Day5.3%6.1%5.8%
90 Day12.1%19.5%18.2%
1 Year-32.3%-33.2%7.2%6.0%18.4%15.9%
3 Year28.5%23.6%43.4%36.9%39.9%30.9%
5 Year-5.4%-10.9%30.1%20.0%72.9%54.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

51.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MNRO ($58.41) is trading above our estimate of fair value ($36.73)

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


Price To Earnings Ratio

PE vs Industry: MNRO is poor value based on its PE Ratio (51.1x) compared to the US Specialty Retail industry average (19.1x).

PE vs Market: MNRO is poor value based on its PE Ratio (51.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: MNRO is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: MNRO is overvalued based on its PB Ratio (2.7x) compared to the US Specialty Retail industry average (1.3x).


Next Steps

Future Growth

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

44.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNRO's forecast earnings growth (44.7% per year) is above the savings rate (2.2%).

Earnings vs Market: MNRO's earnings (44.7% per year) are forecast to grow faster than the US market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MNRO's revenue (7.5% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: MNRO's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Monro performed over the past 5 years?

1.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MNRO has high quality earnings.

Growing Profit Margin: MNRO's current net profit margins (3.2%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: MNRO's earnings have grown by 1.2% per year over the past 5 years.

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

Earnings vs Industry: MNRO had negative earnings growth (-53.3%) over the past year, making it difficult to compare to the Specialty Retail industry average (-16.1%).


Return on Equity

High ROE: MNRO's Return on Equity (5.3%) is considered low.


Next Steps

Financial Health

How is Monro's financial position?


Financial Position Analysis

Short Term Liabilities: MNRO's short term assets ($381.3M) exceed its short term liabilities ($281.8M).

Long Term Liabilities: MNRO's short term assets ($381.3M) do not cover its long term liabilities ($886.3M).


Debt to Equity History and Analysis

Debt Level: MNRO's debt to equity ratio (40.5%) is considered high.

Reducing Debt: MNRO's debt to equity ratio has increased from 24.1% to 40.5% over the past 5 years.

Debt Coverage: MNRO's debt is well covered by operating cash flow (41%).

Interest Coverage: MNRO's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

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

1.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MNRO's dividend (1.51%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: MNRO's dividend (1.51%) is low compared to the top 25% of dividend payers in the US market (4.51%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77%), MNRO's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MNRO's dividends in 3 years are forecast to be well covered by earnings (43.4% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Brett Ponton (50 yo)

2.83yrs

Tenure

US$1,124,132

Compensation

Mr. Brett T. Ponton has been the President of Monro, Inc. (formerly, Monro Muffler Brake, Inc.) since August 1, 2017, Chief Executive Officer since October 2, 2017 and Director since December 8, 2017. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Brett's total compensation ($USD1.12M) is below average for companies of similar size in the US market ($USD4.67M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brett Ponton
CEO, President & Director2.83yrsUS$1.12m0.057%
$ 1.1m
Brian D'Ambrosia
Executive VP of Finance3.58yrsUS$703.85k0.013%
$ 240.8k
Robert Rajkowski
Senior VP & Chief Operating Officer0.92yrUS$351.81kno data
Maureen Mulholland
Senior VP16.83yrsUS$373.47k0.00043%
$ 8.1k
Avijit Dasgupta
Senior VP & Chief Information Officer1.83yrsno datano data
Donna Maxwell
Senior VP & Chief Human Resource Officer1yrno datano data
Samuel Senuk
Senior Vice President of Store Operationsno datano datano data
Catherine D'Amico
Director of Special Projects3.58yrsUS$352.51kno data

2.8yrs

Average Tenure

51yo

Average Age

Experienced Management: MNRO's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brett Ponton
CEO, President & Director2.83yrsUS$1.12m0.057%
$ 1.1m
Stephen McCluski
Independent Director7yrsUS$220.97k0.023%
$ 426.9k
Donald Glickman
Independent Director36.08yrsUS$217.97k0.52%
$ 9.7m
Peter Solomon
Independent Director36.08yrsUS$187.97k0.69%
$ 12.9m
Robert Mellor
Independent Chairman3yrsUS$235.97k0.064%
$ 1.2m
Frederick Danziger
Independent Director36.08yrsUS$205.97k0.22%
$ 4.0m
John Auerbach
Independent Director3yrsUS$183.97k0.017%
$ 317.3k
Lindsay Hyde
Independent Director3yrsUS$187.97k0.019%
$ 359.4k

5.0yrs

Average Tenure

72yo

Average Age

Experienced Board: MNRO's board of directors are considered experienced (5 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

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


Key Information

  • Name: Monro, Inc.
  • Ticker: MNRO
  • Exchange: NasdaqGS
  • Founded: 1957
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$1.874b
  • Shares outstanding: 33.29m
  • Website: https://www.monro.com

Number of Employees


Location

  • Monro, Inc.
  • 200 Holleder Parkway
  • Rochester
  • New York
  • 14615
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MNRONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1991
MR2DB (Deutsche Boerse AG)YesCommon StockDEEURJul 1991

Biography

Monro, Inc. provides automotive undercar repair, and tire sales and services in the United States. It offers range of state inspections services on passenger cars, light trucks, and vans; products and serv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 00:19
End of Day Share Price2020/08/03 00:00
Earnings2020/06/27
Annual Earnings2020/03/28


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.