NasdaqGS:MNRO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet with proven track record.


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


Market Performance


7 Day Return

2.0%

MNRO

3.7%

US Specialty Retail

1.0%

US Market


1 Year Return

17.1%

MNRO

2.7%

US Specialty Retail

6.7%

US Market

Return vs Industry: MNRO exceeded the US Specialty Retail industry which returned 2.7% over the past year.

Return vs Market: MNRO exceeded the US Market which returned 6.7% over the past year.


Share holder returns

MNROIndustryMarket
7 Day2.0%3.7%1.0%
30 Day2.9%0.04%-1.8%
90 Day-3.2%0.7%-1.8%
1 Year18.4%17.1%4.4%2.7%9.1%6.7%
3 Year36.6%31.6%40.0%32.8%46.1%36.6%
5 Year62.3%53.4%59.2%45.2%66.9%48.6%

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

31.87x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: MNRO ($78.36) is trading above our estimate of fair value ($67.08)

Significantly Undervalued: MNRO is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: MNRO is poor value based on its PE Ratio (31.9x) compared to the Specialty Retail industry average (15.3x).

PE vs Market: MNRO is poor value based on its PE Ratio (31.9x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: MNRO is poor value based on its PEG Ratio (2.6x)


Price Based on Value of Assets

PB vs Industry: MNRO is overvalued based on its PB Ratio (3.6x) compared to the US Specialty Retail industry average (1.3x).


Next Steps

Future Growth

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

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: MNRO's forecast earnings growth (12.4% per year) is above the savings rate (2.7%).

Earnings vs Market: MNRO's earnings (12.4% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: MNRO's revenue (8.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: MNRO's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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?

4.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MNRO's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: MNRO's earnings growth over the past year (22.1%) exceeds its 5-year average (4.6% per year).

Earnings vs Industry: MNRO earnings growth over the past year (22.1%) exceeded the Specialty Retail industry 8.3%.


Return on Equity

High ROE: MNRO's Return on Equity (11.4%) is considered low.


Return on Assets

ROA vs Industry: MNRO has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: MNRO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Monro's financial position?


Financial Position Analysis

Short Term Liabilities: MNRO's short term assets ($246.3M) do not cover its short term liabilities ($263.8M)

Long Term Liabilities: MNRO's short term assets (246.3M) do not cover its long term liabilities (596.1M)


Debt to Equity History and Analysis

Debt Level: MNRO's debt to equity ratio (22.3%) is considered satisfactory

Reducing Debt: MNRO's debt to equity ratio has reduced from 24.6% to 22.3% over the past 5 years.

Debt Coverage: MNRO's debt is well covered by operating cash flow (100.6%).

Interest Coverage: MNRO's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet

Inventory Level: MNRO has a high level of physical assets or inventory.

Debt Coverage by Assets: MNRO's debt is covered by short term assets (assets are 1.539060x debt).


Next Steps

Dividend

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

1.10%

Expected Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.5%markettop25%3.8%industryaverage3.5%forecastin3Years1.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: MNRO's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: MNRO's dividend (1.12%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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: With its reasonably low payout ratio (33.3%), MNRO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Brett Ponton (49yo)

2yrs

Tenure

US$1,440,687

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Brett's compensation with company performance.


Management Age and Tenure

1.8yrs

Average Tenure

48.5yo

Average Age

Experienced Management: MNRO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.2yrs

Average Tenure

71yo

Average Age

Experienced Board: MNRO's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: MNRO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$215,33808 Aug 19
Donald Glickman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$86.14
SellUS$639,22301 Aug 19
Donald Glickman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,500
Max PriceUS$86.07

Ownership Breakdown


Management Team

  • Cathy D'Amico (63yo)

    Director of Special Projects

    • Tenure: 2.8yrs
    • Compensation: US$352.51k
  • Brett Ponton (49yo)

    CEO, President & Director

    • Tenure: 2yrs
    • Compensation: US$1.44m
  • Maureen Mulholland (48yo)

    Senior VP

    • Tenure: 16yrs
    • Compensation: US$296.50k
  • Rob Rajkowski

    Chief Operating Officer

    • Tenure: 0.08yrs
  • Brian D'Ambrosia (45yo)

    Executive VP of Finance

    • Tenure: 2.8yrs
    • Compensation: US$713.90k
  • Samuel Senuk (51yo)

    Senior Vice President of Store Operations

    • Tenure: 0yrs
  • Deborah Brundage (44yo)

    Chief Marketing Officer & Senior VP

    • Tenure: 1.6yrs
    • Compensation: US$449.36k
  • Jerry Alessia (51yo)

    Senior VP & Chief Merchandising Officer

    • Tenure: 1.3yrs
    • Compensation: US$512.75k
  • Avi Dasgupta (48yo)

    Chief Information Officer & Senior VP

    • Tenure: 1yrs

Board Members

  • Stephen McCluski (67yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$222.97k
  • Donald Glickman (86yo)

    Independent Director

    • Tenure: 35.3yrs
    • Compensation: US$217.97k
  • Peter Solomon (80yo)

    Independent Director

    • Tenure: 35.3yrs
    • Compensation: US$187.97k
  • Robert Mellor (75yo)

    Independent Chairman

    • Tenure: 2.2yrs
    • Compensation: US$237.97k
  • Mike Danziger (80yo)

    Independent Director

    • Tenure: 35.3yrs
    • Compensation: US$205.97k
  • Brett Ponton (49yo)

    CEO, President & Director

    • Tenure: 2yrs
    • Compensation: US$1.44m
  • John Auerbach (41yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$181.97k
  • Lindsay Hyde (37yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$184.97k

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$2.603b
  • Shares outstanding: 33.22m
  • 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. The company offers range of services on passenger cars, light trucks, and vans for brakes; mufflers and ex ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:23
End of Day Share Price2019/10/11 00:00
Earnings2019/06/29
Annual Earnings2019/03/30


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.

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