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 mediocre balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.5%

MNRO

3.0%

US Specialty Retail

4.0%

US Market


1 Year Return

-36.3%

MNRO

-5.9%

US Specialty Retail

5.0%

US Market

Return vs Industry: MNRO underperformed the US Specialty Retail industry which returned -5.9% over the past year.

Return vs Market: MNRO underperformed the US Market which returned 4.9% over the past year.


Shareholder returns

MNROIndustryMarket
7 Day3.5%3.0%4.0%
30 Day-10.3%-6.7%-1.1%
90 Day18.0%27.9%21.1%
1 Year-35.4%-36.3%-4.7%-5.9%7.2%5.0%
3 Year41.4%36.1%30.0%23.7%36.0%27.1%
5 Year-6.3%-11.8%18.0%8.1%65.3%46.9%

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?

32.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MNRO ($55.45) is trading above our estimate of fair value ($51.92)

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 (32x) compared to the Specialty Retail industry average (17.3x).

PE vs Market: MNRO is poor value based on its PE Ratio (32x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: MNRO is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: MNRO is overvalued based on its PB Ratio (2.5x) compared to the US Specialty Retail industry average (1.4x).


Next Steps

Future Growth

How is Monro forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNRO's forecast earnings growth (9.9% per year) is above the savings rate (2.2%).

Earnings vs Market: MNRO's earnings (9.9% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: MNRO's revenue (1.4% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: MNRO's revenue (1.4% 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?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MNRO has high quality earnings.

Growing Profit Margin: MNRO's current net profit margins (4.6%) are lower than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: MNRO's earnings have grown by 4% 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 (-27.4%) over the past year, making it difficult to compare to the Specialty Retail industry average (-12.9%).


Return on Equity

High ROE: MNRO's Return on Equity (7.9%) is considered low.


Next Steps

Financial Health

How is Monro's financial position?


Financial Position Analysis

Short Term Liabilities: MNRO's short term assets ($596.0M) exceed its short term liabilities ($254.9M).

Long Term Liabilities: MNRO's short term assets ($596.0M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: MNRO's debt to equity ratio (81.5%) is considered high.

Reducing Debt: MNRO's debt to equity ratio has increased from 25.8% to 81.5% over the past 5 years.

Debt Coverage: MNRO's debt is well covered by operating cash flow (20.3%).

Interest Coverage: MNRO's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

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

1.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MNRO's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: MNRO's dividend (1.59%) is low compared to the top 25% of dividend payers in the US market (4.5%).


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: With its reasonable payout ratio (50.8%), MNRO's dividend 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 (45.7% 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 (49yo)

2.75yrs

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's total compensation ($USD1.44M) is below average for companies of similar size in the US market ($USD4.70M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brett Ponton
CEO, President & Director2.75yrsUS$1.44m0.057% $1.0m
Brian D'Ambrosia
Executive VP of Finance3.5yrsUS$713.90k0.013% $237.2k
Gerald Alessia
Senior VP & Chief Merchandising Officer2yrsUS$512.75kno data
Robert Rajkowski
Chief Operating Officer0.83yrno datano data
Avijit Dasgupta
Senior VP & Chief Information Officer1.75yrsno datano data
Maureen Mulholland
Senior VP16.75yrsUS$296.50k0.00043% $7.9k
Samuel Senuk
Senior Vice President of Store Operationsno datano datano data
Catherine D'Amico
Director of Special Projects3.5yrsUS$352.51kno data

2.8yrs

Average Tenure

49yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Brett Ponton
CEO, President & Director2.75yrsUS$1.44m0.057% $1.0m
Stephen McCluski
Independent Director6.92yrsUS$222.97k0.023% $420.6k
Donald Glickman
Independent Director36yrsUS$217.97k0.52% $9.6m
Peter Solomon
Independent Director36yrsUS$187.97k0.69% $12.7m
Robert Mellor
Independent Chairman2.92yrsUS$237.97k0.064% $1.2m
Frederick Danziger
Independent Director36yrsUS$205.97k0.22% $4.0m
John Auerbach
Independent Director2.92yrsUS$181.97k0.017% $312.5k
Lindsay Hyde
Independent Director2.92yrsUS$184.97k0.019% $354.0k

4.9yrs

Average Tenure

72yo

Average Age

Experienced Board: MNRO's board of directors are considered experienced (4.9 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$1.846b
  • Shares outstanding: 33.28m
  • 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 services for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment. The company also provides maintenance services, including oil change, heating and cooling system ‘flush and fill’ service, belt installation, fuel system service, and a transmission ‘flush and fill’ service. In addition, it replaces and services batteries, starters, and alternators; and offers inspection and air conditioning services. The company operates its stores under the brand names of Monro Auto Service and Tire Centers, Tread Quarters Discount Tire Auto Service Centers, Mr. Tire Auto Service Centers, Autotire Car Care Centers, Tire Warehouse Tires for Less, Tire Barn Warehouse, Ken Towery’s Tire & Auto Care, Tire Choice Auto Service Centers, and Car-X Tire & Auto. As of March 28, 2020, it operated 1,283 company-operated stores, 98 franchised locations, eight wholesale locations, three retread facilities, and two dealer-operated stores in 32 states. The company was formerly known as Monro Muffler Brake, Inc. and changed its name to Monro, Inc. in August 2017. Monro, Inc. was founded in 1957 and is headquartered in Rochester, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 23:59
End of Day Share Price2020/07/02 00:00
Earnings2020/03/28
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.