Monro, Inc. (MNRO) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA below its 5-year median

Monro's EV/EBITDA of 5.9 is below its 5-year median of 8.2.

P/S below the industry

Monro's price-to-sales of 0.32 is below the Consumer discretionary median of 0.92 (book value is negative, so we use sales).

Trading below fair value

The share price of $11.53 is below our fair value estimate of $21.65.

Margin of safety over 20%

The price is 46.8% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -4.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -70.8% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -4.4% over the last twelve months; the Consumer discretionary median is 5.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 34.8% over the last twelve months, against 34.6% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings shrank over 5 years

Net income shrank 42.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 0.1% over the last twelve months, against a 5-year average of 2.0%.

Net margin above the industry

Monro's net margin of 0.1% is above the Consumer discretionary median of -5.4%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 32.5% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.48 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.31; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Monro paid dividends worth 9.7% of the share price over the last twelve months.

Yield above Treasuries

The 9.7% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Monro yields 9.7%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Not covered by earnings

Dividends take 4386% of net income, leaving little room.

Not covered by free cash flow

Dividends take 282% of free cash flow.