Monro Muffler (MNRO) AI Stock Analysis

• Market Cap: $548.61M
• Dividend Yield: 6.12%
• Average Volume (3M): 718.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -3.20%
• EPS Growth: -163.24%
• Country: US
• Employees: 7,660
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.22
• Shares Outstanding: 29,978,943
• 10 Day Avg. Volume: 596,212
• 30 Day Avg. Volume: 718,252
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 2.30
• Enterprise Value/Ebitda: 15.73
• 1Y Price Target: $18.00
• Price Target Upside: 0.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: $18.00 ▲(0.78% Upside)

Monro Muffler's overall stock score reflects significant financial challenges, particularly in profitability and revenue generation. While strategic initiatives from the earnings call offer some optimism, valuation concerns and technical indicators suggest a cautious outlook. The high dividend yield provides some support, but the negative P/E ratio and operational inefficiencies weigh heavily on the score.

Positive Factors

Store Optimization

Closing underperforming stores reduces operational inefficiencies and costs, potentially enhancing long-term profitability and resource allocation.

Comparable Store Sales Growth

Consistent growth in comparable store sales indicates strong customer retention and market demand, supporting future revenue stability.

Strong Financial Position

A robust financial position with significant credit availability provides flexibility for strategic investments and navigating economic challenges.

Negative Factors

Declining Revenue and Profitability

Decreasing revenue and profitability highlight challenges in maintaining market competitiveness and operational efficiency, impacting long-term growth.

Gross Margin Decrease

A reduction in gross margin due to rising costs pressures profitability, necessitating strategic cost management to sustain margins.

Net Loss

Reporting a net loss instead of income reflects financial instability, requiring effective strategies to reverse this trend for future sustainability.

Monro Muffler Business Overview & Revenue Model

Company Description

Monro Muffler Brake, Inc. (MNRO) is a leading provider of automotive undercar repair and tire services in the United States. The company operates a chain of over 1,200 stores, primarily under the Monro Muffler Brake, Mr. Tire, and Tire Choice brands. Monro specializes in a broad range of services, including exhaust systems, brakes, tires, alignments, and other automotive maintenance and repair services, catering to both individual consumers and commercial fleets.

How the Company Makes Money

Monro Muffler generates revenue primarily through the sale of automotive repair and maintenance services, as well as the sale of tires and related products. Key revenue streams include service fees from repairs and maintenance, tire sales, and ancillary services such as alignments and inspections. The company benefits from a steady stream of repeat customers who rely on their services for routine maintenance, which contributes to consistent revenue growth. Additionally, Monro has established partnerships with various tire manufacturers, which allows them to offer a wide range of tire options, enhancing their sales volume. Their strategic acquisitions of other tire and automotive service companies have also expanded their market presence and contributed to revenue growth.

Monro Muffler Financial Statement Overview

Summary

Monro Muffler's financial position shows significant challenges, particularly in revenue generation and profitability. The income statement reveals declining revenue and a net loss, while the balance sheet indicates moderate leverage with declining equity. Cash flow generation is a positive aspect, yet the overall financial health requires strategic improvements to reverse negative trends.

Income Statement

The income statement reveals a concerning trend with declining revenue and profitability over recent periods. The TTM (Trailing-Twelve-Months) shows a gross profit margin of 34.5% and a net loss, indicating challenges in maintaining profitability. The revenue growth rate is negative, reflecting a reduction in sales compared to previous years. The EBIT and EBITDA margins are also low, reflecting operational inefficiencies.

Balance Sheet

The balance sheet indicates a moderately leveraged position with a debt-to-equity ratio of 0.87. Stockholders' equity has decreased, impacting the equity ratio at 37.7%. Despite this, the company maintains a stable asset base, though declining equity suggests a potential risk in financial stability.

Cash Flow

The cash flow statement highlights a decrease in free cash flow growth, but the company maintains a positive operating cash flow. The free cash flow to net income ratio is favorable, indicating efficient cash generation relative to reported losses. However, the operating cash flow to net income ratio is high, which may suggest reliance on non-operational factors for cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.20B	1.20B	1.28B	1.33B	1.36B	1.13B
Gross Profit	415.37M	417.64M	452.10M	456.18M	481.84M	395.19M
EBITDA	60.82M	82.38M	144.09M	156.79M	101.92M	72.43M
Net Income	-19.09M	-5.18M	37.57M	39.05M	61.57M	34.32M
Balance Sheet
Total Assets	1.61B	1.64B	1.69B	1.78B	1.87B	1.81B
Cash, Cash Equivalents and Short-Term Investments	7.80M	20.76M	6.56M	4.88M	7.95M	29.96M
Total Debt	524.88M	529.36M	611.01M	591.39M	803.36M	734.05M
Total Liabilities	1.00B	1.02B	1.04B	1.08B	1.09B	1.06B
Stockholders Equity	604.89M	620.76M	656.77M	694.92M	782.91M	749.68M
Cash Flow
Free Cash Flow	79.45M	105.55M	99.72M	176.03M	145.93M	133.18M
Operating Cash Flow	104.33M	131.91M	125.20M	215.02M	173.76M	184.91M
Investing Cash Flow	635.00K	-1.23M	-1.96M	26.55M	-109.80M	-66.26M
Financing Cash Flow	-115.83M	-116.48M	-121.56M	-244.63M	-85.97M	-434.16M

Monro Muffler Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNRO, the sentiment is Positive. The current price of 17.86 is above the 20-day moving average (MA) of 17.72, above the 50-day MA of 17.34, and above the 200-day MA of 16.18, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 57.27 is Neutral, neither overbought nor oversold. The STOCH value of 90.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MNRO.

Monro Muffler Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMP	80 Outperform	$892.70M	14.03	9.90%	2.95%	17.98%	9.41%
DORM	75 Outperform	$4.70B	21.13	17.38%	―	6.76%	34.97%
LKQ	70 Outperform	$7.87B	11.23	11.20%	3.95%	-3.02%	-1.02%
MPAA	66 Neutral	$312.73M	208.15	0.63%	―	6.59%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MNRO	55 Neutral	$548.61M	-26.18	-3.03%	6.12%	-3.20%	-163.24%
HLLY	46 Neutral	$350.65M	―	-6.75%	―	-7.27%	-233.07%

Monro Muffler Corporate Events

Monro Muffler Extends Consulting Agreement with AlixPartners

On August 18, 2025, Monro, Inc. extended its consulting agreement with AlixPartners to November 1, 2025, as part of its operational improvement plan. The extension involves a $6.4 million fee for services aimed at enhancing various operational aspects, with the company’s CEO, Peter Fitzsimmons, also serving as a partner at AlixPartners.

The most recent analyst rating on (MNRO) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Monro Muffler stock, see the MNRO Stock Forecast page.

Monro Muffler Announces Key Decisions at Annual Meeting

On August 12, 2025, Monro, Inc. entered into an agreement with its Senior Vice President of Operations, Nicholas Hawryschuk, outlining compensation terms upon termination or change in control. The same day, Monro held its 2025 Annual Meeting of Shareholders, where key decisions included re-electing directors, amending the stock incentive plan, approving executive compensation, and ratifying the re-appointment of PricewaterhouseCoopers as the independent auditor. Additionally, the Board declared a quarterly cash dividend of $0.28 per share, payable on September 9, 2025.

The most recent analyst rating on (MNRO) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Monro Muffler stock, see the MNRO Stock Forecast page.

Monro, Inc. Reports Q1 Fiscal 2026 Earnings

Monro, Inc. is a leading automotive service and tire provider in the United States, offering a wide range of auto care services including oil changes, tire installations, and complex vehicle repairs, with a focus on sustainable growth and high-quality service.

Monro Muffler Brake Earnings Call: Growth Amidst Challenges

The recent earnings call for Monro Muffler Brake presented a mixed sentiment, highlighting both positive operational strides and ongoing financial challenges. The company showcased achievements in sales growth and strategic store closures, yet faced pressures from gross margins and rising operating expenses, indicating areas that need further attention.