Monro Muffler (MNRO) AI Stock Analysis

• Market Cap: $544.26M
• Dividend Yield: 6.18%
• Average Volume (3M): 976.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -2.58%
• EPS Growth: -179.55%
• Country: US
• Employees: 7,660
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.21
• Shares Outstanding: 30,019,660
• 10 Day Avg. Volume: 1,666,822
• 30 Day Avg. Volume: 976,698
• PEG Ratio: 0.78
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 4.52
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 2.61
• Enterprise Value/Ebitda: 18.07
• 1Y Price Target: $16.00
• Price Target Upside: -10.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.56
• Revenue Forecast (FY): $1.18B

• Rating: 57 Neutral
• Price Target: $18.00 ▲(0.78% Upside)

Monro's overall stock score is primarily influenced by its financial performance, which shows significant challenges in revenue generation and profitability. The technical analysis suggests neutral momentum, while the valuation is impacted by a negative P/E ratio despite a high dividend yield. The earnings call provided some positive insights into strategic progress, but operational challenges remain.

Positive Factors

Strategic Stake by Icahn Enterprises

Icahn's significant stake could lead to strategic changes and operational improvements, potentially enhancing long-term shareholder value.

Positive Comparable Store Sales Growth

Consistent positive sales growth across stores indicates effective strategies and customer retention, supporting long-term revenue stability.

Improved Gross Margin

Higher gross margins reflect improved cost management, which can enhance profitability and provide a buffer against market fluctuations.

Negative Factors

Declining Overall Sales

A decline in sales from store closures suggests potential market contraction and challenges in maintaining revenue levels.

Consumer Demand Softness

Soft consumer demand could hinder revenue growth, indicating potential challenges in market conditions and customer spending.

Higher Technician Labor Costs

Rising labor costs can pressure profit margins, affecting overall profitability and necessitating efficiency improvements.

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. While the company maintains a reasonable balance sheet structure, the declining equity and profitability margins pose risks. 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	1.19B	1.20B	1.28B	1.33B	1.36B	1.13B
Gross Profit	412.10M	417.64M	452.10M	456.18M	481.84M	395.19M
EBITDA	59.59M	82.38M	144.09M	156.79M	182.47M	149.54M
Net Income	-19.08M	-5.18M	37.57M	39.05M	61.57M	34.32M
Balance Sheet
Total Assets	1.58B	1.64B	1.69B	1.78B	1.87B	1.81B
Cash, Cash Equivalents and Short-Term Investments	10.47M	20.76M	6.56M	4.88M	7.95M	29.96M
Total Debt	501.04M	529.36M	611.01M	591.39M	803.36M	734.05M
Total Liabilities	982.32M	1.02B	1.04B	1.08B	1.09B	1.06B
Stockholders Equity	601.68M	620.76M	656.77M	694.92M	782.91M	749.68M
Cash Flow
Free Cash Flow	48.42M	105.55M	99.72M	176.03M	145.93M	133.18M
Operating Cash Flow	74.11M	131.91M	125.20M	215.02M	173.76M	184.91M
Investing Cash Flow	-8.28M	-1.23M	-1.96M	26.55M	-109.80M	-66.26M
Financing Cash Flow	-76.22M	-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 17.13, above the 50-day MA of 17.48, and above the 200-day MA of 15.90, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.27 is Neutral, neither overbought nor oversold. The STOCH value of 90.92 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
DORM	75 Outperform	$4.10B	16.58	18.19%	―	7.94%	34.84%
LKQ	70 Neutral	$7.95B	11.53	10.87%	3.85%	-3.71%	-0.27%
SMP	65 Neutral	$856.65M	12.67	10.49%	3.29%	23.96%	11.01%
HLLY	65 Neutral	$432.63M	―	-5.54%	―	-3.20%	-257.73%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MPAA	57 Neutral	$251.52M	111.45	0.94%	―	6.72%	―
MNRO	57 Neutral	$544.26M	―	-3.04%	6.18%	-2.58%	-179.55%

Monro Muffler Corporate Events

Monro Inc. Earnings Call: Navigating Growth and Challenges

Monro Inc. recently held its earnings call, revealing a mixed sentiment characterized by strong financial management and strategic progress, yet tempered by ongoing challenges. The company reported positive comparable store sales growth and an increased gross margin, but faced hurdles such as a decline in overall sales due to store closures, softness in consumer demand, and rising labor costs. Despite these challenges, Monro remains committed to improving operations and enhancing shareholder value.

Monro, Inc. Reports Q2 Fiscal 2026 Earnings

Monro, Inc. is a prominent provider of automotive undercar repair and tire services across the United States, known for its comprehensive vehicle maintenance offerings ranging from oil changes to complex repairs. In its second quarter fiscal 2026 earnings report, Monro, Inc. reported a 1.1% increase in comparable store sales, despite an overall sales decline of 4.1% due to the closure of 145 underperforming stores. The company achieved a gross margin expansion of 40 basis points and maintained a stable diluted earnings per share of $0.18, with adjusted diluted earnings per share rising to $0.21. Key financial metrics from the quarter highlight a decrease in operating expenses and interest expenses, contributing to a net income of $5.7 million. The company also distributed a cash dividend of $0.28 per share. Monro’s strategic focus on operational improvements and cost control has resulted in a positive trajectory for adjusted operating income, despite facing challenges such as consumer demand softness. Looking ahead, Monro’s management remains optimistic about achieving positive comparable store sales for fiscal 2026, leveraging various strategic initiatives to enhance profitability.

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.