Monro Muffler (MNRO) AI Stock Analysis

• Market Cap: $623.51M
• Dividend Yield: 5.5%
• Average Volume (3M): 836.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• 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: 916,646
• 30 Day Avg. Volume: 836,566
• 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: 1.69
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 2.55
• Enterprise Value/Ebitda: 17.64
• 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: 60 Neutral
• Price Target: $20.50 ▲(14.78% Upside)

Monro Muffler's overall stock score reflects a mix of challenges and opportunities. The most significant factor is the financial performance, which is currently weak due to profitability and cash flow issues. However, positive technical indicators and strategic corporate events, such as the appointment of a new CEO, provide optimism for future improvement. The valuation remains a concern due to negative earnings, but the attractive dividend yield offers some compensation for investors.

Positive Factors

Leadership Stability

The appointment of Peter Fitzsimmons as CEO provides leadership stability and strategic direction, potentially enhancing operational efficiency and profitability over the long term.

Comparable Store Sales Growth

Consistent growth in comparable store sales indicates effective customer retention strategies and operational improvements, supporting long-term revenue stability.

Gross Margin Improvement

Improved gross margins reflect better cost management and pricing strategies, which can enhance profitability and provide a buffer against cost pressures.

Negative Factors

Declining Revenue

A decline in revenue suggests challenges in market demand or competitive positioning, potentially impacting long-term growth prospects if not addressed.

Negative Profitability

Sustained negative profitability indicates operational inefficiencies and cost management issues, which could hinder financial stability and investor confidence.

High Labor Costs

Rising labor costs can erode profit margins and increase operational expenses, posing a challenge to maintaining competitive pricing and profitability.

Monro Muffler Business Overview & Revenue Model

Company Description

Monro, Inc. provides automotive undercar repair, and tire sales and services in the United States. It offers replacement tires and tire related services; routine maintenance 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 automotive undercar repair services, including tire replacement sales, and tire related service. The company operates its stores under the brand names of Monro Auto Service and Tire Centers, Tire Choice Auto Service Centers, Mr. Tire Auto Service Centers, Car-X Tire & Auto, Tire Warehouse Tires for Less, Ken Towery's Tire & Auto Care, Mountain View Tire & Auto Service, Tire Barn Warehouse, and Free Service Tire & Auto Centers. As of March 26, 2022, it operated 1,304 company-operated stores, 76 Car-X franchised locations, seven wholesale locations, and three retread facilities 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.

How the Company Makes Money

Monro Muffler generates revenue primarily through its automotive repair services and tire sales. Key revenue streams include the sale of tires, which is a significant portion of its business, alongside services such as exhaust system repairs, brake replacements, and routine maintenance services. The company places a strong emphasis on customer retention and repeat business, leveraging its extensive store network to attract local customers. Additionally, Monro benefits from partnerships with major tire manufacturers, allowing it to offer a wide range of tire brands at competitive prices. Promotional campaigns and service packages also contribute to driving sales and enhancing customer loyalty, ultimately boosting the company's earnings.

Monro Muffler Financial Statement Overview

Summary

Monro Muffler faces significant challenges in profitability and cash flow generation, as evidenced by negative net income and declining free cash flow. While the company maintains a stable gross profit margin and a balanced debt-to-equity ratio, the negative return on equity and declining revenue growth highlight areas of concern. The company needs to focus on improving operational efficiency and revenue generation to enhance financial stability.

Income Statement

Monro Muffler's income statement reveals challenges in maintaining profitability. The TTM data shows a negative net profit margin of -1.60%, indicating a loss. Revenue has declined by 1.04% compared to the previous period, and EBIT margin is also negative at -0.45%. These factors suggest difficulties in cost management and revenue generation. However, the gross profit margin remains relatively stable at 34.61%, indicating some efficiency in production or service delivery.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.83, reflecting a balanced approach to leveraging. However, the return on equity is negative at -3.08%, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio stands at 37.98%, suggesting a reasonable level of equity financing relative to total assets.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth by 39.06% in the TTM period, which is concerning. The operating cash flow to net income ratio is 0.14, showing that cash flow from operations is not adequately covering net income. However, the free cash flow to net income ratio is 0.65, suggesting some ability to generate cash relative to net income.

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	183.09M	149.73M
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	668.89M	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: Positive
• RSI: Neutral
• STOCH: Neutral

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 below the 20-day moving average (MA) of 20.04, below the 50-day MA of 18.26, and above the 200-day MA of 15.92, indicating a bullish trend. The MACD of 0.80 indicates Positive momentum. The RSI at 61.16 is Neutral, neither overbought nor oversold. The STOCH value of 36.79 is Neutral, 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	$3.85B	15.66	18.19%	―	7.94%	34.84%
LKQ	68 Neutral	$7.75B	11.23	10.87%	4.00%	-3.71%	-0.27%
SMP	65 Neutral	$822.55M	12.17	10.49%	3.32%	23.96%	11.01%
HLLY	64 Neutral	$504.94M	-19.89	-5.54%	―	-3.20%	-257.73%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MNRO	60 Neutral	$623.51M	―	-3.04%	5.50%	-2.58%	-179.55%
MPAA	59 Neutral	$239.98M	104.87	0.94%	―	6.72%	―

Monro Muffler Corporate Events

Monro Muffler Appoints Peter Fitzsimmons as CEO

On December 2, 2025, Monro, Inc. formalized an employment agreement with Peter Fitzsimmons, appointing him as the full-time President and CEO, and adding him to the Board of Directors. This move is part of Monro’s strategy to enhance operations and drive profitability, with Fitzsimmons having previously contributed to the company’s performance improvement plan. The agreement includes a comprehensive compensation package and aims to secure Fitzsimmons’s leadership until at least December 31, 2027, as the company continues to focus on growth and shareholder value.

Monro Muffler Declares Quarterly Dividend for Q3

On November 18, 2025, Monro, Inc.’s Board of Directors declared a quarterly cash dividend of $0.28 per share for the third quarter of the fiscal year ending December 27, 2025. The dividend will be paid on December 16, 2025, to shareholders of record as of December 2, 2025, including those holding Class C Convertible Preferred Stock.

Monro Muffler Extends Consulting Agreement with AlixPartners

On November 10, 2025, Monro, Inc. extended its consulting agreement with AlixPartners, LLP to December 27, 2025, as part of its ongoing operational improvement plan. The extension involves a fee of $2.2 million for services such as embedding capabilities and supporting revenue acceleration, with the company’s CEO, Peter Fitzsimmons, also serving as a partner at AlixPartners.

Monro Muffler Implements Shareholder Rights Plan

On November 10, 2025, Monro, Inc. announced the approval of a limited-duration shareholder rights plan by its Board of Directors, set to expire on November 6, 2026. This plan was implemented in response to Icahn Enterprises L.P.’s significant ownership accumulation of nearly 17% of the company, aiming to protect the long-term interests of Monro and its shareholders by preventing any entity from gaining control without proper compensation. The plan encourages potential acquirers to negotiate directly with the Board, ensuring informed decisions are made regarding any attempts to control or influence the company.