Monro Muffler (MNRO) AI Stock Analysis

• Market Cap: $567.67M
• Dividend Yield: 5.89%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• 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: 885,971
• 30 Day Avg. Volume: 1,084,966
• 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: 1.90
• 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: $20.00 ▲(11.98% Upside)

Monro Muffler's overall stock score is driven by a mix of positive technical indicators and challenges in financial performance and valuation. The stock shows bullish momentum, but financial difficulties, including negative net income and a negative P/E ratio, weigh heavily on the score. The high dividend yield provides some support, but the company needs to address profitability and revenue growth to improve its financial standing.

Positive Factors

Comparable Store Sales Growth

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

Gross Margin Improvement

Improved gross margins reflect better cost management and operational efficiency, enhancing profitability potential over the long term.

Strategic Shareholder Rights Plan

The rights plan protects against hostile takeovers, ensuring strategic autonomy and safeguarding shareholder interests, which supports long-term value.

Negative Factors

Declining Revenue Growth

A decline in revenue growth suggests challenges in market expansion and customer acquisition, potentially impacting future earnings.

Negative Profitability

Sustained negative profitability indicates struggles in cost management and revenue generation, threatening long-term financial health.

Higher Technician Labor Costs

Rising labor costs can erode margins and reduce competitiveness, posing a challenge to maintaining profitability in the long run.

Monro Muffler Business Overview & Revenue Model

Company Description

Monro Muffler, Inc. (MNRO) is a leading provider of automotive undercar repair and tire services in the United States. The company operates a vast network of retail stores, offering services that include muffler and exhaust system repair, brake services, and wheel alignment, as well as a wide selection of tires. Monro focuses on delivering high-quality service and products to both individual consumers and fleet operators, positioning itself as a trusted name in the automotive repair sector.

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'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	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: Negative
• 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 17.91, above the 50-day MA of 17.39, and above the 200-day MA of 15.65, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 62.63 is Neutral, neither overbought nor oversold. The STOCH value of 71.03 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	$3.95B	16.04	18.19%	―	7.94%	34.84%
LKQ	70 Neutral	$7.47B	10.83	10.87%	4.09%	-3.71%	-0.27%
SMP	65 Neutral	$815.73M	12.07	10.49%	3.32%	23.96%	11.01%
HLLY	64 Neutral	$465.17M	―	-5.54%	―	-3.20%	-257.73%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MPAA	59 Neutral	$251.32M	112.14	0.94%	―	6.72%	―
MNRO	57 Neutral	$567.67M	―	-3.04%	5.89%	-2.58%	-179.55%

Monro Muffler Corporate Events

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.

The most recent analyst rating on (MNRO) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Monro Muffler stock, see the MNRO Stock Forecast page.

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.

The most recent analyst rating on (MNRO) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Monro Muffler stock, see the MNRO Stock Forecast page.

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.