Monro Muffler (MNRO) AI Stock Analysis

• Market Cap: $476.07M
• Dividend Yield: 6.97%
• Average Volume (3M): 989.78K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 1.06
• Revenue Growth: -3.20%
• EPS Growth: -163.24%
• Country: US
• Employees: 7,660
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Auto - Parts
• EPS (TTM): 0.22
• Shares Outstanding: 29,978,943
• 10 Day Avg. Volume: 765,842
• 30 Day Avg. Volume: 989,783
• 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: 2.01
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 2.30
• Enterprise Value/Ebitda: 15.73
• 1Y Price Target: $16.00
• Price Target Upside: 1.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: $16.00 ▲(1.85% Upside)

Monro Muffler's overall stock score reflects significant financial challenges, particularly in revenue and profitability, offset by positive cash flow and strategic initiatives. Technical indicators suggest mild upward momentum, while valuation concerns persist due to a negative P/E ratio. The earnings call provided cautious optimism with strong sales growth but highlighted ongoing operational challenges.

Positive Factors

Profitability

The FQ4 update is seen as a step in the right direction with an improvement plan in place that should drive enhanced profitability over time.

Sales Performance

Comps showed improvement with a positive trend, particularly in February and March with continued momentum in April and May.

Valuation

The company's depressed valuation may increase the possibility of a takeout.

Negative Factors

Margin Pressure

MNRO’s FQ4 gross margin contracted due to higher material and technician labor costs, indicating ongoing margin pressure.

Stock Performance

MNRO's shares have decreased 9% since the announcement of the boards' appointment of Peter Fitzsimmons and tariff announcements.

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 faces significant challenges in financial performance, with declining revenue and profitability. The balance sheet reveals moderate leverage, but decreased equity indicates potential risk. Positive cash flow generation is a strength, yet overall financials need 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: Neutral
• Last Price: 15.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Neutral. The current price of 15.71 is above the 20-day moving average (MA) of 15.38, above the 50-day MA of 15.31, and below the 200-day MA of 18.24, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 63.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MNRO.

Monro Muffler Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLOW	81 Outperform	$747.45M	11.75	25.41%	3.65%	1.47%	131.61%
SMP	80 Outperform	$842.57M	12.99	9.90%	3.22%	17.98%	9.41%
STRT	78 Outperform	$283.31M	14.40	8.85%	―	5.08%	12.98%
MPAA	68 Neutral	$264.16M	171.72	0.63%	―	6.59%	―
Sector *	67 Neutral	¥284.31B	15.32	6.82%	2.48%	5.05%	-19.67%
AXL	61 Neutral	$664.52M	16.30	6.38%	―	-6.73%	4900.00%
MNRO	53 Neutral	$476.07M	21.62	-3.03%	6.97%	-3.20%	-163.24%

Monro Muffler Corporate Events

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.

Monro Muffler Releases Fifth Annual ESG Report

On June 16, 2025, Monro, Inc. announced the release of its fifth annual ESG report for fiscal year 2025, highlighting its commitment to operational excellence and responsible business practices. The report details advancements in digital guest experiences, teammate development, and environmental progress, including the rollout of the ConfiDrive digital courtesy performance review, investments in training and retention, and strides toward achieving 100% LED lighting by 2028. These initiatives aim to drive growth, strengthen relationships, and deliver long-term value to stakeholders.

Monro Muffler Amends Consulting Agreement with AlixPartners

On May 30, 2025, Monro, Inc. amended its consulting agreement with AlixPartners, LLP, engaging them for the initial phase of implementation services with a fee of $5.85 million through July 2025. The services include store closure plans, improving customer experience, and increasing merchandising productivity, with the company’s CEO, Peter Fitzsimmons, also serving as a partner at AlixPartners.

Monro Muffler Reports Decrease in Sales and Income

Monro, Inc. announced its financial results for the fourth quarter and fiscal year 2025, reporting a decrease in sales and net income compared to the previous year. The company plans to close 145 underperforming stores in the first quarter of fiscal 2026 and has declared a quarterly cash dividend of $0.28 per share for the first quarter of fiscal 2026.