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Monro Muffler
(NASDAQ:MNRO)
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Rating:50Neutral
Price Target:
$17.00
▼(-4.87% Downside)
Action:Reiterated
Date:06/17/26
Overall score reflects pressured financial performance (shrinking revenue and sharply weaker profitability) as the main drag, partially cushioned by solid cash generation and moderate leverage. Technical indicators are neutral, valuation is challenged by an extremely high P/E despite a strong dividend yield, and the latest earnings call suggests gradual operational improvement but meaningful near-term sales and SG&A headwinds.
Positive Factors
Strong cash generation
Consistent, material operating cash flow ($70M in FY2026) provides durable internal funding for the turnaround: it supports the $25–35M capex plan, the resumed dividend, debt reduction and strategic review activities, giving management flexibility despite volatile accounting earnings.
Negative Factors
Multi-year revenue decline
Sustained top-line contraction over several years signals structural demand or competitive share issues; reduced scale can erode vendor terms, fixed-cost absorption and national marketing leverage, making it harder to restore prior profitability even after cost and portfolio actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, material operating cash flow ($70M in FY2026) provides durable internal funding for the turnaround: it supports the $25–35M capex plan, the resumed dividend, debt reduction and strategic review activities, giving management flexibility despite volatile accounting earnings.
Read all positive factors
Monro Muffler Key Performance Indicators (KPIs)
Any
Number of Stores
Reports the store footprint and, when available, its composition (for example by format or ownership). Changes in this mix—openings, acquisitions or closures—indicate how the company is executing expansion strategy and the likely impact on regional coverage, same-store sales trends, and operating efficiency.
Reports the store footprint and, when available, its composition (for example by format or ownership). Changes in this mix—openings, acquisitions or closures—indicate how the company is executing expansion strategy and the likely impact on regional coverage, same-store sales trends, and operating efficiency.
Data provided by:
The Fly
The FlyMonro Muffler (MNRO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$517.04M
Dividend Yield5.5%
Average Volume (3M)1.37M
Price to Earnings (P/E)424.0
Beta (1Y)1.06
Revenue Growth-3.19%
EPS GrowthN/A
CountryUS
Employees7,360
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.04
Shares Outstanding30,025,267
10 Day Avg. Volume1,772,502
30 Day Avg. Volume1,370,669
Financial Highlights & Ratios
PEG Ratio-5.00
Price to Book (P/B)0.78
Price to Sales (P/S)0.40
P/FCF Ratio11.97
Enterprise Value/Market Cap1.79
Enterprise Value/Revenue0.80
Enterprise Value/Gross Profit2.29
Enterprise Value/Ebitda13.95
Forecast
1Y Price Target
$16.00Price Target Upside-10.46% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.33
Revenue Forecast (FY)$1.16B
Monro Muffler Business Overview & Revenue Model
Company Description
Monro, Inc. engages in the operation of retail tire and automotive repair stores in the United States. It offers replacement tires and tire related services; automotive undercar repair services; and routine maintenance services primarily to passen...
How the Company Makes Money
Monro makes money primarily by selling automotive services and products through its company-owned retail service locations. Revenue is generated from (1) service labor and related shop charges for maintenance and repair work (e.g., oil changes, br...
Monro Muffler Earnings Call Summary
Earnings Call Date:May 27, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
The call presented a mix of meaningful operational progress and financial improvements (margin expansion, narrowed net loss, strong cash generation, store optimization and capability builds) while acknowledging significant near-term headwinds (Q4 sales decline, tire unit weakness, weather disruptions, trade-down to lower-price tires, and short-term SG&A pressure). Management reiterated FY27 expectations for positive comparable-store sales and maintained liquidity, but several adjusted metrics and May-to-date comps remain soft. Overall the company shows constructive momentum from its transformation initiatives, tempered by persistent macro and category-specific challenges.Positive Updates
Gross Margin Expansion
Gross margin expanded 90 basis points year-over-year to 33.9% in the fourth quarter, driven primarily by lower technician labor costs as a percentage of sales and productivity gains.
Negative Updates
Quarterly Sales and Comparable Store Sales Decline
Total sales decreased 7.2% to $273.8 million in Q4, driven by the 145 store closures and a 2.4% decrease in comparable store sales at continuing locations. Q4 comps by month: January +1%, February ‑5%, March ‑2%.
Read all updates
Q4-2026 Updates
Positive
Negative
Gross Margin Expansion
Gross margin expanded 90 basis points year-over-year to 33.9% in the fourth quarter, driven primarily by lower technician labor costs as a percentage of sales and productivity gains.
Read all positive updates
Company Guidance
Monro expects year‑over‑year comparable store sales growth in fiscal 2027 but warned of a roughly $9 million sales reduction in Q1 from its store optimization plan; management expects full‑year gross margin to be broadly consistent with fiscal 2026’s 33.9% (up 90 bps YoY) while incurring higher SG&A to fund incremental marketing (with SG&A pressure concentrated in the first half until the Q3 lap), plans $25–35 million of capital expenditures, expects to generate sufficient cash flow to fund capital allocation priorities (the company generated $70 million of cash from operations in FY2026), and enters FY2027 with about $45 million of net bank debt, ~$15 million of cash and ~ $410 million of availability under its credit facility — while the Board has also initiated a broad strategic review.Monro Muffler Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
56
Neutral
Cash Flow
62
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.16B | 1.20B | 1.28B | 1.33B | 1.36B |
| Gross Profit | 405.26M | 417.64M | 452.10M | 456.18M | 481.84M |
| EBITDA | 82.01M | 82.38M | 144.09M | 157.38M | 183.09M |
| Net Income | 2.17M | -5.18M | 37.57M | 39.05M | 61.57M |
Balance Sheet | |||||
| Total Assets | 1.57B | 1.64B | 1.69B | 1.78B | 1.87B |
| Cash, Cash Equivalents and Short-Term Investments | 14.63M | 20.76M | 6.56M | 4.88M | 7.95M |
| Total Debt | 485.90M | 529.36M | 611.01M | 668.89M | 803.36M |
| Total Liabilities | 976.50M | 1.02B | 1.04B | 1.08B | 1.09B |
| Stockholders Equity | 591.47M | 620.76M | 656.77M | 694.92M | 782.91M |
Cash Flow | |||||
| Free Cash Flow | 38.78M | 105.55M | 99.72M | 176.03M | 145.93M |
| Operating Cash Flow | 70.44M | 131.91M | 125.20M | 215.02M | 173.76M |
| Investing Cash Flow | -1.20M | -1.23M | -1.96M | 26.55M | -109.80M |
| Financing Cash Flow | -75.37M | -116.48M | -121.56M | -244.63M | -85.97M |
Monro Muffler Technical Analysis
Positive
17.87
Price Trends
16.15
Positive
17.12
Positive
17.57
Negative
Market Momentum
0.05
Negative
61.90
Neutral
73.45
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 17.87 is above the 20-day moving average (MA) of 15.56, above the 50-day MA of 16.15, and above the 200-day MA of 17.57, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 61.90 is Neutral, neither overbought nor oversold. The STOCH value of 73.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MNRO.
Monro Muffler Risk Analysis
Monro Muffler disclosed 29 risk factors in its most recent earnings report. Monro Muffler reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Monro Muffler Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $4.02B | 21.24 | 13.06% | ― | 5.04% | -10.80% | |
62 Neutral | $904.56M | 18.75 | 6.69% | 3.32% | 18.32% | 45.19% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $293.90M | 23.31 | 4.75% | ― | 4.28% | ― | |
57 Neutral | $6.89B | 13.00 | 7.93% | 4.00% | -1.37% | -24.48% | |
53 Neutral | $304.54M | 13.14 | 5.30% | ― | 1.87% | ― | |
50 Neutral | $517.04M | 424.00 | 0.36% | 5.50% | -3.19% | ― |
* Consumer Cyclical Sector Average
MNRO
Monro Muffler
16.96
1.94
12.95%
DORM
Dorman Products
132.56
7.27
5.80%
LKQ
LKQ
26.12
-10.31
-28.30%
MPAA
Motorcar Parts Of America
15.19
3.62
31.29%
SMP
Standard Motor Products
39.01
7.67
24.49%
HLLY
Holley
2.60
0.50
23.81%
Monro Muffler Corporate Events
Business Operations and Strategy
Monro Releases 2026 ESG Report Highlighting Responsible Service
Positive
Jun 16, 2026
On June 16, 2026, Monro, Inc., a leading U.S. automotive repair and tire services provider, published its sixth annual environmental, social and governance report covering fiscal year 2026, which ended March 28, 2026. The report, titled “Ser...
Business Operations and StrategyDividendsFinancial Disclosures
Monro Reports Weaker Q4 Results, Reviews Strategic Alternatives
Negative
May 27, 2026
On May 27, 2026, Monro reported fourth-quarter and fiscal 2026 results showing a 7.2% quarterly sales decline to $273.8 million and a 3.2% full-year sales decline to $1.157 billion, largely due to the closure of 145 underperforming stores and soft...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.