Monro Muffler (MNRO) AI Stock Analysis

• Market Cap: $477.14M
• Dividend Yield: 7.03%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.97
• Revenue Growth: -6.38%
• EPS Growth: -118.57%
• Country: US
• Employees: 7,660
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Parts
• EPS (TTM): -0.09
• Shares Outstanding: 29,971,388
• 10 Day Avg. Volume: 711,775
• 30 Day Avg. Volume: 1,015,020
• PEG Ratio: -1.18
• Price to Book (P/B): 2.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.94
• Enterprise Value/Market Cap: 4.53
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 5.17
• Enterprise Value/Ebitda: 4.62
• 1Y Price Target: $15.75
• Price Target Upside: -2.54% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• Price Target: $15.50 ▼(-4.08%Downside)

Monro's overall stock score is primarily impacted by financial performance concerns, with declining revenues and net losses posing significant risks. Technical analysis and valuation further suggest caution. Positive strategic initiatives and a strong cash position provide some optimism, but profitability and leverage issues need urgent attention.

Positive Factors

Profitability Improvement

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 Momentum

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

Valuation and Acquisition Potential

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 Price Decline

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

Turnaround Challenges

Despite a positive update, there is reluctance to chase the stock as turnarounds are rarely linear and significant challenges remain.

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 the sale of automotive repair and maintenance services and the sale of tires and related automotive products. The company's revenue streams are largely derived from its network of retail service locations, where it performs various automotive services, including brake repairs, alignments, and exhaust work. Additionally, tire sales represent a significant portion of their income, as Monro offers a wide selection of tire brands and models. The company benefits from strategic partnerships with tire manufacturers and suppliers, allowing them to offer competitive pricing and a diverse product range. By combining service offerings with retail product sales, Monro Muffler effectively capitalizes on the recurring need for automotive maintenance and repair, driving its revenue growth.

Monro Muffler Financial Statement Overview

Summary

Monro Muffler is experiencing financial challenges, particularly in profitability and leverage. The income statement shows declining revenues and a net loss, while the balance sheet indicates high debt levels. Although cash flow from operations is strong, overall financial health is weakened by profitability issues and leverage concerns.

Income Statement

The income statement reveals a troubling trend with declining revenue over the past few years, culminating in a revenue decrease of 6.39% from 2024 to 2025. The company reported a net loss of $5.18 million in 2025, down from a profit of $37.57 million in 2024, indicating significant profitability challenges. Gross profit margins have remained relatively stable, but both EBIT and EBITDA margins have seen declines, suggesting operational inefficiencies.

Balance Sheet

The balance sheet shows high leverage, with a debt-to-equity ratio of approximately 0.85 in 2025, indicating potential financial risk. The equity ratio decreased slightly, highlighting increased reliance on debt financing. Return on equity is negative due to the net loss, reflecting poor returns on shareholders' investments. Overall, the balance sheet suggests financial instability and potential risk due to high debt levels.

Cash Flow

Cash flow analysis shows positive operating cash flow, but free cash flow growth is negative due to reduced profitability. The company maintains a healthy operating cash flow to net income ratio, indicating efficient cash generation despite losses. However, the free cash flow to net income ratio has been impacted by the net loss, signaling room for improvement in cash flow management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.20B	1.28B	1.33B	1.36B	1.13B
Gross Profit	417.64M	452.10M	456.18M	481.84M	395.19M
EBITDA	82.38M	144.09M	156.79M	101.92M	72.43M
Net Income	-5.18M	37.57M	39.05M	61.57M	34.32M
Balance Sheet
Total Assets	1.64B	1.69B	1.78B	1.87B	1.81B
Cash, Cash Equivalents and Short-Term Investments	20.76M	6.56M	4.88M	7.95M	29.96M
Total Debt	529.36M	611.01M	591.39M	803.36M	734.05M
Total Liabilities	1.02B	1.04B	1.08B	1.09B	1.06B
Stockholders Equity	620.76M	656.77M	694.92M	782.91M	749.68M
Cash Flow
Free Cash Flow	105.55M	99.72M	176.03M	145.93M	133.18M
Operating Cash Flow	131.91M	125.20M	215.02M	173.76M	184.91M
Investing Cash Flow	-1.23M	-1.96M	26.55M	-109.80M	-66.26M
Financing Cash Flow	-116.48M	-121.56M	-244.63M	-85.97M	-434.16M

Monro Muffler Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.16
• 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 Positive. The current price of 16.16 is above the 20-day moving average (MA) of 15.16, above the 50-day MA of 14.42, and below the 200-day MA of 19.97, indicating a neutral trend. The MACD of 0.35 indicates Negative momentum. The RSI at 54.86 is Neutral, neither overbought nor oversold. The STOCH value of 70.54 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
SMP	80 Outperform	$733.95M	12.90	9.00%	3.71%	13.53%	-4.76%
PLOW	79 Outperform	$713.69M	11.40	26.52%	3.81%	1.14%	127.04%
STRT	78 Outperform	$270.93M	13.48	9.91%	―	5.54%	398.82%
AXL	65 Neutral	$517.37M	25.34	3.40%	―	-4.25%	―
MPAA	65 Neutral	$242.36M	―	-7.17%	―	5.53%	60.54%
Sector *	64 Neutral	kr10.68B	16.17	4.75%	8.73%	2.00%	4.90%
MNRO	57 Neutral	$477.14M	21.62	-0.81%	7.03%	-6.38%	-118.57%

Monro Muffler Corporate Events

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.

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.

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.

The most recent analyst rating on (MNRO) stock is a Buy 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 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.

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.