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Monro Muffler Brake (MNRO)
NASDAQ:MNRO
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Monro Muffler (MNRO) AI Stock Analysis

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MNRO

Monro Muffler

(NASDAQ:MNRO)

Rating:53Neutral
Price Target:
$14.50
▲(2.91%Upside)
Monro Muffler's overall score reflects financial difficulties, with declining revenue and profitability being the most significant issues. Weak technical indicators and mixed valuation also weigh on the score. Positive corporate events and earnings call insights show potential, but substantial improvements are needed to enhance long-term prospects.
Positive Factors
Business Strategy
The improvement plan includes closing unprofitable stores, improving customer experience, and driving profitable customer acquisition, which could enhance future performance.
Earnings
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.
Valuation
The company's depressed valuation may increase the possibility of a takeout.
Negative Factors
Business Challenges
Despite a positive update, there is reluctance to chase the stock as turnarounds are rarely linear and significant challenges remain.
Margins
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 (MNRO) vs. SPDR S&P 500 ETF (SPY)

Monro Muffler Business Overview & Revenue Model

Company DescriptionMonro, 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 MoneyMonro 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 Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q1-2026)
|
% Change Since: -13.66%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mix of positive steps taken towards operational improvements and challenges related to gross margin pressures and increased operating expenses. While there are notable achievements such as sales growth and successful store closures, the financial results indicate areas needing further improvement.
Q1-2026 Updates
Positive Updates
Mid-Single-Digit Comparable Store Sales Growth
The Monro team drove mid-single-digit comparable store sales growth in the quarter, enabling two consecutive quarters of positive comps for the first time in a couple of years.
Successful Closure of Underperforming Stores
Successfully completed the closure of 145 underperforming stores, which generated approximately 5% of total sales in fiscal 2025, expected to deliver meaningful improvement to profitability.
New Leadership in Merchandising
Katy Chang joined as Senior Vice President of Merchandising, expected to lead improvements in product availability and assortment.
Cost Control and Inventory Reduction
Reduced inventory levels by approximately $10 million, primarily due to reducing the store count, and maintained prudent operating cost control.
Positive Trends in High-Margin Categories
Sales and unit growth in high-margin service categories, including a 26% increase in front-end shocks.
Negative Updates
Decrease in Gross Margin
Gross margin decreased 170 basis points primarily due to higher technician labor costs and higher material costs.
Net Loss Reported
Reported a net loss of $8.1 million compared to net income of $5.9 million in the same period last year.
Increased Operating Expenses
Total operating expenses increased to $113 million, primarily due to $14.8 million of store closing costs and $4.7 million of costs for third-party consultants.
Company Guidance
During Monro, Inc.'s earnings call for the first quarter of fiscal 2026, the company provided several key metrics and insights into their performance improvement initiatives and financial expectations. The company closed 145 underperforming stores, which represented about 5% of fiscal 2025's total sales, and this move is expected to bolster profitability. Comparable store sales grew by 5.7% in the quarter, with tire units up by 3%. Despite this growth, gross margin decreased by 170 basis points due to higher technician labor costs and material costs, although occupancy costs saw a 120 basis point benefit. Operating expenses rose to $113 million, impacted by $14.8 million in store closing costs. The company posted a net loss of $8.1 million, with a diluted loss per share of $0.28. Looking forward, Monro expects continued comparable store sales growth but anticipates ongoing gross margin pressure due to cost inflation and tariff impacts. The company plans capital expenditures between $25 million to $35 million for fiscal 2026.

Monro Muffler Financial Statement Overview

Summary
Monro Muffler faces significant financial challenges with declining revenues and profitability. The income statement shows a net loss, while the balance sheet reveals high leverage, posing financial risks. Despite a strong operating cash flow, the overall financial health is weakened by profitability and leverage issues.
Income Statement
60
Neutral
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
55
Neutral
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
70
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.20B1.20B1.28B1.33B1.36B1.13B
Gross Profit415.37M417.64M452.10M456.18M481.84M395.19M
EBITDA45.23M82.38M144.09M156.79M101.92M72.43M
Net Income-19.09M-5.18M37.57M39.05M61.57M34.32M
Balance Sheet
Total Assets1.61B1.64B1.69B1.78B1.87B1.81B
Cash, Cash Equivalents and Short-Term Investments7.80M20.76M6.56M4.88M7.95M29.96M
Total Debt524.88M529.36M611.01M591.39M803.36M734.05M
Total Liabilities1.00B1.02B1.04B1.08B1.09B1.06B
Stockholders Equity604.89M620.76M656.77M694.92M782.91M749.68M
Cash Flow
Free Cash Flow79.45M105.55M99.72M176.03M145.93M133.18M
Operating Cash Flow104.33M131.91M125.20M215.02M173.76M184.91M
Investing Cash Flow635.00K-1.23M-1.96M26.55M-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
Negative
Last Price14.09
Price Trends
50DMA
15.15
Negative
100DMA
14.82
Negative
200DMA
19.00
Negative
Market Momentum
MACD
-0.15
Positive
RSI
43.08
Neutral
STOCH
29.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNRO, the sentiment is Negative. The current price of 14.09 is below the 20-day moving average (MA) of 15.42, below the 50-day MA of 15.15, and below the 200-day MA of 19.00, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 43.08 is Neutral, neither overbought nor oversold. The STOCH value of 29.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$647.78M10.3426.52%4.23%1.14%127.04%
78
Outperform
$258.63M12.549.91%5.54%398.82%
71
Outperform
$667.34M11.739.00%3.94%13.53%-4.76%
61
Neutral
$16.08B9.94-8.64%3.35%1.36%-20.44%
61
Neutral
$511.44M24.543.40%-4.25%
59
Neutral
$201.55M-7.17%5.53%60.54%
53
Neutral
$422.40M21.62-3.03%7.95%-3.20%-163.24%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MNRO
Monro Muffler
14.09
-11.70
-45.37%
AXL
American Axle
4.31
-2.05
-32.23%
PLOW
Douglas Dynamics
27.91
1.44
5.44%
MPAA
Motorcar Parts Of America
10.15
4.22
71.16%
SMP
Standard Motor Products
30.43
0.16
0.53%
STRT
Strattec Security
62.05
39.31
172.87%

Monro Muffler Corporate Events

Business Operations and Strategy
Monro Muffler Releases Fifth Annual ESG Report
Positive
Jun 16, 2025

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.

Business Operations and Strategy
Monro Muffler Amends Consulting Agreement with AlixPartners
Neutral
Jun 5, 2025

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.

DividendsBusiness Operations and StrategyFinancial Disclosures
Monro Muffler Reports Decrease in Sales and Income
Negative
May 28, 2025

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.

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.Date of analysis: Aug 01, 2025