Metro Inc. (TSE:MRU)
TSX:MRU
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Metro Inc.
(TSX:MRU)
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Rating:70Outperform
Price Target:
C$99.00
â–²(8.28% Upside)
Action:Upgraded
Date:04/24/26
The score is supported primarily by strong, consistent financial performance and constructive earnings-call results showing continued growth and profitability improvement. The main drag is weak technical momentum with the stock trading below key moving averages and negative MACD, while valuation appears reasonable but not cheap given the ~20.5 P/E and modest yield.
Positive Factors
Strong Free Cash Flow
Metro's large and improving free cash flow (TTM ~C$1.31B) provides durable internal funding for capex, network expansion, dividends and buybacks, reducing dependence on external financing and supporting strategic investment and resilience across economic cycles.
Negative Factors
Rising Leverage
An upward drift in debt reduces financial flexibility and increases sensitivity to higher rates. Moderate leverage limits room for aggressive M&A or incremental capex if growth softens, and raises interest expense risk over the next several quarters if conditions tighten.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Free Cash Flow
Metro's large and improving free cash flow (TTM ~C$1.31B) provides durable internal funding for capex, network expansion, dividends and buybacks, reducing dependence on external financing and supporting strategic investment and resilience across economic cycles.
Read all positive factors
Metro Inc. (MRU) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$19.39B
Dividend Yield1.5%
Average Volume (3M)609.21K
Price to Earnings (P/E)19.4
Beta (1Y)0.29
Revenue Growth3.52%
EPS Growth5.04%
CountryCA
Employees97,870
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)4.69
Shares Outstanding209,975,250
10 Day Avg. Volume587,217
30 Day Avg. Volume609,212
Financial Highlights & Ratios
PEG Ratio1.60
Price to Book (P/B)2.91
Price to Sales (P/S)0.93
P/FCF Ratio17.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$102.17Price Target Upside11.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)5.16
Revenue Forecast (FY)C$22.74B
Metro Inc. Business Overview & Revenue Model
Company Description
Metro Inc. is a prominent Canadian enterprise active across the food and pharmaceutical industries, functioning as a retailer, franchisor, distributor, and manufacturer. Its operations encompass supermarkets and discount stores, offering a compreh...
How the Company Makes Money
Metro primarily makes money by selling merchandise to consumers through its food retail and pharmacy networks. In food retail, revenue is generated from in-store and online sales of groceries and everyday consumables, with earnings influenced by s...
Metro Inc. Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The quarter delivered solid top‑line and profitability improvements: revenue grew 4.1%, adjusted EBITDA rose 6% and adjusted EPS increased 8.8%, supported by pharmacy momentum, strong e‑commerce growth (+19.8%) and disciplined cost control. However, material near‑term risks include a Quebec strike affecting produce distribution (impact to be quantified in Q3), fuel price pressure that could cost roughly $5M per quarter if sustained, flat/declining market tonnage and modest increases in interest and depreciation costs. On balance the financial performance and growth initiatives are strong, but the company faces notable operational and cost headwinds that warrant monitoring.Positive Updates
Revenue Growth
Q2 sales reached $5.1 billion, up 4.1% year‑over‑year, driven by new store openings, same‑store sales growth and a timing shift of a pre‑Christmas shopping day into the quarter.
Negative Updates
Quebec Strike Disruption
A strike beginning March 30 in Quebec impacted produce distribution and sales (especially the week before Easter). The company implemented contingency plans; management could not quantify the financial impact yet and said the impact will be reflected in Q3.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Q2 sales reached $5.1 billion, up 4.1% year‑over‑year, driven by new store openings, same‑store sales growth and a timing shift of a pre‑Christmas shopping day into the quarter.
Read all positive updates
Company Guidance
Management said they remain confident in continued growth and long‑term value creation driven by discount store expansion, pharmacy momentum (including GLP‑1s), private‑label strength and Moi personalization, while acknowledging near‑term risks from the Quebec strike (impact to be quantified after settlement) and elevated fuel costs (management flagged roughly a $5M/quarter hit at current prices). Key metrics cited around that guidance: Q2 sales were $5.1B (+4.1%), gross margin $1.03B (20.1% of sales), adjusted EBITDA $488.5M (+6%, 9.6% of sales, +16 bps YoY), adjusted net earnings $236.5M (+4.4%) and adjusted EPS $1.11 (+8.8%); operating expenses $538.9M (10.5% of sales); D&A $144.3M; net financial costs $37.3M; debt/EBITDA ~2.2% after issuing a $350M 5‑year note at 3.469%; Q2 capex $85.3M and retail square footage growth +0.6% YTD (+1.9% L12M); online sales up 19.8%; and 2.9M shares repurchased for $279.8M (avg. $96.47).Metro Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.38B | 22.01B | 21.22B | 20.72B | 18.89B | 18.28B |
| Gross Profit | 4.45B | 4.37B | 4.18B | 4.08B | 3.78B | 3.65B |
| EBITDA | 2.11B | 2.08B | 1.99B | 2.00B | 1.79B | 1.74B |
| Net Income | 1.01B | 1.02B | 928.80M | 1.01B | 846.10M | 823.00M |
Balance Sheet | ||||||
| Total Assets | 14.55B | 14.54B | 14.14B | 13.87B | 13.40B | 13.59B |
| Cash, Cash Equivalents and Short-Term Investments | 131.10M | 67.30M | 29.40M | 29.50M | 13.40M | 445.80M |
| Total Debt | 4.81B | 4.60B | 4.31B | 4.32B | 4.12B | 4.56B |
| Total Liabilities | 7.59B | 7.49B | 7.10B | 7.05B | 6.78B | 7.18B |
| Stockholders Equity | 6.94B | 7.03B | 7.02B | 6.80B | 6.60B | 6.40B |
Cash Flow | ||||||
| Free Cash Flow | 1.31B | 1.16B | 1.06B | 867.60M | 847.80M | 969.90M |
| Operating Cash Flow | 1.74B | 1.61B | 1.56B | 1.46B | 1.37B | 1.49B |
| Investing Cash Flow | -373.60M | -424.00M | -471.50M | -586.90M | -492.70M | -487.30M |
| Financing Cash Flow | -1.27B | -1.15B | -1.09B | -861.80M | -1.31B | -998.30M |
Metro Inc. Technical Analysis
Positive
91.43
Price Trends
90.82
Positive
93.07
Negative
94.37
Negative
Market Momentum
-0.23
Negative
64.14
Neutral
72.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MRU, the sentiment is Positive. The current price of 91.43 is above the 20-day moving average (MA) of 88.90, above the 50-day MA of 90.82, and below the 200-day MA of 94.37, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 64.14 is Neutral, neither overbought nor oversold. The STOCH value of 72.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MRU.
Metro Inc. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$19.39B | 19.39 | 14.38% | 1.50% | 3.52% | 5.04% | |
66 Neutral | C$75.25B | 27.41 | 24.88% | 1.52% | 4.36% | 28.73% | |
66 Neutral | C$2.52B | 17.99 | 17.82% | 3.27% | 0.85% | 1.61% | |
65 Neutral | C$48.65B | 37.25 | 94.71% | 0.20% | 13.14% | 13.84% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | C$38.30B | 33.09 | 21.74% | 1.23% | 4.36% | -0.82% | |
56 Neutral | C$10.92B | 69.94 | 2.98% | 1.78% | 2.35% | -76.67% |
* Consumer Defensive Sector Average
TSE:MRU
Metro Inc.
92.36
-10.85
-10.51%
TSE:L
Loblaw Companies
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16.95%
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TSE:EMP.A
Empire Co Cl A NV
48.50
-2.66
-5.19%
TSE:NWC
North West
52.89
0.36
0.69%
TSE:WN
George Weston
101.91
13.02
14.65%
Metro Inc. Corporate Events
Business Operations and StrategyFinancial Disclosures
Metro Inc. Sets April 22 Date for Q2 2026 Results and Investor Call
Neutral
Mar 23, 2026
Metro Inc. will publish its second-quarter fiscal 2026 results on April 22, 2026, followed by a 9:30 a.m. EDT conference call led by President and CEO Eric R. La Flèche and Executive Vice President and CFO Nicolas Amyot. The call, aimed at in...
Financial Disclosures
METRO Inc. Sets April 22 Date to Unveil Fiscal Q2 2026 Results
Neutral
Mar 23, 2026
METRO Inc., the food and pharmacy giant in Québec and Ontario with more than $22 billion in annual sales and a network of roughly 1,000 food stores and 640 pharmacies, continues to expand its multi-banner retail, distribution and eCommerce fo...
Business Operations and StrategyPrivate Placements and Financing
Metro Inc. Raises C$350 Million in Investment-Grade Note Offering
Positive
Feb 24, 2026
Metro Inc., a major food and pharmacy retailer in Québec and Ontario with more than 1,000 grocery stores and 640 pharmacies under multiple banners, continues to expand its integrated retail, distribution and e-commerce operations. The company...
Executive/Board ChangesShareholder Meetings
Metro Shareholders Re-Elect Full Slate of Directors at 2026 Annual Meeting
Positive
Jan 28, 2026
Metro Inc. announced that all 11 management-nominated directors were elected to its board at the company’s January 27, 2026 annual general meeting of shareholders, each securing strong majority support in the votes cast. The reaffirmation of...
Business Operations and StrategyDividendsFinancial Disclosures
Metro Posts Higher Sales and Adjusted Earnings Despite Distribution Centre Shutdown
Positive
Jan 27, 2026
Metro Inc. reported first-quarter fiscal 2026 sales of $5.29 billion, up 3.3% year over year, driven by food same-store sales growth of 1.6% (1.9% adjusted for the Christmas shift), a 25.8% surge in online food sales, and pharmacy same-store sales...
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.