Metro Inc. (TSE:MRU)
TSX:MRU
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Metro Inc.
(TSX:MRU)
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Rating:66Neutral
Price Target:
C$108.00
â–²(11.99% Upside)
Action:DowngradedDate:01/29/26
The score is driven mainly by strong, stable financial performance and a constructive earnings outlook with continued investment and shareholder returns. These positives are tempered by clearly bearish technical signals and only moderate valuation support at a ~20.5 P/E with a ~1.63% yield.
Positive Factors
Revenue growth & diversified mix
Metro’s revenue increased from ~$18.3B (2021) to ~$22.2B TTM, reflecting growth across food, pharmacy and distribution. That diversified retail mix and steady same-store/store expansion underpin resilient demand and lower cyclicality, supporting stable cash flows over the next 2–6 months.
Negative Factors
Higher absolute debt
Total debt increased materially in the latest TTM snapshot, raising leverage despite a moderate debt-to-equity ratio. Higher absolute debt reduces financial flexibility, raises interest expense sensitivity, and could constrain capital allocation if cash flow weakens or rates rise over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & diversified mix
Metro’s revenue increased from ~$18.3B (2021) to ~$22.2B TTM, reflecting growth across food, pharmacy and distribution. That diversified retail mix and steady same-store/store expansion underpin resilient demand and lower cyclicality, supporting stable cash flows over the next 2–6 months.
Read all positive factors
Metro Inc. (MRU) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$20.42B
Dividend Yield1.5%
Average Volume (3M)609.21K
Price to Earnings (P/E)23.4
Beta (1Y)0.36
Revenue Growth3.71%
EPS Growth12.40%
CountryCA
Employees97,870
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)1.16
Shares Outstanding211,745,500
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$105.50Price Target Upside9.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)5.16
Revenue Forecast (FY)C$22.72B
Metro Inc. Business Overview & Revenue Model
Company Description
Metro Inc. operates as a retailer, franchisor, distributor, and manufacturer in the food and pharmaceutical sectors in Canada. It operates supermarkets and discount stores that provide fresh and grocery products, baked goods, prepared foods, meats...
How the Company Makes Money
Metro Inc. generates revenue primarily through the sale of food and grocery products in its supermarkets and stores. The company's revenue model is based on a traditional retail framework, where it purchases products from suppliers at wholesale pr...
Metro Inc. Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call conveyed a largely constructive operational and financial picture: revenue, online sales, adjusted EBITDA and adjusted EPS showed growth, the Toronto freezer issue has been resolved, and management reiterated continued investment and disciplined capital allocation (share buybacks, dividend increase, $550M CapEx plan). However, notable near-term headwinds remain, including the $21.6M freezer-related cost and lost sales, higher operating and financial costs, rising depreciation, sustained food inflation (especially meat), and competitive/square-footage pressures. On balance, the positive results and recovery from the distribution disruption outweigh the lowlights, with management emphasizing confidence in execution and long-term returns from recent investments.Positive Updates
Revenue Growth
Total sales reached $5.3 billion, up 3.3% year-over-year, with total food sales growth of 3.1% driven by new store openings and conversions.
Negative Updates
Toronto Frozen DC Shutdown Costs and Sales Impact
Temporary shutdown of the Toronto frozen distribution center resulted in $21.6 million pretax ($15.9 million post-tax) of direct costs; management estimates ~30 basis points negative impact on same-store sales in the quarter and cited lost sales/margin on some frozen assortments.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total sales reached $5.3 billion, up 3.3% year-over-year, with total food sales growth of 3.1% driven by new store openings and conversions.
Read all positive updates
Company Guidance
Guidance highlights: Metro expects fiscal 2026 capital expenditures of approximately $550 million (Q1 CapEx was $61.9M vs $89.3M last year), plans roughly a dozen discount store openings in 2026 (three opened in Q1) and several major renovations, and grew net food retail space by 88,600 sq ft in Q1 (0.4% of network); the company repurchased 1.0 million shares for $98.7M (average $98.72) under its normal issuer bid as of Jan. 16, raised the quarterly dividend to $0.475 ($1.63 annual, +10.1%), representing about a 32% payout of last year’s adjusted net earnings, expects double‑digit cash‑on‑cash after‑tax returns from pharmacy supply‑chain automation, will consider gradual increases in leverage to support buybacks, and will report Q2 results on April 22, 2026.Metro Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.18B | 22.01B | 21.22B | 20.72B | 18.89B | 18.28B |
| Gross Profit | 4.26B | 4.37B | 4.18B | 4.08B | 3.78B | 3.65B |
| EBITDA | 2.06B | 2.08B | 1.99B | 2.00B | 1.79B | 1.74B |
| Net Income | 983.70M | 1.02B | 928.80M | 1.01B | 846.10M | 823.00M |
Balance Sheet | ||||||
| Total Assets | 14.85B | 14.54B | 14.14B | 13.87B | 13.40B | 13.59B |
| Cash, Cash Equivalents and Short-Term Investments | 17.90M | 67.30M | 29.40M | 29.50M | 13.40M | 445.80M |
| Total Debt | 4.87B | 4.60B | 4.31B | 4.32B | 4.12B | 4.56B |
| Total Liabilities | 7.81B | 7.49B | 7.10B | 7.05B | 6.78B | 7.18B |
| Stockholders Equity | 7.02B | 7.03B | 7.02B | 6.80B | 6.60B | 6.40B |
Cash Flow | ||||||
| Free Cash Flow | 1.14B | 1.16B | 1.06B | 867.60M | 847.80M | 969.90M |
| Operating Cash Flow | 1.56B | 1.61B | 1.56B | 1.46B | 1.37B | 1.49B |
| Investing Cash Flow | -404.50M | -424.00M | -471.50M | -586.90M | -492.70M | -487.30M |
| Financing Cash Flow | -1.14B | -1.15B | -1.09B | -861.80M | -1.31B | -998.30M |
Metro Inc. Technical Analysis
Positive
96.44
Price Trends
95.42
Positive
96.85
Negative
97.59
Negative
Market Momentum
-0.17
Negative
55.28
Neutral
77.51
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 96.44 is above the 20-day moving average (MA) of 94.87, above the 50-day MA of 95.42, and below the 200-day MA of 97.59, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 55.28 is Neutral, neither overbought nor oversold. The STOCH value of 77.51 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | C$2.58B | 13.57 | 18.44% | 3.27% | 2.08% | 9.31% | |
66 Neutral | C$20.42B | 23.42 | 14.48% | 1.50% | 3.71% | 12.40% | |
65 Neutral | C$47.07B | 38.62 | 99.41% | 0.20% | 14.02% | 20.11% | |
65 Neutral | C$37.78B | 31.90 | 21.94% | 1.23% | 4.15% | 149.50% | |
64 Neutral | C$75.54B | 27.64 | 24.03% | 1.52% | 4.21% | 14.03% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | C$11.42B | -6.61 | 12.66% | 1.78% | 2.58% | 7.85% |
* Consumer Defensive Sector Average
TSE:MRU
Metro Inc.
96.44
-2.44
-2.47%
TSE:L
Loblaw Companies
64.59
13.80
27.17%
TSE:DOL
Dollarama
172.59
18.92
12.31%
TSE:EMP.A
Empire Co Cl A NV
50.38
3.29
6.98%
TSE:NWC
North West
54.09
2.84
5.55%
TSE:WN
George Weston
99.85
19.32
23.99%
Metro Inc. Corporate Events
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...
Financial Disclosures
METRO Inc. Sets January 27 Date to Unveil Fiscal 2026 First-Quarter Results
Neutral
Jan 5, 2026
METRO Inc. announced it will publish its fiscal 2026 first-quarter results on January 27, 2026, followed by a conference call for investors and financial analysts hosted by President and CEO Eric R. La Flèche and Executive Vice President and ...
Financial Disclosures
METRO Inc. Sets Date for Fiscal 2026 First-Quarter Results and Investor Call
Neutral
Jan 5, 2026
METRO Inc. announced that it will release its fiscal 2026 first-quarter results on January 27, 2026, followed by a conference call led by President and CEO Eric R. La Flèche and Executive Vice President and CFO Nicolas Amyot for investors and...
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.