Metro Inc. (MRU) AI Stock Analysis

• Market Cap: C$20.95B
• Dividend Yield: 1.51%
• Average Volume (3M): 609.21K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.24
• Revenue Growth: 3.71%
• EPS Growth: 12.40%
• Country: CA
• Employees: 97,870
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 1.13
• Shares Outstanding: 213,829,730
• 10 Day Avg. Volume: 587,217
• 30 Day Avg. Volume: 609,212
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$111.33
• Price Target Upside: 13.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: C$113.00 ▲(14.81% Upside)

Metro Inc. demonstrates strong financial performance and positive earnings call sentiment, despite short-term operational challenges. Technical indicators suggest stability, and valuation metrics indicate the stock is fairly priced.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Pharmacy Division Performance

Growth in the pharmacy division diversifies revenue streams and strengthens Metro's market position in health-related retail.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling reinvestment in growth initiatives and debt management.

Negative Factors

Mechanical Issue Impact

Operational disruptions from mechanical issues can lead to significant financial losses and impact supply chain efficiency.

Increased Operating Expenses

Rising operating expenses can pressure profit margins, potentially reducing profitability if not managed effectively.

Freezer Issue Cost Impact

Continued costs from operational issues may strain financial resources and delay recovery efforts, impacting short-term earnings.

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, dairy products, fruits and vegetables, frozen foods, bakery products, and pastries, as well as Mediterranean and Middle Eastern products. As of September 25, 2021, the company operated a network of approximately 963 food stores under various banners, including Metro, Metro Plus, Super C, and Food Basics, Adonis, and Premiere Moisson as well as approximately 649 drugstores primarily under the Jean Coutu, Brunet, Metro Pharmacy, and Food Basics Pharmacy banners. It also manufactures generic drugs; and provides online grocery shopping services. Metro Inc. was founded in 1947 and is headquartered in Montréal, Canada.

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 prices and sells them to consumers at retail prices, earning a margin on each sale. Key revenue streams include fresh food, packaged goods, and non-food items. Additionally, Metro Inc. benefits from private label products, which offer higher margins compared to branded products. The company also engages in promotional activities and loyalty programs to drive customer retention and increase sales. Significant partnerships with local suppliers and distributors enhance its product offerings and support its commitment to local sourcing, which helps attract customers and contribute to overall earnings.

Metro Inc. Financial Statement Overview

Summary

Metro Inc. exhibits strong financial health with consistent revenue growth, stable profit margins, and robust cash flow generation. The balance sheet reflects moderate leverage and effective asset management.

Income Statement

Metro Inc. has demonstrated consistent revenue growth, with a 0.78% increase in the latest year. The gross profit margin remains strong, although slightly decreased from previous years. Net profit margin and EBIT margin are stable, indicating efficient cost management and profitability. The EBITDA margin is healthy, reflecting strong operational performance.

Balance Sheet

The company's debt-to-equity ratio is moderate, suggesting a balanced approach to leveraging. Return on equity is solid, indicating effective use of shareholder funds to generate profits. The equity ratio is stable, reflecting a strong capital structure and asset management.

Cash Flow

Metro Inc. shows a positive trend in free cash flow growth, with a 2.119% increase. The operating cash flow to net income ratio is robust, indicating strong cash generation relative to net income. The free cash flow to net income ratio is healthy, supporting the company's ability to fund operations and investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	22.01B	22.01B	21.22B	20.72B	18.89B	18.28B
Gross Profit	4.23B	3.78B	4.18B	4.08B	3.78B	3.65B
EBITDA	2.06B	2.08B	1.99B	2.00B	1.79B	1.74B
Net Income	1.02B	1.02B	928.80M	1.01B	846.10M	823.00M
Balance Sheet
Total Assets	14.54B	14.54B	14.14B	13.87B	13.40B	13.59B
Cash, Cash Equivalents and Short-Term Investments	67.30M	67.30M	29.40M	29.50M	13.40M	445.80M
Total Debt	4.60B	4.60B	4.31B	4.32B	4.12B	4.56B
Total Liabilities	7.49B	7.49B	7.10B	7.05B	6.78B	7.18B
Stockholders Equity	7.03B	7.03B	7.02B	6.80B	6.60B	6.40B
Cash Flow
Free Cash Flow	1.16B	1.16B	1.06B	867.60M	847.80M	969.90M
Operating Cash Flow	1.61B	1.61B	1.56B	1.46B	1.37B	1.49B
Investing Cash Flow	-424.00M	-424.00M	-471.50M	-586.90M	-492.70M	-487.30M
Financing Cash Flow	-1.15B	-1.15B	-1.09B	-861.80M	-1.31B	-998.30M

Metro Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 98.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MRU, the sentiment is Neutral. The current price of 98.42 is below the 20-day moving average (MA) of 99.47, above the 50-day MA of 97.21, and below the 200-day MA of 99.40, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 48.73 is Neutral, neither overbought nor oversold. The STOCH value of 50.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MRU.

Metro Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRU	78 Outperform	C$20.95B	21.09	14.48%	1.51%	3.71%	12.40%
L	76 Outperform	C$73.07B	29.87	21.51%	1.51%	4.21%	14.03%
DOL	71 Outperform	$55.69B	43.10	102.01%	0.20%	14.02%	20.11%
WN	70 Outperform	C$36.22B	24.77	26.36%	1.23%	4.15%	149.50%
NWC	69 Neutral	C$2.35B	16.44	18.69%	3.28%	2.08%	9.31%
EMP.A	68 Neutral	C$10.70B	15.75	12.66%	1.80%	2.58%	7.85%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Metro Inc. Corporate Events

METRO Inc. to Announce Q4 2025 Financial Results

METRO Inc. announced it will release its fourth quarter fiscal 2025 results on November 19, 2025, followed by a conference call for investors and financial analysts. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, impacting its market positioning and investor confidence.

The most recent analyst rating on (TSE:MRU) stock is a Buy with a C$110.00 price target. To see the full list of analyst forecasts on Metro Inc. stock, see the TSE:MRU Stock Forecast page.

METRO Inc. Declares Consistent Quarterly Dividend

METRO Inc. has announced a quarterly dividend of $0.37 per common share, consistent with the previous quarter’s dividend, payable on November 11, 2025, to shareholders recorded by October 23, 2025. This announcement reflects the company’s stable financial performance and commitment to returning value to its shareholders, reinforcing its strong position in the food and pharmacy industry.

The most recent analyst rating on (TSE:MRU) stock is a Hold with a C$111.00 price target. To see the full list of analyst forecasts on Metro Inc. stock, see the TSE:MRU Stock Forecast page.

Metro Inc. Earnings Call Highlights Growth Amid Challenges

Metro Inc. Reports Strong Earnings Amid Competitive and Inflationary Challenges

Metro Inc. Achieves Strong Q3 Growth with Strategic Expansions

Metro Inc. reported a strong performance in the third quarter of Fiscal 2025, with sales reaching $6,871.0 million, a 3.3% increase from the previous year. The company saw significant growth in both food and pharmacy same-store sales and successfully opened five new food stores, aligning with its strategy to expand its discount banners. This growth is attributed to effective cost control, productivity gains, and strategic investments in its retail network and supply chain, which are expected to drive long-term shareholder value.

The most recent analyst rating on (TSE:MRU) stock is a Hold with a C$86.00 price target. To see the full list of analyst forecasts on Metro Inc. stock, see the TSE:MRU Stock Forecast page.