Metro Inc. (MRU) AI Stock Analysis

• Market Cap: C$22.09B
• Dividend Yield: 1.38%
• Average Volume (3M): 372.84K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.36
• Revenue Growth: 2.26%
• EPS Growth: 12.56%
• Country: CA
• Employees: 97,870
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Grocery Stores
• EPS (TTM): 1.52
• Shares Outstanding: 218,072,050
• 10 Day Avg. Volume: 461,158
• 30 Day Avg. Volume: 372,840
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$113.20
• Price Target Upside: 10.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: C$111.00 ▲(8.72% Upside)

Metro Inc.'s overall stock score is driven by strong financial performance and positive earnings call outcomes, indicating robust growth and resilience in a competitive market. However, technical analysis suggests bearish momentum, and valuation metrics imply potential overvaluation, which tempers the overall score.

Positive Factors

Earnings Growth

Leading SSS and EPS growth should deliver share price increase.

Strategic Positioning

Investor Day reflects strategic consistency.

Negative Factors

Stock Performance

MRU's closed down 6%, which appears too punitive, in our view.

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 pharmaceutical products across its extensive retail network. The company operates through various store formats, including conventional supermarkets, discount stores, and drugstores, which cater to different market segments and customer preferences. Revenue streams include the direct sale of goods to consumers, as well as income from private label products, which often offer higher margins. Additionally, Metro Inc. benefits from its loyalty programs and promotional activities that drive customer engagement and repeat business. Strategic partnerships with suppliers and a focus on operational efficiency also contribute to the company's profitability, allowing it to maintain competitive pricing and enhance its value proposition to customers.

Metro Inc. Financial Statement Overview

Summary

Metro Inc. demonstrates strong financial health with robust profitability and a stable balance sheet. The company shows consistent revenue growth and efficient equity utilization. While the slight decline in EBIT margin and free cash flow growth warrants attention, the overall financial position remains solid and competitive within the grocery industry.

Income Statement

Metro Inc. shows strong profitability with a gross profit margin of 18.94% and a net profit margin of 4.59% for TTM (Trailing-Twelve-Months). The company exhibits consistent revenue growth, with a 1.87% increase in the latest TTM period. However, there is a slight decline in EBIT margin from the previous year, indicating some pressure on operational efficiency.

Balance Sheet

The balance sheet is robust with a debt-to-equity ratio of 0.63, suggesting a balanced leverage position. Return on equity stands at 14.04%, reflecting efficient use of shareholders' equity. The equity ratio of 49.65% indicates a stable financial structure, though slightly lower leverage could be beneficial.

Cash Flow

Metro Inc. maintains healthy cash flows, with a stable operating cash flow to net income ratio of 1.56 and a free cash flow to net income ratio of 1.03. There is a slight decrease in free cash flow growth of -7.09% in the TTM period, which could be an area of concern if it persists.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.62B	21.22B	20.72B	18.89B	18.28B	18.00B
Gross Profit	4.09B	4.18B	4.08B	3.78B	3.65B	3.58B
EBITDA	2.02B	1.99B	2.00B	1.79B	1.74B	1.69B
Net Income	993.00M	928.80M	1.01B	846.10M	823.00M	795.20M
Balance Sheet
Total Assets	14.25B	14.14B	13.87B	13.40B	13.59B	13.42B
Cash, Cash Equivalents and Short-Term Investments	38.60M	29.40M	29.50M	13.40M	445.80M	441.50M
Total Debt	4.48B	4.31B	4.32B	4.12B	4.56B	4.70B
Total Liabilities	7.16B	7.10B	7.05B	6.78B	7.18B	7.27B
Stockholders Equity	7.07B	7.02B	6.80B	6.60B	6.40B	6.14B
Cash Flow
Free Cash Flow	1.02B	1.10B	883.60M	840.30M	984.00M	963.40M
Operating Cash Flow	1.55B	1.68B	1.56B	1.46B	1.58B	1.47B
Investing Cash Flow	-418.90M	-456.40M	-572.50M	-477.80M	-471.60M	-444.10M
Financing Cash Flow	-1.15B	-1.22B	-974.90M	-1.42B	-1.11B	-861.90M

Metro Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 102.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 102.1 is below the 20-day moving average (MA) of 103.88, below the 50-day MA of 104.49, and above the 200-day MA of 97.50, indicating a neutral trend. The MACD of -1.08 indicates Positive momentum. The RSI at 44.86 is Neutral, neither overbought nor oversold. The STOCH value of 44.70 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
L	80 Outperform	$69.76B	28.82	21.77%	0.89%	3.26%	22.10%
EMP.A	79 Outperform	C$13.38B	19.64	13.02%	1.43%	1.77%	0.77%
MRU	69 Neutral	C$22.09B	21.91	14.60%	1.38%	2.26%	12.56%
NWC	67 Neutral	C$2.49B	18.09	18.85%	3.09%	4.19%	2.56%
WN	65 Neutral	C$34.79B	34.62	17.72%	1.23%	3.21%	-12.20%
SAP	63 Neutral	C$13.65B	42.30	-2.20%	2.28%	7.58%	-155.93%
Sector *	63 Neutral	$20.95B	14.50	-4.08%	3.12%	2.72%	-11.24%

Metro Inc. Corporate Events

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.

METRO Inc. to Announce Q3 Fiscal 2025 Results

METRO Inc. has announced that it will release its third quarter fiscal 2025 results on August 13, 2025, followed by a conference call led by President & CEO Eric R. La Flèche and Executive Vice President & CFO Nicolas Amyot. This announcement is significant for investors and financial analysts as it provides insights into the company’s financial performance and strategic positioning. The conference call will allow analysts and institutional investors to engage directly with the company’s leadership, while the general public can listen in, reflecting METRO Inc.’s commitment to transparency and stakeholder engagement.

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.