Metro Inc. (MRU) AI Stock Analysis

• Market Cap: C$20.12B
• Dividend Yield: 1.5%
• Average Volume (3M): 609.21K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.29
• 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: 215,047,030
• 10 Day Avg. Volume: 587,217
• 30 Day Avg. Volume: 609,212
• PEG Ratio: -3.93
• Price to Book (P/B): 2.74
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 18.08
• 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: 13.15% 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$108.00 ▲(9.77% Upside)

Metro Inc. receives a strong overall score driven by robust financial performance and positive earnings call highlights. The company's consistent revenue growth and strategic expansions bolster its position in a competitive market. Technical indicators suggest a stable trend, while valuation metrics indicate moderate pricing. Challenges such as inflationary pressures and distribution center inefficiencies are noted but do not significantly detract from the overall positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing Metro Inc.'s competitive position in the grocery industry.

Online Sales Expansion

The growth in online sales reflects Metro Inc.'s successful adaptation to digital retail trends, expanding customer reach and improving convenience.

EBITDA Improvement

Improved EBITDA suggests enhanced operational efficiency and profitability, supporting long-term financial health and investment capacity.

Negative Factors

Inflationary Pressures

Rising inflation can erode profit margins and increase operational costs, challenging Metro Inc.'s ability to maintain pricing competitiveness.

Distribution Center Challenges

Operational inefficiencies in distribution centers can hinder productivity gains, impacting supply chain effectiveness and cost management.

Competitive Market Pressures

Intensified competition may pressure market share and necessitate increased promotional spending, affecting Metro Inc.'s profitability.

Metro Inc. Business Overview & Revenue Model

Company Description

Metro Inc. (MRU) is a leading Canadian food retailer, operating a network of supermarkets and grocery stores across Quebec and Ontario. The company operates under various banners, including Metro, Super C, and Food Basics, offering a wide range of products including fresh produce, meat, dairy, bakery items, and household goods. Metro Inc. is committed to providing high-quality products and customer service while focusing on sustainability and local sourcing.

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. 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	21.84B	21.22B	20.72B	18.89B	18.28B	18.00B
Gross Profit	4.32B	4.18B	4.08B	3.78B	3.65B	3.58B
EBITDA	2.06B	1.99B	2.00B	1.79B	1.74B	1.69B
Net Income	1.02B	928.80M	1.01B	846.10M	823.00M	795.20M
Balance Sheet
Total Assets	14.29B	14.14B	13.87B	13.40B	13.59B	13.42B
Cash, Cash Equivalents and Short-Term Investments	75.60M	29.40M	29.50M	13.40M	445.80M	441.50M
Total Debt	4.40B	4.31B	4.32B	4.12B	4.56B	4.70B
Total Liabilities	7.14B	7.10B	7.05B	6.78B	7.18B	7.27B
Stockholders Equity	7.13B	7.02B	6.80B	6.60B	6.40B	6.14B
Cash Flow
Free Cash Flow	1.14B	1.06B	867.60M	847.80M	969.90M	919.60M
Operating Cash Flow	1.57B	1.56B	1.46B	1.37B	1.49B	1.38B
Investing Cash Flow	-391.10M	-471.50M	-586.90M	-492.70M	-487.30M	-460.00M
Financing Cash Flow	-1.11B	-1.09B	-861.80M	-1.31B	-998.30M	-754.80M

Metro Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 98.39
• 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 Positive. The current price of 98.39 is above the 20-day moving average (MA) of 98.23, above the 50-day MA of 95.43, and below the 200-day MA of 99.07, indicating a neutral trend. The MACD of 1.28 indicates Positive momentum. The RSI at 52.68 is Neutral, neither overbought nor oversold. The STOCH value of 55.59 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
L	80 Outperform	$72.44B	29.32	21.51%	1.52%	4.21%	14.03%
MRU	78 Outperform	C$20.12B	20.23	14.48%	1.50%	3.71%	12.40%
WN	72 Outperform	C$33.11B	32.95	26.36%	1.20%	4.15%	149.50%
EMP.A	70 Outperform	C$11.24B	16.30	12.97%	1.67%	1.96%	9.26%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NWC	61 Neutral	C$2.19B	15.82	18.55%	3.22%	3.04%	4.17%
SAP	61 Neutral	C$13.83B	-95.78	-1.32%	1.99%	5.37%	-135.85%

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.