Monro Muffler Brake Inc

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MNRO : NASDAQ : Consumer Goods
$56.32 -0.80 | -1.40%
Today's Range: 56.12 - 57.13
Avg. Daily Volume: 245,400
08/24/16 - 4:00 PM ET

Financial Analysis


MONRO MUFFLER BRAKE INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. MONRO MUFFLER BRAKE INC has very weak liquidity. Currently, the Quick Ratio is 0.07 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 11.54% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)236.89236.52
EBITDA ($mil)42.1143.24
EBIT ($mil)31.333.61
Net Income ($mil)16.7618.8


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)4.727.71
Total Assets ($mil)1056.36932.21
Total Debt ($mil)333.16258.52
Equity ($mil)549.88492.98


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin45.9646.23
EBITDA Margin17.7718.28
Operating Margin13.2114.21
Sales Turnover0.890.98
Return on Assets6.136.82
Return on Equity11.6912.83
Debt Q1 FY16 Q1 FY15
Current Ratio1.091.12
Debt/Capital0.380.34
Interest Expense4.493.39
Interest Coverage6.989.91


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)32.2931.95
Div / share0.170.15
EPS0.50.57
Book value / share17.0315.43
Institutional Own % n/a n/a
Avg Daily Volume258673.0218606.0

Valuation


BUY. MONRO MUFFLER BRAKE INC's P/E ratio indicates a premium compared to an average of 22.82 for the Specialty Retail industry and a premium compared to the S&P 500 average of 25.30. Conducting a second comparison, its price-to-book ratio of 3.33 indicates a premium versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 13.18. The current price-to-sales ratio is similar to the S&P 500 average, but it is above the industry average, indicating a premium. The valuation analysis reveals that, MONRO MUFFLER BRAKE INC seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MNRO 29.06 Peers 22.82   MNRO 15.71 Peers 15.50

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

MNRO is trading at a significant premium to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

MNRO is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MNRO 23.61 Peers 20.47   MNRO 5.81 Peers 2.14

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

MNRO is trading at a significant premium to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

MNRO trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MNRO 3.33 Peers 13.18   MNRO 0.51 Peers -14.14

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

MNRO is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

MNRO is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MNRO 1.94 Peers 1.57   MNRO 3.34 Peers 8.17

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

MNRO is trading at a premium to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

MNRO significantly trails its peers on the basis of sales growth

 

 

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