Monro Inc (MNRO) Stock Analysis
Verdict: AVOID
Crushing debt leverage and current ratio of 0.49 threaten solvency despite low P/B of 0.63x and tire replacement demand.
Investment score: 32/100
Analysis as of
Is Monro Inc stock worth reviewing? AI model thesis
The AI model evaluates Monro Inc as a high-risk turn-around candidate plagued by high financial leverage, deteriorating operating margins, and poor working capital metrics. Although the stock appears deeply discounted on a Price-to-Book basis (0.63x), solvency risks and weak operational execution outweigh the value thesis until debt refinancing or margin recovery is demonstrated.
7-factor investment score
- Valuation: 40/100 (weight 20%)
- Financial Health: 20/100 (weight 15%)
- Technical Momentum: 25/100 (weight 15%)
- Earnings Quality: 15/100 (weight 15%)
- Insider Sentiment: 45/100 (weight 10%)
- Analyst Consensus: 60/100 (weight 10%)
- Risk-Adjusted Return: 30/100 (weight 15%)
Monro Inc opportunities and risks
What speaks for MNRO
- High FCF Yield of 11.0% provides potential debt paydown capacity
What speaks against MNRO
- Extreme liquidity pressure with a Current Ratio of 0.49 and Net Debt/EBITDA of 6.90x
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| MNRO | 50.8x | 0.3x | 12.0x | 34.9% | 0.7% | 11.0% |
| SAH | 11.4x | 0.2x | 10.6x | 15.7% | 1.4% | -2.3% |
| APC | n/a | 1.6x | 66.2x | 2.8% | 0.3% | 0.2% |
| CWH | n/a | 0.1x | 7.9x | 28.7% | -1.6% | 14.2% |
| ARKO | 53.5x | 0.1x | 10.6x | 16.4% | 0.2% | 8.2% |
| EVGO | n/a | 1.1x | n/a | 18.5% | -13.5% | -44.3% |
| Peer median | n/a | 0.2x | 10.6x | 16.4% | 0.2% | 0.2% |
Frequently asked questions about Monro Inc (MNRO)
Is MNRO stock a good investment?
The cached TradeMates AI model rates Monro Inc as AVOID with an investment score of 32/100. The AI model evaluates Monro Inc as a high-risk turn-around candidate plagued by high financial leverage, deteriorating operating margins, and poor working capital metrics. Although the stock appears deeply discounted on a Price-to-Book basis (0.63x), solvency risks and weak operational execution outweigh the value thesis until debt refinancing or margin recovery is demonstrated. This is algorithmic model output, not personal investment advice.
Is MNRO stock a buy?
The TradeMates model verdict for MNRO is AVOID with an investment score of 32/100. Treat this as a model signal to review, not a personal buy recommendation.