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Why Monro, Inc. (NASDAQ:MNRO) Could Have A Place In Your Portfolio

Simply Wall St

I've been keeping an eye on Monro, Inc. (NASDAQ:MNRO) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe MNRO has a lot to offer. Basically, it is a company with great financial health as well as a a strong history of performance. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Monro here.

Adequate balance sheet with proven track record

Over the past year, MNRO has grown its earnings by 22%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, MNRO also outperformed its industry, which delivered a growth of 10%. This paints a buoyant picture for the company. With a debt-to-equity ratio of 19%, MNRO’s debt level is reasonable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. MNRO seems to have put its debt to good use, generating operating cash levels of 1.11x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NasdaqGS:MNRO Income Statement, August 12th 2019
NasdaqGS:MNRO Income Statement, August 12th 2019

Next Steps:

For Monro, I've put together three key factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for MNRO’s future growth? Take a look at our free research report of analyst consensus for MNRO’s outlook.

  2. Valuation: What is MNRO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MNRO is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MNRO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.