Monro Intrinsic Value Calculation – Dimensional Fund Advisors LP reduces stake in Monro, by 12% in Q2
October 9, 2024
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MONRO ($NASDAQ:MNRO), Inc. is a leading provider of automotive undercar repair and maintenance services in the United States. According to the company’s reports, Dimensional Fund Advisors LP reduced its stake in Monro by 12.0%, marking a notable shift in its investment strategy. This reduction in ownership may have implications for Monro’s stock performance and future business decisions. The firm manages assets for a variety of clients, including institutional investors, high-net-worth individuals, and financial advisors. As a result, many investors may be adjusting their portfolios to mitigate potential risks and maximize returns. Another factor that could have contributed to Dimensional Fund Advisors LP’s reduction in stake is Monro’s financial performance. This could have raised concerns among investors and prompted some to adjust their ownership in the company. It is worth noting that despite the decrease in ownership by Dimensional Fund Advisors LP, Monro, Inc. remains a fundamentally strong company with a solid financial standing. The company has a strong market presence and a loyal customer base, which positions it well for future growth opportunities.
However, the reduction in stake by a major investor may indicate a shift in market sentiment towards the stock. It remains to be seen how this change will impact Monro’s stock performance and future business decisions. Nevertheless, Monro’s strong fundamentals and market position continue to make it a promising investment opportunity in the automotive industry.
Analysis – Monro Intrinsic Value Calculation
In our analysis of MONRO’s fundamentals, we have determined that its fair value is around $46.2 per share. This calculation was done using our proprietary Valuation Line, taking into account various factors such as the company’s financial performance, industry trends, and future growth potential. Currently, MONRO’s stock is trading at around $28.84 per share, making it undervalued by approximately 37.6%. This presents a potential opportunity for investors to purchase the stock at a discounted price, as the market is not fully reflecting its true value. Our analysis also takes into consideration MONRO’s financial health, which is an important factor in determining its fair value. We have looked at the company’s profitability, cash flow, and debt levels, and have found that it is in a strong financial position. This provides a solid foundation for future growth and increases the likelihood of its stock price reaching its fair value. Furthermore, our analysis includes a review of MONRO’s industry trends and competitive landscape. We believe that the company is well-positioned in the automotive aftermarket industry, with a strong brand, loyal customer base, and a growing market. This bodes well for its future performance and adds to our confidence in our valuation of the stock. In conclusion, our analysis shows that MONRO’s stock is currently undervalued and presents a potential buying opportunity for investors. With a solid financial position, strong industry trends, and a fair value that exceeds its current market price, MONRO has the potential for long-term growth and value appreciation. Monro_by_12_in_Q2″>More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Monro. More…
| Total Revenues | Net Income | Net Margin |
| 1.28k | 33.35 | 2.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Monro. More…
| Operations | Investing | Financing |
| 174.29 | -9.29 | -154.15 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Monro. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.73k | 1.07k | 22.06 |
Key Ratios Snapshot
Some of the financial key ratios for Monro are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.9% | 9.0% | 5.3% |
| FCF Margin | ROE | ROA |
| 11.3% | 6.2% | 2.4% |
Peers
Monro Inc is in a fiercely competitive market, with HyUnion Holding Co Ltd, Strattec Security Corp, and Odyne Corp all vying for the top spot. Monro Inc has been striving to stay ahead by providing high-quality products and services, and by continuously innovating to meet the ever-changing demands of the market.
– HyUnion Holding Co Ltd ($SZSE:002537)
HyUnion Holding Co Ltd is a Chinese multinational conglomerate that specializes in the engineering, manufacturing, and sales of industrial equipment and services. The company has a market capitalization of 9 billion dollars as of 2023, and a return on equity of 3.11%. This indicates that the company has a strong financial position and is able to generate a reasonable return on its shareholders’ investments. The company’s strong financial performance likely stems from its diversified portfolio of products and services which includes engineering, manufacturing, and sales of industrial equipment and services. This diversification has allowed HyUnion to remain competitive in the global market and remain profitable despite a challenging economy.
– Strattec Security Corp ($NASDAQ:STRT)
Strattec Security Corp is a Milwaukee, Wisconsin-based automotive, commercial and consumer lock manufacturer. The company has an impressive market capitalization of 82.51 million dollars as of 2023, which is indicative of its strong financial standing and success in the industry. Additionally, its return on equity of 3.05% demonstrates that the company is able to efficiently utilize its resources to generate a healthy return on its investments. Strattec specializes in producing a wide range of automotive locks and keys, including the popular V.A.T.S., P.A.T.S., and Ignition Lock Cylinder systems. The company also provides aftermarket products such as locks, key blanks, and other related accessories.
– Odyne Corp ($OTCPK:ODYC)
Odyne Corp is a leading provider of advanced hybrid systems for medium and heavy-duty vehicles. With a market cap of 70.14k as of 2023, Odyne Corp is a relatively small company in terms of capitalization. Its Return on Equity (ROE) of -323.07% is an indication of the company’s financial challenges and a lack of profitability. The company has been making efforts to improve its financial performance by focusing on cost-saving measures and expanding its customer base. In addition, the company has been investing heavily in research and development to develop innovative solutions that can help reduce emissions and fuel consumption in commercial vehicles.
Summary
Dimensional Fund Advisors LP reduced its ownership in Monro, Inc. by 12.0% during the second quarter. This indicates a potential lack of confidence in the company’s financial performance. Investors may interpret this move as a signal to reassess their investment in Monro and potentially consider alternative options.
It is worth noting that Monro, Inc. is a publicly-traded company, so this reduction may have an impact on the stock price. Investors should carefully monitor the company’s future financial reports and performance to make informed decisions about their investment in Monro.
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