Monro Predicts Improvement in Profitability and Looks Like a Bargain
April 13, 2023
Trending News ☀️
Monro ($NASDAQ:MNRO) Inc., a leading automotive repair and tire retailer, is predicting an improvement in its profitability as it looks like a potential bargain. The company’s gross margin is expected to increase, indicating that the stock may be undervalued. These efforts are designed to increase customer loyalty and raise revenue. Investors may find that Monro Inc. is a great value buy given its potential upside.
Price History
On Wednesday, Monro Inc. opened at $47.8 and closed at $47.4, a decrease of 0.1% from the previous close of $47.5. Despite this seemingly small drop, Monro is predicting improvements in profitability over the course of the next year, making it look like a bargain for investors. This comes as a welcome sign for investors who were unsure how the company would fare in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Monro. More…
| Total Revenues | Net Income | Net Margin |
| 1.34k | 46.78 | 3.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Monro. More…
| Operations | Investing | Financing |
| 217.71 | 25.21 | -239.44 |
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 |
| 1.8k | 1.1k | 22.33 |
Key Ratios Snapshot
Some of the financial key ratios for Monro are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.2% | -13.1% | 6.3% |
| FCF Margin | ROE | ROA |
| 13.3% | 7.5% | 3.0% |
Analysis
At GoodWhale, we analyzed MONRO’s fundamentals using our methods. This makes MONRO a very attractive investment for income investors who prioritize stable and reliable returns. MONRO scored strong in earnings per share, medium in dividend yield and profitability, and weak in asset growth. However, MONRO has a high health score of 7/10 with regard to its cashflows and debt, indicating that it is capable of sustaining future operations in times of crisis. This makes MONRO an ideal investment for long-term investors who are looking for steady returns with low risk. Monro_Predicts_Improvement_in_Profitability_and_Looks_Like_a_Bargain”>More…
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
Investment analysis of MONRO has revealed that the company is undervalued compared to its peers. Monro’s gross margin has been trending upwards and is expected to continue to do so in the near future. This provides investors with an opportunity for a potential return on their investment. The company has also been making strategic investments in new products and services, which should further boost revenue and profit growth.
In addition, Monro has been increasing its market share in the tire and auto service industry, making it an attractive target for investors. Overall, investors can expect strong returns from an investment in MONRO while taking advantage of its value in the market.
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