MONRO Reports Strong Fourth Quarter Earnings for FY 2023

☀️Earnings Overview

On May 18 2023, MONRO ($NASDAQ:MNRO) reported its earnings results for the fourth quarter of Fiscal Year 2023, which ended on March 31 2023. Total revenue for the quarter was USD 310.8 million, representing a decrease of 5.2% year-on-year. The company’s net income showed a drop of 95.2%, amounting to USD 0.41 million compared to the same period last year.

Market Price

On Thursday, MONRO reported strong fourth quarter earnings for fiscal year 2023, but their stock dropped by 7.9% from its last closing price of 48.9. MONRO opened on Thursday at $45.2 and closed at $45.0, representing a significant decrease from the previous closing price. As a result, investors reacted negatively to the news and caused MONRO’s stock to drop.

Analysts attribute the drop in stock prices to the weak economic outlook due to the pandemic, as well as the uncertainty surrounding the future of the automotive industry. This positive news further confirms MONRO’s commitment to growth in this difficult economic climate. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Monro. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Monro. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Monro. More…

Key Ratios Snapshot

Some of the financial key ratios for Monro are shown below. More…

Analysis

GoodWhale has conducted an analysis of MONRO’s fundamentals and found them to be promising. Our Star Chart indicates that MONRO is classified as a ‘cow’, a type of company with a track record of paying out consistent and sustainable dividends. This makes MONRO an attractive prospect for investors with an appetite for dividend-based investments. We have also assessed MONRO’s financial health and given it a score of 7/10 in terms of its cashflows and debt. This suggests that MONRO has the capability to pay off its debts and fund future operations. When it comes to its other key metrics, MONRO is strong on liquidity, medium on dividend, profitability and weak on asset and growth. Our analysis indicates that MONRO has potential for future growth and may be a good investment opportunity for investors who are looking for a secure dividend yield. 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

Investors were disappointed by MONRO‘s fourth quarter earnings report, released on May 18th 2023. Total revenue for the quarter was USD 310.8 million, a decrease of 5.2% compared to the same period last year. Net income for the quarter was only USD 0.41 million, a decrease of 95.2%, leading to a sharp drop in MONRO’s stock price on the same day. This is a concerning sign for investors considering MONRO’s financial health, as it suggests the company may face continued profitability issues in the future.

However, given the company’s strong track record of performance, investors may want to hold onto their stock in hopes of a rebound.