Monro, Inc.

Valuation Analysis

About the Company

Monro, Inc. engages in the operation of retail tire and automotive repair stores in the United States. The company offers replacement tires and tire related services; automotive undercar repair services; and routine maintenance services primarily to passenger cars, light trucks, and vans. It also provides other products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment. The company operates its stores under the Monro Auto Service and Tire Centers, Tire Choice Auto Service Centers, Mr. Tire Auto Service Centers, Car-X Tire & Auto, Tire Warehouse Tires for Less, Ken Towery's Tire & Auto Care, Mountain View Tire & Auto Service, and Tire Barn Warehouse brand names. The company was founded in 1957 and is headquartered in Fairport,

Monro, Inc. Stock at a Glance

Monro, Inc. (MNRO) is currently trading at $15.95 with a market capitalization of $478.9M. The trailing P/E ratio stands at 531.67x, with a forward P/E of 25.73x. The 52-week range spans from $12.26 to $23.91; the current price is 33.3% below the yearly high. Year-over-year revenue growth stands at -7.2%. The net profit margin stands at 0.19%.

💰 Dividend

Monro, Inc. pays an annual dividend of $1.12 per share, representing a yield of 7.02%. The payout ratio stands at 3733.33%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

4 analysts rate Monro, Inc. (MNRO) on consensus: Buy. The average price target is $24.38, implying +52.82% from the current price. Analyst price targets range from $17.50 to $40.00.

Monro, Inc.: The Investment Case in Detail

Monro, Inc. (MNRO) operates in the Consumer Cyclical — specifically Auto Parts — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Wall Street consensus sits at Buy with an average price target implying roughly 52.82% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

Revenue is contracting at -7.2% year-over-year — until that trend reverses, valuation is exposed to further downgrades. With a net margin of just 0.19%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. A trailing P/E above 50 combined with revenue growth below 20% is a dangerous combination — the market is paying a steep growth multiple for what is, by the data, only moderately fast expansion.

Valuation in Context

At a PEG of 3.66, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here. The EV/EBITDA multiple of 9.75x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 25.73x is meaningfully below the trailing 531.67x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 52.82% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to market-like volatility, elevated short interest (34.98%).

Trading Data

💵 Dividend Info

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