Monro Muffler Brake Inc. operates a chain of stores providing automotive undercar repair and tire services in the United States. The company was founded in 1957 and is based in Rochester, New York.
MNRO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Monro Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Monro Inc ranked in the 36th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Monro Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 2.37; that's higher than 52.85% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
The business' balance sheet suggests that 30% of the company's capital is sourced from debt; this is greater than 60.12% of the free cash flow producing stocks we're observing.
MNRO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 6%; for context, that number is higher than 40.98% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
WING, LE, THRM, CULP, and WW can be thought of as valuation peers to MNRO, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Wasatch Advisors, an employee-owned investment manager, published its ‘Wasatch Small Cap Value Fund’ third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 4.48% was recorded by the fund for the Q3 of 2020, above its Russel 2000 Value benchmark that returned 2.56%. You can view the fund’s top 10 […]
ROCHESTER, N.Y., Jan. 13, 2021 (GLOBE NEWSWIRE) -- Monro, Inc. (Nasdaq: MNRO), a leading provider of automotive undercar repair and tire services, will release its fiscal 2021 third quarter earnings on January 27, 2021. The Company will host a conference call and audio webcast on Wednesday, January 27, 2021 at 8:30 a.m. Eastern Time. The conference call may be accessed by dialing 1-877-425-9470 and using the required passcode 13715011. A replay will be available approximately two hours after the recording through Wednesday, February 10, 2021 and can be accessed by dialing 1-844-512-2921 and using the required passcode of 13715011. The live conference call and replay can also be accessed via audio webcast at the Investors section of the Company’s website, located at corporate.monro.com....
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In this article you are going to find out whether hedge funds think Monro Inc (NASDAQ:MNRO) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks among […]