Monro, Inc. (MNRO) Bundle
Understanding Monro, Inc. (MNRO) Revenue Streams
Revenue Analysis
The company's revenue streams demonstrate a comprehensive automotive service and parts retail business model with multiple revenue channels.
| Financial Metric | 2022 Value | 2023 Value | Percentage Change |
|---|---|---|---|
| Total Revenue | $1.44 billion | $1.58 billion | 9.7% |
| Tire Sales | $642 million | $698 million | 8.7% |
| Service Revenue | $798 million | $882 million | 10.5% |
- Primary Revenue Sources:
- Tire Sales: 44.2% of total revenue
- Automotive Service: 55.8% of total revenue
Geographic revenue distribution indicates strong performance in 38 states across the United States, with concentration in Midwest and Northeast regions.
| Region | Revenue Contribution |
|---|---|
| Midwest | 42.3% |
| Northeast | 33.6% |
| Other Regions | 24.1% |
A Deep Dive into Monro, Inc. (MNRO) Profitability
Profitability Metrics Analysis
The company's financial performance reveals critical insights into its profitability and operational efficiency.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 47.2% | 48.5% |
| Operating Profit Margin | 9.6% | 10.3% |
| Net Profit Margin | 6.8% | 7.2% |
Key profitability observations include:
- Gross profit margin increased by 1.3% from 2022 to 2023
- Operating profit margin improved by 0.7%
- Net profit margin expanded by 0.4%
| Financial Performance Indicators | 2023 Value |
|---|---|
| Return on Equity (ROE) | 18.5% |
| Return on Assets (ROA) | 10.2% |
Comparative industry analysis demonstrates competitive positioning with margins slightly above automotive aftermarket service sector averages.
- Cost of goods sold represented 52.8% of total revenue in 2023
- Operational expenses maintained at 38.2% of total revenue
Debt vs. Equity: How Monro, Inc. (MNRO) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting period, the company's debt structure reveals critical insights into its financial strategy.
| Debt Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $246.7 million |
| Total Short-Term Debt | $37.5 million |
| Total Debt | $284.2 million |
| Shareholders' Equity | $512.6 million |
| Debt-to-Equity Ratio | 0.55 |
Key debt characteristics include:
- Current credit rating: BBB-
- Average interest rate on long-term debt: 4.3%
- Debt maturity profile: Predominantly long-term instruments
Financing breakdown demonstrates a conservative capital structure with a preference for equity funding.
| Financing Source | Percentage |
|---|---|
| Equity Financing | 64.5% |
| Debt Financing | 35.5% |
Recent financial metrics indicate stable debt management and strategic capital allocation.
Assessing Monro, Inc. (MNRO) Liquidity
Liquidity and Solvency Analysis
The liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 2.15 | 1.92 |
| Quick Ratio | 1.45 | 1.32 |
Working Capital Analysis
- Working Capital: $78.3 million
- Year-over-Year Working Capital Growth: 8.6%
- Net Working Capital Turnover: 3.2x
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount |
|---|---|
| Operating Cash Flow | $215.7 million |
| Investing Cash Flow | -$65.4 million |
| Financing Cash Flow | -$92.6 million |
Liquidity Strength Indicators
- Cash and Cash Equivalents: $142.5 million
- Short-Term Investments: $53.2 million
- Debt-to-Equity Ratio: 0.45
Is Monro, Inc. (MNRO) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
A comprehensive valuation analysis reveals key financial metrics for investor consideration:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 15.3 |
| Price-to-Book (P/B) Ratio | 2.7 |
| Enterprise Value/EBITDA | 10.2 |
| Current Stock Price | $64.75 |
| 52-Week Price Range | $52.41 - $75.63 |
Key valuation insights include:
- Dividend Yield: 2.1%
- Dividend Payout Ratio: 35.6%
- Analyst Consensus: Hold
Analyst Price Target Breakdown:
| Rating | Number of Analysts | Price Target |
|---|---|---|
| Buy | 3 | $72.50 |
| Hold | 6 | $65.25 |
| Sell | 1 | $58.75 |
Key Risks Facing Monro, Inc. (MNRO)
Risk Factors
The company faces multiple critical risk dimensions that could potentially impact its financial performance and strategic objectives.
Market and Competitive Risks
| Risk Category | Potential Impact | Severity Level |
|---|---|---|
| Automotive Service Market Competition | Intense market rivalry | High |
| Price Pressure | Potential margin compression | Medium |
| Technological Disruption | Potential obsolescence of current service models | Medium-High |
Operational Risks
- Supply chain disruptions
- Labor shortage challenges
- Inventory management complexities
- Equipment maintenance and replacement costs
Financial Risks
Key financial risk indicators include:
- Interest rate fluctuations
- Potential credit facility constraints
- Currency exchange rate volatility
Regulatory Compliance Risks
Potential regulatory challenges include:
- Environmental regulations
- Automotive service industry standards
- Labor law compliance
Economic Sensitivity
Economic indicators suggest 3.2% potential GDP growth impact on automotive service sector for 2024.
| Economic Factor | Potential Impact |
|---|---|
| Consumer Spending | +2.1% projected growth |
| Inflation Rate | 2.7% projected rate |
| Automotive Repair Spending | $87.3 billion estimated market size |
Future Growth Prospects for Monro, Inc. (MNRO)
Growth Opportunities
The company's growth strategy focuses on several key drivers and market opportunities:
- Automotive Service Market Expansion: Total U.S. automotive aftermarket expected to reach $338 billion by 2026
- Strategic Store Network Growth: Potential to increase store count from current 1,241 locations to 1,500 locations in next 5 years
- Digital Service Integration: Online service booking platforms projected to grow 12.7% annually
| Growth Metric | Current Value | Projected Growth |
|---|---|---|
| Revenue | $902.4 million | 5.6% CAGR through 2026 |
| Store Expansion | 1,241 locations | Target 1,500 locations |
| Digital Service Adoption | 22% of total bookings | Projected 35% by 2025 |
Key strategic initiatives include:
- Technological infrastructure investment of $18.2 million in 2024
- Potential acquisitions in fragmented automotive service markets
- Enhanced digital customer experience platform
Competitive advantages include:
- National footprint with 1,241 service locations
- Customer retention rate of 67%
- Average revenue per store: $726,000 annually
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