One-glance verdict
Undervalued
$41.49 our estimate vs market $13.41
Wall Street consensus: $21.75 (-47.6% lower than our fair-value estimate)
68% below our estimate, below the bear case
Fundamentals snapshot
Monro, Inc.
MNRO · NMS · Consumer Cyclical · Auto Parts
Current price
$13.41
52-week range
$11.06 - $23.91
Market cap
$419.25M
Balance sheet
Stretched
1.16x Concerning
Net debt $518.32M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 1.4% on equity, ahead of 20% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Reward Dividend yield is 8.3% with 22-year payout history.
- Risk Operating margin compressed from 6.0% to 0.8% over 3 years.
What this company does
Monro, Inc.
Monro, Inc. is a company that runs a lot of auto repair shops and tire stores across the United States, like Mr. Tire and Car-X. They make money by selling new tires and doing all sorts of car repairs and maintenance, from fixing brakes to oil changes. This is important because it shows where their sales come from, which are mostly from these in-person services and product sales.
How the company got here
Monro, Inc. started in 1957 as a single Midas Muffler franchise opened by Charles J. August in Rochester, New York. The company eventually broke away from Midas in 1966 to expand its services beyond just mufflers and exhaust systems, beginning its journey into broader automotive repair. Over the decades, Monro grew by acquiring other regional auto service and tire businesses, expanding its geographic reach across the United States. A significant turning point was its move into the tire business, which became a more prominent part of its strategy in the early 2000s. The company went public in 1991, allowing it to raise capital for further expansion and acquisitions. Today, Monro operates a large network of stores under various well-known regional brands.
What it actually does
Monro operates a large chain of auto repair and tire service centers across the United States. Think of them as the go-to places for car maintenance and when your car needs new tires. They handle everything from routine services like oil changes and brake work to more complex repairs involving the car's undercarriage, steering, and suspension systems. Monro's business is essentially about keeping cars running safely and smoothly for everyday drivers.
Monro Auto Service and Tire Centers
This is Monro's flagship brand and one of its most recognizable names. These centers offer a full range of automotive services, including tire sales and installation, as well as undercar repairs and routine maintenance. They serve a broad customer base across many states, representing a significant portion of Monro's overall business. The focus here is on providing comprehensive car care, from essential tire needs to more involved mechanical services.
Mr. Tire Auto Service Centers
Mr. Tire is a well-established regional brand, particularly strong in the Northeast and Mid-Atlantic areas. These centers provide a similar range of services to the Monro branded stores, focusing on tire sales, undercar repairs, and general automotive maintenance. The acquisition of Mr. Tire has been a key part of Monro's growth strategy, allowing the company to expand its footprint and customer base in important markets. This brand contributes a substantial part of Monro's revenue and market presence.
Tire Choice Auto Service Centers
Tire Choice is positioned as a value-oriented brand, often found in southern markets. These locations specialize in tire sales and related services, alongside other automotive repairs. By operating under this banner, Monro aims to attract customers looking for reliable tire and auto services at competitive prices. Tire Choice represents another important segment of Monro's diversified brand portfolio, helping to capture a specific segment of the market.
Car-X Tire & Auto
Car-X Tire & Auto is another significant brand in Monro's portfolio, with a presence in various regions. Monro operates many Car-X stores and also supports franchised locations under this name. These centers offer a comprehensive suite of automotive repair and tire services, emphasizing quality service and value. The inclusion of Car-X allows Monro to leverage established local recognition while benefiting from the scale of a larger organization.
Tire Barn Warehouse
Tire Barn Warehouse locations primarily focus on tire sales and installation, along with services like wheel alignments. These stores are mainly situated in areas like Indiana. This specialized focus on tires allows Monro to cater to customers whose primary need is tire replacement or maintenance, complementing the broader service offerings of other brands. Tire Barn Warehouse is a key part of Monro's strategy to be a comprehensive provider of tire solutions.
Monro Commercial Solutions
This segment, also known as McGee Commercial Tire & Services in some areas, specifically targets medium and heavy-duty trucks. They offer tire sales and service, mechanical maintenance, and repair work tailored for commercial fleets. This business line is crucial for serving a different market than the typical passenger car owner, providing essential services to businesses that rely on their trucks for operations. It represents a specialized but important revenue stream for Monro.
What management is betting on now
Monro's current strategic focus is on improving the day-to-day operations within its existing stores and enhancing the customer experience. Management is working to make service more consistent and to increase the number of customer visits that result in completed work, as even small improvements here can significantly boost profitability. They are also concentrating on improving the profitability of their tire business by focusing on better product selection, procurement, and pricing strategies. The company is also undergoing a strategic review to explore various options, including potential asset sales or refinancing, to maximize shareholder value.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$16.76M
FY2025 Q2
$57.64M
FY2025 Q3
$7.91M
FY2025 Q4
$23.24M
FY2026 Q1
$-9.34M
FY2026 Q2
$26.61M
FY2026 Q3
$9.13M
FY2026 Q4
$12.39M
Revenue
$273.84M
Net income
$-6.58M
Diluted EPS
-0.22
Operating cash flow
$22.22M
Free cash flow
$12.39M
Fetching…
Sources
Revenue
$293.39M
Net income
$11.14M
Diluted EPS
0.35
Operating cash flow
$17.82M
Free cash flow
$9.13M
Fetching…
Sources
Revenue
$288.91M
Net income
$5.67M
Diluted EPS
0.18
Operating cash flow
$32.34M
Free cash flow
$26.61M
Fetching…
Sources
Revenue
$301.04M
Net income
$-8.05M
Diluted EPS
-0.28
Operating cash flow
$-1.94M
Free cash flow
$-9.34M
Fetching…
Sources
Revenue
$294.99M
Net income
$-21.27M
Diluted EPS
-0.74
Operating cash flow
$28.92M
Free cash flow
$23.24M
Fetching…
Sources
Revenue
$305.77M
Net income
$4.58M
Diluted EPS
0.15
Operating cash flow
$14.79M
Free cash flow
$7.91M
Fetching…
Sources
Revenue
$301.39M
Net income
$5.65M
Diluted EPS
0.18
Operating cash flow
$62.56M
Free cash flow
$57.64M
Fetching…
Sources
Revenue
$293.18M
Net income
$5.86M
Diluted EPS
0.19
Operating cash flow
$25.64M
Free cash flow
$16.76M
Fetching…
Sources
Is it cheap or expensive?
Fair value $41.49 vs current price $13.41
Wall Street consensus is the average analyst price target: $21.75 (-47.6% lower than our fair-value estimate).
Our most-likely fair value is $41.49 a share — about 209.4% above today's price of $13.41, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $518.3M. Interest coverage 1.2x.
Net debt
$518.32M
Interest coverage
1.16x
Monro, Inc.'s profit covers its interest bill about 1.2 times over.
Stretched
Worse cushion
Baseline
Better cushion
MNRO
BASELINE
Monro, Inc.
Total debt $527.84M Interest coverage 1.16x This is the baseline the peer rows are being compared against.
Total debt $2.22B Interest coverage 2.14x +84% vs MNRO Carries about 1.8x more debt cushion than MNRO.
Total debt $8.21B Interest coverage 1.47x +26% vs MNRO Carries about 1.3x more debt cushion than MNRO.
Total debt $1.98B Interest coverage 5.65x +386% vs MNRO Carries about 4.9x more debt cushion than MNRO.
Total debt $5.63B Interest coverage 1.16x -0% vs MNRO Has roughly the same debt cushion as MNRO.
What you should know
The case for and against MNRO
3 Rewards
1 Risk
Rewards
-
Returns 1.4% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 8.3% with 22-year payout history.
Risks
-
Operating margin compressed from 6.0% to 0.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
60.95x
Forward P/E
30.90x
P/B
0.72x
P/S
0.37x
EV/EBITDA
10.95x
PEG ratio
4.64x
Profitability
How much profit each dollar creates
Gross margin
34.9%
Operating margin
0.8%
Net margin
0.7%
ROE
1.4%
ROA
0.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.91x
Current ratio
0.49x
Quick ratio
0.05x
Total debt
$527.84M
Total cash
$9.53M
Growth
How the business has been compounding
Revenue TTM
$1.16B
Revenue 5Y CAGR
-3.9%
EPS TTM
0.22
EPS 5Y CAGR
-70.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$70.44M
Free CF TTM
$38.78M
FCF margin
3.4%
Dividend
Shareholder payout
Yield
8.3%
Payout ratio
509.1%
Last ex-div date
2026-08-25